Climate change and trade policy interaction

This report investigates the implications of regionalism for the interaction between trade and climate policy. It examines the implications of regional climate governance for international trade and conversely the implications of regional trade governance for climate change action. Regional approaches to climate change governance are discussed with a specific focus on the rise of “climate clubs” and their implications for international trade. Moreover, regional trade agreements and their current environmental provisions related to climate change are also examined. Building on these analyses, this report explores the various ways in which regional trade agreements could address climate change objectives, and draws lessons from recent developments in regional trade governance for the further evolution of such agreements.