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This report analyzes the compatibility of eco-labeling standards and green procurement policies with World Trade Organization (WTO) rules, specifically for World Bank borrowers. It concludes that WTO rules generally do not present significant legal barriers to 'greening' project procurement, primarily because government procurement is largely excluded from the main WTO agreements for goods and services. However, the report highlights significant concerns from developing countries regarding the costs, technical burdens, and potential market access restrictions associated with eco-labels, particularly those based on non-product-related process and production methods (npr PPMs).

The 'Standards for Sustainable Trade' project, implemented by the International Institute for Sustainable Development (IISD) for the European Commission, investigated how regional cooperation can reduce technical barriers to trade (TBT) and sanitary and phytosanitary (SPS) measures for developing countries. The report concludes that while regional centers of excellence can offset national capacity gaps, the WTO's TBT Agreement is often unrealistic for developing nations, which act as 'standards takers' rather than 'makers' due to a lack of institutional and scientific resources.