Analysis and Studies - Studies
Climate Change and Global Trade
February 3rd 2023
The 2022 World Trade Report focuses on the complex relationship between climate change and international trade and on the contribution of international trade and trade rules in dealing with climate change.
Climate change is a huge threat to future growth and wealth, and it could destroy much of the progress made in the last decades in development and poverty reduction, with developing countries likely to suffer the most due to their vulnerability to climate risks.
Nevertheless, in the past decade, technology development has been fundamental in the impact of economies all over the world, concerning for example improvements in the performance of low-carbon technologies, making renewables a more affordable option. Many countries with abundant renewable energy resources, such as solar irradiation and wind-power density, show clearly the potential of renewable energy trade market. In this scenario, decarbonizing supply chains and optimizing production and logistics processes are the most important goals of the trade market.
Trade policies can also contribute to build climate change adaptation strategies. When a climate-related calamity hits, international trade can provide access to critical goods and services, such as food, medical supplies and electricity generators.
Since the climate change is a global problem, cooperation and coordination among countries is necessary to regulate every market, including the trade one. Commitment on this issue means finding common international agreements to adopt climate change policies and promote trade in environmental goods and services to cooperation.
Learn more on the WTO’s website.
