Greening Global Trade: Enhanced Synergies Between Climate and Trade Policies for Decarbonization

09/08/2022

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S. K. Mohanty, Pankhuri Gaur, Chandni Dawani, Rizki N. Siregar, Novia Xu, Giulia Cretti, Pierfrancesco Mattiolo, Paolo Mazzotti | Clingendael Netherlands Institute of International Relations

Since the early 1990s, the intertwined nature of trade and environment has been debated in the global forums. Trade-distorting measures, including carbon leakage, fragmentation of markets due to differentiated environmental standards, and the lack of consensus in the Committee on Trade and Environment in Special Session (CTESS) have been some of the causes for increasing pressure on climate change. G20 members should explore policy guidelines of coordinating carbon pricing and border adjustment initiatives with an overarching spirit of inclusivity and transparency. The G20 should act as a facilitator for providing the transfer of Environmentally Sound Technologies (ESTs) to developing countries and LDCs for the greening of global trade.

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To read the full policy brief, please click here.