Developing Countries' Participation in Environmental Services Negotiations: What are the Challenges and What Should be Done?

Abstract The urgency to tackle climate change has placed sustainable development at the centre of recent trade related debates. An emerging consensus is that trade should be considered and can be used as means to achieve sustainable development goals. As the circumstances are changing, one issue to be addressed is how to adjust trade negotiations which used to be the main approach to pursuing market opening and liberalization with the support of the theory of comparative advantage. In this context, this paper examines trade negotiations on environmental services by focusing on developing countries' participation. Environmental services and related trade play a critical role in achieving environmental and sustainable development goals. Nevertheless, developing countries' participation in environmental services trade negotiations has been limited. By analysing the reasons behind such limited participation and assessing some new approaches, this paper attempts to explore how environmental services trade negotiations could be adapted to better engage developing countries and serve Sustainable Development Goals.