INTERNATIONAL TRADE AND CLIMATE CHANGE

Transcription

1 INTERNATIONAL TRADE AND CLIMATE CHANGE POLICY STATEMENT Key messages: The trade and climate change plicy regimes must be aligned and integrated t achieve the gals f the Paris Agreement and t advance internatinal trade. Implementatin: See Implementatin Radmap Dcument review: 31 December 2019 Dc. N /3 26 Octber 2018

2 Internatinal Trade and Climate Change Dc. N /3 Internatinal Trade and Climate Change Intrductin ICC is cmmitted t a rules-based multilateral trading system under the auspices f the Wrld Trade Organizatin (WTO). ICC is equally cmmitted t achieving the gals f the United Natins Framewrk Cnventin n Climate Change (UNFCCC), including the Paris Agreement and t meeting the United Natins Sustainable Develpment Gals (SDGs). We believe that ur cllective respnsibility t each ther and t ur planet necessitates that these multilateral agreements be supprted equally. Objective T advance internatinal trade while als addressing climate change and therwise achieving glbal sustainable develpment, ur rules, framewrks, institutins, and plicies must be aligned and integrated. They must be mutually cnsistent, mutually supprtive, and mutually reinfrcing. Recmmendatins Immediate attentin must be given by the Members f the WTO, by the Cnference f Parties f the UNFCCC, and by all thse wh wish t see ur glbal trade, climate, and ther sustainability effrts succeed, t ensure cncerted actin by aligning and integrating these imperative glbal effrts. The WTO must fulfil the cmmitment made n the first page f the WTO treaty t cnduct trade and ecnmic endeavur while allwing fr the ptimal use f the wrld s resurces in accrdance with the bjective f sustainable develpment, seeking bth t prtect and preserve the envirnment and t enhance the means fr ding s. In their natinal climate strategies, the parties t the Paris Agreement must heed the admnitin in the UNFCCC that [m]easures taken t cmbat climate change, including unilateral nes, shuld nt cnstitute a means f arbitrary r unjustifiable discriminatin r a disguised restrictin n internatinal trade. Trade rules must be mdernised t accelerate the pace and ambitin f climate actin and achieve the SDGs. Trade in sustainable gds and services must be accelerated; The spread f new sustainable technlgies 1 must be sped up while ensuring needed prtectins fr intellectual prperty rights; Prductin and cnsumptin subsidies fr fssil fuels must be disciplined; A sectral agreement prmting sustainable energy must be cncluded; Trade plicy reviews must rutinely include examinatins f whether trade plicies achieve the aims f the Paris Agreement and the SDGs. T enable ambitius climate actin, trade rules must supprt putting a price n carbn. Carbn pricing is essential t identifying and pursuing market-based slutins t address climate change by encuraging the necessary transitin t a lw-carbn, and ultimately n-carbn, glbal 1 Transfrmative new technlgies are urgently needed t help transitin t the lw-carbn and eventually n-carbn ecnmy that is crucial t addressing climate change and achieving the SDGs. Tgether, the spur f cmpetitin prvided by trade and the mre efficient allcatin f resurces resulting frm trade help inspire innvatin. A mre efficient use f resurces frees up mre resurces fr making mre investment. New ideas emerge in a new ecnmic setting. New ideas becme new technlgies. Internatinal Chamber f Cmmerce 1

3 Internatinal Trade and Climate Change Dc. N /3 ecnmy. Carbn taxes ught t be cnsidered by WTO Members as eligible fr brder tax adjustments under WTO rules. WTO Members shuld explre a climate waiver permitting natinal climate measures that restrict internatinal trade in prducts based n the amunt f carbn and ther greenhuse gases used and emitted in making them. Of all pssible trade refrms t cnfrnt the unique challenge f climate change, a WTO climate waiver wuld arguably d the mst t cunter climate change at the least risk t the basic fundatins f the WTO trading system, prvided that it is nt used as a prtective measure. The adptin f a climate waiver wuld: nt change basic trade rules, including requiring nn-discriminatin in trade, which wuld cntinue t apply generally; waive what wuld therwise be the applicatin f the trade rules fr trade-restrictive measures taken in furtherance f natinal cmmitments made under the Paris Agreement. be timely nw when cuntries are beginning t enact dmestic measures t fulfil their natinal pledges under the Paris Agreement and are starting the prcess als f cnsidering and cnstructing mre ambitius natinal climate actins. Trade rules must, in additin, be enfrced in ways that supprt addressing climate change and that further the SDGs. The UNFCCC must define the natinal climate respnse measures that can be taken in furtherance f natinal climate pledges made under the Paris Agreement, including thse that may legitimately restrict trade. With the benefit f this definitin, WTO judges will knw which natinal measures t acknwledge as entitled t an exceptin frm WTO rules s lng as they are nt applied in a way that cnstitutes arbitrary r unjustifiable discriminatin r a disguised restrictin n internatinal trade. Internatinal Chamber f Cmmerce 2

4 The Internatinal Chamber f Cmmerce (ICC) The Internatinal Chamber f Cmmerce (ICC) is the wrld s largest business rganisatin with a netwrk f ver 6 millin members in mre than 100 cuntries. We wrk t prmte internatinal trade, respnsible business cnduct and a glbal apprach t regulatin thrugh a unique mix f advcacy and standard setting activities tgether with market-leading dispute reslutin services. Our members include many f the wrld s largest cmpanies, SMEs, business assciatins and lcal chambers f cmmerce.

5 Internatinal Trade and Climate Change Dc. N / Implementatin Radmap Purpse f the paper Primary audience Backgrund Prvide recmmendatins n the steps needed t align the trade and climate change plicy regimes Gvernments Trade and climate change are bth key strategic pririties fr ICC. ICC started wrking n trade and climate change nexus in earnest in January 2018 when we cnvened a meeting between the heads f the WTO, UN Envirnment, and several trade, climate and freign ministers in Davs. ICC, with the gvernments f Canada and France, was als invlved in a majr event in Geneva n 2 Octber 2018 as part f the WTO Trade Dialgues. Key messages ICC is equally cmmitted t the UNFCCC, including the Paris Agreement, and t multilateral trade. The IPCC Special Reprt n 1.5 C released n 8 Octber 2018 shws that we are nt n a pathway t achieving the Paris Agreement gals f limiting glbal temperature rise t well belw 2 C (we are currently n a 3 C trajectry t 2100 with warming cntinuing afterwards). T avid the wrse effects f climate change, we need t limit temperature rise t 1.5 C and ding s will require rapid, far-reaching and unprecedented changes in all aspects f sciety. Currently, the trade and climate change plicy regimes perated in relative sils. Integrating these regimes and mdernizing trade rules t reflect the climate change imperative wuld help t achieve the 1.5 C gal. ICC recmmends a number f actins t be taken t integrate trade and climate change regimes, as set ut in this plicy paper, including: - Trade rules need t be mdernised t achieve the aims f the Paris Agreement and the SDGs; - Trade rules shuld supprt putting a price n carbn - Cnsider carbn tax eligibility fr brder tax adjustments Internatinal Chamber f Cmmerce 1

6 Internatinal Trade and Climate Change Dc. N / - Explre the adptin f climate waivers Milestnes Q1/Q2 - Develp recmmendatins n aligning trade and climate plicies in Natinally Determined Cntributins January 2019 (Davs) Cnvene a high-level rundtable at Davs with Rbert Azevêd, Patricia Espinsa, key trade ministers and business leaders t: (i) present the findings frm the Ecnmist Intelligence Unit reprt cmmissin by WTA and (ii) discuss hw t align the trade and climate change regimes. March 2019 ICC Academy webinar n trade and climate change April 2019 (Wrld Bank / IMF) Fllw-up meeting between Jhn Dentn, Rbert Azevêd and Patricia Espinsa n sideline f Wrld Bank / IMF meetings t discuss cncrete actins and next steps. 23 September 2019 (United Natins Secretary General s Climate Summit) ICC t present key recmmendatins and launch initiative framed arund a cncrete cmmitment (t be develped). Onging thrughut 2019/2020 Wrk prgramme with France and Canada n trade and climate change, leading up t a highlevel stcktaking event at MC12 in Astana frm 8-11 June Wrk prgramme wuld include in-depth seminars n specific issues related t trade and climate change. Date t be reviewed 31 December 2019 Internatinal Chamber f Cmmerce 2