If the world economy is going to continue to grow, it must learn to do so in an environmental way. As a global civilization, the crops we grow, the products we manufacture, and the way we transport them all create a sizable ecological footprint. If we want to avoid the worst possible outcomes of climate change, all of this will have to change. An environmental goods agreement is one way we can create a more sustainable world.

The Benefits of an EGA

On the 8th of July, 2014, a group of World Trade Organization (WTO) members launched multilateral negotiations for the establishment of the Environmental Goods Agreement (EGA). Such an agreement would encourage the trade of a number of key environmental products. For example, the agreement will strongly promote trading wind turbines and solar panels. Since then, the number of interested participants has expanded considerably, and the current total is 46 WTO members.

Of these 46 members, 18 participants are currently negotiating the elimination of tariffs on a variety of critical environment-related products. These are products that can help achieve environmental and climate protection goals. These products are key in generating clean and renewable energy, limiting air pollution, improving energy and resource efficiency, managing waste, treating wastewater, limiting noise pollution, and generally monitoring the quality of the environment.

The WTO has 164 members, so 46 members of this EGA, and only 18 actively negotiating for greener trade products, may not seem that impressive. But it’s important to note that the participants in these negotiations actually account for the majority of global trade in environmental goods. That means that some of the benefits of this new agreement would likely extend to the entire WTO membership, so all WTO members could enjoy improved conditions in the markets of the participants of the EGA.

Can Global Trade Go Green?

Global trade can go green, and indeed it must, but it will take a lot of work. The good news is that there are already plans in place and people working on ideas to solve the problems. An EGA is an important aspect of an overall plan, but it’s still only one aspect. Domestically, governments need to create favorable subsidies for renewable energy and sustainable products, not fossil fuels. Furthermore, those in both the shipping and manufacturing industries are already realizing the benefits of going greener. An EGA that can further prod these groups in that direction is urgently needed.

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