The Committee on Specific Commitments at the World Trade Organization (WTO) held a thematic session to examine the classification of environmental services. The session was proposed by Canada, which argued that the current frameworks for defining service classifications—based on the WTO Services Sectoral Classification List and the UN Provisional Central Product Classification system—are outdated and do not reflect the complexity of services related to the environment, sustainability, climate change, and the green transition.
Canada suggested that the session could help members better understand recent trade policy developments and analyses that use more modern approaches to classifying environmental services. Most WTO members agreed with Canada’s assessment and supported holding the session.
Mr. Sirapat Vajraphai of Thailand, Chair of the Committee, acknowledged the valuable insights provided by members and international organizations about their recent approaches to classifying environmental and related services. He cited examples such as definitions used in bilateral and plurilateral agreements, including the EU-New Zealand Free Trade Agreement and the Agreement on Climate Change, Trade and Sustainability (ACCTS), both of which use broad lists of environmental services. A co-facilitator from the Trade and Environmental Sustainability Structured Discussions also presented information about ongoing talks on this issue.
Members noted that these discussions align with the Ministerial Declaration adopted at the 13th Ministerial Conference by emphasizing the increasing role of services trade in tackling global challenges and revitalizing WTO efforts in this field. They expressed interest in further dialogue, especially on reaching consensus in classification matters and addressing national-level challenges.
The committee also continued its review of a communication from the United Kingdom that summarizes recent classifications of environmental and related services. The UK stated its intention to update this communication with insights from the thematic session and to identify key factors for determining classifications.
Members welcomed the UK’s analysis and its contribution to transparency on this topic. Some suggested that this work should remain within the Committee’s mandate. The Chair said he would consult with members before deciding on next steps.