Download the full session summary (pdf, 63.2 kB)
Building trade policy on the back of domestic market instruments can provide the “first best" solution to ensuring a fully integrated system of “environmentally responsible trade", however doing so will require that a number of conditions are met. The ENTWINED panel sought to provide some guidance on what it would take to ensure “efficient" dovetailing of developed country trade policies and Chinese domestic efforts (China provided as an example of BRIC country issues more generally).
The panel started by
1. defining what is meant by a “market-based" environmental policy
2. Presenting the (high-level) economic case for the use of market-based environmental policy
3. Presenting how market-based instruments designed to deal with global environmental problems necessitate complementary trade policies to enable them to work
4. Provide some examples of trade policies designed to address this problem
5. Provide an overview of basic steps to ensure the WTO legality of such trade instruments (with reference to some examples)
Presentation by Jason Potts (pdf, 125.3 kB)
The second presenter provided a more detailed description (description of the functioning of these systems, what their precise objectives are and how they would operate if implemented) of two or three examples of the ways in which developed countries are either considering or in the process of designing trade policies to address the competitiveness issues raised by market-based environmental policies. This was followed by a summary of the expected economic effectiveness/implications of the two or three systems described.
Presentation by Carolyn Fischer (to come)
The third presenter provided a more detailed description of efforts being undertaken by China (eg. Developing/BRIC country perspective) to address climate change and how this interacts with and/or counterbalances the efforts being considered by developed countries. This presentation will provide a summary of the economic implications of the two approaches (Chinese led “non-trade" oriented and foreign led trade policy) to addressing climate change in the Chinese context.
Presentation by Mark Sanctuary (pdf, 125.8 kB)