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Enhancing Green Trade for Sustainable Development Goals

Discover how trade can drive achievement of SDGs through green products. Explore challenges, opportunities, and strategies for successful green exporting. Unlock your country's green export potential with UNCTAD's National Green Export Reviews.

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Enhancing Green Trade for Sustainable Development Goals

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  1. P166 Short Course for Permanent Missions in Geneva 12 April 2019 BETTER TRADE 4 THE SDGs: Using Trade as a Motor for Achieving the SDGs Session 1: Introducing the conceptual framework Robert Hamwey robert.hamwey@unctad.org

  2. How do we do this ? Using trade to support the SDGs…

  3. When we look only at “economy” when designing trade strategies we miss opportunities… Social Development Environmental Sustainability Economy

  4. UNCTAD NGERs, VSS and BioTradeprogrammes help you go further… Social Development Environmental Sustainability Sustainable Development

  5. ‘UN’ Green Economy Timeline 2030 Agenda Rio Summit WTO Doha Declaration Rio+20 2001 2012 1992 2015 Agenda 21 Sustainable Development Sustainable Development Goals SDGs Negotiations on Environmental Goods and Services Green Exports >>>>>>>>>>>>> UNFCCC, UNCBD >>>>>>>>>>>>>

  6. UN Member States have called for a greener economy… • International Agreements have called for sustainable development through… • a green economyin the context of sustainable development and poverty eradication • environmentally sustainable production and consumption

  7. UNCTADUnited Nations Conference on Trade and Development

  8. An important UNCTAD objective: Help interested developing countries to seize new green product export opportunities but what is a “green” product ?

  9. In relation to trade… Trade with Three Pillars green exports in the context of sustainable development and poverty eradication Equitable/Fair Trade

  10. There is no internationally agreed • definition/list of green products • Since the Doha Round started in 2002, WTO negotiators are unable to agree on a definition/list of environmental goods & services • Neither Rio+20 nor 2030 DA provide such a definition/list …We must look to the market to see what green products actually are

  11. Context: ‘Real Market’ Green Economy Timeline • Markets are becoming greener • Industry, governments consuming more environmental goods (technologies) and services • Consumers influenced by social media to green products • Consumers opting for organic and natural products (foods, beverages, cosmetics, clothing, medications, etc.) The global market for green products is very diverse, and although it remains relatively small, accounting for 15 to 20 per cent of the traditional market for any given product, it is growing rapidly and significantly faster than world trade. Sustainable Fisheries (incl. aquaculture) products ~25 $b Sustainable Timber Products ~70 $b Eco-fibers ~75$b Biotrade products ~5 $b Ecotourism ~380 $b In developing countries, most green products are produced in rural areas, so job growth benefits small producers and smallholders in poor rural communities.

  12. Tariff peaks and tariff escalation Non-Tariff Measures (NTMs) Limited mutual recognition and equivalence of national standards Lack of supportive national policies and institutions Many Challenges face Green Exporter… in addition to overcoming SPS and TBT measures…

  13. Need for investment, infrastructure Certification (VSS) is can be a long and expensive process… Substantial exports may deplete biodiversity Many Challenges face Green Exporter…

  14. We have several capacity building projects at UNCTAD to assist interested countries to address these challenges … • National Green Export Reviews (NGERs) • Voluntary Sustainability Standards • BioTrade

  15. Green Economy UNCTAD’s National Green Export Reviews (NGERs) seek to identify this policy path  Green production Environmentally & socially sustainable  Added Value Product diversification Global supply chain integration  Identify and target higher value consumers Market diversification

  16. First step in an NGER: Identify competitive green exports…

  17. Consumers and the market have been defining green goods for years

  18. Identifying competitive green exports… We use product space methodology* to find a country (A) competitive exports relative to other countries in the world (W) …based on Revealed Comparative Advantage or RCA: * see: http://atlas.cid.harvard.edu/ Method is based on national trade performance We need trade data

  19. Products Space of Terra 2015 Let’s take hypothetical Terra as an example Terra 2015 Terra 2015

  20. When we do this we can “preliminarily” identify several potentially promising green goods for export for any country…

  21. We can graph these results to analyze them… Terra Dynamic RCA (2012-2015)

  22. Terra Dynamic RCA (2012-2015) We can graph these results to analyze them…

  23. But this analysis alone does not help… you need a process to get resultsUNCTAD NGERs… Greening national economies one sector at a time

  24. 1) Country Request

  25. 2) Green Product Space Methodology Analysis … Competitive Green Exports … Lots of Trade Data …

  26. 3) 1st National Stakeholders Workshop Priority Products Selected National Team of Experts Selected Producers, Policymakers, Investors, Academic Experts, NGOs, Workers, Communities, Development Partners

  27. 4) National Team Study Proposes Action Plan History, Geography, Demography Infrastructure, Economy, Regulation, Institutions, Industry, Trade policy, Trade trends Report Prepared

  28. 5) 2nd National Stakeholders Workshop X Validate And Adopt Action Plan X

  29. 6) Implement Action Plan X Actions must… Seize Opportunities Address Challenges What ……Who……When What ……Who……When X What..Who..When

  30. A real national action plan …

  31. Results What Donors will do What UNCTAD will do National Action Plan What Exporters will do Adopted What the Government will do What you will do What Producers will do

  32. Goal of NGER Project … If the action plan is implemented, we can achieve the goal of enhancing production and export capacity for selected green products Which products have been our focus in UNCTAD NGER projects ?

  33. To date, we have focused on a variety of green products…

  34. …in a wide range of countries… Moldova Armenia Lebanon Morocco Oman Senegal Ethiopia Ecuador Vanuatu Angola Madagascar

  35. Does your country have competitive green exports ?New UNCTAD tool lets you look and see: • https://unctadstat.unctad.org/EN/RcaRadar.html

  36. If your delegation would be interested to implement an NGER in your country please let us know … … UNCTAD will work with you to secure financing to support your country’s NGER

  37. unctad.org/nger

  38. And many brown products have become greener…

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