International trade in environmental goods and services (EGS) may contribute to the achievement of environmental, economic and developmental benefits and to the transition towards a “green economy”. The international community has been exploring several strategies to promote sustainable development through enhanced trade in EGS. One key question remains how to maximise the sustainable benefits of trade liberalization and market creation/expansion of EGS for developing countries. This paper seeks to explore the possible role of trade preferences for EGS in promoting the transition towards a “green economy”, focusing on potential beneficial effects for developing countries.
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