WTO: German apples no better for the climate than imported apples

Apple Climate Conundrum: German vs. Imported Apples

There's a common misconception that apples grown locally are always more eco-friendly than those imported from far-off places. However, according to research by the World Trade Organization (WTO), an influential global organization, this isn't always the case. Intriguingly, an apple from Germany might have higher carbon dioxide (CO2) emissions than one imported from New Zealand, as revealed by Ralph Ossa, the WTO's chief economist for Germany.

"Most people think that a regional product is necessarily good for the environment," Ossa stated, addressing the public misconception. "This is not always true if the total CO2 emissions of a product are taken into account."

Apples from New Zealand, for example, during winter, might have lower CO2 emissions than apples from Germany, Ossa explained. This is due to the energy consumed in cold storage for the German apples. However, transportation emissions only account for a small proportion of a product's total emissions, typically around 10%.

So, while it's easy to criticize imports as environmentally unfriendly, the situation can be more nuanced. "If a vegetable or fruit is in season in another country and not in ours, and it is either grown in a heated greenhouse or has been in cold storage here, then the production emissions of locally produced goods are often higher than in the other country," Ossa concluded. This suggests that it's not accurate to assume that importing is always detrimental to the environment.

Greening Global Trade

The WTO sees potential in global trade as a tool for reducing climate-damaging emissions. To achieve this, we need to trade differently, not less. By implementing a global CO2 price, emissions could be reduced. In a simulation conducted by the WTO, a global CO2 tax of around 90 euros per tonne of CO2 would result in savings, more than a third of which would come from importing goods from countries that can produce them in a particularly green way.

Global CO2 prices only exist regionally, with Europe as a notable example. However, a global tax could have a larger impact on promoting green alternatives, making products like wood construction cheaper than concrete portions. Countries would specialize in products they can produce with lower emissions, effectively changing global trade dynamics, according to Ossa.

The WTO, with 164 member countries, including Germany, Switzerland, and New Zealand, is committed to promoting sustainable global trade with low tariffs and uniform rules for the benefit of all. A global CO2 price is integral to this mission.

Factors Influencing CO2 Emissions

1. Transportation Emissions:
2. Distance and Mode of Transport: Long-distance transportation by air or sea leads to higher CO2 emissions than shorter land distances.
3. Production Practices:
4. Farming Methods: Intensive agriculture, monoculture, and synthetic fertilizer usage can contribute to increased emissions. Sustainable farming methods, such as organic farming, are beneficial in reducing these emissions.
5. Supply Chain Efficiency:
6. Logistics and Storage: Efficient supply chains with minimal storage and handling reduce emissions. This involves optimizing routes, using refrigerated containers, and minimizing packaging waste.

Global Trade Policies to Boost Sustainability

1. Promoting Sustainable Agriculture:
2. Environmental Goods and Services (EGS): Trade policies can support sustainable agricultural practices, encouraging countries to adopt environmentally friendly farming methods.
3. Carbon Pricing and Border Adjustments:
4. Carbon Border Adjustment Mechanism (CBAM): Policies like CBAM, already implemented by the European Union, enable countries to level the playing field by imposing a carbon price on imported goods.
5. Trade Agreements and Standards:
6. Multilateral Agreements: Agriculture agreements can include standards and guidelines for sustainable agriculture, ensuring global compliance.
7. Enhanced International Cooperation:
8. Data Transparency and Capacity Building: International cooperation facilitates data transparency, allowing effective policy-making based on emissions tracking. Capacity building programs help countries implement sustainable practices.
9. Supporting Circular Supply Chains:
10. Circular Economy Initiatives: Trade policies can promote circular economy development by encouraging reuse and recycling of materials, reducing waste and associated emissions.

In conclusion, sustainable apple production and importation can be balanced through addressing the factors that influence CO2 emissions and implementing effective global trade policies. These policies can guide countries to adopt eco-friendly practices and harness the potential of trade for a greener future.