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| Ngozi Okonjo-Iweala (Credit: Twitter) |
The World Trade Organization (WTO) has recommended that lower tariffs and more environmentally friendly shipping methods be used to reduce the carbon footprint of global trade.
According to WTO simulations, removing tariffs and scaling back non-tariff restrictions on a subset of energy-related environmental goods might increase exports by 5% by 2030.
The organisation estimated in its annual World Trade Report, which was delivered on Monday at the COP27 international climate summit in Egypt, that this increased energy efficiency and uptake of renewable energy sources would lower global emissions by 0.6%.
The research also emphasised that around 30% of the world's carbon dioxide (CO2) emissions are caused by the manufacture and transportation of export goods.
However, from the WTO’s point of view, the solution is not a return to domestic or regional production with shorter transport routes.
According to WTO calculations, this would reduce emissions slightly and cause global economic damage.
Instead, it suggested that countries should remove tariffs and bureaucratic trade barriers to enable the global spread of sustainable technologies.
The 0.6 per cent possible CO2 savings through liberalisation are based on calculations for two narrowly defined product groups.
From the point of view of the WTO, the free movement of other ecological goods and services could lead to an even greater reduction.
The organisation also highlighted the efforts of the logistics industry to switch to more environmentally friendly transport.
The WTO did not calculate the CO2 savings potential of this sector, however.
(dpa/NAN)