Thank you for the invitation from the Coalition of Trade Ministers for Climate. I am honored to be here today. Since its creation, the WTO Secretariat has been working closely with the Coalition and its Friends.
Ladies and Gentlemen, five years ago trade was not part of the climate conversation and climate was absent from trade discussions at the WTO. We have covered a lot of ground since then.
Yesterday we held a trade, finance, and investment (FIT) day here at COP in Baku and supported the launch of the BICFIT initiative. We are operating a Trade and Investment House jointly with all other international organizations responsible for trade.
The word climate has entered the WTO playbook, and our members are actively pursuing several tracks of discussions directly related to this question: how can trade policy better contribute to the objectives of the Paris agreement?
Along the way, we have built a lot of knowledge about trade and climate interactions.
We have established that global climate objectives for the planet will not be achieved without a properly functioning world trading system.
We have identified a broad array of trade policy tools that can be immediately leveraged to support climate objectives through reducing anti-climate distortions and incentives and promoting the dissemination of pro-climate goods and services. Yesterday, for instance, "the WTO DG made an inspiring plea for reforming 3 trillion dollars worth of subsidies which are directly funding unsustainable economic patterns." The SG of UNCTAD reminded us that there is "a global tariff bias favoring 'brown' products over 'green products'."
The WTO Secretariat has published several research publications providing concrete examples and suggestions for designing trade policies that can be integrated into future NDCs from countries participating in the Paris Agreement. We also supported actions from the private sector, such as steps by "the global steel industry to promote convergence of their decarbonization standards and methodologies."
So, "the case for change has been built," but what remains is using these tools effectively. "We are at a pivotal moment for climate, trade, and multilateralism," needing accelerated efforts to stay under 1.5 degrees Celsius.
Some countries have already started acting. A recent booklet highlights cooperation initiated by groups of members:
"The Coalition and its 62 members is a very significant move: The Agreement on Climate Change, Trade and Sustainability (ACCTS) concluded in July 2024 by Costa Rica, Iceland, New Zealand, and Switzerland represents another; Bilateral agreements such as the Singapore-Australia Green Economy Agreement; The Global Biofuels Alliance with 25 countries and 12 organizations."
Within WTO particularly, there are avenues like TESSD (Trade And Environmental Sustainability Structured Discussions), Dialogue on Plastics Pollution, Fossil Fuel Subsidy Reform initiative advancing trade supporting climate ambitions.
"The scale of crisis requires scaling-up responses from" us all. We need interoperability in design/implementation measures; accelerate green tech deployment via policies/promotion/investment/tech transfer/support capacity building/technical assistance e.g., Aid For Trade.
To conclude: warm thanks/congratulations Coalition bringing together today & leadership co-Chairs—Coalition Trade Ministers Climate heart mobilization.