THEMATIC SESSION ON DECARBONIZATION sTANDARDS

25 march 2025, 10:00-11:30

Moderator's Report[1]

At the Tenth Triennial Review, Members agreed to continue to hold thematic sessions in conjunction with the TBT Committee's regular meetings from 2025 to 2027 to further deepen the exchange of experiences on specific topics. On this basis, the Committee agreed to hold a thematic session on decarbonization standards.^[2] Information about the speakers, presentations, and related materials are available on the WTO website.[3]

1  introductory remarks by the moderator

1.1.  WTO Members are increasingly introducing regulatory measures as a tool to support their environmental and climate policies, including with respect to decarbonization. While some of these measures are broadly similar across economies, there is a risk of regulatory fragmentation in this area which might cause unnecessary trade costs.

1.2.  Recently, at their 13th Ministerial Conference, Members reaffirmed the TBT Agreement's relevance to modern global trade challenges and emerging policy concerns, including measures taken to address climate change. They urged the TBT Committee to promote its Member-driven work on emerging regulatory challenges including the areas of climate change and sustainable development, stressing the importance of promoting dialogue between Members, including among competent authorities and bodies.

2  Guiding questions

·_        What regulatory approaches do Members use in support of their decarbonization efforts? In particular, what standards and methodologies are being used for measuring greenhouse gas emissions in the steel sector? What are the similarities and differences among the different approaches?

·_        Do Members rely on international standards when developing their domestic decarbonization standards and regulations? If not, what are the main obstacles for using international standards? Which international organizations work on developing frameworks for steel decarbonization standards?

·_        What are the main trade opportunities and regulatory challenges faced by developing Members including LDCs in this area?

·_        How are these approaches and initiatives connected to the TBT Agreement disciplines as well as TBT Committee discussions and guidance? 

·_        Environment being a cross-cutting global issue, ensuring coherence and promoting complementary both inside (across different bodies, e.g. CTE) as well as outside the WTO (across other international organizations and bodies) is crucial. What are the challenges and solutions to address this goal? 

3  Interventions

3.1  Round One

3.1.  Ms Sophie Mueller (European Union)[4] shared perspectives on the EU's policy objectives and overall vision with regard to a net-zero emissions industry in Europe. She noted that the EU has committed to climate neutrality by 2050 with an aim to reduce greenhouse gas emissions by 90% by 2040 and 55% by 2030. She stated that the EU has adopted various regulatory approaches and highlighted a few, namely: the Renewable Energy Directive to advance the deployment of wind, solar and hydro power, the Energy Efficiency in Products and Buildings legislation, legislation on batteries, and clean hydrogen to support industrial decarbonization among others. She noted that the European Commission and co-legislators (European Parliament/Council) are in many cases drawing on technical standards to support the implementation of these legal instruments. In the European Union, the relationship between EU laws and technical standards is regulated by the European standardisation regulation (Regulation (EU) 1025/2012) whereby the Commission mandates designated European standardisation bodies to develop so-called "harmonised" standards. She highlighted that stakeholders have the opportunity to develop harmonised standards ex-ante, against established regulatory requirements in the European Union while other regions rely on existing standards for reference in their laws (ex-post system). This is a clear advantage for stakeholders, as they have clarity of what is expected from the EU regulator. She remarked that there is a breadth of standardization work underway on batteries and hydrogen as well as efforts to develop a standard for a digital product passport to enable measurement of carbon footprints along the supply chain.

3.2.  She emphasized that this work is in line with WTO principles of openness, transparency, consensus and effectiveness. Ms Mueller added that the European standardisation process places an emphasis on inclusiveness as to ensure that all parts of society (industry, civil society, academia and/or public authorities) have the opportunity to contribute to the standards-development process. She stated the importance of EU standardization work being anchored in the work of international standards bodies such as ISO and ITU in order to support EU legislation and ensure interoperability not only within the single market but globally, thereby promoting frictionless trade.

3.3.  Ms Clare Broadbent (World Steel Association)[5] highlighted the work of the World Steel Association in developing standards and methodologies for emission measurement in the steel sector. She noted that the steel industry is commonly perceived as a "hard-to-abate" industry and that there has been significant interest in decarbonizing the sector. She stated that while this interest is positive, it has also led to a proliferation of standards and methodologies. She provided the example that for instance, if a global steel company is required to report its emissions to local authorities based on one standard, they must also be aligned to the Paris Agreement, within which there are various sets of standards to help define pathways and targets to meet commitments. Additionally, decarbonization efforts require significant financing which also has specific standards relating to how emissions are calculated and industry pathways. She noted that for different sectors that purchase steel for instance the packaging, automotive and construction sectors, there will be different sets of standards to comply with. Ms Broadbent also highlighted the proliferation across jurisdictions with different regions adapting standards to their specific contexts.

3.4.  She noted that the World Steel Association has mapped over 80 different standards which are relevant to the global steel industry and stated that there are efforts underway to harmonize these standards, but it is a difficult endeavour as numerous standards are not developed by steel industry experts. She highlighted the work of the Steel Standards Principles, which aims to bring stakeholders together to advance greater alignment on methodologies and common terms and definitions. The principles also make reference to and build on the TBT Six Principles for the Development of International Standards, Guides and Recommendations. Ms Broadbent made a call to Members for their input on this work. She concluded by noting that any efforts towards greater alignment should ensure that standards developed are interoperable not just within the steel sector but for other materials and market applications in order to be effective. 

3.5.  Mr. Daniel Smith (United States)[6] emphasized that while some sectors are nearing convergence around globally accepted standards, others continue to operate with multiple regional or national frameworks. He explained that ASTM International, with 30,000 members across 150 countries, develops voluntary consensus-based standards across 90 sectors, fully complying with the WTO TBT Committee's Six Principles. Mr Smith highlighted that coherence remains the most challenging principle, as overlapping or conflicting standards can create technical barriers to trade. He pointed to successful convergence in sectors like aviation, citing the ASTM D7566 standard for sustainable aviation fuel, but noted that in areas such as infrastructure, multiple standards may be appropriate to reflect differing local needs. Mr Smith concluded by encouraging WTO Members to support participation in international standards development and align domestic regulations with international principles to avoid unnecessary barriers.

3.6.  Mr. Liang Sun (China)[7] outlined China's approach to decarbonization standards, structured around China's "Double Carbon" goals - carbon peaking by 2030 and carbon neutrality by 2060. He emphasized China's alignment with international standards such as ISO 14067 and the ISO 14060 family, while also developing sector-specific standards for high-emission industries like steel, aluminium, and cement to quantify GHG emissions. Mr Sun also noted that China is considering adopting ISO 14068-1 on carbon neutrality. He stressed the importance of applying the principle of Common but Differentiated Responsibilities (CBDR) to ensure fairness for developing Members with differing capacities and timelines.

3.7.  Ms Diana Alzate (Colombia)[8] highlighted three major challenges developing countries face in the internationalization of decarbonization standards: (i) the complexity of decarbonization policies, (ii) resource limitations, and (iii) the potential impacts of international climate-related trade measures on domestic industries. She explained that decarbonization requires trust in data, attention to biodiversity, and a focus on energy efficiency, all of which are resource intensive. Despite these challenges, she emphasized Colombia's proactive role in promoting standardization and its active participation in ISO technical committees, such as ISO TC 207 on environmental management. Ms Alzate stressed that international cooperation and stakeholder engagement are essential for developing countries to meaningfully contribute to global standardization efforts.

3.2  Round Two

3.8.  Ms Sophie Mueller reemphasized that national standardization bodies in EU member states and designated European standardization bodies are all strongly linked to the international standardization fabric of organizations such as ISO, IEC and the ITU. She noted that more than 40% of ISO and IEC standards have been referenced in EU legislation indicating a strong commitment to drawing from international standards. She stated that it is important to consider industry and regulator perspectives and also lean heavily on the technical expertise of standardization bodies. In response to a previous comment by Ms Broadbent, she remarked that from a regulators point of view, the fact that the steel industry has to comply with nearly 80 standards is of concern due to the burdensome administrative costs and the lack of a level playing field. She emphasised that technical experts are scarce and that it would not be feasible for experts to be part of multiple technical committees, so suggested for greater cooperation between standardization bodies to prevent the development of conflicting methodologies and approaches. She stated that from a regulatory perspective, policies and legislation do not necessarily have to go into great technical detail but that communication with standardizers and technical experts is key to getting the best results.

3.9.  She concluded by noting that a lesson learned from the EU side is that early involvement of standardization organizations and stakeholders is important. She stressed that this is particularly important in complex technological areas such as AI, where standardization work is relatively new but regulatory requirements might be high.

3.10.  Ms Clare Broadbent acknowledged that while there is competition between different standards across different regions, she stressed that there is no need to reinvent the wheel when developing legislation. She noted that the steel standards landscape has numerous technical experts involved, bringing a broad and diverse range of perspectives, however it is important for them to advance this work through existing channels rather than creating new standards or fast tracking the development of a standard without the input of necessary expertise. She urged that relevant stakeholders pursue work on existing standards and processes rather than developing new ones due to the difficulty of harmonization.  

3.11.  Mr Daniel Smith outlined ASTM's initiatives to further support international decarbonization efforts. He explained that ASTM is compiling all decarbonization-related standards, partnerships, symposia, and training activities into a publicly accessible portal to improve coherence and avoid duplication. Mr Smith emphasized ASTM's strong collaboration with ISO and IEC, particularly in areas such as additive manufacturing, to ensure joint standards development. He also highlighted the importance of bridging research and standards by supporting scientific work that informs new standards creation. Mr Smith noted the success of ASTM's Emerging Professionals Program, which has introduced over 400 young experts into the standardization process. He concluded by underlining that standard development must remain a continuous, adaptive process, responsive to new technologies like AI and evolving market and environmental needs.

3.12.  Mr Liang Sun provided an overview of China's holistic carbon management standardization system, describing it as tree-structured, with foundational standards supporting more specific branches for measurement, evaluation, low-carbon products, and verification schemes. He stressed that standardization must serve not only as a tool for setting goals but also as a mechanism to reduce emissions, enhance energy efficiency, and encourage sustainable consumption. Mr Sun highlighted hydrogen energy as a promising decarbonization pathway, especially for vehicles and heavy industries, while noting ongoing technical challenges related to safety, storage, and transport. He cited ISO 19880 series on hydrogen safety as an important international reference. In addition, Mr Sun discussed China's work on low-carbon cement technologies, circular economy standards, carbon dioxide capture and storage (CCS), and green finance. He reiterated that standardization must be market-driven and support both innovation and behavioural change.

3.13.  Ms Diana Alzate described Colombia's efforts to strengthen its national quality infrastructure (NQI) to support decarbonization goals. She explained that Colombia's government, through the Ministry of Commerce, coordinates closely with both public and private sectors to align national policies with international frameworks. Ms Alzate noted that while Colombia encourages voluntary adoption of international standards, key standards such as ISO 14064 (GHG quantification and reporting) and ISO 14065 (validation and verification) have been incorporated into national regulations. She highlighted Colombia's co-leadership role in the development of ISO 14068 on carbon neutrality alongside the United Kingdom. Ms Alzate concluded by stressing that inclusive and transparent standardization processes are critical for developing countries to meet environmental goals and avoid future trade barriers.

4  COMMENT BY THE MODERATOR

4.1.  I would like to share with you a number of key takeaway points from the thematic session:

·_        Speakers noted that decarbonization challenges are global, but strategies to achieve decarbonization goals will vary depending on local market needs, domestic regulatory approaches as well as other societal considerations.

·_        It was emphasized that standards and regulations will play a key role in supporting decarbonization objectives of various WTO Members.

·_        The use of international standards helps to ensure interoperability on international markets. In this context, some of our speakers indicated that that they tend to base their domestic standards on standards developed by ISO and ITU such as ISO 14067 (carbon footprint of products), and the ISO 14060 family (which includes ISO 14060-1 and 14060-2 on GHG emissions and management systems).

·_        The TBT Agreement disciplines as well as guidance developed by the TBT Committee (including Six principles for the development of international standards, guides and recommendations) can empower technical experts to engage and collaborate in crafting decarbonization-related standards. The WTO TBT framework can help to achieve respective decarbonization objectives and avoid unnecessary obstacles to trade.

·_        We also heard about Members' experiences in participating in the development of international standards. In this context, it was noted that there are challenges faced by developing Members due to complexity, limited resources, and global policy pressures, highlighting the development dimension of developing international standards. Speakers noted that the promotion of the use of international standards, participation in standards development and inclusive engagement will help avoid trade barriers.

·_        The Steel Standards Principles were held up as a relevant example of cooperation and collaboration between stakeholders to make efforts to align how greenhouse gas emissions are measured in the steel sector.

·_        With the rise of new technologies such as AI and machine learning, standards must adapt dynamically. The key is to remain responsive to both market and environmental needs through collaborative, inclusive processes.

·_        We also heard about the importance of ensuring coherence when developing international standards around decarbonization. For instance, Members shared an example of cooperation between ISO and ASTM for developing joint standards. Yet, it was also emphasised that, depending on the context, while developing a single international standard is desirable, in some situations having more than one international standard to draw from may be desirable.

·_        Speakers noted the importance of periodic review and market feedback for developing standards in the area of decarbonization. In this sense, standardization work is never done and needs to stay up to date.

·_        Acknowledging that our regulatory systems are different will also be important in developing decarbonization standards.

·_        Members indicated their efforts to use international standards for their domestic regulatory efforts in the area of decarbonization. Speakers noted that it was important to align national decarbonization standards with international standards, while taking into consideration impacts on developing countries and differentiated responsibilities. Key sectors were identified as priorities for decarbonization standards such as hydrogen energy, green finance and carbon removal with standards seen as both regulatory and market tools.

4.2.  As I conclude I would like to offer one suggestion. The Committee may consider appointing the moderators for the next set of thematic sessions in the previous session of the Committee. This will give the moderators sufficient time in advance to prepare for the upcoming session. This may help with even better planning and event organization.

4.3.  I found the discussions to be very rich, and I would like to express my appreciation for the insightful contributions from our speakers. They left us with a lot to reflect on for further work in the Committee to regulatory cooperation on climate change.

4.4.  Finally, I would like to acknowledge the effective and professional support provided by the WTO Secretariat members through the process of organization of this thematic session. I also acknowledge the constructive efforts of the Chairperson of the Committee on TBT Ms. Daniela García.

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