A virtual event on perspectives and approaches to sustainable COVID19 recovery
The Permanent Mission of Finland hosted its third sustainable post-COVID19 recovery webinar to facilitate discussion on perspectives and approaches to the recovery, the role of trade and sustainability, on June 22, 2021, in conjunction with the meeting of the WTO Committee on Trade and Environment.
Advancing green transition is a priority for Finland. The recent Sustainable Growth Programme for Finland aims to boost investment in carbon-neutral and emissions reducing solutions, accelerate sustainable economic growth by creating long-term growth potential. Trade has a significant role to play in the post-COVID19 recovery.
The distinguished speakers of the event included Mr. Pekka Morén, Special Representative of the Ministry of Finance (Finland); Ms. Jocelyne Landry Tsonang, a Cameroonian entrepreneur and Executive Board Member of the African Circular Economy Network (ACEN); Dr. Saara Tamminen, Leading Specialist at the Finnish Innovation Fund Sitra, Mr. Brian O’Callaghan, Researcher at the Smith School of the University of Oxford, and Mr. Hoe Lim, Director of the Trade and Environment Division of the WTO. The event was moderated by Ms. Bernice Lee, Hoffmann Distinguished Fellow for Sustainability; Research Director, Futures and the Chair of the Chatham House Sustainability Accelerator Advisory Board (pictured below).
In her welcome remarks, Ms. Bernice Lee set the scene by highlighting the role of trade as a key contributor to recovery and in advancing economic development and the sustainable development goals (SDGs). Ms. Lee explained the interconnectivity between trade and finance by emphasizing the need for more discussion on these linkages at the WTO. She pointed out that investments made now to boost the recovery will determine the direction of the economies for decades to come, and the role of trade and trade rules is vital in advancing sustainable recovery.
Mr. Pekka Moren (pictured below) from Finland’s Ministry of Finance presented Finland’s approach to sustainable recovery measures and the work of the Finance Ministers’ Coalition for Climate Action He especially focused on the actions related to sustainable recovery and integration of sustainability perspectives in financial and economic planning. According to Mr. Moren, the various work areas of the Coalition are relevant in achieving green recovery globally, aiming at supporting economic planning and the design of sustainable reforms over longer term. Mr. Morén highlighted the opportunity, momentum and urgent need to address climate change provided by the trillions of spending on COVID-19 recovery packages. In order to achieve this goal, climate action, economic growth, and fiscal stability, financial systems and investments need to go hand-in-hand.
Circular Economy is nothing new to developing countries, as Ms. Jocelyne Landry Tsonang from the African Circular Economy Network (ACEN) described. In her presentation, Ms. Tsonang spoke about the relevance of Circular Economy for developing countries, the recovery-related challenges faced by developing countries, the importance of the transition to Circular Economy for developing countries, and the work done by the ACEN with the aim of supporting circularity and transition to Circular Economy in Africa. Ms. Tsonang discussed the sustainable recovery measures considered by developing countries and the special aspects and challenges related to them. Ms. Tsonang highlighted the need for more investments e.g. the Africa Green Stimulus Programme and the importance for the African private sector to be informed and trained about numerous opportunities related to green finance, emphasizing the links between the recovery efforts and advancing the transition to Circular Economy. Ms. Tsonang described Circular Economy as a booster for Africa’s trade and the competitiveness of the private sector while delivering a range of other benefits.
Dr. Saara Tamminen (pictured above) presented the Finnish Innovation Fund Sitra’s analysis on the requirements for green recovery and sustainable growth, emphasizing the importance of flexibility and constant adjustments. Setting long-term targets and main policy strategies guiding investments, guidelines on choosing the best green recovery policies and international financing are key. In March 2020, Sitra was among the first to open the discussion on sustainable recovery by publishing a report on sustainable recovery measures on the coronashock. Dr. Tamminen also presented the key takeaways from a recent report on decoupling greenhouse gas emissions from economic growth(Link to another website.), commissioned by Sitra. The key messages for policy makers included a need for a strong public policy (for e.g. energy efficiency, renewables, coal phase-out and carbon capture) and a mix of different policy instruments. According to Dr. Tamminen, the policy approaches must be credible, consistent and coherent in the long term to deliver the desired outcomes.
Mr. Brian O’Callaghan (pictured below) provided an outlook to the status of recovery efforts to date: so far only 2.8% of spending is advancing environmental sustainability but, on a positive note, examples of environmentally sustainable spending cover a range of industries and bode well for future economic growth. Presenting the work of the Oxford University Economic Recovery Project(Link to another website.), Mr. O’Callaghan described three tenets to an environmentally sustainable recovery and analyzed the ways trade policy can support a green recovery. The needed trade policy actions include removing barriers that restrict the trade of environmental goods, removing indirect fossil fuel subsidies, delivering significant climate finance, promoting clean procurement criteria and preparing for new clean markets e.g. on green hydrogen, construction, agricultural enablers, aviation, shipping and carbon markets.
In his concluding remarks, Mr. Hoe Lim highlighted that the pandemic is not over and the challenges related to it will likely continue. He focused on the potential next steps from the trading system’s perspective, the interlinkages between trade and recovery, and the concrete actions the WTO members could focus on in advancing sustainable recovery.
The event was organized as a side event of the meeting of the WTO Committee on Trade and Environment, which took place on 23 June 2021. Finland has been actively advancing discussions on trade and environment at the WTO, and the event proved the need to continue exploring the deep interlinkages between trade policy, investments and finance. These all three components play a crucial, mutually supportive role in sustainable recovery and advancing transition to circular economy.
The recording of the event can be found here (Link to another website.)(link to Youtube).
Presentations:
Pekka Morén: Coalition of Finance Ministers for Climate Action: overview of activities and green recovery
Jocelyne Landry Tsonang: Sustainable Recovery in Africa and transition to Circular Economy: the role of trade
Saara Tamminen: Trading Services for a Circular Economy
Brian O’Callaghan: Trade and Environmentally Sustainable Recovery