The impact of trade on a green economy transition depends in large part on how trade policies are designed and applied. This policy brief shows that trade can be an overall driver in the transition to a green economy by helping to create and strengthen markets for sustainably produced goods and services.
However, the author shows that this requires fostering the exchange of environmentally friendly goods and services, and increasing resource efficiency. Otherwise, if managed poorly, unrestrained trade can contribute to environmental degradation, unsustainable resource use and increased wealth disparities.
The paper finds that the existence of national and institutional conditions to cope with the impact of liberalisation is of great importance. Consequently, in order to help creating an enabling environment for a transition to a green economy, it draws the following conclusions:
- it is important to strengthen the governmental, private sector and civil society capacity to analyse challenges, identify opportunities, mobilise resources, implement policies and evaluate progress
- there is a need for the international community to work towards harmonising environmental standards or promoting equivalency among standards across countries
- the successful finalising of the WTO Doha Round could offer opportunities to support a green economy transition
- nevertheless, this is conditioned to agreement in areas such as reduction or elimination of harmful fisheries subsidies, and reduction of tariff and non-tariff barriers on environmental goods and services
- likewise, an agreement on strengthening the relationship between the WTO and multilateral environmental agreements would be very vital
- in like manner, the liberalisation of environmental goods and services through regional and bilateral trade agreements can help create the right conditions for developing countries to move towards green economy
This summary was prepared by Eldis.