Tal Conference on "Climate change, trade and standardisation - in a development perspective", Swedish Standars Institute 23 november 2009
Ewa Björling, Handelsminister

Anförande av Ewa Björling vid SIS-konferens om klimatförändringar, handel och standarder (på engelska)

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Ladies and gentlemen, friends,

I am very pleased to be here today, and to welcome you all to this timely event: "Climate Change, Trade and Standardisation - in a development perspective".

I would like to express my appreciation to the Swedish Standards Institute for hosting the conference, and to the Swedish National Board of Trade for their support.

The world has recently experienced the most severe economic crisis since the 1930's. The difficult global economic situation is an urgent and immediate challenge, which could and probably will, have long term effects. Governments have responded to this challenge by implementing far-reaching stimulus measures, and by enhanced international economic cooperation.

An open international trading system is at the heart of the globalised economy, and a key element in the current recovery process. The fears of many that the crisis would result in wide-spread and far-reaching protectionist policies has, all in all, thankfully not come true. Even though we have seen some outbreaks of trade disturbing measures, the worst has been contained.

The international community must continue to stand firm in the face of the pressure from protectionism and economic nationalism.

What the world economy needs right now, more then ever, is further multilateral trade liberalisations.

An ambitious conclusion of the Doha Development Round should be our top priority in this context. It would offer all WTO members substantial economic gains, but it would particularly benefit developing countries, which as a group have been worst affected by the crisis.

A conclusion of the round would significantly reduce the scope to raise trade barriers in the future, and it would send a clear message that the world wants more free trade, not less.

Talking about crisis, the world is in parallel with the economic slowdown, as you know, also facing a more long term challenge - that of combating the climate change.

I'm convinced that trade is an important part of the response to this challenge as well.

Environmental concerns have been a top priority for Swedish Governments, at least since the first UN Conference on the Human Environment was arranged in Stockholm in 1972. More than thirty years have passed since then, and we still face many environmental problems that we have to address.

The climate change is one of the major environmental challenges of our time. And it is vital that the international community makes strong efforts to reach a deal on how to tackle the climate challenge in Copenhagen in December.

Global problems can only be solved by global solutions.

I am convinced that we can strive for economic growth, and at the same time reduce emissions. Sweden has shown that this is possible, and we will continue to do so. Since 1990 the Swedish emissions have decreased with 9 per cent, and our economy have grown with 48 per cent.

This has not been a quick fix. It has been made possible by setting long term goals, developing new technologies, raising awareness among our citizens and so forth. A number of tools, such as taxes, incentive programmes, product standards and market based instruments, have been used in the pursuit of a more sustainable development.

The power of the consumer is, as we all know, large. And companies, consumers and environmental organizations have for many years consequently expressed an interest in labels on products to display the effects on the environment.

Trade policy could and should contribute in a constructive way to the overall efforts in the climate area. Trade liberalisations as such can have a positive effect by promoting the economic growth needed to finance climate actions.

Open and competitive global markets also spur innovation and technological progress. And technology is, off course, a key element in moving towards a low-carbon economy.

Trade policy can also make a more direct contribution to the climate challenge by stimulating trade and investments in climate-friendly goods and services - making these products more accessible and affordable on a global scale. This is why we should remove as many trade barriers in this field as we can.

The prospects of global markets, instead of local or regional markets, will also provide incentives for firms to invest in R&D.

But there is also another side to the trade and climate issue that shouldn't be forgotten. The OECD among others have warned of the emerging risks of "green protectionism". Going forward, it is important that the response to climate change does not result in new trade barriers. On the contrary, effective climate solutions are most likely to emerge under free trade conditions.

The trading system has - to an extent - successfully reduced traditional trade restrictions such as tariffs and quotas. The focus has therefore increasingly shifted to non-tariff barriers.

Many developing countries have expressed concerns that the increased number of standards and technical regulations, including labelling- and certification schemes, is hampering their export opportunities. I share this concern.

At the same time, companies in developed countries are increasingly aware of the desire from consumers to buy from "greener "companies. As a result, we are seeing a growing demand from businesses for knowledge and technology to make production and products more climate friendly.

New climate related standards - both national and international, public and private - are evolving rapidly to assist businesses in this work.

There has literally been an explosion of carbon-related product and service activites in the marketplace. Globally, there are already around 200 initiatives for different types of climate labelling and climate declarations schemes. They are initiated by government agencies, multinational and national corporations, business organizations and NGO's.

A major trade restriction for developing countries, but also for small and medium-sized enterprises in developed countries, is the lack of institutional and technical capacity to handle the variety of these standards, certification and labelling schemes.

The problems are often practical in nature. It can be about the identification of which standards are needed for a certain market. How to get access to and pay for the technology that is required to comply with the standard. Or, how to demonstrate that the product actually fulfils the requirements.

So - how do we assure that the growing use of climate related standards does not result in new trade barriers?

The harmonisation of existing national standards, certification- and labelling schemes, or the development of new international schemes, can contribute to avoiding unnecessary trade restrictions.

That is why I have initiated a Swedish project on climate related standards from a trade and development perspective.

I believe that international standards in general - and their use in technical regulations on products, production methods, and services - plays an important role in facilitating trade through the promotion of safety, quality and technical compatibility.

Thus, international standards can be thought of as providing a common language for traders. The benefits that are derived are significant. International standards facilitate trade and improve efficiency in production.

The general view that international standards can promote trade is empirically supported. The OECD, among others, has shown that about 80 percent of all trade is affected by standards. Consequently, it should be more efficient if we have one internationally agreed standard, rather than many differing standards

These facts can also be applied to international climate standards. International standards in the climate area should in the same way be used as a "common language", and in that way act as a catalyst for trade.

Climate standards could help to spread climate friendly knowledge and technology, support innovation, enhance knowledge in climate friendly technology, increase market opportunities and, in the long run, boost economic growth and welfare.

Our Swedish experiences over the years have learnt us that there are important benefits in participating in the international standardisation process. Among other things, an active participation ensures that national priorities and circumstances are reflected in international standards.

Participation in the development of the global standards can also provide a forum for exchange of technical information with representatives from international industrial and scientific organisations. This is something valuable in itself.

Unfortunately, the international standardisation process tends to be dominated by OECD-countries. Their needs are consequently more closely reflected in international standards.

I am convinced that developing countries have a great potential to compete on the global market for climate related products and services. This potential must be utilised, and should not be hampered by the inability to influence the design of a standard, and thus the inability to use international standards.

In January 2008, the Swedish government therefore launched a project in order to strengthen developing countries' opportunities to increased trade with climate friendly goods and services, by means of international standards.

One purpose is to support developing countries that wants to participate in the development of the ISO standard on carbon footprints. The goal of the project in this regard is to enable developing countries to take an active part in the development of the standard, by influencing the content right from the start.

Moreover, we are currently examining the possibilities for a long-term-program. Such a program would encompass the ISO carbon footprint standardisation work. But it would also carry on after the completion of the standard, by offering different tools such as needs assessments, establishing quality infrastructure, raising awareness, training-the-trainers and best practice conferences.

The aim is to create ownership and effective application of the carbon footprint standard.

I hope that our conference here today will provide a valuable opportunity to exchange views and ideas on the issues I have mentioned. And that it can help to strengthen your countries' opportunities to increased trade with climate friendly goods and services by the means of international standards.

I am certain that you will find these three days fruitful, and I hope that this conference can act as a catalyst for the further so much needed work on standardisation in the climate field.

Once again, welcome !