Download Trade and Climate Change

Current Developments in Domestic
Climate Mitigation Measures
Carbon footprinting and energy
efficiency labelling schemes and
relevant WTO rules and activities
Ludivine Tamiotti, Counsellor
Trade and Environment Division, WTO
[email protected]
Outline of presentation
Relevant Activities of the WTO
Relevant WTO rules
Carbon footprinting and energy efficiency
discussions in the WTO
Relevant Activities of the WTO
WTO/UNEP Report on Trade
and Climate Change
Economic
incentives
Regulatory
instrument
Key objectives
Key policy instruments
Internalize
environmental costs
Carbon tax, emissions
trading schemes
Promote development &
deployment of climatefriendly technologies
Financial mechanisms:
R&D, fiscal, price and
investment measures
Improve energy
efficiency and reduce
GHG emissions
Emissions and energy
performance standards
and labelling
WTO/UNEP Report on Trade
and Climate Change
Key objectives
Key policy instruments
Key WTO Agreement
Internalize
environmental costs
Carbon tax, emissions
trading schemes
GATT
Promote development &
deployment of climatefriendly technologies
Financial Mechanisms:
R&D, fiscal, price and
investment measures
SCM Agreement
Improve energy
efficiency and reduce
GHG emissions
Emissions standards,
labelling on energy
performance
TBT Agreement
WTO Specialized Committees
A negotiating forum
The core functions of the
WTO may have a place
in the trade and climate
change debate:
Specialized committees
The administration of a set of
rules
WTO Specialized Committees
2 WTO Committees are
directly relevant to issues
related to Carbon
footprinting and energy
efficiency
Committee on Trade and
Environment (CTE)
Committee on Technical Barriers
to Trade (TBT Committee)
WTO Specialized Committees
Committee on Trade
and Environment
(CTE)
General discussions of the
environmental benefits of removing
restrictions in the energy sector, the
forestry sector, the effect of energy
efficiency labelling on market access
Specialized discussions on Carbon
Footprinting in 2010: exchange of
national experiences, briefings by
international institutions
WTO Specialized Committees
Committee Technical
Barriers to Trade
(CTBT)
In recent years the TBT Committee
discussed a number of product
standards and labelling requirements
targeted to energy efficiency or
emission control
Fuel economy standards for cars
Examples of regulations
discussed so far include:
Eco-design requirements for energyusing products
Energy efficiency programmes for
consumer products
Emission limit values for diesel engines
Relevant WTO Rules
Philosophy of the TBT Agreement
Right to Take
Regulatory
Measures
Avoid Unnecessary
Obstacles to Trade
Key principles
Agreement on Technical Barriers
to Trade / GATT
Non discrimination
Key principles
include
Avoidance of unnecessary
trade barrier
Harmonization
Non-Discrimination
Treatment no Less Favourable to
Like Products
Originating
Of national origin
National
Treatment
From any other country
Most-Favoured
Nation (MFN)
Philosophy of the TBT Agreement
Stated Preference for
International Standards
International Conformity
Assessment Procedures
Avoid unnecessary obstacles to trade
National security
requirements
Article 2.2
Protection of human
health or safety
Legitimate
objectives
Protection of animal
or plant life or health
Article 5.1.2
Protection of the
environment
Prevention of
deceptive practices
…Inter alia…
Carbon footprinting and energy
efficiency discussions in the WTO
Global Proliferation of PCF – Key
Examples of National Schemes
All follow ISO lifecycle analysis principles and harmonizing with ISO
14067, but with specified methodologies (and labels)
•
UK – PAS 2050
–
–
Carbon Trust, Carbon Reduction Label
Becoming a world standard
•
•
used by companies in United States, China, Korea, Australia, etc
Japan – TS Q0010
–
–
–
•
Reliance on PCR
July 2010 revision following road testing
Pilot project 2009-2011
France – BP X30-323
–
–
–
Multi-criteria, Mandatory?
Road testing starting 1 July 2011
Multiple labelling formats will be tested by firms in 2011 trials
Other Emerging Government
Schemes
• Korea – Korea Carbon Footprint Label
• New Zealand – National GHG Strategy for
agricultural exports
• Chile – wine, agricultural goods
• Thailand – Carbon Reduction Label and Carbon
Footprint Label
• Chinese Taipei – Carbon Label
• Singapore – Singapore Carbon Label
• China – carbon footprint label on sea scallops
24 October 2010
Concerns expressed in the CTE
Lack of transparency
Cost of conformity assessment
Lack of harmonization
Harmonization is underway on methodology (for
government schemes), but labels and
communication of claims of vary greatly
Concerns expressed in the CTE
Market access impacts of the
proliferation of private standards
Non-neutrality of CFP
methodologies
Confusion of consumers created
by multiple labelling schemes
Key Characteristics of Emissions/
energy efficiency standards
Emissions/ energy efficiency
standards and regulations can be…
Based on design
Based on performance
Best used when few options
for controlling emissions
Prevalent to improve energy
efficiency in appliances and
buildings  more flexibility
Japan’s Top Runner Program (the energy
performance of the most efficient model (e.g.
household appliances) on the market is used to set a
target for all manufacturers.
Key Characteristics of Emissions/
energy efficiency standards
Emissions/ energy efficiency
standards and regulations can be…
Based on design
Based on performance
Defining products
Defining processes
Mainly address energy efficiency
& emissions related to the use of
the product
May result in direct environmental
outcomes, as they improve energy
efficiency or limit emissions to a
certain level during production
Key Characteristics of Emissions/
energy efficiency standards
Emissions/ energy efficiency
standards and regulations can be…
Based on design
Based on performance
Defining products
Defining processes
Mandatory
Voluntary
Minimum Energy Performance
Standards (MEPS) for
appliances (Australia)
ENERGY STAR
(United States)
Key Characteristics of Emissions/
energy efficiency standards
Emissions/ energy efficiency standards
and regulations can be…
Based on design
Based on performance
Defining products
Defining processes
Mandatory
Voluntary
Public
Private
Minimum energy-efficiency
performance standards for major
domestic appliances (Canada)
Leadership in Energy and
Environmental Design (LEED) in
the building sector (United States)
Key compliance tools: Labelling
Most OECD countries (energy-efficiency
labelling)
Scope
Many non OECD countries, e.g. South
Africa, Argentina, Sri Lanka and Tunisia
Also examples of voluntary energy labelling programmes for household
appliances (E.g. Thailand, Hong Kong, China, India, Brazil)
Key compliance tools: Labelling
Most OECD countries (energy-efficiency labelling)
Scope
Many non OECD countries, e.g. South Africa,
Argentina, Sri Lanka and Tunisia
Product’s energy performance/emissions levels
while in operation
Information
covered
e.g. EU, Australia, Canada and US require energyefficiency labels for several household appliances
Product’s entire life-cycle, including its energy
efficiency
e.g. Nordic Swan, German Blue Angel and the EU’s
eco-label Flower
 The issue of food miles
Key compliance tools: Labelling
Comparative labels
 compare performance among similar models
Type of
instrument
e.g. for household appliances in
Australia, EU, Canada, US, Brazil,
Tunisia, China, Thailand and Korea
Endorsement labels
 Seals of approval assuring consumers that a
product meets certain criteria
e.g. Energy Star label (US), Brazil,
Thailand and China (Certificate for
Energy Conservation Product)
Key compliance tools:
Conformity assessment
to determine whether the requirements
in standards & regulations are fulfilled
Objectives
give consumers confidence in the
integrity of products
add value to manufacturers’
marketing claims
Key compliance tools:
Conformity assessment
Testing
Ex post efficiency testing on labelled appliances
(Electricity Generating Authority of Thailand)
Inspection
Type of
instrument
In the building sector, the Leadership in Energy and
Environmental Design (LEED) (US)
Certification
Mark that energy performance of regulated energyusing products has been verified (Canada)
Accreditation
Metrology
Environmental effectiveness
Increase in energy efficiency of
products, e.g. electrical equipment
Measurement
tools
In California, the energy use of refrigerators in 2000 was
more than two-thirds lower than in 1974 (energy-efficiency
standards are in place and regularly updated since the late
1970s)
Behavioural changes of consumers
and manufacturers
In the United States, recognition of the Energy Guide label
was found to be quite good; however understanding was
limited, with respondents unable to determine which
appliance was more energy-efficient, based on the labels
Current Developments in Domestic
Climate Mitigation Measures
Carbon footprinting and energy
efficiency labelling schemes and
relevant WTO rules and activities
Ludivine Tamiotti, Counsellor
Trade and Environment Division, WTO
[email protected]