International Trade Technical Assistance and Capacity Building

human development, aid, trade, security

Petrochemicals and climate change: Powerful fossil fuel lock-ins and interventions for transformative change

With the risk of climate breakdown, pressure is increasing for all sectors of the economy to break with fossil fuel dependence and reduce greenhouse gas emissions. In this context, the chemical industry requires more focused attention as it uses more fossil-fuel based energy than any other industry and the production of chemicals is associated with very large emissions. Beyond the climate crisis, the chemical industry significantly impacts several critical dimensions of sustainability, including the planetary boundaries for novel entities, biosphere integrity, and ocean acidification. In this report, we focus on the petrochemical sector, which represents the largest share of the chemicals industry and is generally understood to refer to the part of the industry that relies on fossil-fuel feedstocks from oil, gas, and coal. The petrochemicals sector produces chemicals mainly used for plastics and fertilisers, but the products also end up in paints, pharmaceuticals, pesticides, and other applications. This report provides a critical exploration of the petrochemical sector to strengthen awareness of its relevance to the climate crisis and to provide tools and recommendations for decision-makers in different domains to initiate, support, and accelerate much-needed transformation. The report highlights the rapid expansion of the petrochemical sector as well as the range and growth of economic, infrastructural, and political interlinkages with the fossil fuel extraction sector. It argues that these developments and dynamics are crucial to understanding pathways, strategies, and interventions for a low-carbon transition for petrochemicals

Principles of International Law Relevant for Consideration in the Design and Implementation of Trade-Related Climate Measures and Policies. Report of an International Legal Expert Group.

The report offers independent guidance for governments and stakeholders by eminent legal experts on principles of international law relevant for consideration in the design and implementation of trade-related climate measures and policies. The report reviews a set of recognized principles of international law that the expert group deems especially relevant for consideration including: Sovereignty; Prevention; Cooperation; Prohibition of Arbitrary & Unjustifiable Discrimination; Sustainable Development, Equity, & CBDR-RC; and Transparency & Consultation. The vision driving this report is that shared understandings on such principles could help foster dialogue and international cooperation on the design and implementation of trade-related climate measures and policies in the context of sustainable development priorities. According to the expert group, trade-related climate measures and policies should be approached as legal hybrids. Their rationale, design, and the debates about them draw from different areas of international law relating to the environment, climate, international trade and general international law. The principles are analysed in a way that presents them as cumulative and simultaneously applicable, in a mutually supportive and coherent manner, giving full effect to all relevant parts of international law, insofar as possible

A New International Treaty to End Plastic Pollution: From Ambition to Concrete Commitments, Meaningful Action and Effective Governance

Early March 2022 saw the fifth United Nations Environment Assembly (UNEA) in Nairobi, Kenya. The UNEA is the highest-level international decision-making body on the environment, gathering delegates from 175 UN member countries to set shared goals and coordinate policy on global environmental issues. In a remarkable achievement, governments agreed at UNEA on a resolution to launch negotiations on a legally binding international instrument on plastic pollution.This blog post unpacks the what the resolution really means and key barriers that remain on the path to a legally binding global agreement

Ending fossil-based growth: Confronting the political economy of petrochemical plastics

The expanding petrochemical industry depends on fossil fuels both as feedstock and a source of energy and is at the heart of the intertwined global crises relating to plastics, climate, and toxic emissions. Addressing these crises requires uprooting the deep-seated lock-ins that sustain petrochemical plastics. This perspective identifies lock-ins that stand in the way of ambitious emission reductions and ending plastic pollution. We emphasize that addressing the growing plastic production and consumption requires confronting the political economy of petrochemicals. We put forward key elements needed to address the dual challenges of moving away from the unsustainable production of plastics and drastically reducing emissions from the petrochemical sector, and argue for attention to the links between fossil fuels and plastics, which in turn involves challenging entrenched power structures and vested interests linked to the fossil-based plastics economy. A critical step would be ensuring attention to the production of petrochemicals and related upstream issues in the upcoming global plastics treaty

Political origins of health inequities: trade and investment agreements

The Trans-Pacific Partnership (TPP) agreement, signed on Feb 4, 2016, and the Transatlantic Trade and Investment Partnership (TTIP) currently under negotiation, have generated a groundswell of opposition from politicians, civil society, and academics. Growing evidence suggests that they will have major, and largely negative, consequences for health that go far beyond those of earlier trade agreements. This situation is particularly disturbing since the agreements have created blueprints for future bilateral and regional trade agreements: a rewriting of the rules that govern the global economy, promoting corporate interests at the expense of public health priorities

Trade and Investment Agreements: Implications for Health Protection

Trade and Investment Agreements (TIAs) have been widely criticized for their potentially negative effects on health. Many governments, particularly from low- and middle-income countries, have voiced concerns that mega-regional agreements such as the Trans-Pacific Partnership agreement, and the Transatlantic Trade and Investment Partnership, will erode governments’ scope for health protection, weakening for instance those options that remain permissible under World Trade Organization rules. Further, these mega-regional agreements will set default standards and rules of the game that even non-signatories will need to emulate in order to be competitive in the global market. This article begins by reviewing the changing structure of trade and investment policy, global production, and the relation between the two. The effects of TIAs on health are then analysed, based on some of the most relevant evidence. Key power asymmetries within the global trade and investment architecture are described, and the way they influence how trade rules are made, implemented and adjudicated. Section 5 examines a particularly striking and topical instance of such power asymmetries, investor-state dispute settlement provisions in TIAs, and their relevance to health. The article concludes with recommendations to mitigate the potential negative health externalities of TIAs