Innovative Environmental And Climate Provisions In Preferential Trade Agreements TULIP Consulting Tulip Consulting

Trade policy can play a critical role in supporting the green transition and delivering on countries’ climate commitments. Based on the World Bank’s Deep Trade Agreement database, this analysis provided an overview of trends and patterns in environmental provisions in Preferential Trade Agreements (PTAs) since their first inclusion in the 1990s. While there is a clear trend towards deeper environmental provisions in PTAs, this trend is less visible in PTAs between countries in the Global South. The analysis further identified best practices in environmental provisions in PTAs, highlighting PTAs with innovative environmental provisions, focusing on tariff preferences for environmental goods and services, voluntary labelling standards, renewable energy and environmental goods, disciplining fossil fuel subsidies, and forest governance.