During COP26, we saw a new wave of commitments to end the devastating loss of nature mainly due to agricultural expansion. More than 130 countries have announced a new goal of stopping and reversing deforestation by 2030. Investment firms with $ 8.7 trillion in assets have pledged to clear their portfolios of investments in agricultural products leading to deforestation by 2025.

The Forests, Agriculture, Trade and Commodities Dialogue, led by the UK and Indonesia, saw producer and consumer countries adopt a common roadmap to end deforestation this decade , a first of its kind.

This renewed urgency to establish more sustainable food and land use systems is welcome but doomed to failure like past efforts if we do not consider trade, and realize that how we measure the success of the trade does not recognize the many ways in which it is deeply linked to the environmental impacts of food systems.

We need business leaders in the room with us to discuss climate issues, or the policies announced in Glasgow will carry little weight. Given the greater variability that climate change brings to all economic activities, trade ministers should urgently adapt and contribute to an integrated climate change mitigation agenda.

The World Trade Organization, and its supreme decision-making body, the Ministerial Conference, is a remarkable arena for trade policy makers to lead the way. It is unfortunate that new concerns over COVID-19 have once again forced the WTO to postpone its 12th Ministerial Conference, which usually meets every two years and was scheduled to take place in Geneva from November 30 to December 3.

However, “this does not mean that the negotiations must stop,” as the WTO itself put it in a statement. Nationally and globally, trade officials can play a key role in shaping and supporting sustainable policies and agreements, and it is our hope that they will display climate ambition and continue to make as much progress on this issue. key sustainability issues as the current pandemic context allows.

Why is it worth it

Many features of today’s trading and investment system fail to contribute to environmental, health and inclusion goals and, in some cases, undermine food security itself. The hidden costs of the world’s food and land use systems are estimated at nearly $ 12 trillion per year, compared to a market value of the global food system of $ 10,000 billion.

Why should this be of interest to trade ministers whose primary objective is export-led economic growth, as well as a secure and stable supply of strategically important imports? There are several reasons.

Trading systems are increasingly threatened by increased price volatility and supply chain disruptions from climate impacts, including droughts, fires and floods, and the destruction of nature. In 2021 alone, droughts on all inhabited continents have contributed to an increase in world prices by more than a third. Despite significant agricultural advances in feeding the world over the past 60 years, global agricultural productivity is 21% lower than it could have been without climate change.

This threat of declining agricultural production comes at a time when population growth is expected to lead to increased demand for food. Studies show that regions where demand increases the most, and food security is lowest, are more likely to experience negative impacts on yields due, for example, to soil degradation due to conventional farming practices.

Future business relationships are also shaped by the needs of emerging markets. Demand for beef, soybeans, palm oil, and pulp and paper from China, India, Brazil and Indonesia is expected to increase by 43% by 2025.

If we needed one more reason why trade ministers should push for sustainable practices: Scientists warn the world is near several critical tipping points where climate change could lead to abrupt or irreversible changes in the world. parts of the earth system. In the Amazon, a combination of deforestation, climate change and widespread fires could cause an additional 3-8% loss of rainforest and potentially transform large areas into a savanna-like ecosystem. This would not only impact Brazil, but millions of people in the rainforest region, as well as rainfall and climate regulation patterns around the world.

New role for sales agents

We believe trade leaders should feel empowered to take positive action, break down silos, and collaborate with other ministers and sectors. Trade ministers must feel that the environment is no longer a bargaining chip with which to negotiate.

A new note from the Food and Land Use Coalition details nine areas of action policymakers can take to initiate this new business environment. Here are the ones that are most relevant to business leaders.

First, they should adopt an integrated approach that harmonizes trade policy decisions with other national interests such as agriculture, health and the environment. Colombia has set up a commission that coordinates the work of several ministries and institutions to strengthen food security and healthy and nutritious diets. The Comision Intersectorial de Seguridad Alimentaria y Nutricional, with its integrated approach to food systems, is part of the efforts supported by First Lady Maria Juliana Ruiz to prioritize nutrition on the national agenda.

Second, the WTO offers opportunities to develop new multilateral partnerships, or “coalitions of the willing”, which can be developed to promote better standards and increased commitments. Such partnerships could create new capacities for sustainable trade. An example of this could be that the WTO agrees to advance the objectives of the FACT Dialogue.

In addition, the WTO Ministerial Conference, when it can meet, presents a crucial chance for countries to advance a blocked multilateral effort on removing perverse subsidies in global fisheries. Overexploitation of oceanic fisheries has resulted in critical overexploitation of 34% of fish stocks. The WTO is keen to resolve this problem, but it will require a multilateral effort. Progress in this area would signal a much needed renewed spirit in multilateral efforts to address other issues of global commons.

Finally, we must recognize that a transition to more sustainable trade cannot come at the expense of producers, especially smallholders. Trade policy mechanisms should be associated with greater incentives for sustainable production. This can be achieved by investing in risk management tools or other financing processes, as pledged in the $ 12 billion commitment to global forest finance.

International and national arenas provide places where trade leaders can do good for their country and the world by setting us on the path to achieving the goals set at COP26.

Felia Salim is Chair of the Governance Reform Partnership Board of Directors and former Vice Chair of PT Bank Negara Indonesia and a Food and Land Use Coalition

Ambassador Izabella Teixeira is a former Minister of the Environment of Brazil and Ambassador of the Food and Land Use Coalition