Comprehensive Economic and Trade Agreement (CETA) and the environment
Summary
The report argues that CETA fails to be a 'gold standard' for the environment, citing weak enforcement of environmental commitments, the risks posed by the Investment Court System (ICS), and the potential for increased imports of carbon-intensive tar sands oil. It highlights a lack of transparency in negotiations and suggests that the agreement's regulatory cooperation and domestic regulation chapters could hinder the EU's ability to implement ambitious climate and environmental policies.
Key insights
- The report concludes that CETA was negotiated in 'total secrecy' from 2008, which has 'fundamentally undermined the legitimacy of the agreement' for European and Canadian citizens.
- The environment chapter lacks meaningful enforcement because it uses a 'weak mechanism based on dialogue' and 'explicitly excludes recourse to normal dispute settlement', meaning the Panel of Experts' reports are not binding and cannot result in penalties like tariff sanctions.
- CETA does not introduce new environmental ambitions beyond existing commitments and fails to address critical issues such as ending fossil fuel subsidies or prohibiting subsidies for fishing overfished stocks.
- The Investment Court System (ICS) is criticized for creating a 'parallel justice system' that allows foreign investors to bypass domestic courts and the European Court of Justice, potentially pressuring governments to limit environmental decision-making.
- The 'indirect expropriation' standard in CETA is problematic because it allows measures protecting public welfare to be challenged if a tribunal deems them 'manifestly excessive'.
- CETA may facilitate increased imports of carbon-intensive oil from Alberta tar sands, which is 'three to four times more emission-intensive' than conventional crude, especially if the 'Energy East' pipeline project is completed.
- The regulatory cooperation framework is viewed as a risk because it could lead to a 'legislative slowdown' and provide a 'lobbying tool' for Canada to influence EU legislation, such as the Fuel Quality Directive.
- The Domestic Regulation chapter may expose environmental permitting processes (e.g., for fracking or open-pit mining) to international legal challenges by focusing on 'regulatory predictability' and speed over the quality of environmental safeguards.
- The report identifies a lack of coordination among EU Member States regarding energy sector reservations in the 'negative list' approach; nine states (Croatia, Czech Republic, Estonia, Greece, Ireland, Latvia, Luxembourg, Romania, and Spain) made no reservations at all.
Cite the original document
- APA
- ClientEarth (2016). Comprehensive Economic and Trade Agreement (CETA) and the environment. https://www.clientearth.org/media/zgfbtgup/ceta-and-the-environment-a-gold-standard-for-the-planet-or-for-big-business-coll-en.pdf
- Chicago
- ClientEarth. Comprehensive Economic and Trade Agreement (CETA) and the environment. 2016. https://www.clientearth.org/media/zgfbtgup/ceta-and-the-environment-a-gold-standard-for-the-planet-or-for-big-business-coll-en.pdf.
- Wikipedia
- {{cite report |author=ClientEarth |title=Comprehensive Economic and Trade Agreement (CETA) and the environment |date=November 2016 |url=https://www.clientearth.org/media/zgfbtgup/ceta-and-the-environment-a-gold-standard-for-the-planet-or-for-big-business-coll-en.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{clientearth2016comprehensive, author = {{ClientEarth}}, title = {{Comprehensive Economic and Trade Agreement (CETA) and the environment}}, institution = {ClientEarth}, year = {2016}, month = nov, url = {https://www.clientearth.org/media/zgfbtgup/ceta-and-the-environment-a-gold-standard-for-the-planet-or-for-big-business-coll-en.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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