WTO law on environmental sustainability and green trade barriers
Theme: Sustainability at the global and EU level
The project aims to clarify and assess the legal status of green trade barriers under World Trade Organization (WTO) law, with a particular focus on the legal concept of environmental sustainability. It seeks to understand how and why states influence the development of this emerging legal regime.
To counter the risk of competition from countries with lower sustainability standards, states use green import barriers to protect national industries. These tools must comply with WTO law. While environmental sustainability is a stated aim, WTO treaties address it only to a limited and vague extent.
The insights will provide students, governments, and businesses with awareness of the international economic law dimension concerning trade and sustainability, including the role of sustainability as both a legal barrier and facilitator of global trade. The findings enable states to design green policies in compliance with international economic law and supports businesses in navigating trade rules that affect their strategic decisions on the markets of green goods and production processes.
RQ1) What does the concept of environmental sustainability mean in WTO law?
WTO treaty law is primarily aimed at facilitating trade. Environmental consideration can be accepted through exceptions or through economic language of negative externalities. However, WTO law is dynamic, and there is a growing legal emphasis on the protection of the environment and the conservation of exhaustible natural resources. RQ1 explores the meaning of environmental sustainability within the context of WTO law. Understanding the scope of environmental sustainability as a potential justification for market interventions is crucial for national governments and businesses seeking to implement green policies.
RQ2) Which types of green import barriers exist and to what extent are they consistent with WTO law?
WTO law is tested when states adopt trade barriers. RQ2 provides an overview of the various types of green barriers adopted by states to protect the environment in light of WTO law. It establishes the balance between trade and environmental values from a legal perspective and supports RQ1 by assessing whether WTO law is shifting the balance towards greener values.
RQ3) How do Denmark, other EU States, and EU trading partners (seek to) shape the legal concept of environmental sustainability?
Governments do not passively await the development of new WTO law but actively seek to shape the meaning and scope of legal concepts: They commission reports, develop positions, negotiate in formal discussions, use the WTO dispute settlement body, and respond to WTO-judicial decisions. RQ3 aims to categorize, understand and explain these varied legal and political strategies.
BA and MA courses
The research will upgrade legal education in international economic law in relation to environmental sustainability, which is currently a blind spot. By addressing RQ1-3, the project provides clarity on the concept of environmental sustainability, the legal construction and legality of green trade barriers under WTO law, and the role of political actors in shaping this emerging law. It will give students an understanding of sustainability issues in trade, and downstream these insights will enrich and equip private companies and industry organisations in the green transition.
The project will develop teaching material that can be used in legal educations in already existing BA/MA courses such as ‘Regulering af markeder’ at CBS. Project findings will be implemented in new editions of relevant textbooks authored by project participants. Selected research articles will also be included in the course material/curriculum.
Continuing education
As the knowledge is highly relevant for existing staff at these organisations, it will also be relevant to offer this education in a continuing education form.
At least 10 peer-reviewed articles based on the findings from the RQs will be published in both Danish and international legal journals and as parts of relevant international book projects.
Publications will be added here once published.
The project is coordinated by Associate Professor Henrik Andersen from Copenhagen Business School, with Roskilde University, Aarhus University and the Southern University of Denmark as partners.
A network consisting of both researchers, students and practitioners will be developed as part of the project.
Researchers
Funding
This project is part of the JURiB initiative funded by VELUX FONDEN.
Project period: 1 May 2025 – 30 April 2028
PI: Associate Professor Henrik Andersen, Copenhagen Business School