Report
from Meeting on 13th May on Trade and Climate
Interesting speakers were:
Notaro , DG Environment, outlined the many conferences in the run-up to Copenhagen
Thomas Ruddy asked about whether the climate dossier will go to DG Energy. Answer: no decision before summer.
Sugathan, ICTSD, Geneva, spoke on Environmental Goods and Services (EGS) and IPRs. He referred to a 2008 study by Jha (PDF) and a forthcoming study by her on renewables (PDF).
He also referred to new studies by Barton and Abbott,
respectively. However, neither IPRs nor tariff reductions proved
decisive in mitigating climate change.
Holm, Swedish Nature Conservation, Sweden, dared to challenge the Commission's Global Europe strategy.
Czaga, DG Trade, concluded that granting sweeping exceptions from
patent protection to developing countries wouldn't matter as a means of
mitigating climate change; instead technical capacity, market size and
purchasing power do. Use economic instruments instead.
Thomas Ruddy posed the question as to what happens if, as speakers
confirm, tariffs don't matter; patents don't matter. What does
matter is investment. Impose emission limits; investment in clean tech.
will follow. We need a global contract a North-South agreement on
burden sharing and co-financing. We must therefore use diplomacy. If
all else fails in Copenhagen in December, must we fear Border
Trade Adjustments (BTA) and an emphasis on competitiveness that could
cause a trade war?
Answer from Czaga: The Commission is aware of the problem of carbon
leakage. Thre are various possible outcomes: the outcome from
Copenhagen may not be positive, in 2010 a
decision will be made on a BTA, an adjustment may be made to the
free
allocation of carbon permits for energy-intensive industries. The
latter development with free allocation had been criticized by WWF as
described in the press citing Susanne Droege of Climate Strategies.
Further related activities: A conversation on policy
incoherence will be held with senior WTO mission officials and senior WTO staff on
16 June in Geneva. In conjunction with the Graduate Institute of
International and Development Studies and the Institute for Governance
and Sustainable Development, a representation of the GPC2009 project is
hosting a briefing on its work looking specifically at coherence in the
trade-climate nexus.
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