Civil Dialogue on a Local Level– Experiences and Implementation in the City of Skopje
Civil Society Dialogue on the Draft Final...
Transcript of Civil Society Dialogue on the Draft Final...
Civil Society Dialogue on the Draft Final Report Monday 1st February, 2016
TRADE14/D1/D16
Environmental Goods Agreement Trade SIA- Final Steering Committee
Project Team to present for feedback the Draft Final Report including results of stakeholder outreach activities
• Presentation of Final Report – Assessment of key barriers to trade in environmental goods and
services and potential impacts of liberalisation of trade under the Environmental Goods Agreement
– Feedback from stakeholder outreach
– Case study analysis
– Sectoral analysis
• Timeline for final phase of the project
• Feedback and discussion
Overview
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Environmental Goods Agreement Trade SIA- Final Steering Committee
• Published online 20th December 2015
• Advertised via to stakeholder network of 1,496 people
• Since launch, our website has had 4,853 additional page views (total since March 2015: 35,470)
Draft Final Report
TRADE14/D1/D16
Environmental Goods Agreement Trade SIA- Final Steering Committee
Draft Final Report: Introduction
Introduction
Trade SIA as part of the three stage assessment process for international trade agreements
Three complimentary elements of this Trade SIA: 1. Desk research including interviews and input from senior
experts 2. Stakeholder outreach 3. Case study analysis
Key conclusions and policy recommendations
TRADE14/D1/D16
Environmental Goods Agreement Trade SIA- Final Steering Committee
Draft Final Report: Introduction
Research methodology
As the list of EGS was under negotiation throughout the course of the study, the project team based our study on primarily on two lists: The APEC EGs List (2012) and the Friend of Environmental
Goods List (2009) In addition, the econometric modelling conducted in house by
DG Trade included a list of goods that were in August 2015 under discussion in the EGA negotiations.
Complimentary studies that utilise other lists of EGs were referenced in the report.
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Environmental Goods Agreement Trade SIA- Final Steering Committee
EGA history and modality
The WTO and the Environment
The adoption of the ITA “list” modality
Progress in APEC and Friends of EGs
Defining “Environmental Goods”
Environmental Services
Interactions with other multilateral and regional
agreements
Status of the EGA negotiations and next steps
Draft Final Report: Background
Background section:
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Environmental Goods Agreement Trade SIA- Final Steering Committee
Potential socio-economic impacts of the EGA • Employment and wealth creation:
– Tariff barriers in the G-17 on product categories under discussion are already relatively low however important exceptions are driving up prices
– At the macro level, the potential effects of the EGA seem small ; however, could be significantly greater if adopted at a multilateral level.
• Impact on social welfare created by increased access to electricity, safe water, clean air and other resources
• Impact on Sustainable Development Goals (SDGs)
• Decent work impacts and CSR
Draft Final Report: summery of key conclusions
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Environmental Goods Agreement Trade SIA- Final Steering Committee
Econometric modelling results (I): Potential impact of the EGA on volumes of trade in EGs
Scenario 1: List of around 160 subheadings
Scenario 2: List of around 420 subheadings
Scenario 3: List of around 530 subheadings
Potential increase in the value of trade of 1 per cent, or EUR 8 billion An increase in the value of trade among the G-17 of 1.3 per cent, or EUR 8 billion in trade is projected upon the conclusion of the EGA negotiations
Potential increase in the value of trade of 0.9 per cent, EUR 18 billion An increase in the value of trade among the G-17 of 1.2 per cent, EUR 17 billion in trade is projected upon the conclusion of the EGA negotiations
Potential increase in the value of trade of 0.9 per cent, or EUR 21 billion An increase in the value of trade among the G-17 of 1.2 per cent, or EUR 20 billion in trade is projected upon the conclusion of the EGA negotiations
Draft Final Report: summery of modelling outputs
*Modelling conducted at a HS6 level, therefore should be considered an upper bound of potential impacts.
TRADE14/D1/D16
Environmental Goods Agreement Trade SIA- Final Steering Committee
Econometric modelling results (II): Potential impact of the EGA on the price of EGs and energy
Scenario 1: List of around 160 subheadings
Scenario 2: List of around 420 subheadings
Scenario 3: List of around 530 subheadings
Projected to result in a decrease in the prices of related goods by 0.8 per cent (worldwide average)
Projected to result in a decrease in the prices of related goods by 0.8 per cent (worldwide average)
Projected to result in a decrease in the prices of related goods by 0.9 per cent (worldwide average)
*Modelling conducted at a HS6 level, therefore should be considered an upper bound of potential impacts.
Draft Final Report: summery of modelling outputs
TRADE14/D1/D16
Environmental Goods Agreement Trade SIA- Final Steering Committee
Potential environmental impacts of the EGA
• Depends on scope and coverage of the EGA
• Important systemic impacts
• Shows that environment worthy of its own trade agreement
• Impact on GHG emissions: 0,1 – 0,9% (Wooders, 2009). For China: minus 0,8%
• IMF: removal of fossil-fuel subsidies would reduce global carbon dioxide emissions by 13%
Draft Final Report: summery of key conclusions
TRADE14/D1/D16
Environmental Goods Agreement Trade SIA- Final Steering Committee
Other benefits of the EGA
• GVCs: efficiency gains?
• Business interests (SMEs)
• - global alliance building
• - Mitigation of regulatory risk
• - Increased market volume and global scalability
• - Cash stays in local economy
• - Level playing field for open supply chains
• - Greater certainty and predictability
Draft Final Report: summery of key conclusions
TRADE14/D1/D16
Environmental Goods Agreement Trade SIA- Final Steering Committee
Policy recommendations (I): 1. In order to maximise the economic and commercial effects
from the EGA, focus should be on achieving full tariff elimination
2. Establish an effective permanent negotiation mechanism to implement the “living agreement”
3. Work to eliminate NTBs that are detrimental to trade in EGs, while maintaining high environmental standards that encourage the development of sustainable technologies, as well as harmonising international environmental standards.
4. Inclusion of enabling environmental services to products being liberalised under the EGA
Draft Final Report: summery of key conclusions
TRADE14/D1/D16
Environmental Goods Agreement Trade SIA- Final Steering Committee
Policy recommendations (II): 5. Establish a cooperation mechanism with the World
Customs Organization to ensure that future iterations of the HS nomenclature better reflect emerging and future environmental items
6. Cooperation with the TFA to consider EGA implementation issues for developing countries, in particular LDCs
7. Statement committing to the reduction of subsidies for conventional energy
8. Establish a 'roadmap' for the development of the EGA
Draft Final Report: summery of key conclusions
TRADE14/D1/D16
Environmental Goods Agreement Trade SIA- Final Steering Committee
Southeast Asia regional workshop, Kuala Lumpur, Malaysia September 10th 2015
• 34 participants from 7 countries
Singapore Malaysia Indonesia
Vietnam Thailand Myanmar
Cambodia
Stakeholder type Number
Government 18
IOs 2
Industry 6
NGO 7
Academia 1
Government NGO Industry
IOs Academia
Country Number
Malaysia 15
Singapore 6
Thailand 5
Vietnam 4
Indonesia 2
Myanmar 1
Cambodia 1
Stakeholder engagement: regional workshops
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Environmental Goods Agreement Trade SIA- Final Steering Committee
Latin America regional workshop, Mexico City, Mexico September 25th 2015
• 35 participants from 9 countries
Mexico Brazil Costa Rica Colombia
Jamaica Uraguay Chile Belize
Industry Government
NGOs IOs
Acedemia
Country Number
Mexico 18
Brazil 5
Costa Rica 3
Colombia 3
Jamaica 2
Uraguay 1
Chile 1
Belize 1
Guatemala 1
Stakeholder type
Number
Industry 18
Government 11
NGOs 3
IOs 2
Acedemia 1
Stakeholder engagement: regional workshops
TRADE14/D1/D16
Environmental Goods Agreement Trade SIA- Final Steering Committee
Workshop reports have been drafted and will be made available on the project website in the coming days.
Stakeholder engagement: regional workshops
TRADE14/D1/D16
Environmental Goods Agreement Trade SIA- Final Steering Committee
Elimination of tariff barriers facing environmental goods can contribute to their increased uptake, which will have benefits for many areas of environmental conservation and climate mitigation.
The EGA will create opportunities for stakeholders in developing countries (in particular SMEs) to participate more deeply in global value chains for environmental products.
The decentralised nature of renewable energy could encourage the electrification of remote and rural areas and contribute to providing access to sustainable energy for all (in line with Sustainable Development Goal 7).
The EGA will encourage the uptake of high-quality, imported products, creating business opportunities for local stakeholders, and providing greater options for business in choosing environmental products.
Workshop reports summery: potential opportunities of the EGA
Stakeholder engagement: regional workshops
TRADE14/D1/D16
Environmental Goods Agreement Trade SIA- Final Steering Committee
It is important to ensure that high-quality products are traded internationally
Good communication between developers and local communities should be maintained at all times
Potential customs issues should be resolved so that all stakeholders can fully benefit from the EGA
The harmonisation of environmental standards could be included in the EGA to even the playing field for all stakeholders
The framework and modality for the inclusion of future technologies needs to be further developed
Longer implementation periods for sensitive industries in developing countries may need to be considered
Summery: potential challenges for the EGA
Stakeholder engagement: regional workshops
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Stakeholder engagement
• Public meetings • Newsletters • March 25th meeting in
Beijing on investment • June 3rd Roundtable in
Brussels • Interviews
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Stakeholder engagement
• Website www.egatradesia.com has received 35,470 page views
• Linkedin Account has over 1,000 connections
• Twitter account has 132 followers
Online outreach
TRADE14/D1/D16
Environmental Goods Agreement Trade SIA- Final Steering Committee
Stakeholder engagement
• 73 submissions
• Both the developed and developing world were well-represented,
• Respondents were involved in a variety of fields related to environmental goods, and worked in nearly every major environmental goods and services sector
Questionnaire
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Environmental Goods Agreement Trade SIA- Final Steering Committee
Stakeholder engagement
Questionnaire reports is online, Annex III of the Draft Final Report
TRADE14/D1/D16
Environmental Goods Agreement Trade SIA- Final Steering Committee
Stakeholder engagement
Questionnaire feedback: Products which SHOULD be included:
Pipes
Rain water harvesting systems
Polyurethanes and polystyrenes for insulation
Paper products and machinery that helps to improve the efficiency of paper manufacturing
Water purification systems
Air quality assessment goods
Bioethanol and related products such as industrial sugar (Sugarcane ethanol)
Biomass
Nuclear technology
Chemical products belonging to HS chapters 28 – 39
Only final goods/end-products for an exclusive environmental use should be included
Bicycles and bicycle parts
Products which should NOT be included:
Biofuels and bioethanol
Wastewater management and water treatment facilities and services
Goods and services that have limited environmental impact
Bicycles and bicycle parts
Man-made fibres of chapters 54 and 55
Any product which is protected by anti-dumping measures
Nuclear technology
Goods without direct environmental applications
TRADE14/D1/D16
Environmental Goods Agreement Trade SIA- Final Steering Committee
Product Name HS Classification
Average of most recent MFN customs duties applied by G-17*
2013 MFN customs duty applied by Malaysia
Wall and roof insulation
HS 450410 (agglomerated cork)
2.2% 20%
HS 701931 (glass fibre)
3.1% 20%
HS 680610 (slag wool, stone wool)
2.8% 25%
Multiple walled insulating units of glass
HS 700800 3.9% 30%
Horizontal sunshading HS 392530 4.9% 20% R134a Chiller HS 841583 4.5% 15%
Case Studies
27 case studies under development, 20 drafts included in draft final report
Structure: 1. Product(s) background 2. Case study background 3. Tariffs and NTBs 4. Socio-economic impacts 5. Environmental impacts 6. Conclusion
HS code
Projected global price reduction from EGA
Projected global trade increase from EGA
680620 -0.5% 0.4%
741220 -1.2% 0.4%
840681 -2.2% 0.6%
841940 -3.0% 7.3%
842121 -0.7% 0.5%
TRADE14/D1/D16
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Case Studies
AIR POLLUTION CONTROL (APC) 1 Ceramic substrates and filters, China 2 Marine scrubbers
CLEANER & RENEWABLE ENERGY (CRE) 3 Solar Tuk-Tuks, Cambodia 4 Lake Turkana Wind Power Project, Kenya 5 Small solar lighting/ electrical equipment, Myanmar 6 Polysilicon for solar panel production, China 7 Small hydro, Colombia 8 Geothermal, Iceland
ENERGY EFFICIENCY (EE) 9 Heat pumps, Poland 10 Electric Motors with IE4 Standards 11 Building Energy Efficiency Project, Malaysia 12 Green Building Project, Milan Expo, Italy
ENVIRONMENTAL MONITORING AND ANALYSIS (EMAA) 13 Radiator thermostat, Poland 14 Emissions trading system, EU
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Case Studies
ENVIRONMENTALLY PREFERABLE PRODUCTS (EPP) 15 Renewable wood products, Finland 16 Coniferous Wood Products (wood pallets, plywood) 17 Bamboo flooring, Canada 18 Bioplastic, Italy
RESOURCE EFFICIENCY (RE) 22 Drip irrigation project, India 23 Sealing devices, Australia
SOLID AND HAZARDOUS WASTE TREATMENT (SHWM) 24 Medical and biohazard waste disposal, US 25 City wide recycling system, Germany
NOISE AND VIBRATION ABATEMENT (NVA) 21 Agglomerated cork for insulation, Portugal
ENVIRONMENTAL REMEDIATION AND CLEANUP (ERC) 19 Trawl net, Gulf region 20 Hydrocarbon sorbents for oils spill remediation, Australia
WASTEWATER MANAGEMENT AND WATER TREATMENT (WMWT) 26 Wastewater management and treatment facility, Israel 27 Desalination plant, India
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Environmental Goods Agreement Trade SIA- Final Steering Committee
Case Studies
High efficiency irrigation that reduces inputs and improves outputs
Andhra Pradesh, a large province in southern India, initiated a program to encourage farmers to adopt drip irrigation systems to replace inefficient flood irrigation.
The program led to significant water savings, and large crop yield increases.
Many farmers significantly improved their economic positions as a result of the adoption of drip irrigation technologies and practices
Drip irrigation, Andhra Pradesh Micro Irrigation Project, India
HS
Code
HS Classification Detail Average
customs
Duty, G-17
Customs
Duty,
India
3917.39 391739 - Tubes, pipes
and hoses
3.2%* 10.0%
3917.40 Tubes, pipes and hoses
fittings
3.8%* 10.0%
8424.81 Mechanical appliances
(whether or not hand-
operated) for projecting,
dispersing or spraying
liquids or powders
2.4%* 7.5%
8481.10 Taps, cocks, valves and
similar appliances for
pipes,
2.4%* 7.5%
* average of the G-17, excluding Switzerland which charges a per unit-weight duty
HS code Expected Price reduction
Expected Trade Increase, EGA
3917.39 -1.2% 0.4% 3917.40 -1.1% 0.8% 8424.81 -0.6% 0.1% 8481.10 -1.1% 1.8%
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Case Studies
During the initial stage of the spill, booms could be deployed to contain the oil slick before its dispersal. A boom is a barrier, which generally extends above and below the water.
Hydrocarbon sorbents were used to break down the oil.
Oil spill clean-up, Pacific Adventurer incident, Australia
* average of the G-17, excluding Switzerland which charges a per unit-weight duty
HS Code HS Classification Average
customs
Duty, G-17
Customs Duty, Australia
3909.50 Polyurethanes (hydrocarbon
sorbents)
2.2%* 5.0%
8413.60 Pumps for liquids 2.1%* 5.0%
8421.19 Filtering or purifying
machinery and apparatus,
for liquids or gases
1.7%* 5.0%
8907.90 Other floating structures (for
example, rafts, tanks,
cofferdams, landing-stages,
buoys and beacons)
2.9%* 5.0%
HS code Expected Price reduction
Expected Trade Increase, EGA
3909.50 -1.1% 0.7%
8413.60 -1.2% 0.6%
8421.19 -2.9% 1.8%
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Environmental Goods Agreement Trade SIA- Final Steering Committee
Case Studies
Bamboo products, such as plywood made from bamboo and bamboo furniture, are good carbon reservoirs; the fast-growing nature of bamboo means bamboo groves capture significantly more carbon per acre compared to commercial forests.
The bamboo used in the project required only 0.02 per cent of the energy resources used by steel to obtain one unit of building material with an identical load capacity
Bamboo is also an excellent carbon sink, even better than forests
Bamboo flooring and panelling, LEED Platinum Building, Hamilton, Canada
* average of the G-17, excluding Switzerland which charges a per unit-weight duty
HS Code HS Classification Average customs
Duty, G-17
Customs Duty,
U.S.
4418.79
Builders' joinery and carpentry of wood
2.2%* 3.2%
4409.21 Wood (including strips and friezes for parquet flooring, not assembled) … of bamboo
2.8%* 1.6% HS code Expected Price reduction
Expected Trade Increase, EGA
4418.79 -0.5% 1.4%
4409.21 -0.5% 0.6%
TRADE14/D1/D16
Environmental Goods Agreement Trade SIA- Final Steering Committee
Case Studies
Rural electrification with small hydro turbines and local grids, Rice Farms in Neiva, Colombia
* average of the G-17, excluding Switzerland which charges a per unit-weight duty
HS code Expected Price reduction
Expected Trade Increase, EGA
4418.79 -0.5% 1.4%
4409.21 -0.5% 0.6%
In Neiva (Magdalena river valley), local farmers must
use diesel generators power pumps to irrigate their
rice paddies. A significant proportion of their income
must be devoted to this.
Smart Hydro initiated a project, using a 4 kW
hydroelectric generator, supplemented by solar and
diesel, to power the irrigation pumps for a remote
rice-growing community.
HS Code
HS Classification Customs Duty,
G-17
Customs Duty,
Colombia 8410.11
Hydraulic turbines … of a power not exceeding 1,000 kW
2.4%* 0.0%
8504.40 Electrical transformers, static converters
1.7%* 1.7%
TRADE14/D1/D16
Environmental Goods Agreement Trade SIA- Final Steering Committee
Lake Turkana wind farm, Kenya
Case Studies
TRADE14/D1/D16
Environmental Goods Agreement Trade SIA- Final Steering Committee
Draft Final Report: sectoral analysis
Value of trade globally in sector(s) Major import and export economies Trends: Projected future growth/development
of sector Drivers: What is driving growth in this sector
(including environmental policy and regulation) Sector coverage by the EGA – incl. potential ex-
out issues
Air pollution control (APC)
Cleaner and renewable energy (CRE)
Energy efficiency (EE)
Environmental monitoring analysis and assessment (EMAA)
Environmental remediation and clean-up (ERC)
Environmentally preferable products (EPP)
Noise and vibration abatement (NVA)
Resource efficiency (RE)
Solid and hazardous waste management (SHWM)
Wastewater management and water treatment (WMWT)
Innovation in sector, particularly eco-innovation Other issues and challenges Links to other sectors Sector overview – country-specific: value of trade
within country of focus, including key product lines (ex-out relevance), trends, innovation, domestic players, legal issues, policy initiatives, quantitative analysis, other issues and challenges
TRADE14/D1/D16
Environmental Goods Agreement Trade SIA- Final Steering Committee
Timeline and planning for final phase of the project
Phase 3
February Minutes of the Civil Society Meeting available online
February Workshop reports available online
March Final Report available online
March 3rd newsletter, following publication of final report
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Environmental Goods Agreement Trade SIA- Final Steering Committee
Discussion and feedback
Contact the project team on: [email protected]
Website: www.egatradesia.com