Report

What National Farm Policy Trends Could Mean for Efforts to Update WTO Rules on Domestic Support

This report examines trends in agricultural domestic support across a dozen World Trade Organization members and sets forward recommendations about how global trade rules should be reformed. 

April 24, 2020

Key Messages

  • This report makes the case that World Trade Organization (WTO) rules on agricultural domestic support urgently need to be updated in order to help foster more equitable, sustainable, and efficient markets and contribute to progress on Agenda 2030.
  • It compares trends in farm support policies over time across a dozen WTO members, examines how they relate to existing ceilings on support at the global trade body, and identifies possible ways forward.
  • The authors set out recommendations on how WTO members could simplify domestic support rules in the future and makes the case for greater transparency in government notifications.

Global trade rules on the support governments can provide to their farm sectors need urgent reform if countries are to make progress on Agenda 2030—and in particular on Sustainable Development Goal 2, which aims to end hunger and malnutrition, achieve food security, and promote sustainable agriculture. Trade rules must balance the need to ensure that domestic support does not harm producers elsewhere with the need to increase public investment in agriculture and food systems. With the coronavirus pandemic and climate-related volatility affecting global markets, improved rules on domestic support would also help improve stability and predictability in the global food system.

This report looks in detail at agricultural support in a cross-section of the World Trade Organization (WTO) membership. It examines how this support relates to public policy goals, the type of domestic support instruments chosen, and countries’ current WTO limits on support.

It proposes simplifying domestic support rules by allowing countries to provide a certain minimal level of trade-distorting support based on a percentage of the value of production. It also makes the case for much stronger transparency requirements on government notifications. Specifically, the report recommends:

  1. New overall limits on domestic support that can harm producers in other countries, which are gradually cut over time. The aim is to redress inequalities among countries and harmonize support levels in the future. The new limits would be tied to an objective measurement of support as a share of agricultural output that reflects current market and policy realities, rather than using fixed levels that reflect past support.
  2. By providing special and differential treatment to developing countries that require it, negotiators would provide those WTO members with a longer phase-in period, a higher initial cap, or both.
  3. Limits on how much support can be focused on any one commodity, including agreement on product categories.
  4. Food bought at administered prices fixed by governments under public stockholding programs will not count toward domestic support limits when the administered price is below an agreed international market price.

Report details

Topic
Food and Agriculture
Project
Fair and Sustainable Trade in Food and Agriculture
Impact area
Sustainable Economies
Publisher
IISD
Copyright
IISD, 2020
Report

Global Market Report: Palm Oil

This report examines how voluntary sustainability standards can mitigate some of the worst environmental impacts of producing palm oil, the world’s most consumed edible oil.

April 27, 2020

Key Messages

  • Palm oil producers are increasingly following voluntary sustainability standards (VSSs).
  • VSS-compliance can mitigate some of the worst environmental and social impacts of palm oil production.
  • The palm oil market is large and expanding, offering big potential for VSSs to have a positive impact.

Palm oil is the most widely used vegetable oil in the world. It is used in numerous edible and personal care products as well as feedstock for biofuels. However, palm oil production has been linked to deforestation and other negative environmental and social impacts. 

This report, part of IISD's Sustainable Commodities Marketplace Series, examines the growth and potential for voluntary sustainability standards to mitigate some of palm oil production's worst environmental and social impacts.

Report details

Topic
Standards and Value Chains
Project
State of Sustainability Initiatives
Impact area
Sustainable Economies
Publisher
IISD
Copyright
IISD, 2020
Report

Mapping India's Energy Subsidies 2020: Fossil fuels, renewables and electric vehicles

How have India’s energy subsidy policies changed? What have been the most significant developments in India’s dynamic energy policy environment? And is public support aligned with India’s desired energy future?

April 7, 2020
  • Electric vehicle subsidies have grown over 11 times since FY 2017 in #India.

  • In 2019, fossil fuel subsidies in #India were 7 times bigger than renewable #energy subsidies.

  • Subsidies for #renewables dropped 35% while subsidies for oil and gas went up 65% since FY 2017 in #India.

Key Messages

  • Shift public resources to a cleaner future. India’s progress since FY 2014 shows a commitment to the energy transition, driven at least in part by specific actions to reform perverse subsidies and back clean energy—but further efforts are required to shift public resources away from fossil fuels and toward clean energy.
  • Align health and economic coping strategies with the desired energy future. India should prioritize health and economic recovery as it navigates the COVID-19 crisis—but clean energy transition can and should be reflected in coping strategies and support measures.
  • Track and evaluate energy subsidy policies more systematically. Subsidy reporting can be conducted in line with formal guidelines for Sustainable Development Goal 12(c)1 and India’s G20 peer review of fossil fuel subsidies. With fuller data, ministries should monitor, evaluate, and adapt their most significant subsidies to better meet policy objectives.

Subsidies matter because they are used by governments around the world to influence energy producers and consumers. Mapping India’s Energy Subsidies 2020: Fossil fuels, renewables, electric vehicles examines how the Government of India (GoI) has used subsidies to support different types of energy, highlighting the most significant developments from FY 2014 to FY 2019. We seek to answer: How have India’s energy subsidy policies changed? What have been the most significant developments in India’s dynamic energy policy environment? And is public support aligned with India’s desired energy future?

The report is accompanied by an online data portal to help browse the subsidy data in detail and includes detailed spreadsheets and annexes for policy-makers and researchers. The analysis is the latest update in the India's Energy Transition series from the International Institute for Sustainable Development's (IISD) Global Subsidies Initiative (GSI) and Council on Energy, Environment and Water (CEEW). For previous iterations of this study, see:


Reactions to the report

"The report has brought out a holistic view on India's energy transition pathway and different kinds of subsidies support provided to the Indian energy sector and their trends. The recommendations made in the report are extremely progressive and provide impetus to promoting clean energy and better utilization of subsidies. The report will greatly facilitate policy-making in the energy sector."

—Amitabh Kant, CEO of NITI Aayog 

“This study shows the real, social, cost of coal in India. By subsidizing polluting fossil fuels, the country is suffering from another health crisis: air pollution. Financial relief packages need to take into account the long-term health effects of the energy choices we make today.” 

—Dr. Maria Neira, WHO Director, Department of Environment, Climate Change and Health

"Ambitious policy and regulatory frameworks are critical to creating favourable and competitive conditions, allowing renewable energy to grow and displace more expensive and carbon-emitting fuels; fossil fuel subsidies must be cut."

Rana Adib, Executive Director, REN21, @RanaAdibX

Report

2019 IGF Annual Report

The IGF 2019 Annual Report highlights  our commitment to our 76 member countries to ensure mining's benefits are shared and leveraged for sustainable development.

April 14, 2020

Leveraging mining for sustainable development has never been more vital.

Mining can be a major force when combating poverty, fostering gender equality, and improving environmental management. Governments join the IGF because we deal with these important issues and many others that matter to them, like climate change and artisanal and small-scale mining. 

We help governments assess their policy frameworks to identify gaps and build on opportunities. Member governments can then design a mining regime that attracts investment and ensures benefits are shared. We provide in-country and digital workshops designed to build capacity and foster peer-learning, ensuring members learn how to develop and implement programs that meet their evolving needs.  

Our 2019 Annual Report highlights our commitment to our 76 member countries to ensure mining's benefits are shared and leveraged for sustainable development.

Report details

Report

2020 IGF-PDAC-WEF Sustainability Forum: The Future of Work in the Minerals Industry

On February 29, 2020, the IGF, PDAC, and WEF co-hosted the Sustainability Forum, which focused on The Future of Work in the Minerals Industry.

April 7, 2020

The year is 2045, and the world is a very different place.

Coordinated global action enabled the achievement of the Sustainable Development Goals (SDGs). Inequality has been reduced; renewable energy powers the globe; gender equality is widespread; and worldwide terrestrial and water ecosystems are thriving as the global economy has become more circular. 

We made this happen—but how? What key collaborations, decisions, and actions were taken in the last 25 years to enable this age of peace, prosperity, and progress?

On February 29, 2020, 150+ leaders in the minerals industry—from governments, civil society, and the private sector—came together to answer these questions at the annual Sustainability Forum. The event, which focused on The Future of Work in the Minerals Industry, was co-hosted by the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF), the World Economic Forum (WEF), and the Prospectors and Developers Association of Canada (PDAC), and facilitated by Watershed Partners. The forum was held on the sidelines of the 2020 PDAC Convention in Toronto, Canada. 

In collaboration, participants explored what changes would mean for the future of work in the minerals industry. To ensure that the future of work in the minerals industry continues to support the sustainable development of communities and countries in a rapidly changing context, they addressed a host of challenges and opportunities, including: environmental health and safety; relationships among companies, communities, and governments; technological advancements and automation; and the social license to operate. 

Report details

Report

Analyse comparative des textes juridiques applicables à l'exploitation minière artisanale de l'or dans l'espace UEMOA

Soutenir l’innovation et promouvoir des pratiques vertueuses dans l’exploitation artisanale de l’or à travers des réformes législatives dans l’espace UEMOA.

March 31, 2020

Key Messages

  • Autorisation légale de la mécanisation à la phase de concassage et de traitement dans l’exploitation artisanale de l’or;
  • Un rôle plus important des collectivités territoriales pour une meilleure gestion et de proximité;
  • Création de « zones réservées d’orpaillage » de nouvelle génération intégrant l’usage d’un outil de traitement par méthode gravimétrique.

Ce rapport a été élaboré dans le cadre du projet pilote de conception et promotion des pratiques vertueuses dans l’exploitation artisanale de l’or en Afrique de l’Ouest (projet « or propre »). Ce projet pilote est une expérimentation technique et sociale d’organisation de la filière artisanale de l’exploitation de l’or réalisée dans trois communes situées dans la province du Ganzourgou (Burkina Faso) depuis 2018. Elle consiste notamment à l’expérimentation d’un outil de traitement de l’or par la méthode gravimétrique en lieu et place du cyanure et du mercure.

Une analyse des législations actuelles des pays membres de l’UEMOA relatives à l’exploitation artisanale a été entreprise en vue d’évaluer la mesure dans laquelle ces législations permettent l’implantation de pratiques vertueuses dans l’exploitation artisanale de l’or dans l’espace UEMOA.

Ce rapport présente les résultats et recommandations de cette analyse comparative des textes juridiques applicables à l’exploitation artisanale de l’or dans l’espace UEMOA. Il fait un état des lieux et met en lumière plusieurs domaines à améliorer dans les cadres stratégique, institutionnel, normatif et communautaire des États membres de l’UEMOA. Prenant appui des premières conclusions du projet « or propre », il propose des solutions pour un meilleur encadrement juridique de l’exploitation artisanale par les États membres de l’UEMOA aussi bien à l’échelle nationale que régionale. Les principales questions abordées incluent la définition de l’exploitation artisanale et la place de la mécanisation, le rôle des collectivités territoriales dans la gestion du secteur, la protection de l’environnement, la fiscalité adaptée à l’exploitation artisanale et la traçabilité de la commercialisation de l’or.

Le rapport formule également une recommandation intégrée de création des « zones réservées d’orpaillage » de nouvelle génération, et propose les grandes lignes pour une mise en œuvre effective pendant leur phase d’identification, d’établissement et de gestion. Ces zones offriraient l’opportunité d’expérimenter l’ensemble des recommandations spécifiques proposées dans ce rapport.

Le rapport ne présente pas de solution « taille unique », mais offre des options qui peuvent être ajustées au contexte de chaque pays, tout en permettant d’avoir une politique et un cadre légal cohérent à l’échelle de l’UEMOA.

Report details

Topic
Mining
Impact area
Sustainable Economies
Publisher
IISD
Copyright
IISD, 2020
Report

Expert Consultation with Financial Service Providers: Understanding the sustainability issues agricultural producers need to consider to be investment ready and access finance

Understanding the sustainability issues agricultural producers need to consider to be investment ready and access finance

This paper presents the results of a consultation that IISD's State of Sustainability Initiatives (SSI) conducted with over 50 financial service providers in order to better understand the risks and sustainability issues that they consider relevant when assessing finance requests from agricultural producers.

March 24, 2020

Access to finance is vital for agricultural producers. It enables them to purchase inputs or pay for working capital and make long-term investments that are needed to add value to their farming operations while strengthening their climate resilience.

However, agricultural producers often have difficulty obtaining that finance, despite their role as significant drivers of agricultural production and employment in developing countries. Female producers face particular challenges in this area, such as their vulnerability to climate change impacts and a lack of training or land tenure, along with the related implications for "bankability" in accessing finance.

To better understand the issue, we sought to examine what risks and sustainability issues financial service providers (FSPs) consider relevant when assessing finance requests from agricultural producers. The paper was born out of a previous SSI webinar in November 2018, where we presented the findings of a consultation we held in mid-2019 with FSPs.

We asked FSPs to consider the sustainability issues that affect their assessments of when to provide loans, grants, and other financial support to agricultural producers. In addition, we asked these FSPs whether they use voluntary sustainability standards in their investment decision-making. This paper summarizes the results of those findings and will be an important input in the upcoming State of Sustainability Initiatives (SSI): Standards and Finance Review.

Report details

Topic
Standards and Value Chains
Project
State of Sustainability Initiatives
Impact area
Sustainable Economies
Publisher
IISD
Copyright
IISD, 2020
Report

Exploring the Trade Impacts of Fossil Fuel Subsidies

How do fossil fuel subsidies affect competitiveness and trade in various markets, and what is the likely scale of such impacts? This paper sheds light on the relevance of fossil fuel subsidies from an international trade policy perspective, in particular for the WTO.

March 22, 2020

Key Messages

  • There are multiple pathways through which fossil fuel subsidies can affect competitiveness and trade at various stages of fossil fuel product value chains. These include both direct and more indirect effects.
  • The trade impacts of fossil fuel subsidies are likely very important in markets for crude fossil fuels, transformed energy products, as well as non-energy but energy-intensive products, which are enormous and often highly competitive. Markets for substitute products, such as those related to renewable energy, can also be significantly affected.
  • Fossil fuel subsidies are highly relevant from an international trade policy perspective, in particular for the World Trade Organization (WTO). Various options exist for the WTO to engage more meaningfully with fossil fuel subsidies and their reform.

In recent years, growing attention has been given in various contexts to fossil fuel subsidies and the need to reform them. Discussion on the topic, however, has focused almost exclusively on the environmental impacts of these support measures. This paper focuses on another, much less explored aspect: the trade impacts of fossil fuel subsidies. Despite the obvious trade implications that fossil fuel subsidies can have, those impacts have not yet been discussed in detail.

After an overview of the current state of the literature on the topic, the paper presents a conceptualization and explanation of the various pathways through which fossil fuel subsidies can affect trade at different stages of fossil fuel product value chains, and then looks at empirical evidence to shed light on the potential scale of those trade impacts. The paper also presents a series of options for how the WTO could engage more with fossil fuel subsidies and contribute to advancing their reform.

Report

Achieving Low Solar Energy Price in Indonesia: Lessons learned from the Gulf Cooperation Council region and India

While solar energy has exploded in India and the Gulf Cooperation Council region, it has lagged significantly in Indonesia. This report examines why this has been the case and what Indonesia can do to catch up to others in growing the renewable energy sector in the country.

March 20, 2020

Key Messages

  • India and the Gulf Cooperation Council region have seen significant expansion in solar energy prices, while Indonesia has lagged in the growth of solar despite aggressive policy targets.
  • Key differences include land acquisition policies, policy enabling conditions, and a stable environment that have spurred investment, as well as lower perceived risk in investment in these two regions compared to Indonesia.
  • Studying the best practices in these two regions could offer strategies for more renewables in Indonesia and assist in meeting the country's renewable energy targets for 2025.

Indonesia could take several lessons from the Gulf Cooperation Council (GCC) countries and India in terms of the development of renewable energy and how to achieve low electricity prices. There is a common theme between GCC countries and India when it comes to creating a supportive atmosphere for developing renewable energy projects in the country: clear and supportive policies. The United Arab Emirates (UAE), Saudi Arabia, and India all have specific national programs for renewable energy that serve as their main roadmaps, such as Energy Strategy 2050 (UAE) and the National Renewable Energy Program (part of Saudi Arabia’s Vision 2030). These countries also did some intra-governmental restructuring to create a more streamlined decision-making process. 

There is also an observable trend of large-scale projects being delivered under long-term Power Purchase Agreements (PPAs) when it comes to renewable energy projects in the GCC region. The projects are proven to be bankable and have no problem attracting billions of dollars in domestic and international investment. One reason the low risk level is associated with renewable energy projects in India is that there are already many large-scale projects being carried out successfully. Investors and other stakeholders now have a better understanding of how a project works. In Indonesia, the first gigawatt would be relatively expensive, but the 10th gigawatt would be a lot cheaper.

If you consider that India has a far more developed renewable energy industry compared to Indonesia, has been relying on imported panels to meet its ambitious goal, and is not seeing promising results from imposing local content requirement and safeguard duty, the Government of Indonesia should take the time to carefully consider its local content policy.

Overall, there are various factors that drive low renewable energy prices, apart from the costs of the technology itself. Creating a stable investment climate to attract both domestic and foreign institutional investors by having supportive policies can reduce the cost of financing, which will eventually translate into lower project costs. Coming up with other de-risking policies, such as India’s Solar Park policy, can also remove the costs and risks associated with land acquisition, which, in Indonesia’s case, plays quite a large role in driving up project costs.

Report details

Topic
Subsidies
Energy
Region
Indonesia
Project
IISD Global Subsidies Initiative
Impact area
Climate
Nature
Publisher
IISD
Copyright
IISD, 2020
Report

Progressing National SDGs Implementation

An Independent Assessment of the Voluntary National Review Reports Submitted to the United Nations in 2019

The report reviews trends, gaps and best practices in the 47 Voluntary National Reviews countries submitted in 2019 to the United Nations to share their progress on the SDGs.

February 26, 2020
  • Countries are more consistently following guidelines for Voluntary National Review (VNR) reports and providing information on most aspects of SDG implementation as the 2030 Agenda progresses.

  • Reporting suggests leaving no one behind is becoming a defining consideration in implementing the SDGs.

    However, except for leaving no one behind, VNRs continue to pay limited attention to the transformative principles of the 2030 Agenda.

  • While there is evidence of increased engagement with civil society, results are mixed. It is particularly concerning that countries remain silent on closing civic space and ongoing attacks on human rights defenders and environmentalists.

Key Messages

  • Countries are more consistently following guidelines for Voluntary National Review (VNR) reports and providing information on most aspects of 2030 Agenda implementation.
  • Reporting suggests that leaving no one behind is becoming a defining consideration in implementing the SDGs. However, except for leaving no one behind, VNRs continue to pay limited attention to the transformative principles of the 2030 Agenda.
  • While there is evidence of increased engagement with civil society organizations, results are mixed. It is particularly concerning that countries remain silent on closing civic space globally and ongoing attacks on human rights defenders and environmentalists.

The fourth in a regular series of reports commissioned by civil society organizations, this report provides an independent analysis of the 47 English, French, Spanish, Russian and Arabic Voluntary National Review (VNR) reports submitted in 2019 to the UN’s High-Level Political Forum on Sustainable Development (HLPF).

Prepared by the Canadian Council for International Co-operation, the report identifies 10 key pillars that we believe are essential to the effective implementation of the 2030 Agenda for Sustainable Development. It also recognizes emerging good practice and sets out a range of conclusions and recommendations with respect to how countries can both improve their implementation of the Sustainable Development Goals (SDGs) and use the HLPF as an opportunity for mutual peer learning, knowledge exchange and support. Importantly, the review also provides a comparative assessment of how VNR reporting is evolving over time through a comparison of analysis of the VNRs in 2016, 2017 and 2018 with findings for 2019.

This year’s report showcases positive trends with respect to reporting on leaving no one behind and stakeholder engagement. However, it also underlines the continued silence by member states in Voluntary National Review reports on the closing of civic space and discusses how this impacts the ability of all stakeholders to engage and implement the sustainable development goals.

Report details