You are reading the 13th edition of the Green Trade Network's newsletter, coordinated by IEEP; this monthly digest acts as a nexus for information and key happenings within the world of Green Trade. If this is your first time receiving it, you can find out more here and follow us on Twitter.
What future for EU FTAs in the next Commission’s mandate?
Dear readers,
The next European Commission will be faced with the challenge of pursuing its so-called “de-risking” agenda - which relies on the conclusion and consolidation of trade partnerships with third countries - during a moment of uncertainty with respect to the EU’s capacity to get free trade agreements (FTA) over the line...at least in their current form. With the implementation and review of a flurry of autonomous measures, Trade Policy may continue to find its place outside of DG TRADE’s historic competencies. Whatever their form (FTA, mini-deals, MoU focused on market access for certain types of goods), trade agreements remain a key ingredient for fairer and sustainable partnerships between the EU and third countries. Therefore, new avenues will have to be found to foster economic cooperation between countries and regions while fostering more sustainable production/consumption models.
IEEP is proud to have coordinated the production of a report involving five GTN members (IEEP, E3G, FTAO, Veblen Institute and CISDL) exploring possible alternatives for a fair and sustainable partnership between the EU and Mercosur.
In the first video, CISDL colleagues discuss the legal section of our report on the future of EU-Mercosur trade relations.
In this second video E3G, Veblen and FTAO authors provide details on the alternatives set out in the report and summarise our main recommendations, which could apply to any of the alternatives presented.
The last days of the 2019-24 legislature were focused on getting several important texts over the line, starting with the CSDDD, a cornerstone of the EU Green Deal. During its final plenary, the European Parliament approved the text of the Corporate Sustainability Due Diligence Directive, which will harmonise corporate transparency obligations on sustainability issues across the 27. Although the text was watered down and almost failed to reach a qualified majority vote in the Council after several postponements, the result is a key achievement to put to the credit of the current legislature.
“After years of negotiations, this outcome sends a clear signal of what is needed to be competitive in the EU: awareness of the risks across value chains and a vision of how to become sustainable. However, further steps are needed to complete the EU due diligence framework. The most crucial one is the inclusion of financial institutions under the due diligence requirements of the CSDDD” says our colleagueEmilie Kerstens(E3G)
I wish you a pleasant read,
Pierre Leturcq, Coordinator of the Green Trade Network
Past Events
Seminar | 27 May,The Impact on Trade of EU Internal Instruments
The Belgian Presidency hosted a seminar on the Impact on Trade of EU Internal Instruments at the Egmont Palace in Brussels which saw GTN members participate in the opening panel of the seminar on Trade, Sustainability and Coherence.
The seminar brought together experts from different fields, to examine the impact of new autonomous instruments on trade that the EU has adopted during the last legislature in order to achieve its international objectives with regards to climate change while taking into account the opinions expressed by its partners.
The development of a coherent and integrated EU strategy on these instruments, from their development to their implementation, becomes a crucial challenge for the EU in the coming years.
Additional information and pictures can be accessed via this link.
Photo copyright: Belgian Presidency of the EU Council
Event | April 15, Strategic prioritisation for EU climate policy in 2024–2029
The Institute for European Environmental Policy (IEEP) and Future Matters, held an event on 15 April to a launch new research report “8 EU Policy Priorities for Global Decarbonisation. Pathways to European Climate Leadership”, a systematic prioritisation identifying the EU’s best climate policy opportunities for the 2024-2029 mandate.
In a landscape filled with recommendations and policy options, Future Matters introduces a novel approach to assess and prioritise those policies with the greatest untapped potential to mitigate global greenhouse gas emissions. The study evaluates policy options across ten criteria and recommends eight strategic policy opportunities based on data analysis, extensive literature reviews, and interviews with over 100 experts and EU policymakers. The event provided an overview of the methodology, the policy recommendations, and the new report—along with a message from Jos Delbeke, former Director-General at the European Commission’s DG CLIMA. The GTN’s co-ordinator Pierre Leturcq provided some opening remarks.
Workshop | 9 May, Restructuring the International Trade System for Climate Change Progress and a Sustainable Future
This one-day workshop aimed to reconsider and reshape outdated trade policies and transform the global trade system into a powerful force for environmental sustainability and equitable development.
The event also marked the London launch of theVillars Frameworkfor a Sustainable Trade System – an ambitious roadmap to align trade reform with the Paris Agreement and UN Sustainable Development Goals through coordinated cross-cutting and sectoral action. Participants focused on grounding recommendations of the Villars Framework and trade system reform within the UK’s specific political context and identifying actionable steps.
Key discussions centred on:
Reforming the World Trade Organization (WTO) to align with a net-zero GHG emissions future. This included exploring the practical implementation of the Villars Framework, which outlines concrete steps for the WTO to embrace sustainability goals.
Designing fair and effective Border Adjustment Mechanisms that incentivise decarbonisation while ensuring fairness for developing countries.
Rethinking WTO subsidy rules and industrial policies to support a just transition towards a green economy.
Unlocking the potential of trade finance to accelerate climate change action and support developing countries.
The workshop concluded with a clear call for action, urging policymakers, businesses, and civil society to work together to build momentum on reforming the global trade system. “This is a defining moment,” emphasised a participant. “Our ability to create a sustainable and just future depends on our collective action now.”
We would like to express our gratitude to the organisers, E3G, ODI and the European Climate Foundation for convening this landmark event.
Centre for International Sustainable Development Law (CISDL)
Event | "Balancing Climate Change Commitments in EU Free Trade Agreements: Sharing the burden of green transition".
This event occurred in the context of the Trade and Sustainability Hub 2024 that took place in Abu Dhabi, on the sidelines of MC13. The panel essentially addressed the relationship between the EU Free Trade Agreements (FTAs) and the obligations of the Paris Agreement, as well as the possibility of pushing the sustainability agenda forward via the adoption of committee/council decisions within the ambit of FTAs. The CISDL team argued that these are easier - but just as effective - ways to bring greater discussion on sustainability, instead of a complete treaty amendment.
The following CISDL experts participated in the panel:
Securing geopolitical, economic and social stability is a priority for European leaders as they finalise the Strategic Agenda for the next five years. With the EU facing acute challenges to its competitiveness, heads of state have called for a “New European Competitiveness Deal”. Policymakers will have to learn from the past and effectively leverage Europe’s strengths through innovative, inspirational thinking and decisive, joint action.
Paper | "EU Trade Policy Reform: 5 keys avenues of action for the next European cycle"
International trade can no longer be seen as an end in itself, with no regard to its adverse impacts on climate, biodiversity and human rights. Europe is the world’s largest exporter of manufactured goods and services and the biggest export market for around 80 countries. In 2022, the European Union’s members account for 16% of world imports and exports.
With its market of 500 million consumers, the EU has a significant role to play to mitigate the adverse impacts of its own consumption in third countries. It is urgent to act on this lever in the context of accelerating ecological and climatic crises.
The Veblen Institute has analysed 13 symbolic votes in the European Parliament during the 2019-2024 term on subjects relating to mirror measures, trade agreements and investment protection agreements.
In this fourth episode of Re-thinking Europe, we explore the EU's Regulation on Deforestation-Free Products – the EUDR. This landmark regulation aims to tackle deforestation driven by agricultural expansion linked to the trade of certain commodities.
What measures has the EU put in place to tackle global deforestation and how does the EUDR contribute to these efforts? What challenges will the EUDR pose to smallholder farmers in producer countries? How can the EU best support smallholders to adapt to the regulation and move towards more sustainable agri-food practices?
We were joined by Marianne Kettunen, senior policy expert and advisor working with the Trade, Development and the Environment Hub (TRADEHub) and the UN Conference on Trade and Development (UNCTAD) BioTrade programme to unpack the negative socio-environmental impacts of agri-food supply chains, including deforestation.
What is the European Union’s Corporate Sustainability Due Diligence Directive (CSDDD) and how will it help protect human rights and the environment in global value chains? Raphaël Glucksmann, Member of the European Parliament, explains the new legislation and its worldwide impacts. The interview can be viewed here.
The CBAM provoked considerable debate worldwide and strong reactions by some of the EU's partners. This policy brief calls for a shift away from these seemingly irreconcilable positions, towards a more constructive approach from both the EU and its trading partners. The authors suggest carrying out impact assessments that could serve as a basis for the EU to fine-tune and step up support efforts. This brief thereby presents a pathway to using CBAM as a tool for green development.
About the Green Trade Network
The Green Trade Network (GTN) is a group of policy experts from 25 research organisations, ranging from think tanks to NGOs and academia, conducting evidence-based research and outreach activities on the trade and environment nexus. GTN member organisations are based in 9 EU Member States and the United States of America, the United Kingdom, and Switzerland. The GTN aims to collectively promote a European agenda for a better alignment of trade policies and trade-impacting measures with critical environmental and climate objectives.
Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or CINEA. Neither the European Union nor CINEA can be held responsible for them
The Institute for European Environmental Policy (IEEP) is an independent sustainability think tank with offices in Brussels. As a not-for-profit organisation with over 40 years of experience, we are committed to advancing impact-driven sustainability policy across the EU and the world.
Institute for European Environmental Policy, Rue Joseph II 36-38, 1000, Brussels, Belgium, 022111097
