Trade liberalization benefits the environment and promotes a low-carbon economy

Climate change has become a global environmental challenge that requires collective solutions, multilateral cooperation, and concerted action based on the broader goals of the international community in terms of economic growth and sustainable development. Trade plays a crucial role in the global transition towards a low-carbon economy and a greener and more sustainable society, as part of the solution to achieve a low-carbon, resilient, and equitable transition. The World Trade Organization's 2022 World Trade Report explores the multifaceted relationship between international trade and climate change.

In order to better promote public understanding of the relationship between trade and climate change, and to better understand the progress of international negotiations on climate policy and trade-related aspects, authorized by the World Trade Organization, the Ministry of Commerce commissioned the China World Trade Organization Research Association to translate and publish the 2022 World Trade Report. The special seminar on 'Climate Change and International Trade' and the publication of the World Trade Report 2022 series was successfully held in Beijing recently. This event is jointly organized by the China World Trade Organization Research Association and China Business Publishing House.

Chong Quan, President of the China World Trade Organization Research Association, stated that the World Trade Report is the annual flagship report of the World Trade Organization, which conducts in-depth forward-looking analysis around an important theme in the international economic and trade field every year. It is a barometer for observing and judging the future development of world trade, and has always received high attention from WTO members and the international community. Since 2007, the China World Trade Organization Research Association has been translating and publishing the World Trade Report annually. The theme of the 2022 report is climate change and international trade. We hope that the publication of the report can enhance the understanding of government departments and academia on this topic, and also provide reference for doing a good job in the world trade work under the new situation.

Huo Jianguo, Vice President of the China World Trade Organization Research Association, said that the World Trade Organization is of great importance as a global multilateral coordination mechanism to address climate change and looks forward to the WTO playing a greater role. The world should establish a unified carbon pricing mechanism or carbon tax collection mechanism, which is also a point where the World Trade Organization can make efforts.

In the theme discussion on "Climate Change and International Trade", "Free trade improves efficiency, reduces costs, and reduces resource consumption, but of course it will be beneficial to the environment." Tu Xinquan, Dean and Professor of the China WTO Research Institute at the University of International Business and Economics, said that free trade should be encouraged and trade liberalization should be encouraged. The most important thing that the WTO should do is to promote trade liberalization, especially to promote environmentally friendly trade. China should promote the liberalization of environmental products and services, which was previously discussed in the WTO. Now, we should push for the resumption of discussions and negotiations on this issue in the WTO.

Li Liping, Director of the Collaborative Research Department for Pollution Reduction and Carbon Reduction at the Environment and Economic Policy Research Center of the Ministry of Ecology and Environment, introduced the progress of carbon footprint from the perspective of climate and trade. She said that although China's carbon labeling work has achieved certain results and has a certain foundation, there are still problems such as weak policies, weak foundations, weak capabilities, and international non recognition, which cannot adapt to the situation and requirements of international trade. Therefore, she suggests further strengthening the basic work of carbon footprint and international mutual recognition: firstly, formulating product carbon footprint accounting rules and standards; secondly, strengthening the construction of carbon footprint background databases; thirdly, promoting the establishment of product carbon labeling certification system; fourthly, enriching the market for product carbon footprint application; and fifthly, promoting international mutual recognition and connection of carbon footprint.