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ICC Releases publication titled "Trade is critical to achieve the Sustainable Development Goals"

27/09/2022

The International Chamber of Commerce (ICC) and its members are committed to achieving the Sustainable Development Goals (SDGs) and tackling climate change. ICC is confident that economic growth, job creation and investment in more sustainable trade are vital to reach those goals. 

How are trade and the SDGs connected? 

This publication shows that complex, yet measurable interlinks exist between assessing the sustainability of trade throughout the full environmental, social and governmental lenses.  

Using figures and data, it explores how trade can incorporate means of implementation of the SDGs, at a multidimensional and global level among them:  

  • redeciding poverty (SDG 1) 
  • promoting economic growth (SDG 8) 
  • responsible consumption and production (SDG 12) 

It focuses on the ways in which trade can be a central push forward in finding solutions to mitigate climate change (SDG 13). The power and means of trade actors to develop low carbon technologies as well as incentivising such creations is indeed a key advantage.  

The industry also requires standardisation in the key issues of emissions, definitions on what constitute or not sustainable trade. This provides a clear picture thus clarifying emissions allowances and effective decarbonisation strategies.  

How can trade help mitigate climate change effects?  

An important way trade helps in the sustainable field is also through the complementary policies taken in liberalising and facilitating the low carbon trade behaviors, digitalised and new technology incentives as well as implementing robust and ambitious international trade agreements with active labor market and educational policies. 

Finally, it is crucial that trade is observed and analysed in a nuanced and multidimensional approach.  

Trade is not only a set of changes of goods and services which generates greenhouse gases. In a complex environment to understand such as sustainability in trade it can be appealing to use macro level of data such as non-tariff measures (NTMs) or Harmonised System (HS) codes.  

However, taken by themselves without taking into account the various fields mentioned above and in the study will inevitably give an over simplified picture that trade creates a negative contribution to the SDGs.  

How is ICC making business work for the planet? 

ICC is at the forefront of the action by means of its work, notably around: 

  • carbon pricing mechanism 
  • sustainable trade  
  • trade finance definition framework 

 

The publication can be accessed here


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We, as the issuing bank, requested the below document, under field 46A. “Insurance policy/certificate for 10.00 percent above CIF value payable to the order of Sampath bank PLC, covering institute cargo clauses (a), institute war clauses (cargo), institute strike clauses (cargo), transshipment risks marked premium paid claims payable in Colombo irrespective of percentage.” Insurance certificate is presented containing below wording on the face side of the document. “The settlement of loss and damage will be effected, unless otherwise provided, through the intermediary of Marsh SA/NV to whom all documents are to be forwarded for this purpose, and will collect the indemnity under deduction of a commission of one percent” Also, it indicates the LC conditions as a mirror image as follows under the heading of "letter of credit conditions" whereas insurance conditions are incorporated separately in the certificate: "covering institute cargo clauses (A), institute war clauses (cargo), institute strike clauses (cargo), transshipment risks marked premium paid claims payable in Colombo irrespective of percentage" Having considered the above clauses, we have quoted below discrepancies. 1) Insurance policy indicates a deductible of 1 pct instead of irrespective of percentage. 2) Insurance not marked premium paid Beneficiary’s bank disagrees with our discrepancy and raised below argument: “Insurance policy/certificate does not indicate a deductible of 1 pct irrespective of percentage on the face of the document and banks will not examine terms and condition in insurance document as per ISBP paragraph K22 and marked as premium paid under the LC conditions. Considering above, may we have your opinion on the discrepancy quoted by us and the counter argument raised by the beneficiary’s bank.