Climate Change, the Natural Environment, and the Green Transition

In a world grappling with the urgency of meeting the 1.5°C Paris targets and combatting environmental crises, the international trade community cannot afford to be passive. Better designed policies and closer integration of trade and environmental agendas can not only help mitigate climate change but also bolster resilience and foster the growth of a greener global market.

At IISD, we have a longstanding commitment to bridging the gap between trade policy and environmental imperatives. Our research delves into the role of trade policy and its instruments to deliver on broader sustainability goals like the energy transition and climate-resilient development. From driving decarbonization in industrial sectors to promoting circularity and sustainable production, our work aims to forge pathways toward a greener, more resilient future.
 

Current Focus Areas:

• Border Carbon Adjustments (BCAs)

Border carbon adjustments (BCAs) are gaining traction as governments take decisive action on industrial decarbonization. BCA are used to support ambitious domestic climate action, but they also pose challenges, potentially disrupting traditional trade flows and disadvantaging producers in developing countries. Meaningful international cooperation is crucial to ensure fair implementation aligned with Paris targets. IISD has provided expertise to governments on BCAs for over 15 years, fostering informed discussions and leveling knowledge across trade and climate change communities.

• Green industrial policy

IISD is at the forefront of analysis and advice on green subsidies and broader industrial policies. As the race for industrial decarbonization intensifies, governments are pouring billions of dollars into renewable energy and strategic equipment. While these subsidies aim to spur green investment, they also risk widening global inequality. We bring the policy makers and experts together to unpack this highly complex issue for the better informed policies and decisions.

• Plastics

Governments worldwide are actively engaged in the fight against plastic pollution, including through the reduced use of short-lived, harmful and unnecessary plastics and promotion of circularity. However, fragmented efforts will not be as effective as the coordinated global action. IISD’s plastics and trade work provides evidence-based support to governments, assessing the impact of their plastic policies on international trade relations advocating for global cooperation.

• Climate resilience

Climate change adaptation is an urgent challenge to many developing countries that have been building up their resilience strategies in the face of extreme weather situations and the disasters and destruction caused by them. IISD supports the governments in this challenging task providing essential research and evidence that is needed to bring the trade policy and resilience communities together. A better understanding of the links between the trade and climate change adaptation policy priorities allows for an integrated approach to the decision making in the area that for long has not been noticed in the trade policy circles.

• Fossil fuel subsidy reform at the WTO

The Fossil Fuel Subsidy Reform initiativeis a unique and groundbreaking initiative by a large group of WTO members that is addressing a particularly important issue in the context of global quest of energy transition and climate change. Through our expertise in gathering and analyzing data on government fossil fuel support, IISD contributes to informed policy-making and effective action, aiming to redirect fiscal resources away from fossil fuel dependency towards tackling pressing social and economic challenges.