Trade and Climate Change

Trade and Climate Change

Description

Since 1999, IISD has explored the linkages between trade and climate change. Our work continues to focus on defining areas of linkage, and identifying ways in which trade policy might effectively support the objectives of addressing climate change.

The most obvious type of linkage is changes in trade policy that might affect (positively or negatively) climate change. For example, liberalizing trade in low-GHG-emitting goods could help reduce global emissions.

There are also competitiveness linkages, whereby action on climate change has competitiveness impacts on firms and sectors in the acting state.

As well, climate change itself affects trade patterns. Think of the impacts of rising sea levels and coastal storms on trade-related infrastructure like ports, or of the massive changes in trade flows that result from climate-induced changes in patterns of agricultural production.

Finally, there are a number of legal linkages. These largely boil down to the following question: "What constraints do trade and investment laws place on domestic government actions to address climate change?"

IISD has been a leader in this area from the outset, and continues to advise policy-makers on ways in which the two regimes might be made more mutually supportive.

References