In the surging waves of global trade, how can we ensure environmentally beneficial technologies flow freely while addressing the hidden ecological footprint of commerce? The World Customs Organization charts a new course.
As container ships crisscross borders laden with goods, a critical question emerges: how can customs systems better identify and facilitate trade in truly environmentally beneficial technologies? This challenge lies at the heart of the World Customs Organization's (WCO) recent initiative to "visualize a greener Harmonized System (HS) to support environmentally sustainable trade."
The Imperative for Ecological Awakening
On January 23, 2023, with strong support from the European Union, the WCO hosted the fifth in a series of workshops examining how to adapt the global trade classification system for environmental priorities. The session focused on a pivotal question: "The environmental qualification of technology—how do we identify the green status of equipment?"
Konstantinos Kaiopoulos, WCO Director of Tariff and Trade Affairs, framed this as part of a necessary transformation toward sustainable global value chains. "The WCO Secretariat fully recognizes that the HS must adapt to environmental concerns," he stated, highlighting the multifaceted benefits of properly classifying green technologies—from reducing trade costs to enabling better policy-making.
Yet challenges abound. Rapid technological evolution means today's green solutions may quickly become obsolete. Moreover, the lack of consensus on what constitutes "green" equipment complicates classification efforts. Kaiopoulos emphasized the need for HS flexibility to accommodate these dynamics while maintaining global consistency.
Balancing Priorities in Green Identification
WCO Deputy Director Gael Grooby moderated discussions on the practical complexities of green technology identification. "The HS can't separately identify all goods," she noted, stressing the need for prioritization based on environmental impact significance.
Grooby highlighted the dual challenge: determining which technologies merit classification while developing accurate HS descriptions that function effectively at borders. This requires deep understanding of products' environmental characteristics—a process she described as equally technical and policy-oriented.
Regional Perspectives on Greening Trade
Richard Ferenc Szucs of the European Commission outlined EU approaches to developing greener HS classifications for machinery. Examples included equipment enabling water conservation, energy efficiency, and renewable energy generation—concrete cases that demonstrate practical implementation pathways.
From the Asia-Pacific, APEC's Carlos Kuriyama examined monitoring challenges for green technology trade. He proposed three classification alternatives addressing production externalities—a crucial consideration given that current HS systems don't account for manufacturing environmental impacts.
The recycling sector's perspective came from Alev Somer of the International Recycling Bureau, who advocated recognizing recycled materials and recycling equipment as environmental goods. "Developing nations particularly need modern equipment to enhance recycling capacity," she noted, emphasizing tariff elimination as key to circular economy advancement.
Technical Challenges and Industry Realities
Adrian Whiteman from the International Renewable Energy Agency spotlighted classification difficulties in renewable energy technologies. "The HS can't classify products based on manufacturing methods," he observed, pointing to solar equipment as an example where composition, process and function all require consideration.
Martina Kavanagh of IBM and the International Chamber of Commerce addressed industry challenges in trading refurbished goods. She proposed potential HS modifications to better classify product conditions (new, used, refurbished, etc.), while acknowledging the complexity of such changes and the need for comprehensive stakeholder education.
Charting the Path Forward
WCO Secretary General Kunio Mikuriya framed the HS as "a clear instrument for customs to support policies addressing environmental challenges," while acknowledging it as just one tool among many needed for comprehensive solutions. The workshop series concluded with over 25 expert speakers and 700 participants from governments, international organizations, academia and private sectors—demonstrating broad engagement with these critical trade-environment intersections.
This WCO initiative marks a significant step in reconciling global commerce with ecological imperatives. While challenges remain in technology classification, standard harmonization and implementation, the organization's commitment signals growing recognition that trade systems must evolve to support rather than undermine environmental sustainability. As classification systems adapt to identify and facilitate green technologies, they create pathways for trade to become a positive force in addressing climate change and resource conservation—a necessary transformation for 21st century commerce.