You are reading the 25th edition of the Green Trade Network's newsletter, coordinated by IEEP; this bi-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.
WTO MC14 - Our survival guide for trade-and-environment heads
On the eve of a Ministerial Conference with potentially far-reaching implications for the future of the WTO and the rules-based multilateral trading system, the organisation just released a Global Trade Outlook Report packed with insights. The report shows that global trade growth in 2025 was higher than anticipated, reaching 4.6%(merchandise trade), compared to the 2.4% increase projected in the previous outlook.
Asked last month about the reasons behind this surprising surge, WTO Deputy Director-General Jean-Marie Paugam pointed to two main factors: the recent expansion of the AI sector, which has driven increased trade in critical materials, computers, and all the resources required to operate AI systems; and the stockpiling of goods by US firms in response to new tariffs announcements from the Trump administration.
Still, as the report indicates, global trade is expected to contract in 2026, although it remains difficult to anticipate which sectors and value chains will be most affected. What is certain, as Jean-Marie Paugam recalled, is that the return of power and coercion in international trade relations “always comes at the expense of the most vulnerable countries.”
The WTO also recently published two documents synthesising the outcomes of recent work led under the Trade and Environmental Sustainability Structured Discussions platform (TESSD):
These documents highlight both the challenges and the constraints faced by countries in the Global South as Trade-Related Climate Measures (TrCMs) proliferate, as well as the opportunities to use international trade governance as a lever to accelerate the transition towards low-carbon economies.
Several interesting points of convergence can be identified between the conclusions of these reports and those of the final report of the Wilton Park–E3G conference on international solutions to carbon leakage held last February, which we had the opportunity to contribute to. Both underscore the urgency of strengthening international cooperation around TrCMs, as well as the need to advance interoperability of MRV systems. They also highlight the central role of transparency in better understanding and addressing the carbon intensity of trade flows—particularly through standardisation and the sharing of best practices in the design of industrial subsidies.
At the Wilton Park/E3G/FCDO event on International Solutions to Carbon Leakage (February 2026)
This Ministerial Conference in Yaoundé is unlikely to deliver major breakthroughs. Its real significance will lie in laying the groundwork for future discussions in Geneva, as momentum builds for a reform of the WTO that has become essential to its own survival. If you’d like to know more about the stakes of this second “African Ministerial”, I highly recommend this issue guide prepared by the Geneva Trade Platform (GTP).
On our side, the Green Trade Network is organising a panel with E3G and the Indian think tank Centre for WTO Studies, to which we warmly invite you if you are in Yaoundé this week. In addition, we will keep you informed of ongoing discussions on trade and environment, as well as the most interesting insights emerging from the Trade + Sustainability Hub organised by our colleagues at IISD on the margins of the Ministerial Conference.
We wish you an excellent read and are looking forward to catching up with some of you over a coffee in Yaoundé!
This session will explore how developed and developing countries can design equitable, context-specific pathways that balance climate ambition with economic realities. Read more
This new Synergies article by Sunayana Sasmal, Research Fellow at the University of Sussex, explores how multilateral trade rules related to critical minerals partly but imperfectly accommodate some legitimate public policy concerns and why it has become necessary to experiment with new forms of trade cooperation. Read more
Digital activities – from online shopping to digital services – are now central to the global economy. As countries seek to govern digital trade, many key discussions are taking place at the WTO. IISD’s new report provides a state-of-play update on multilateral and plurilateral e-commerce rulemaking efforts, highlighting key issues and milestones ahead of MC14. Read more
Colette van der Ven and Cláudia Azevedo published an op-ed at Borderlex on the rules of origin for EVs, focusing on the EU-South Africa case and linking it to the CTIP and IAA discussions, building on my intervention at the workshop today. Read more
Authors: Cecilia Trasi and Chiara Francesca Ausenda
Italy’s energy transition inevitably involves China, especially in the field of clean-tech. However, this interdependency must be part of a long-term industrial strategy in order to promote decarbonisation, employment and competitiveness. This new study analyses the economic links between Italy and China, specifically in the solar panel, battery and heat pump sectors, and proposes five levers to strengthen competitiveness and autonomy in Italy and Europe. Read more
This Wilton Park dialogue brought together policymakers, experts and civil society representatives from around the world to explore international solutions to carbon leakage and identify pathways to strengthen cooperation on shared objectives. These include accelerating industrial decarbonisation globally, particularly in EITE sectors such as steel, aluminium and chemicals where scaling up low-carbon technologies still remains commercially challenging. Read more
Investor-state-dispute settlement (ISDS) poses significant barriers to ambitious climate policies. With ISDS having entered the climate conversation more visibly at COP30, we see opportunities this year to advance ISDS reform including the First International Conference on Transitioning Away from Fossil Fuels, where ISDS is included on the official agenda. Looking ahead to COP31, we outline how Australia and Türkiye can drive political momentum for reform. Read more
FTAO |The FTAO highlights smallholder concerns in 4th DAG-to-DAG meeting under the EU-Vietnam FTA
The Fair Trade Advocacy Office contributed to the EU-Vietnam Domestic Advisory Groups meeting at the European Economic and Social Committee in January, where participants discussed deforestation. The FTAO highlighted how the EU Deforestation Regulation is impacting smallholders and cooperatives and called for stronger EU support, targeted technical assistance and clearer guidance to ensure an inclusive transition to deforestation-free supply chains.
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 - IEEP, Norrsken House Brussels, 72 Rue du Commerce, 1040, Brussels, Belgium, 022111097
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