Structured discussions

Trade and environmental sustainability *

The Trade and Environmental Sustainability Structured Discussions (TESSD) were launched in November 2020 to advance discussions on trade and environmental sustainability. TESSD discussions are intended to complement work in the Committee on Trade and Environment and other relevant WTO bodies and to support the objectives of the Marrakesh Agreement Establishing the WTO, which envisages a global trading system that protects and preserves the environment in accordance with sustainable development.

In a 2021 TESSD Ministerial Statement, co-sponsors recognized that international trade and trade policy can and must support environmental and climate goals, and agreed to identify concrete actions that participating Members could take individually or collectively to expand opportunities for environmentally sustainable trade.

Coordinated by Canada and Costa Rica, TESSD is open to all WTO Members and currently has 79 co‑sponsors participating in the discussions from all regions and at all levels of development.

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News

Participation

There are currently WTO Members participating in the Trade and Environmental Sustainability Structured Discussions, as co-sponsors of the initiative, including Members from all regions and at all levels of development.

TESSD is an inclusive and transparent initiative, where meetings are open to all Members. Stakeholders from the business community, civil society, academic institutions as well as other international organizations play an important role in TESSD, supporting discussions with their technical expertise.

Ambassador Michelle Cooper (Canada) and Ambassador Ronald Saborío Soto (Costa Rica) jointly coordinate this initiative.

Scope and state of play of discussions

TESSD discussions took place in plenary meetings and in four informal Working Groups on (i) Trade-related Climate Measures (TrCMs); (ii) Environmental Goods and Services (EGS); (iii) Circular Economy – Circularity; and (iv) Subsidies. Working Groups were led by facilitators, who reported back to TESSD plenary meetings.

At the WTO 14th Ministerial Conference (MC14) held in Yaoundé, Cameroon, from 26 to 30 March, TESSD co-convenors launched the MC14 Package, consisting of a Co-convenors Ministerial Statement (WT/MIN(26)/22), an overarching document titled "TESSD: Insights and Outcomes from Five Years of Work – A Co-Convenors' Report"(WT/MIN(26)/22/Add.1), and outcome documents from the four TESSD Working Groups.

Taken together, this Package offers a consolidated record of TESSD's substantive work and can be a useful reference for policymakers and stakeholders seeking to gain insights into the links between trade, climate and environmental policy.


The Report (WT/MIN(26)/22/Add.1) summarizes the first five years of TESSD work compiling Members' contributions and policy examples into a practical resource that illustrates how trade and trade policy can support the clean energy transition and the decarbonisation of industry and transport, as well as climate adaptation in sectors such as water management and sustainable agriculture.

In the Working Group on TrCMs, Members shared their experiences on how trade policy can be used to address climate change, including reducing industrial emissions, accelerating the shift to clean energy, and building resilience to climate impacts. The group also explored illustrative examples of how Members could work better together in this area.

At MC14, the Working Group presented a "Compilation and mapping of trade-related climate policies" (WT/MIN(26)/22/Add.2). The document provides an overview of a range of policy tools being adopted by TESSD co-sponsors, notably: carbon pricing; border carbon adjustments; taxes and incentives; regulatory measures; voluntary actions and cooperative initiatives; and trade preferences and sustainability-linked instruments. Moreover, it identifies four areas for enhanced cooperation: information sharing and dialogue; convergence on carbon measurement standards; mutual recognition of conformity assessment; and technical assistance, with particular attention to developing economies.

In the Working Group on EGS, Members adopted an objectives-based approach to explore how trade can help facilitate the deployment of goods and services needed to meet climate goals. Building on earlier work on renewable energy, the group broadened its focus to include climate mitigation and adaptation by adding two priority sectors: water supply and waste management, and sustainable agriculture. Discussions also addressed horizontal issues, including non-tariff measures, regulatory cooperation, trade facilitation, and approaches to identifying EGS. Member interventions were complemented by presentations from international organizations and industry stakeholders.

The group captured its work in two complementary outputs: an "Analytical Summary and Key Insights" document that distils its main findings (WT/MIN(26)/22/Add.3). The analytical summary covers relevant goods and services across the above-mentioned sectors, including their value chains, trade barriers, and supply chain bottlenecks affecting their deployment, from tariffs and divergent standards to skills gaps and infrastructure constraints. It also addresses development perspectives, highlighting challenges around finance, technology access, and quality infrastructure. It presents approaches for identifying EGS and a range of opportunities to facilitate their trade, including through transparency, regulatory cooperation, technical assistance, and improved market access. Finally, it includes indicative, non-exhaustive lists of relevant EGS in the different sectors discussed.

The Working Group on Circular Economy – Circularity adopted a sector-specific approach on how the integration of circular economy principles into international trade policies could foster more sustainable global trade, considering the entire lifecycle of a product. Members organized their work around six cross-cutting themes: transparency; standards and regulations; trade facilitation; waste management; capacity building; and technical assistance. Thematic sessions examined four priority sectors, namely textiles, renewable energy, batteries, and electronics. Each session combined Member contributions with presentations from international organisations, industry, and research institutions, exploring how trade policy connects to product design, reuse, repair, remanufacturing, and recycling across global value chains.

Building on these sessions, the group produced an outcome document named "Trade Aspects and Related Member Practices on Circular Economy"(WT/MIN(26)/22/Add.4) for MC14 that brings together trade aspects and Member practices on circular economy. It gives a horizontal overview of the six themes, then analyses each priority sector in turn, mapping the lifecycle, identifying where circularity gains are possible, and illustrating trade aspects with concrete Member examples. These range from Extended Producer Responsibility schemes and digital product passports to eco-design regulations, customs classification reforms, and waste shipment rules. The document also highlights capacity building initiatives supporting developing economies.

In the Working Group on Subsidies, Members shared experiences on how subsidies can support the transition to a low-carbon economy while minimizing trade distortions. Building on earlier discussions of agricultural and low-carbon transition subsidies, the group held thematic sessions on biofuels and sustainable aviation fuels, green industrial subsidies, critical minerals, decarbonization of energy-intensive industries and maritime transport.

The group's output for MC14, a "Compilation of Design Elements in Subsidies" (WT/MIN(26)/22/Add.5), reflects these discussions in a summary document. It covers considerations and experiences that Members reported in designing subsidies, including how to address market failures, scale support proportionately, apply it on a non-discriminatory basis, set time limits, and account for effects on developing Members. It pairs these with a mapping of current Member policies, offering a shared reference for Members on climate-related subsidy design, implementation and governance.

Meetings

2 October - TESSD workstreams meeting

6 July - TESSD Plenary meeting

28 January - TESSD Plenary meeting

8 December - TESSD Technical meeting

29-30 October – TESSD Informal Working Groups meetings

Working Group on Circular Economy – Circularity

Working Group on EGS

18 July – TESSD Plenary meeting

12-13 May – TESSD Informal Working Groups meetings

Working Group on Subsidies

Working Group on Circular Economy – Circularity

Working Group on Environmental Goods and Services

Working Group on Trade-related Climate Measures

10-11 March – TESSD Informal Working Groups meetings

Working Group on Environmental Goods and Services

Working Group on Circular Economy – Circularity

Working Group on Subsidies

4 December - TESSD Plenary meeting

29-30 October – TESSD Informal Working Groups meetings

Working Group on Trade-related Climate Measures

Working Group on Environmental Goods and Services

Working Group on Subsidies

Working Group on Circular Economy – Circularity

17-18 June – TESSD Informal Working Groups meetings

Working Group on Environmental Goods and Services

Working Group on Subsidies

Joint Session on Decarbonization of Buildings and Construction

Working Group on Circular Economy – Circularity

Working Group on Trade-related Climate Measures

15-16 April – TESSD Informal Working Group meetings

Working Group on Environmental Goods and Services

Working Group on Subsidies

Working Group on Circular Economy – Circularity

Working Group on Trade-related Climate Measures

25 January – TESSD Plenary meeting

2 December - TESSD High-Level Stocktaking Event

11 November

4-5 October – TESSD Informal Working Groups meetings

Working Group on Environmental Goods and Services

Working Group on Trade-related Climate Measures

Working Group on Circular Economy – Circularity

Working Group on Subsidies

19-20 July - TESSD Plenary meeting

Regional Experiences

Asia-Pacific

Africa

South and Central America and the Caribbean

17-18 May - TESSD Informal Working Groups meetings

Working Group on Environmental Goods and Services

Working Group on Trade-related Climate Measures

Working Group on Circular Economy – Circularity

Working Group on Subsidies

31 March and 11 April - TESSD Plenary meeting

Presentations

7 February

4 November

16-17 September

19 July

26-28 May

5 March

Documents submitted by WTO Members *

Date

Submitted by

Document number

1 May 2025

Costa Rica, Iceland, New Zealand and Switzerland (ACCTS Members)

INF/TE/SSD/W/36

23 May 2023

United Kingdom

 INF/TE/SSD/W/26
INF/TE/SSD/W/26/Add.1

23 March 2023

United Kingdom

 INF/TE/SSD/W/23

4 May 2022

United States

 INF/TE/SSD/W/19

16 July 2021

Australia

 INF/TE/SSD/W/16

14 July 2021

United Kingdom

 INF/TE/SSD/W/15

26 May 2021

Japan

 INF/TE/SSD/W/13

26 May 2021

Brazil, Ecuador, El Salvador and Paraguay

 INF/TE/SSD/W/12

6 May 2021

TESSD Coordinators

 INF/TE/SSD/W/11

22 March 2021

Japan

 INF/TE/SSD/W/10

3 March 2021

Australia; Korea, Republic of; Singapore

 INF/TE/SSD/W/9

5 February 2021

Korea, Republic of

 INF/TE/SSD/W/8

8 February 2021

European Union

 INF/TE/SSD/W/7

5 February 2021

United Kingdom

 INF/TE/SSD/W/6

12 February 2021

Iceland

 INF/TE/SSD/W/5

8 February 2021

Switzerland

 INF/TE/SSD/W/4

8 February 2021

Canada

 INF/TE/SSD/W/3

5 February 2021

Japan

 INF/TE/SSD/W/2

5 February 2021

New Zealand

 INF/TE/SSD/W/1
* The documents on this page relate to an initiative among a group of WTO members and are not part of a multilaterally agreed WTO process. Back to text

TESSD Overview in Two Pages

TESSD package for MC14

“TESSD is a trailblazer at the WTO”

Director-General Ngozi Okonjo-Iweala

“TESSD is an incubator of ideas and building bridges, supporting and complementing multilateral work”

Ambassador Ronald Saborío of Costa Rica, TESSD Co‑convenor

“Addressing the development dimension, including how trade can be a catalyst for investment, technology, infrastructure and capacity building, as well as a multi‑stakeholder approach are key for progressing towards concrete solutions to address environmental challenges”

Ambassador Nadia Theodore of Canada, TESSD Co‑convenor

“TESSD is a forum to share experiences, learn and borrow from replicable solutions and build domestic capacity through knowledge exchange”

Ambassador Matthew Wilson of Barbados

“TESSD has been a key initiative to address environmental sustainability within the multilateral trade framework, fostering the exchange of experiences and challenges that capture the diverse realities of its participants”

Ambassador Sofia Boza of Chile

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