7. Where a Party has defined environmental law under Article 22.1 (Definitions) to include only laws and regulations at the central level of government (first Party) and where the other Party (second Party) considers that an environmental law at the sub-central level of government of the first Party is not being effectively enforced by the relevant sub-central level of government through a sustained or recurring course of action or inaction ina manner affecting trade or investment between the Parties, the second Party may request a dialogue with the first Party. The request shall contain information that is specific and sufficient to enable the first Party to evaluate the matter at issue, and an indication of how the matter is negatively affecting trade or investment of the second Party.
8. Nothing in this Chapter shall be construed to empower a Party's authorities to undertake environmental law enforcement activities in the territory of the other Party.
Article 22.4. Multilateral Environmental Agreements
1. The Parties recognise that multilateral environmental agreements to which they are party play an important role, globally and domestically, in protecting the environment, and that their respective implementation of these agreements is critical to achieving the environmental objectives of these agreements. Accordingly, each Party affirms its commitment to implement the multilateral environmental agreements to which it is a party.
2. The Parties emphasise the need to enhance the mutual supportiveness between trade and environmental law and policies, through dialogue between the Parties on trade and environmental issues of mutual interest, particularly with respect to the negotiation and implementation of relevant multilateral environmental agreements and trade agreements.
Article 22.5. Climate Change
1. Each Party affirms its commitment to address climate change, including under the United Nations Framework Convention on Climate Change done at New York on 9 May 1992 and the Paris Agreement done at Paris on 12 December 2015 ("Paris Agreement"), to which both Parties are party, and recognises the importance of achieving their goals.
2. The Parties emphasise that efforts to address climate change require collective and urgent action, and acknowledge the role of global trade and investment in these efforts.
3. The Parties recognise the important role that cooperation can play in addressing climate change. Consistent with Article 22.20 (Cooperation Frameworks), the Parties shall cooperate to address matters of mutual interest which may include:
(a) emission reduction opportunities across all sectors and greenhouse gases;
(b) exchange on policies, laws, and measures that can contribute to a reduction in greenhouse gas emissions;
(c) development and acceleration of cost-effective, low, and zero emissions technologies;
(d) clean and renewable energy sources and supporting infrastructure and enabling technologies;
(e) energy efficiency;
(f) sustainable transport and sustainable urban infrastructure development;
(g) addressing deforestation and forest degradation;
(h) emissions measurement, reporting, and verification;
(i) climate change adaptation and resilience;
(j) nature-based solutions to mitigate and adapt to the impacts of climate change; and
(k) capacity building and development assistance for climate vulnerable countries.
Article 22.6. Environmental Goods and Services
1. The Parties recognise the importance of trade and investment in environmental goods and services as a means of improving environmental and economic performance, contributing to clean growth, and addressing global environmental challenges.
2. Accordingly, each Party shall facilitate and promote, as appropriate, trade and investment in environmental goods and services, including environmental and low emissions technologies, clean and renewable energy and enabling infrastructure, and energy efficient goods and services.
3. The Environment Working Group shall consider issues identified by a Party or the Parties related to trade in environmental goods and services, including issues identified as potential non-tariff barriers to that trade. The Parties shall endeavour to address any potential barrier to trade in environmental goods and services that may be identified by a Party, including by working through the Environment Working Group and in conjunction with other relevant committees established under this Agreement, as appropriate.
4. The Parties shall cooperate bilaterally and in international fora, as appropriate, on ways to enhance trade and investment in environmental goods and services.
Article 22.7. Circular Economy
1. The Parties recognise the importance of a transition towards a circular economy and the role that waste avoidance and greater resource efficiency can play in reducing pressure on the natural environment, improving resource security, and reducing other associated negative environmental effects arising from the use of materials throughout their lifecycle. The Parties further recognise the role that trade can play in achieving these goals through trade in second-hand goods, end-of-life products, secondary materials, processed waste, as well as trade in related services.
2. The Parties recognise the importance of avoiding the generation of waste and encouraging the reuse of products and resource efficient product design, including the designing of products to be easier to reuse, dismantle, or recycle at end of life. The Parties also recognise the importance of encouraging environmental labelling, including eco-labelling, to make it easier for consumers to make more sustainable choices.
3. Consistent with Article 22.20 (Cooperation Frameworks), the Parties shall cooperate to address matters of mutual interest related to the transition towards a circular economy. Areas of cooperation may include:
(a) barriers to trade in relation to the circular economy;
(b) environmental labelling, including eco-labelling;
(c) sustainable supply chain management, including enhanced reverse logistics;
(d) investment in, and financing of, circular economy projects;
(e) reuse, repair, remanufacture, and recycling;
(f) resource efficient product design that makes products more durable and easier to repair, recycle, and reuse;
(g) extended producer responsibility;
(h) technological innovation related to the circular economy including innovative approaches to recycling and litter reduction, processing waste, waste tracking mechanisms, data collection, sustainable plastic packaging, and alternative materials;
(i) best practice in resource efficiency in key fields such as industrial symbiosis, sustainable use of chemicals and plastics, and new business models such as product service systems;
(j) approaches to reducing the amount of waste sent to landfill and accelerating the movement of waste further up the waste hierarchy; and
(k) best practice on sustainable management of hazardous wastes.
Article 22.8. Ozone Depleting Substances and Hydrofluorocarbons
1. The Parties recognise that emissions of certain substances can significantly deplete and otherwise modify the ozone layer in a manner that is likely to result in adverse effects on human health and the environment, and that the reduction of certain substances can address global environmental challenges, including climate change. Accordingly, each Party shall take measures to control the production and consumption of, and trade in, substances controlled by the Montreal Protocol. (3) (4) (5)
2. The Parties also recognise the importance of public participation and consultation, in accordance with their respective law or policy, in the development and implementation of measures concerning the protection of the ozone layer. Each Party shall make publicly available appropriate information about its programmes and activities, including cooperative programmes, that are related to ozone depleting substances and hydrofluorocarbons.
3. Consistent with 22.20 (Cooperation Frameworks), the Parties shall cooperate to address matters of mutual interest related to ozone-depleting substances and hydrofluorocarbons. Cooperation may include exchanging information and experiences in areas related to:
(a) environmentally friendly alternatives to ozone-depleting substances and hydrofluorocarbons, as well as emerging technologies for sustainable cooling and refrigeration;
(b) refrigerant management practices, policies, and programmes including lifecycle management of coolants and refrigerants;
(c) methodologies for stratospheric ozone measurements;
(d) combating illegal trade in ozone-depleting substances and hydrofluorocarbons; and
(e) barriers to trade in, and uptake of, sustainable cooling and refrigeration technologies.
Article 22.9. Air Quality
1. The Parties acknowledge that trade involving production, consumption, and transportation of goods across air, sea and land can cause air pollution and that air pollution can travel long distances and recognise the importance of reducing domestic and transboundary air pollution, and that cooperation can be beneficial in achieving these objectives.
2. The Parties recognise the importance of public participation and consultation in accordance with their respective law or policy in the development and implementation of measures to reduce domestic and transboundary air pollution and in ensuring access to air quality data.
3. Consistent with Article 22.20 (Cooperation Frameworks) the Parties shall cooperate to address matters of mutual interest with respect to air quality, which may include:
(a) ambient air quality planning;
(b) modelling and monitoring, including spatial distribution of main sources and their emissions;
(c) measurement and inventory methodologies for air quality and emissions measurements; and
(d) reduction, control, and prevention technologies and practices.
Article 22.10. Protection of the Marine Environment from Ship Pollution
1. The Parties recognise the importance of protecting and preserving the marine environment. To that end, each Party shall take measures to prevent the pollution of the marine environment from ships. (6) (7) (8)
2. The Parties also recognise the importance of public participation and consultation, in accordance with their respective law or policy, in the development and implementation of measures to prevent the pollution of the marine environment from ships. Each Party shall make publicly available appropriate information about its programmes and activities, including cooperative programmes, that are related to the prevention of pollution of the marine environment from ships.
3. Consistent with Article 22.20 (Cooperation Frameworks), the Parties shall cooperate to address matters of mutual interest with respect to pollution of the marine environment from ships. Areas of cooperation may include:
(a) accidental pollution from ships;
(b) pollution from routine operations of ships;
(c) deliberate pollution from ships;
(d) development of technologies to minimise ship-generated waste;
(e) emissions from ships;
(f) adequacy of port waste reception facilities;
(g) increased protection in special geographic areas; and
(h) enforcement measures including notifications to flag States and, as appropriate, by port States.
Article 22.11. Marine Litter
1. The Parties acknowledge that trade is a source of marine litter and the importance of taking action to prevent and reduce marine litter, including plastics and microplastics, in order to preserve marine and coastal ecosystems, prevent the loss of biodiversity, and mitigate marine litter's costs and impacts.
2. Recognising the global nature of the challenge of marine litter, the Parties acknowledge the importance of maintaining measures under their environmental laws and policies to prevent and reduce marine litter and taking action to address marine litter in other fora.
3. Accordingly, the Parties shall cooperate to address matters of mutual interest with respect to combatting marine litter, which may include:
(a) addressing land and sea based pollution;
(b) promoting waste management infrastructure;
(c) advancing efforts related to abandoned, lost, or otherwise discarded fishing gear; and
(d) circular economy and waste management hierarchy measures relevant to addressing marine litter.
Article 22.12. Marine Wild Capture Fisheries (9)
1. The Parties acknowledge their role as major consumers, producers and traders of fisheries products, and the importance of the marine fisheries sector to their development and to the livelihoods of their fishing communities, including artisanal or small-scale fisheries. The Parties also acknowledge that the fate of marine capture fisheries is an urgent resource problem facing the international community. Accordingly, the Parties recognise the importance of taking measures aimed at the conservation and the sustainable management of fisheries.
2. In this regard, the Parties acknowledge that inadequate fisheries management, fisheries subsidies that contribute to overfishing and overcapacity, and illegal, unreported, and unregulated ("IUU") fishing (10) can have significant negative impacts on trade, development and the environment, and recognise the need for individual and collective action to address the problems of overfishing and unsustainable utilisation of fisheries resources, with appropriate consideration of the rights of coastal States to fisheries resources and the obligations of coastal States, flag States and port States in managing fishing activity.
3. Accordingly, each Party shall operate a fisheries management system that regulates marine wild capture fishing and that is designed to:
(a) prevent overfishing and overcapacity;
(b) reduce bycatch of non-target species and juveniles, including through the regulation of fishing gear that results in bycatch and the regulation of fishing in areas where bycatch is likely to occur; and
(c) promote the recovery of overfished stocks for all marine fisheries in which that Party's persons conduct fishing activities.
Such a management system shall be based on the best scientific evidence available and on internationally recognised best practices for fisheries management and conservation as reflected in the relevant provisions of international instruments aimed at ensuring the sustainable use and conservation of marine species. (11)
4. Each Party shall promote the long-term conservation of sharks, marine turtles, seabirds, and marine mammals, through the implementation and effective enforcement of conservation and management measures. Those measures should include, as appropriate:
(a) for sharks, the collection of species-specific data, fisheries bycatch mitigation measures, catch limits, and finning prohibitions; and
(b) for marine turtles, seabirds, and marine mammals: fisheries bycatch mitigation measures, conservation and relevant management measures, prohibitions, and other measures in accordance with relevant international agreements to which the Party is party.
5. The Parties recognise that the implementation of a fisheries management system that is designed to prevent overfishing and overcapacity and to promote the recovery of overfished stocks must include the control, reduction, and eventual elimination of all subsidies that contribute to overfishing and overcapacity. To that end, neither Party shall grant or maintain any of the following subsidies (12) within the meaning of Article 1.1 of the SCM Agreement that are specific within the meaning of Article 2 of the SCM Agreement:
(a) subsidies for fishing (13) that negatively affect (14) fish stocks that are in an overfished (15) condition; and
(b) subsidies provided to any fishing vessel (16) while listed by the flag State or a relevant Regional Fisheries Management Organisation or Arrangement for IUU fishing in accordance with the rules and procedures of that organisation or arrangement and in conformity with international law.
6. Subsidy programmes that are established by a Party before the date of entry into force of this Agreement for that Party and which are inconsistent with paragraph 5(a) shall be brought into conformity with that paragraph as soon as possible and no later than three years of the date of entry into force of this Agreement for that Party.
7. In relation to subsidies that are not prohibited by paragraph 5(a) or 5(b), and taking into consideration a Party's social and developmental priorities, including food security concerns, each Party shall make best efforts to refrain from introducing new, or extending, or enhancing existing subsidies within the meaning of Article 1.1 of the SCM Agreement, to the extent they are specific within the meaning of Article 2 of the SCM Agreement, that contribute to overfishing or overcapacity.
8. With a view to achieving the objective of eliminating subsidies that contribute to overfishing and overcapacity, the Parties shall review the disciplines in paragraph 5 through existing channels, as appropriate.
9. Each Party shall also provide, to the extent possible, information in relation to other fisheries subsidies that the Party grants or maintains that are not covered by paragraph 5, in particular fuel subsidies.
10. A Party may request information from the other Party regarding fisheries subsidies notifications provided in accordance with WTO data reporting requirements. The notifying Party shall respond to that request as quickly as possible and in a comprehensive manner.
11. The Parties recognise the importance of concerted international action to address IUU fishing as reflected in regional and international instruments (17) and shall endeavour to improve cooperation internationally in this regard, including with and through competent international organisations.
12. In support of efforts to combat IUU fishing practices and to help deter trade in products from species harvested from those practices, each Party shall:
(a) cooperate with the other Party to identify needs and to build capacity to support the implementation of this Article;
(b) support monitoring, control, surveillance, compliance, and enforcement systems, including by adopting, reviewing, or revising, as appropriate, measures to:
(i) deter vessels that are flying its flag (18) and its nationals from engaging in IUU fishing activities; and
(ii) address the transhipment at sea of fish or fish products caught through IUU fishing activities; and
(c) implement port State measures, including through actions consistent with the Port State Measures Agreement; (19)
(d) strive to act consistently with relevant conservation and management measures adopted by Regional Fisheries Management Organisations of which it is not a member so as not to undermine those measures; and
(e) endeavour not to undermine catch or trade documentation schemes operated by Regional Fisheries Management Organisations or Arrangements or an intergovernmental organisation whose scope includes the management of shared fisheries resources, including straddling and highly migratory species, where that Party is not a member of those organisations or arrangements.
13. Consistent with Article 28.2 (Publication - Transparency and Anti-Corruption), a Party shall, to the extent possible, provide the other Party with the opportunity to comment on proposed measures that are designed to prevent trade in fisheries products that result from IUU fishing.
Article 22.13. Sustainable Forest Management and Trade
1. The Parties recognise the importance of conservation and sustainable forest management, including in relation to addressing climate change and reducing biodiversity loss, and the role of trade in pursuing this objective. The Parties acknowledge their role as major consumers, producers, and traders of forest products and the importance of the forest sector to the development and livelihood of communities and indigenous peoples.
2. The Parties recognise the importance of:
(a) the sustainable management of forests for providing environmental, economic, and social benefits for present and future generations;
(b) halting deforestation and forest degradation, including with respect to trade in commodities related to those activities;
(c) trade in forest products harvested from sustainably managed forests and in accordance with the law of the country of harvest; and
(d) taking measures that contribute to combatting illegal logging and related trade and to promoting trade in legally harvested forest products.
3. Accordingly, each Party shall take measures to combat illegal logging and related trade.
4. The Parties recognise that some forest products, when sourced from sustainably managed forests and used appropriately, can store carbon and avoid greenhouse gas emissions in other sectors and thus contribute toward achieving global environmental objectives.
5. Each Party shall:
(a) cooperate and exchange information, as appropriate, on the implementation of measures that contribute to combatting illegal logging and related trade, including with respect to third countries; and
(b) cooperate bilaterally and in multilateral fora, as appropriate, on opportunities to halt deforestation and forest degradation, and the trade in commodities related to those activities, to reduce biodiversity loss, and to address other sustainable forest management and trade matters.
Article 22.14. Trade and Biodiversity
1. The Parties recognise the importance of conservation and sustainable use of biodiversity, including marine biodiversity, and their key role in achieving sustainable development.
2. Accordingly, each Party shall promote and encourage the conservation and sustainable use of biological diversity, in accordance with its law and policy.
3. The Parties recognise the importance of respecting, preserving, and maintaining knowledge and practices of indigenous and local communities embodying traditional lifestyles that contribute to the conservation and sustainable use of biological diversity.
4. The Parties recognise the importance of facilitating access to genetic resources within their respective domestic jurisdictions, consistent with each Party's international obligations. The Parties further recognise that each Party may require, through domestic measures, prior informed consent to access those genetic resources in accordance with domestic measures and, where such access is granted, the establishment of mutually agreed terms, including with respect to sharing of benefits from the use of those genetic resources, between users and providers.
5. The Parties also recognise the importance of public participation and consultation, in accordance with their respective law and policy, in the development and implementation of measures concerning the conservation and sustainable use of biological diversity. Each Party shall make publicly available information, about its programmes and activities, including cooperative programmes, related to the conservation and sustainable use of biological diversity.
6. Consistent with Article 22.20 (Cooperation Frameworks), the Parties shall cooperate on matters of mutual interest. Cooperation may include exchanging information and experiences in areas related to:
(a) the conservation and sustainable use of biodiversity;
(b) the protection and maintenance of ecosystems and ecosystem services, including marine ecosystems;
(c) access to genetic resources and the sharing of benefits arising from their utilisation;
(d) embedding biodiversity considerations into policies, strategies, and practices of public and private actors in relevant sectors; and
(e) safeguarding wild and managed pollinators, and promoting the sustainable use of pollination services.
Article 22.15. Invasive Alien Species
1. The Parties recognise that the movement of terrestrial and aquatic invasive alien species across borders through trade-related pathways can adversely affect the environment, economic activities and development, and plant, animal, and human health. The Parties also recognise that the prevention, surveillance, detection, control, and, when possible, eradication, of invasive alien species are critical strategies for managing those adverse impacts.
2. Accordingly, the Parties shall identify cooperative opportunities to share information and management experiences on the movement, prevention, detection, control, and eradication of invasive alien species, with a view to enhancing efforts to assess and address the risks and adverse impacts of invasive alien species.