The European Commission has published a new methodology for assessing the impacts of trade liberalisation on biodiversity and ecosystems.
The new methodology will contribute to improving the sustainability impact assessments and ex-post evaluations of EU trade agreements, in support of the objectives of the European Green Deal.
The methodology provides a stepwise process with a special focus on quantifying the impacts of trade liberalisation on biodiversity, such as forests and wetlands.
It is meant to be flexible and adaptable to the context of various types of trade agreements and partner countries.
Acceleration of biodiversity loss
Commenting, executive vice-president for trade Valdis Dombrovskis said:
“The acceleration of biodiversity loss, paired with climate change and environmental degradation, has led to the 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.”
Trade policy must support ecological transition
Commissioner for the Environment, Oceans and Fisheries Virginijus Sinkevičius added that 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,” he said.
“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.”
The commission notes that trade liberalisation “can bring economic benefits as well as have both positive and negative impacts on biodiversity, ecosystems and the services they provide”.
“These impacts need to be assessed, incentives need to be created to foster positive impacts and mitigating measures are needed to avoid negative impacts.
“The new methodology, prepared by external experts, focuses on the identification and application of a set of indicators that capture changes in biodiversity status and trends.”
Quantified analysis for significant biodiversity impacts
The methodology recommends that impacts be assessed in a comprehensive manner using data, research, existing case studies, expert knowledge and stakeholder interviews.
For the most significant biodiversity impacts, it recommends quantified analysis whenever possible.
This new approach will contribute to improved and streamlined assessments of biodiversity impacts in evaluations of EU trade agreements to ensure that they respond to the challenges of the green transition.
It is already being tested for the EU-Colombia/Ecuador/Peru ex-post evaluation.
Background
In accordance with the EU Biodiversity Strategy for 2030, adopted in May 2020, the commission will better assess the impact of trade agreements on biodiversity and the need to strengthen the biodiversity provisions of trade agreements.
According to the commission, some studies estimate that 80% of global deforestation is driven by agricultural expansion, a phenomenon that has roots in the global demand for agricultural commodities.
This is why the commission has committed to delivering a new legislative proposal in 2021 to minimise the risk that commodities and products that are associated with deforestation and forest degradation are placed on the EU market.
The impact assessment for the proposal is currently ongoing, and a wide variety of regulatory and non-regulatory policy options will be assessed.