WTO Members Hold First Interactive Talks on Trade and Climate Transparency

“This platform offers members a chance to build shared understanding and engage in technical discussions — especially in areas where convergence has not yet been reached,” Bollinger stated.

 

Introduction: Trade and Climate Policies at the Forefront of WTO Dialogue

In a significant step towards aligning global trade with climate action, WTO members convened on 16 October 2025 in Geneva for the first-ever "interactive sessions" of the Committee on Trade and Environment (CTE). The landmark event focused on the complex interplay between trade policies and diverse carbon emissions-measurement methodologies, offering a unique platform for technical dialogue, peer learning, and consensus-building among WTO members.

Chaired by Ambassador Erwin Bollinger of Switzerland, the sessions brought together trade envoys and environmental policymakers in a collaborative environment to explore three priority areas: transparency, the development dimension, and interoperability and coherence of emissions-related measures. These themes reflect growing global concerns about how divergent climate policies may impact trade, particularly for developing and least-developed countries (LDCs).

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Ambassador Bollinger: Creating Space for Technical Convergence

Opening the session, Ambassador Bollinger stressed that the meeting was a result of extensive consultations since 2024, during which WTO members consistently expressed strong interest in deeper discussions on the interface between trade and climate policy. He clarified that the interactive sessions were not meant to produce formal outcomes or recommendations but were designed to foster informal, technical exchanges.

“This platform offers members a chance to build shared understanding and engage in technical discussions — especially in areas where convergence has not yet been reached,” Bollinger stated. “It is not intended to alter members' rights or obligations, nor to endorse any specific policy measure.”

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Breakout Groups Tackle Key Areas of Concern

The session was divided into four breakout groups, each facilitated by WTO Ambassadors speaking in a personal capacity:

• Ambassador Sofía Boza Martínez (Chile)

• Ambassador Clare Kelly (New Zealand)

• Ambassador Manuel Antonio Teehankee (Philippines)

• Ambassador Erwin Bollinger (Switzerland)

These small group settings allowed members to engage in guided discussions on the core themes of transparency, development challenges, and regulatory coherence, each of which has emerged as a potential sticking point in aligning climate policy with WTO rules.

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Transparency: Shedding Light on Emissions Methodologies

On the theme of transparency, participants discussed how to improve the clarity and accessibility of information related to the preparation, adoption, and implementation of environmental measures, particularly carbon accounting frameworks.

Members expressed concerns about the fragmentation of emissions-measurement methodologies, which can lead to confusion, regulatory uncertainty, and increased trade friction. Suggestions included the establishment of voluntary disclosure platforms, common reporting standards, and enhanced sharing of best practices to improve transparency without limiting members’ regulatory autonomy.

There was also a strong focus on transparency around alternative environmental approaches that may have less trade-restrictive impacts, particularly for agricultural and industrial exports from developing economies.

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Development Dimension: Addressing the Needs of Developing Countries

A central theme of the day was the developmental implications of new carbon measures. Many developing and least-developed country (LDC) members emphasized the financial, technical, and institutional barriers they face in implementing emissions-related policies.

Discussions focused on the need for:

• Flexibility in implementation timelines

• Capacity-building support

• Technology transfer

• Differentiated obligations based on national capabilities

Members explored whether new climate-related trade policies, such as carbon border adjustment mechanisms (CBAMs), could exacerbate existing inequalities unless accompanied by adequate support mechanisms. There was a call for climate justice to remain central to future WTO deliberations.

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Interoperability and Coherence: Minimizing Regulatory Friction

The third key area — interoperability and coherence — focused on the alignment of emissions-related standards and how to minimize regulatory and compliance burdens, particularly for small and medium-sized enterprises (SMEs) and exporters from developing countries.

Members explored potential pathways for aligning various domestic and international carbon measurement tools to avoid duplicative certification requirements, regulatory fragmentation, and non-tariff barriers.

Ideas raised included:

• Developing mutual recognition frameworks for emissions standards

• Promoting standardized methodologies with technical flexibility

• Encouraging collaboration between environmental and trade authorities

Many participants acknowledged that while harmonization may not always be feasible, enhanced interoperability and policy coherence could facilitate smoother trade flows and reduce tensions arising from climate-related regulations.

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Looking Ahead: Strong Appetite for Continued Engagement

In concluding the one-day retreat, Ambassador Bollinger praised the constructive and inclusive nature of the discussions, thanking members for their “fruitful engagement and openness.” He committed to presenting key takeaways from the event during the next Committee on Trade and Environment meeting on 4–5 November 2025.

Given the success of the October session, members expressed strong interest in organizing additional interactive events, with the next round tentatively scheduled for 5 December 2025.

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Navigating the Trade-Climate Nexus with Collaboration

The WTO’s first interactive session on trade and environment represents a crucial step in fostering dialogue and trust at a time when climate action is rapidly becoming a major factor in global trade policy. As countries develop divergent carbon regulations, the WTO is positioning itself as a forum where transparency, cooperation, and mutual understanding can help mitigate unintended trade frictions and promote inclusive climate-resilient growth.

While no formal outcomes were expected, the session reinforced the WTO’s commitment to informal diplomacy, technical exchanges, and member-led collaboration as tools for navigating complex 21st-century trade issues.