Trade and Environmental Sustainability at MC12

Your Excellencies, dear Ngozi, dear Pamela, Ladies and Gentlemen,

Dear friends,

It is a great honor to address you, as Secretary General of UNCTAD, in this joint event on Trade and Sustainability. As I have mentioned in the past, many hinges on this Ministerial Conference, and so I take this opportunity to wish the WTO, and all ministers present, the greatest success in the days ahead.

In the context of the climate crisis and the COVID-19 pandemic, much effort has been put not only in understanding the link between the trading system and the climate policy but in finding ways to promote them both. This, indeed, was the case in UNCTAD15, our recent Ministerial Conference on Trade and Development, where member countries recognized that sustainable trade will be key in producing sustainable development.

The Ministerial Statement on Trade and Environmental Sustainability, currently co-sponsored by more than 60 Members, reiterates the importance of expanding the opportunities for “environmentally sustainable trade in an inclusive and transparent way… that reflects the circumstances of the diversity of the WTO’s membership and their specific development needs.

Sustainability will only be achieved if measures are feasible, equitable, and effective to all.

COP26 has given the world a new global agreement - The Glasgow Climate Pact. Implementing the agreement will require unprecedented levels of cooperation in economic and trade policy. Supporting the implementation of NDCs; energy transition in developing countries; trade in environmental goods and services; climate adaptation and economic diversification; sustainable manufacturing, deployment of carbon-neutral technology, and nature-based solutions – in all these areas the multilateral trade system has a big role to play.

Three initiatives are presented at MC12 that require increased cooperation:

1. The Joint Ministerial Statement on Fossil Fuel Subsidy Reform
2. The Informal Dialogue on Plastic Pollution
3. and the Trade and Environmental Sustainability

The Joint Ministerial Statement on Fossil Fuel Subsidy Reform based on the Glasgow Pact, to phase down coal and phase out fossil fuel subsidies –two key issues that had never been expressly mentioned in a decision at climate talks before. These are complex but very important issues that will require huge efforts and ambition towards the COP in 2022 in Egypt.

A second initiative is the Informal Dialogue on Plastic Pollution and Environmentally Sustainable Plastics Trade. Our estimates put the value of trade in plastics at US$1 trillion per year. This constitutes 5 percent of total merchandise trade. Sadly, however, approximately 76 percent of all plastic produced between 1950 and 2017 has become plastic waste, leading to a massive environmental problem both on land and at sea. Issues related to waste management, the circular economies and regulation will be essential for a more environmentally sound policy.

The third and last initiative I would like to highlight is Trade and environmental sustainability.

Building consensus on how we can make trade part of the solution remains a significant challenge. A fair, transparent, and inclusive dialogue will be essential for success. UNCTAD hopes to bring to these discussions the developing countries' perspective and how we can support developing countries - not hurt them – to advance towards sustainable trade and sustainable development.

We stand ready to strengthen our cooperation going forward. Again, I wish you all the greatest success and I thank you.