Environmental Goods Agreement (EGA) negotiations – State of Play

Monika Hencsey, chief negotiator of EGA

DG TRADE Unit D1 Trade and Sustainable Development, GSP

03.06.2015

Disclaimer: All images and photographs in this presentation are used purely for purposes of demonstration and do not in any way commit any of the companies shown to, or imply their approval of, any of the proposed policies, actions or measures featured.

Green trade, growth and jobs

1) EU world leader in export and import of green technologies;

EU export - EUR 146 bn, 9% of EU total export (2013)

EU import - EUR 70 bn, 4% of EU total import (2013)

annual growth rate – more than 10 per cent in recent years (dynamic sector).

2) EU employment (DG EMPL Communication) : considerable job creation in green sector;

increase from 3 to 4.2 million (2002 and 2011) across the EU.

20% growth rate throughout the recession years (2007 to 2011).

3) Environmental benefits

lower trade costs of green technologies

their increased uptake

Historic steps towards liberalisation of green trade

DDA Ministerial Declaration, 2001:

Para 31(iii) “ the reduction or, as appropriate, elimination of tariff and non-tariff barriers to environmental goods and services.”

Asia Pacific Economic Cooperation (APEC), 2012: political commitment to reduce applied tariffs on 54 green goods to 5 per cent or less by the end of 2015;

Davos World Economic Forum statement:

24 January 2014

Launch of the Environmental Goods Agreement negotiations: July 2014

EGA Members

17 WTO Members

Original Members: EU, US, China, Australia, Canada, New Zealand, Switzerland, Norway, Korea, Japan, Chinese Taipei, Hong Kong China, Singapore, Costa Rica

newcomers: Israel, Turkey, Iceland

critical mass of trade

EGA negotiations are open to any WTO Member sharing similar level of ambition

Benefits for both industrialized and developing countries

EGA objectives

Make it easier to trade internationally in environmental goods and technologies that contribute to environmental protection, and in particular fight against climate change

1) Full elimination of tariffs

On a broad list of environmental goods

Building on the APEC list of 54 goods

2) Future oriented agreement

Revision clause on products (technologies changes)

Addressing other issues in the sector (NTBs, services)

3) MFN-based agreement once critical mass achieved

EGA timing

Commitment to "timely conclude the EGA negotiations"

Political opportunities of December 2015:

- UNFCCC climate negotiations in Paris (30 Nov - 11 Dec)

- 10th WTO Ministerial in Nairobi (15-18 Dec)

- Sustainable Development Goals

High on the political agenda

EU Climate and Energy Package, and roadmap to UNFCCC COP in Paris

President Obama’s climate action plan 2013

China and environmental protection

Where are we now?

First stage of negotiations completed

6 rounds - product nominations in 10 environmental categories

solid and hazardous waste management

air pollution control

water waste management and water treatment

cleaner and renewable energy (solar, wind, biomass, hydro, etc.)

energy efficient products

resource efficient products and technologies;

noise and vibration abatement

clean-up or remediation of soil and water

environmental monitoring and analysis

input from international experts (international organizations, national agencies, industry, business associations, NGOs, etc.)

Next steps

Second stage of negotiations just started

7th round 15-19 of June: start building a common list

positive process

focus on the support of product nominations by other members

guided by environmental credibility

no detailed qualitative or quantitative criteria for selecting of products but most respect principles agreed

role of the Chair in arbitration

In parallel: work on the text of the agreement (including review clause, services, NTBs)

What is an environmental good?

Common principles, exchange of lists

environmental end-use (no international methodology for LCA)

contributing to multiple environmental categories

part of a system (e.g. waste management chain)

main product + its parts

complementary to APEC list

Industrial goods with major focus on industrial applications, a few consumer goods

customs classification challenges: implementability at the border vs. precise targeting of an environmental good

HS 8483.40

Wind turbine gearboxes

HS 8428.33 waste conveyors

HS 8428.90 material handler

HS 8462.91 shredders, balers, compactors for waste metals

HS 8474.10, HS 8474.39, HS 8474.90 - machinery for sorting, washing mineral substances, and parts

HS 8505.90 magnetic pulley

HS 392510 waste containers

HS 8421.19, 8421.91 Oil skimmers

HS 7008.00

Multiple-walled insulating units of glass

HS 8418.61 and 8418.99

Heat pumps and parts

HS 9032.10

• Thermostats

HS 8413.20 Hand pumps

Stakeholders consultations

INTA hearing on green goods – March 2013

Civil society meeting – June 2014

Public consultation – July 2014

INTA technical brief – April 2015

Regular stakeholder events in Geneva (industry, think thanks, NGOs)

Exchange of views with international experts in the EGA negotiations

Sustainability Impact Assessment on Green Goods - 2015

- Draft Inception Report – 25th March

- SIA Civil Society meeting - 25th March

- 2 regional stakeholders' seminars: in Mexico and Vietnam

Commissioner's stakeholder event on EGA – 3 June 2015 (Green Week)

Thank you!

DG TRADE Unit D1,

GSP and Sustainable Development

TRADE-D1@ec.europa.eu

DG TRADE website: http://trade.ec.europa.eu/doclib/press/index.cfm?id=1116

SIA stakeholder questionnaire:

http://www.egatradesia.com/Stakeholder-Questionnaire