Exploring Linkages between Environmental Goods and Services

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Exploring Linkages between Environmental Goods
and Services

• Presentation to the WTO Symposium on
• Trade and Sustainable Development
• within the Framework of 51
• of the Doha Ministerial Declaration
• By
• Ronald Steenblik, OECD Trade Directorate

Geneva, 10 October 2005
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Some proposed environmental goods
Photos source http//www.sxc.hu/ Photos
credits Water pump Greg Jacobsen Big
valve Cheryl Empey Gas meter K. Fawcett
Laboratory flask Liquid contained Dain
Hubley Air filter Jaime Barber
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and environmental services
Photos source http//www.sxc.hu/ Photos
credits Wastewater management Sherry Wil
Garbage 4 Jeinny Solis S.
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Environmental services(Sanitation services)
Photos source http//www.sxc.hu/ Photos
credits Beach cleaning Rolf Esslinger
Street sweeper Tim and Annette Snow truck
Rui R.
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Environmental services(Other environmental
services)
Photos source http//www.sxc.hu/ Photos
credits Power plant Industrial 8 Kenn
Kiser Sound meter Stephen Gibson Golf
course Gary Tamin Oil spill crew marea negra
4 Mariano Lesser Chemical analysis Ulrik De
Wachter.
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Case studies

• OECD engaged two consultants to find cases of
  exports of environmental services to private
  customers in developing countries.
• Asked what environmental goods were used in
  connection with those services, and from where
  they were procured.
• Asked were there any trade barriers?

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Example multi-service contract

• Client Arcelors Vega do Sul plant (Brazil).
• Service supplier Veolia Environnement (France)
• Contract wastewater management, solid-waste
  manage-ment, process water, electricity, natural
  gas, industrial gases, compressed air
• Goods tanks, pumps, compressors, filters, valves
  and fittings, measurement instrumentation
• Provenance estimated 75 procured locally
• Import barriers tariff exemption procedure
  activated, but process was extremely long and
  difficult

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Example water wastewater treatment

• Client Shanghai Chemical Industrial Park (China)
• Service supplier Sino French Water Development
  Co. Ltd. (France and Hong Kong)
• Contract production of 200,000 m3/day industrial
  water and 7,000 m3/day of potable water
  treatment of various industrial effluents
• Goods tanks, pumps, compressors, filters,
  valves, monitoring instruments (manostats,
  pyrometers, )
• Provenance tanks, valves, many instruments
  procured locally 20-30 of pumps and compressors
  imported.
• Import barriers tariffs

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Example soil remediation

• Client major manufacturer and retailer of
  cosmetics
• Service supplier Indonesian subsidiary of
  Environmental Resources Management (USA)
• Contract take over monitoring of groundwater
  pollution at former production facility,
  including installing new wells
• Goods bladder pumps, diffusion bags containing
  distilled water, filters, passive sorbent
  collection devices, bottles
• Provenance originally from Australia, more and
  more from Malaysia
• Import barriers tariffs

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Findings (1)

• The market for environmental services is growing,
  driven by
• Ever tighter regulations
• CSR and other private obligations
• Desire of industrial clients to stick to core
  competencies
• Contractual advantages of servicing multiple
  clients

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Findings (2)

• Goods associated with environmental services
• Frequent need for hardware to move air, solids
  or fluids to store fluids and instruments
• Imports of specialty items local procurement of
  heavy equipment and more common items

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Findings (3)

• Import barriers
• Information is difficult to obtain (sensitive
  issue)
• Experiences vary. Waivers of tariffs are not
  uncommon, but administratively burdensome when
  used
• Trade facilitation is sometimes an issue

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For more information

• www.oecd.org/trade
• Steenblik, Ronald, Dominique Drouet and George
  Stubbs (2005) Synergies between trade in
  environmental services and trade in environmental
  goods, OECD Trade and Environment Working Paper
  No. 2005-01.