Trade in environmental goods (EGs) has the potential to provide access to products that reduce environmental risks and minimise pollution and resource use, as well as to facilitate the diffusion of environmental technologies embedded in these goods. This paper aims to feed into discussions around the trade liberalisation of EGs by revisiting its taxonomy, reviewing non-tariff measures that affect the design and scope of EGs, and to provide quantitative analysis on the frequency, coverage and sectoral heterogeneity of non-tariff measures (NTMs) on EGs. This paper also examines supply chains and related regulations that could lead to possible trade bottlenecks. Findings show that the number of NTMs affecting trade in EGs has increased over time and that most EGs are affected by at least one NTM, with the most common being technical barriers to trade (TBT) and quantitative restrictions and that many of these may involve components critical for the production of EGs. Trade facilitation can help remove some of the bottlenecks by streamlining processes applied at the border.
Non-Tariff Measures Affecting Environmental Goods Trade
