Green Economy and International trade

Trade, when accompanied by appropriate regulation, can facilitate the transition to a green economy by fostering the exchange of environmentally friendly goods and services (including environmentally sound technologies) and by increasing resource efficiency and generating economic opportunities and employment. In order to contribute to poverty eradication, the additional wealth generated by international trade should provide income opportunities to reduce inequalities, rather than exacerbate them. The transition to a green economy, in turn, has the potential to create enhanced trade opportunities by opening new export markets for environmental goods and services, by increasing trade in products certified for sustainability and promoting certification-related services, and by greening international supply chains . The adoption ofmore resource- and energy-efficient production methods as part of green economy measures has an important role to play in securing access to, and longterm competitiveness in, international markets. a green economy is increasingly seen as a gateway to new opportunities for trade, growth and sustainable development. Yet, while a shift to more sustainable trade practices may advance economic and social development, achieving such a shift will also require effective policies to mitigate the adverse impacts that often arise from trade, including pollution and emissions from transport, increased pressure on natural resources for production and processing, and social marginalisation. Addressing these effects, reducing income inequalities and improving the livelihoods of local populations, as well as using environmentally sound technologies and processes are key elements for improving the sustainability of international trade Trade is a vital element of the global economy. The sum of world exports of goods and commercial services amounted to US$ 22.3 trillion While creating economic growth, increasing volumes of trade have also put additional stress on natural resources and increased greenhouse gas (GHG) emissions .Increased demands by emerging economies for natural resources, coupled with the already unsustainable levels of resource consumption lead to an unprecedented surge in resource consumption World trade patterns show that least developed countries exports are still dominated by natural resource-based products and raw materials. Many developing countries, and particularly the least developed ones, are faced with an urgent need to diversify their economies and move towards more sustainable practices. In the past fifteen years, pressure on natural resources, largely driven by international demand, has escalated and resulted (with very few exceptions) in detrimental environmental and social impacts, such as biodiversity loss, environmental degradation and inequitable income distribution . Pioneering producers, service providers and exporters are already taking advantage of new trade opportunities driven by increasing consumer awareness and more sustainable consumption and production patterns. Developing countrie with abundant natural capital, as well as competitive production costs and human capital have, in some cases, a comparative advantage for capturing these opportunitie Sustainable trade practices such as trade in certified products or in environmental goods and services are on the rise in absolute terms The transfer of environmentally sound technologies, through trade- and investment-related channels, is also promoting economic and social development in developing countries. In addition, technological

advancements and spillovers facilitated by international trade can lead to further specialisation in the production of more energy- and resource-efficient goods and services.

emerging Opportunities
six economic sectors of particular interest for developing countries: agriculture, fisheries, forestry, manufacturing, renewable energy and tourism .

In the agricultural sector : future of agriculture is threatened by a series of adverse environmental outcomes including the
continuing loss of biodiversity and ecosystem services, depletion and erosion of top soil nutrients, increasing scarcity of freshwater, aggravated water pollution caused by poor nutrient management, hazardous chemical release, disposal, emissions and waste, and rising GHG emissions.

Sustainable farming methods can increase productivity, facilitate access to international supply chains, and respond to the rising global demand for more sustainable and organic produce.

the fisheries & aquaculture sectors

fish most extensively traded food commodity-80 per cent of world fish resources are overexploited or at their biological limit, and the top ten commercial species are still being harvested far beyond science-based sustainability levels.Increased export revenues can arise from the sustainable management of wild-capture fisheries, including through certification. In aquaculture, global demand for seafood that has been farmed in line with organic and/or broader sustainability standards has grown steadily in the last 15 years

In the forestry sector

The worlds forested area is declining and pressures on forests are expected to continue. Underlying this deforestation trend is weak governance, including lack of forest law enforcement, corruption and bribery. Worldwide, the economic value of global illegal logging, including processing, is estimated to be worth between US$ 30-100 billion per year. More sustainable trade in timber and non-timber forest products can significantly increase transparency and ensure traceability in the forestry sector, in particular through certification schemes

manufacturing sector:
Manufacturing is energy- and resource-intensive. The sector is responsible for around 35 per cent of global electricity use, over 20 per cent of global CO 2 emissions, and over a quarter of primary resource extraction. Products with environmentally friendly designs and companies that comply with sustainability standards for products and processes have an advantage in international markets.

renewable energy sector:

renewable energy resources can address many of the challenges faced by conventional energy today. The global market in low-carbon and energy efficient technologies, which include renewable energy supply products, is projected to nearly triple to US$ 2.2 trillion by 2020

Tourism, as a major export sector, has a large potential to harness new opportunities by proactively addressing environmental and social impacts. In 2012, for the first time, the number of international tourists reached over one billion. Yet the tourism sector largely contributes to CO2 emissions, water and air pollution, increased pressure on waste management, biodiversity loss, and potential conflicts with the social, economic and cultural interests of local communities. The economic potential of sustainable tourism activities, particularly for developing countries, depends directly on the ability of countries to preserve their natural environments, as environmental degradation erodes the attractiveness of tourism destination The fastest growing sub-sector in sustainable tourism is ecotourism, which focuses on nature-based activities.Many developing countries appear to have a comparative advantage in ecotourism, due to their natural environments, cultural heritage and opportunities for adventure holidays.

addressing Challenges
Even when there is a strong economic, environmental and social case for investing in greening trade, a number of important obstacles remain. These relate mostly to limitations in financial and human resources, weak regulatory frameworks, lack of enforcement mechanisms, and poor economic infrastructure. Illiteracy as well as limited access to energy, for example, are key barriers to the further development of sustainable and certified trade. enabling conditions that can facilitate sustainable trade opportunities. Investment and spending. Public investments in key economic infrastructure, technical assistance, targeted education programmes and access to sustainable resources, such as electricity from renewable energy sources, are crucial for increasing the success rate of developing country suppliers in accessing greener international markets. Market-based instruments. The gradual elimination of subsidies that encourage unsustainable production and trade in particular fossil fuel, agricultural and fisheries subsidies and the introduction of pricing policies that take fully into account environmental and social costs of production and consumption are essential preconditions for enabling sustainable trade National regulatory frameworks. Policies and actions to support the greening of industries need to be incorporated into national sustainable development strategies and overarching legal frameworks International frameworks. development of new multilateral rules under the World Trade Organization (WTO), for example on fisheries subsidies, as well as further liberalisation of trade in environmental goods and services, provide opportunities for effective collective actions to solve global problems. dialogue and capacity building. Regulatory cooperation and capacity building are amongst the most important means to overcome challenges in a proactive manner. Scaling up support for developing countries to harness green export opportunities requires coherent support from international governmental organisations including UN agencies, MEAs, and the WTO as well as the private sector and non-governmental organisation ,