WTO Committee on Trade and Environment Advances Discussions on Climate Measures and Interoperability

GENEVA — World Trade Organization (WTO) members gathered on 28 and 29 September for a Committee on Trade and Environment (CTE) meeting to address trade-related climate measures, regulatory interoperability, and emissions transparency, according to a note from the WTO Secretariat.

The regular meeting on 29 September was facilitated by CTE Chair Ambassador Ram Prasad Subedi of Nepal. It was preceded on 28 September by a thematic session focused on "trade-related climate measures, including interoperability and development aspects," co-moderated by Håvard Hugås of Norway and Nur Çagri Karabag of Türkiye. The session examined practical compliance challenges faced by governments and businesses—specifically regarding the steel sector—while exploring cooperative solutions and development considerations within regulatory frameworks and monitoring, reporting, and verification (MRV) systems.

During the session, Australia and China circulated an informal, non-official document for discussion, suggesting ideas on interoperability and potential follow-up actions within the CTE.

Members also received an update on a joint submission titled "Non-binding Guidance on Measures Requiring Measurement of Emissions of Goods Traded Across Borders," sponsored by Australia, Canada, Chile, Costa Rica, Israel, Japan, the Republic of Korea, New Zealand, and the United Kingdom. Co-sponsors stressed the need to enhance transparency and build shared understanding regarding carbon emission measurement methodologies in traded products.

In addition, the United Kingdom shared voluntary information regarding its upcoming Carbon Border Adjustment Mechanism (UK CBAM), which is scheduled to take effect on 1 January 2027. The submission utilized a standardized reporting template previously used by Japan and Australia. While members welcomed the transparency, several delegations raised questions and expressed concerns regarding potential market access impacts and compliance burdens for developing nations, least-developed countries, and small and medium-sized enterprises. Colombia provided an oral update on its domestic measure.

The committee also heard briefings on preparations for upcoming international environmental summits, including the UNFCCC COP31 in Antalya, Türkiye, and the Convention on Biological Diversity COP17 in Yerevan, Armenia. A review was also provided on outcomes from CITES COP20 in Samarkand, Uzbekistan.

The next CTE thematic session is scheduled for December 2026 to focus on environmental goods and services, followed by a regular committee meeting on 4–5 February 2027.

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