New methodology to assess trade liberalisation on biodiversity and ecosystems

Submitted by Imogen Allan on 01 June 2021

The Communication on the EU Trade Policy Review assessed the role trade policy plays in supporting the transformation of the EU economy in line with its green objectives. Leading on from this, the European Commission has published a new methodology for assessing the impacts of trade liberalisation on biodiversity.

The new document will contribute to developing sustainability impact assessments to support the European Green Deal, and addresses how to measure the impacts of trade liberalisation on forests and wetlands, for example.

Executive Vice President for Trade, Valdis Dombrovskis, said: “The acceleration of biodiversity loss, paired with climate change and environmental degradation, have led to recognition of the green transition as the defining challenge of our time. Supporting this ecological transition is one of the core objectives of EU trade policy. Our new Trade Policy Strategy further reinforces our commitment to sustainable trade. Our vast network of trade agreements provide an important platform to engage with our partners on global environmental issues. We have committed in our new trade strategy to prioritising the effective implementation of the Convention on Biological Diversity in trade and investment agreements. I welcome this new methodology, which will contribute to better assessing the impact of our agreements.

Adding to this, Commissioner for the Environment, Oceans and Fisheries, Virginijus Sinkevičius, said: “Over half of global GDP depends on nature and the services it provides. And yet, due to our unsustainable patterns of production and consumption, it is disappearing in front of our eyes, putting our health, food security, and economy at risk. The COVID-19 pandemic has demonstrated the need for sustainable supply chains and consumption patterns that do not exceed planetary boundaries. EU trade policy must actively support and be part of the ecological transition. I am glad this new methodology will help us achieve this key commitment of the EU Biodiversity Strategy for 2030.

Trade liberalisation can create economic benefits whilst having both positive and negative effects on biodiversity. The new methodology will discuss how to reduce the negative impacts.

It focuses on:

  • Changes in economic sectors created by a trade agreement;
  • Pressures on biodiversity;
  • Impacts;
  • How to address change.

The methodology recommends that the impacts are assessed thoroughly through data, research, case studies, expert opinions, and stakeholder interviews. This new approach will contribute to a more streamlined methodology for biodiversity impacts in EU trade agreements.

Read the full article here.

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