Is world trade law a barrier to saving our climate?

The report examines the compatibility of various climate policies—including labelling, fuel efficiency standards, border carbon adjustments, and green subsidies—with WTO law. It concludes that WTO rules do not prevent countries from taking immediate action to combat climate change, provided the measures are properly designed and non-discriminatory. The authors argue against using the WTO as an excuse for policy inaction and suggest that 'Kyoto-compliance' should take priority over 'WTO-compliance' in global governance.

• WTO rules provide sufficient flexibility for national policy-makers to implement necessary climate measures, contradicting the common political narrative that the WTO is an insurmountable barrier to environmental action.
• Climate-related labelling and minimum standards are generally WTO-compatible, particularly if they are based on product characteristics like energy efficiency, which may allow panels to determine that efficient and inefficient products are not 'like' products.
• Fuel efficiency standards for vehicles are likely to meet the 'necessity' requirement of the TBT Agreement and GATT Article XX, as they make a material contribution to the legitimate objective of combating climate change.
• Border carbon adjustments (BCAs) are permitted in principle under WTO law if they are non-discriminatory, though they may conflict with the international climate law principle of 'common but differentiated responsibilities' by shifting burdens to developing nations.
• Green climate subsidies are generally not prohibited under the WTO Subsidies Agreement unless they are contingent on the use of domestic products or are 'specific' and cause adverse effects to other members.
• The WTO's current subsidy disciplines focus on trade effects rather than environmental consequences, making them a suboptimal tool for phasing out fossil fuel subsidies.

APA

Bernasconi-Osterwalder, N., & Norpoth, J. (2009). Is world trade law a barrier to saving our climate? Friends of the Earth International. https://www.foei.org/wp-content/uploads/2020/12/climate-change-wto-law.pdf

Chicago

Bernasconi-Osterwalder, Nathalie, and Johannes Norpoth. Is world trade law a barrier to saving our climate? Friends of the Earth International, 2009. https://www.foei.org/wp-content/uploads/2020/12/climate-change-wto-law.pdf.

Wikipedia

{{cite report |last1=Bernasconi-Osterwalder |first1=Nathalie |last2=Norpoth |first2=Johannes |title=Is world trade law a barrier to saving our climate? |publisher=Friends of the Earth International |date=September 2009 |url=https://www.foei.org/wp-content/uploads/2020/12/climate-change-wto-law.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bernasconiosterwalder2009world, author = {Bernasconi-Osterwalder, Nathalie and Norpoth, Johannes}, title = {{Is world trade law a barrier to saving our climate?}}, institution = {Friends of the Earth International}, year = {2009}, month = sep, url = {https://www.foei.org/wp-content/uploads/2020/12/climate-change-wto-law.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }