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Exploring Linkages between Environmental Goods and Services

Exploring Linkages between Environmental Goods and Services. Presentation to the WTO Symposium on Trade and Sustainable Development within the Framework of 51 of the Doha Ministerial Declaration By Ronald Steenblik, OECD Trade Directorate. Geneva, 10 October 2005. Laboratory

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Exploring Linkages between Environmental Goods and Services

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  1. Exploring Linkages between Environmental Goods and Services Presentation to the WTO Symposium on Trade and Sustainable Development within the Framework of 51 of the Doha Ministerial Declaration By Ronald Steenblik, OECD Trade Directorate Geneva, 10 October 2005

  2. Laboratory glassware Pumps Valves Filters Meters Some proposed environmental goods … Photos source: http://www.sxc.hu/ Photos credits:■ Water pump: Greg Jacobsen; ■ Big valve: Cheryl Empey; ■ Gas meter: K. Fawcett; ■ Laboratory flask [“Liquid contained”]: Dain Hubley; ■ Air filter: Jaime Barber

  3. Solid waste management services Wastewater management services … and environmental services Photos source: http://www.sxc.hu/ Photos credits:■ Wastewater management: Sherry Wil; ■ Garbage 4: Jeinny Solis S.

  4. Snow removal Beach cleaning Street cleaning Environmental services(Sanitation services) Photos source: http://www.sxc.hu/ Photos credits:■ Beach cleaning: Rolf Esslinger; ■ Street sweeper: Tim and Annette; ■ Snow truck: Rui R.

  5. Air-pollution control and monitoring Nature and landscape protection services Noise and vibration abatement services Environmental protection services not elsewhere classified Remediation and clean-up of soil, surface water and groundwater Environmental services(Other environmental services) Photos source: http://www.sxc.hu/ Photos credits:■ Power plant [Industrial 8]: Kenn Kiser; ■ Sound meter: Stephen Gibson; ■ Golf course: Gary Tamin; ■ Oil spill crew[marea negra 4]: Mariano Lesser; ■ Chemical analysis: Ulrik De Wachter.

  6. Case studies • OECD engaged two consultants to find cases of exports of environmental services to private customers in developing countries. • Asked what “environmental” goods were used in connection with those services, and from where they were procured. • Asked were there any trade barriers?

  7. Example: multi-service contract • Client: Arcelor’s Vega do Sul plant (Brazil). • Service supplier: Veolia Environnement (France) • Contract: wastewater management, solid-waste manage-ment, process water, electricity, natural gas, industrial gases, compressed air • Goods: tanks, pumps, compressors, filters, valves and fittings, measurement instrumentation … • Provenance: estimated 75% procured locally • Import barriers: tariff exemption procedure activated, but process was “extremely long and difficult”

  8. Example: water & wastewater treatment • Client: Shanghai Chemical Industrial Park (China) • Service supplier: Sino French Water Development Co. Ltd. (France and Hong Kong) • Contract:production of 200,000 m3/day industrial water and 7,000 m3/day of potable water; treatment of various industrial effluents • Goods: tanks, pumps, compressors, filters, valves, monitoring instruments (manostats, pyrometers, …) • Provenance: tanks, valves, many instruments procured locally; 20-30% of pumps and compressors imported. • Import barriers: tariffs

  9. Example: soil remediation • Client: major manufacturer and retailer of cosmetics • Service supplier: Indonesian subsidiary of Environmental Resources Management (USA) • Contract:take over monitoring of groundwater pollution at former production facility, including installing new wells • Goods: bladder pumps, diffusion bags containing distilled water, filters, passive sorbent collection devices, bottles • Provenance: originally from Australia, more and more from Malaysia • Import barriers: tariffs

  10. Findings (1) • The market for environmental services is growing, driven by: • Ever tighter regulations • CSR and other private obligations • Desire of industrial clients to stick to core competencies • Contractual advantages of servicing multiple clients

  11. Findings (2) • Goods associated with environmental services • Frequent need for: hardware to move air, solids or fluids; to store fluids; and instruments • Imports of specialty items; local procurement of heavy equipment and more common items

  12. Findings (3) • Import barriers • Information is difficult to obtain (sensitive issue) • Experiences vary. Waivers of tariffs are not uncommon, but administratively burdensome when used • Trade facilitation is sometimes an issue

  13. For more information • www.oecd.org/trade • Steenblik, Ronald, Dominique Drouet and George Stubbs (2005) “Synergies between trade in environmental services and trade in environmental goods”, OECD Trade and Environment Working Paper No. 2005-01.

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