World Trade Report 2022 Climate change and international trade

Trade must be a cornerstone of climate action, urges World Trade Report released at COP27

The 2022 edition of the WTO’s World Trade Report presents new analysis and recommendations on how international trade and greater cooperation can amplify global efforts to address climate change and put the planet on a sustainable trajectory. The WTO’s flagship publication, released on 7 November at the 27th United Nations Climate Change Conference (COP27) in Sharm el-Sheikh, Egypt, also examines the consequences of climate change on trading patterns and future prosperity.

World Trade Report 2022

Climate change and international trade

Climate change is having a profound impact on people’s lives across the world. Mitigating and adapting to climate change will require major economic investment and coordinated action to transition to a sustainable, low-carbon economy. The 2022 World Trade Report explores the complex interlinkages between climate change and international trade and how international trade and trade rules can contribute to addressing climate change.

Trade can play an essential role in helping countries reduce emissions by increasing the availability and affordability of environmental goods, services and technologies. International trade can also help countries adapt to the impacts of climate change and build future resilience.

Ensuring that trade and climate change policies are mutually supportive requires global coordination and transparency about government measures. The WTO already plays an important part in helping countries to tackle climate change by maintaining a predictable trading environment underpinned by WTO rules that enable international trade in the goods and services needed to cope with the consequences of climate change. However, the mutual supportiveness of trade and climate change policies could be strengthened by further international cooperation at the WTO.

In the face of the threat that climate change represents to people, ecosystems and the global economy, the World Trade Report 2022 explores the multifaceted relationship between international trade and climate change. While trade itself does generate emissions from production and transport, trade and trade policies can accelerate the dissemination of cutting-edge technologies and best practices and enhance incentives for further innovation aimed at tackling climate change.
Read the full report:
Word Trade Report 2022