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21 - Trade and Climate Change

from Addressing Barriers io Change

Published online by Cambridge University Press:  08 October 2021

By
Karen Hussey  and
Thomas Faunce
Edited by
Kenneth G. H. Baldwin ,
Mark Howden ,
Michael H. Smith ,
Karen Hussey  and
Peter J. Dawson
Kenneth G. H. Baldwin
Affiliation:
Australian National University, Canberra
Mark Howden
Affiliation:
Australian National University, Canberra
Michael H. Smith
Affiliation:
Australian National University, Canberra
Karen Hussey
Affiliation:
University of Queensland
Peter J. Dawson
Affiliation:
P. J. Dawson & Associates
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Summary

Concerns about international competitiveness and the associated global institutions and processes of trade are at the heart of resistance to ambitious climate policy. There is tension between the need to be competitive and the significant costs of decarbonisation in the transition to low-carbon economies. The World Trade Organisation and related agreements simultaneously promote contradictory goals: the removal of 'barriers to trade' including 'behind the border' environmental regulation and the need to support 'sustainable development'. A particular example of the problems for action on climate change are Investor-State Dispute Settlement (ISDS) provisions whereby corporations have been able to sue governments for damages allegedly incurred through the operation of government environmental regulations. Five actions are suggested: raising awareness of the benefits of decarbonisation, developing 'green finance', pursuing standardisation of low carbon technologies, reforming trade law to encourage low-carbon goods and services and ensuring copherence across international frameworks.

Keywords

investor-statedispute resolutiontrade lawdecarbonisationmercantilismsovereigntymulitnational
Type
Chapter
Information
Transitioning to a Prosperous, Resilient and Carbon-Free Economy
A Guide for Decision-Makers
 , pp. 571 - 590
Publisher: Cambridge University Press
Print publication year: 2021

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