Yes, you read correctly; it’s not a spelling error. Were you thinking that instead of the ‘E’ there should have been an ‘In’, and therefore it should read ‘Incoterms®’? As to why ‘Ecoterms’ is written without a registered trademark symbol – that’s a discussion for another day.

‘Ecoterms’ is referenced in the ‘Roadmap 2024-2026’ of the International Chamber of Commerce (ICC), the same institution that conceptualised International Commercial Terms, better known as Incoterms®, in 1923.

The roadmap, the core mission of which is to enable peace and prosperity through trade, has never been more relevant, given the challenges of climate change, rapid digitalisation, and geopolitical tensions. In this context, the ICC contends that it is vital to be ready and equipped to deliver for business and the communities in which it operates. To this end, the ICC is guided – every day – by three simple words: ‘engagement’, ‘focus’, and ‘impact’.

The roadmap specifies five objectives: tackling trade frictions; promoting access to justice, integrity and respect for the rule of law by enhancing the reach and scope of the ICC’s dispute resolution services; enabling effective action on climate and sustainability; accelerating trade digitalisation; and enhancing multilateralism.

Aspects of interest in this piece are ‘Enabling effective action on climate and sustainability’ and, specifically, the third point, ‘Providing tools to enable environmental trade – including new ‘ICC EcoTerms’ standards’. However, there is already no consistency in how the term is written: ‘EcoTerms’, ‘Ecoterms’ or ‘ECOTERMS’, depending on the ICC document that is referenced. It is never a good start when you do not introduce a term with a consistent way of writing.

In the ICC’s ‘Global Policy Commissions Workplan 2025’, its objective is to lead the global debate on trade policy reforms and the harmonisation of rules and standards to meet global sustainability goals, including in the areas of carbon border adjustments and the circular economy, and through the development of ‘Ecoterms’. So, why not register it as a trademark?

In essence, ‘Ecoterms’ is intended to be a standard collection of words and phrases used to describe environment-friendly practices and products, aiming to create global standards for defining these terms, as their meanings can be unclear or used misleadingly. Standard ‘Ecoterms’ are expected to include terms such a ‘biodegradable’, ‘compostable’, and ‘eco-friendly’.

In the realm of international policymaking in the area of trade and the environment, the absence of universally agreed-upon definitions is a pressing challenge. As governments seek to introduce new rules and regulations on environmental sustainability, the lack of standard global definitions poses a significant barrier to practical cooperation and the implementation of cohesive strategies on a global scale. Varying interpretations of terms, such as ‘reuse’ in the circular economy context, hinder consensus-building efforts, impede the formulation of coherent policies and contribute to growing regulatory fragmentation.

From a business-to-business perspective, this creates supply chain risks and the potential for costly misunderstandings between sellers and buyers. This critical gap not only fosters ambiguity and increases complexity but also undermines the collective pursuit of solutions to pressing environmental issues.

Drawing inspiration from the successful track record of Incoterms®, the ICC aims to create a set of standards known as ‘Ecoterms’ that can be used in policymaking and by participants in international and domestic supply chains, reflecting business-to-business practice. The goal is to establish a global standard for interpreting the most common terms in environmental trade, thereby creating a clear basis for shared assumptions and a unified regulatory environment.

This initiative will complement existing ICC work in the areas of sustainable trade finance and the circular economy.

The ICC has formed a small working group comprising experts from its Global Trade and Investment, Customs and Trade Facilitation, and Environment and Energy Policy commissions as well as representatives from select ICC national committees – such as the South African Chamber of Commerce and Industry.

Its initial task has been to examine and validate the concept of ‘Ecoterms’, draw up an initial list of terms requiring global definitions and propose a roadmap and timeline to publication.

Upon completion, which should be imminent, the ICC will invite broader participation in the working group to draft the ‘Ecoterms’ – it’s time to keep an eye out.