1. Home
  2. Studies
  3. Trade Club for Climate
Galina Kolev / Hubertus Bardt IW-Policy Paper No. 8 26. April 2021 Trade Club for Climate

A trade policy approach to climate challenges can give a positive impetus to WTO reform based on the commitment to a common target and reinforced by the urgency of that target.

Download PDF
Trade Club for Climate
Galina Kolev / Hubertus Bardt IW-Policy Paper No. 8 26. April 2021

Trade Club for Climate

Download PDF Quote

Copy the information

The link was added to your clipboard!

Share this article:

or copy the following link:

The link was added to your clipboard!

A trade policy approach to climate challenges can give a positive impetus to WTO reform based on the commitment to a common target and reinforced by the urgency of that target.

Trade policy has the potential to contribute substantially to curbing climate change. However, the global trade system is suffering the deepest crisis in the history of the World Trade Organization (WTO). To revive multilateralism, it is crucial to pursue a positive approach based on the commitment to a common target like climate protection and reinforced by the urgency of that target.

A Trade Club for Climate (TCC) or a Sector/Industry Climate Club (SICC) are alternative ways to address both the climate crisis and the crisis of the global trading system at the same time. They should be exclusive, appealing and based on the experience of the GATT and WTO negotiations. Starting the negotiations with a smaller number of countries to achieve a large progress is more feasible than involving all current WTO member states right from the beginning. The TCC could draw on the potential of trade policy to contribute to climate protection and should be an attempt to liberalise trade with environmental and climate goods and services.

A SICC could focus on the main producing countries of specific industries, which would make negotiations about minimum levels of carbon prises more feasible. The discussion on the trade-climate nexus shows that there are several measures that can be taken to make trade policy work for climate. Eliminating tariffs and reducing non-tariff barriers on goods for climate protection, product labelling, green procurement and carbon border adjustment are only a few of them. The change of political power in the USA, the recent trade policy review in the EU and the increasing commitment of many other countries worldwide show that there cannot be a better time to initiate a TCC or SICCs for specific industries and launch negotiations.

Download PDF
Trade Club for Climate
Galina Kolev / Hubertus Bardt IW-Policy Paper No. 8 26. April 2021

Trade Club for Climate

Download PDF Quote

Copy the information

The link was added to your clipboard!

Share this article:

or copy the following link:

The link was added to your clipboard!

More on the topic

Read the article
The introduction of the EU Taxonomy for Sustainable Activities
Peter Friedrich / Finn Wendland IW-Policy Paper No. 14 23. July 2021

Ecologically sustainable or not?: The introduction of the EU Taxonomy for Sustainable Activities

The EU Taxonomy for Sustainable Activities (EU Taxonomy) is the lead instrument to integrate and promote sustainability in capital markets across the EU.

IW

Read the article
Sascha Samadi / Stefan Lechtenböhmer / Peter Viebahn / Andreas Fischer External Publication 21. July 2021

Conceptualisation of the potential Renewables-Pull-Effect

This report was prepared by the Wuppertal Institute in cooperation with the German Economic Institute as part of the SCI4climate.NRW project. The report aims to shed light on the possible phenomenon that the availability and costs of "green" energy sources may ...

IW

More about this topic

Content element with id 8880 Content element with id 9713