WTO Members Advance Talks on Trade and Climate Transparency

WTO members meeting on 26 February under the Committee on Trade and Environment (CTE) agreed to step up work on the trade–environment nexus, with a particular focus on trade-related climate measures and improved transparency.

The discussions, held in both informal and formal formats, included a stocktake by outgoing Chair Ambassador Erwin Bollinger of Switzerland and consideration of next steps for 2026.

Chair's Stocktake Highlights Progress

In his final meeting after a two-year tenure, Ambassador Bollinger presented a factual overview of the CTE's recent activities, including thematic and interactive sessions covering sustainable agriculture, environmental technology transfer, the energy transition, and trade and climate measures.

Members welcomed the value of these formats — alongside Trade and Environment Week and regular CTE meetings — in fostering candid exchanges, peer learning and deeper shared understanding, particularly on transparency of climate-related trade measures.

Some members proposed deepening discussions on topics of sustained interest, while others called for broadening the agenda to include emerging environmental challenges.

Based on the Chair's report and feedback received, members formally took note of his communication and agreed to continue structured engagement in 2026.

Voluntary Pilot on Climate Measure Transparency

A key outcome was members' agreement to begin voluntary information-sharing on trade and climate measures on a pilot basis, starting from the next CTE meeting in June.

The exercise may include measures requiring the calculation of embedded carbon emissions in traded goods.

Japan's proposed template (WT/CTE/W/271) was viewed by several members as a useful starting point for structuring the voluntary disclosures. Japan stressed the template would not alter existing WTO rights or notification obligations but could complement them.

Members also emphasized:

• The need to consider the development dimension in climate-related trade measures

• The importance of assessing potential impacts on market access for developing countries

• The importance of technical assistance and technology transfer for least-developed members

Concerns Over Proliferation of Carbon Standards

China (WT/CTE/W/270) raised concerns about the growing number of carbon standards globally, warning of risks of regulatory fragmentation and increased compliance costs.

It proposed:

• A mapping exercise to gather relevant information

• A dedicated session during Trade and Environment Week in June

• A thematic discussion within the CTE to complement existing work

Several members echoed concerns about fragmentation and stressed the importance of international standards. Others cautioned against duplication of work conducted in other WTO committees or international fora.

Calls were also made for stronger participation of African and developing countries in international standard-setting processes.

Updates from COP30 and Other Initiatives

Members received updates from the UN Framework Convention on Climate Change (UNFCCC) Secretariat on outcomes from COP30, held in Belém in November 2025. The WTO Secretariat reported on its participation in selected sessions.

Brazil, as COP30 Presidency, and Australia briefed members on the newly launched Integrated Forum on Climate Change and Trade (IFCCT). Ecuador updated members on the Coalition of Trade Ministers on Climate.

The WTO Secretariat also presented the latest Environmental Database (WT/CTE/EDB/24), focusing on trade measures related to waste and recycling, and provided an update on 2025 technical assistance and capacity-building efforts.

Preparing for MC14

Members were briefed on progress in several member-led environmental initiatives ahead of the 14th Ministerial Conference (MC14), including:

• The Dialogue on Plastics Pollution and Environmentally Sustainable Plastics Trade (DPP)

• The Trade and Environmental Sustainability Structured Discussions (TESSD)

• The Fossil Fuels Subsidy Reform (FFSR) initiative

These initiatives continue to serve as platforms for advancing practical outcomes on environmental sustainability within the WTO framework.

Building Momentum Toward 2026

The February meeting signals growing momentum to bridge trade policy and climate action, with transparency emerging as a central theme.

While voluntary and pilot-based for now, the new information-sharing exercise reflects members' recognition that climate-related trade measures are expanding and require structured dialogue to balance environmental objectives with development concerns and open trade principles.