Fostering a Sustainable Bioeconomy: The Role of International Cooperation on Trade

The document examines the intersection of trade and the bioeconomy, arguing that while international trade can exacerbate biodiversity loss, it can also be leveraged through price-based, support, and regulatory measures to promote sustainability. It highlights the economic significance of biodiversity-based trade and calls for enhanced international cooperation, particularly through the G20, to align policies, remove harmful subsidies, and support low- and middle-income countries in their transition.

• Biodiversity-based trade is a significant component of the global economy, representing 17.2% of total trade in 2023, which amounted to $3.68 trillion and 7% of global GDP.
• The top three exporters of biodiversity-based products in 2023 were the United States ($318bn), China ($304bn), and Germany ($288bn). For some nations, this trade constitutes a vast majority of exports, such as Ethiopia (94.5%), New Zealand (78.5%), and Kenya (65.1%).
• Governments can use price and market-based measures to promote a sustainable bioeconomy, including internal taxes on non-compliant goods, border carbon adjustments, and preferential market access. An example is the Swiss-Indonesian Comprehensive Economic Partnership Agreement (2021), which reduced tariffs on sustainably produced Indonesian palm oil by 40% within a fixed quota.
• Removing environmentally harmful subsidies is a critical economic incentive for transition. Fossil fuel subsidies reached over $1 trillion in 2022, with $620 billion spent in 2023. Additionally, two-thirds of the $540 billion spent annually on agricultural producer support between 2013 and 2018 are estimated to be price-distorting and potentially harmful to the environment.
• Regulatory measures include mandatory requirements like the European Union Deforestation Regulation and South Korea’s Act on the Sustainable Use of Timbers. However, these can create tensions with low- and middle-income countries that may lack the finance and technology to meet these standards, potentially placing the burden of transition on nature-rich commodity exporting countries.
• Voluntary Sustainability Standards (VSS) often fill regulatory gaps and can help firms avoid reputational damage, but they present barriers for smallholders and SMEs in developing countries due to prohibitive certification costs and a shortage of accredited auditors.
• International cooperation is necessary to avoid a 'patchwork' of uncoordinated initiatives and the 'free rider problem.' The G20 is identified as a unique venue to catalyze this dialogue, using the 'ten voluntary and non-binding High-Level Principles on Bioeconomy' established in September 2024 as a foundation.

APA

Birkbeck, C. D., & Bellmann, C. (2025). Fostering a Sustainable Bioeconomy: The Role of International Cooperation on Trade. Forum on Trade, Environment, & the SDGs. https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-Briefing-Note-Growing-the-Bioeconomy-Through-Trade-and-International-Cooperation.pdf?dm=1758014309

Chicago

Birkbeck, Carolyn Deere, and Christophe Bellmann. Fostering a Sustainable Bioeconomy: The Role of International Cooperation on Trade. Forum on Trade, Environment, & the SDGs, 2025. https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-Briefing-Note-Growing-the-Bioeconomy-Through-Trade-and-International-Cooperation.pdf?dm=1758014309.

Wikipedia

{{cite report |last1=Birkbeck |first1=Carolyn Deere |last2=Bellmann |first2=Christophe |title=Fostering a Sustainable Bioeconomy: The Role of International Cooperation on Trade |publisher=Forum on Trade, Environment, & the SDGs |date=July 2025 |url=https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-Briefing-Note-Growing-the-Bioeconomy-Through-Trade-and-International-Cooperation.pdf?dm=1758014309 |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{birkbeck2025fostering, author = {Birkbeck, Carolyn Deere and Bellmann, Christophe}, title = {{Fostering a Sustainable Bioeconomy: The Role of International Cooperation on Trade}}, institution = {Forum on Trade, Environment, \& the SDGs}, year = {2025}, month = jul, url = {https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-Briefing-Note-Growing-the-Bioeconomy-Through-Trade-and-International-Cooperation.pdf?dm=1758014309}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }