Climate Neutrality and Sustainability in International Trade

Abstract

This article explores the links between climate neutrality and sustainability in the context of international trade. For that, it tackles seven main concerns: 1) what do industry leaders now need from policymakers to make them the frontrunners in the global transition to climate neutrality? 2) what coalitions are necessary to build and who are the partners and networks to support an ambitious and meaningful business dialogue on the transition to climate-neutral industries? 3) what is the sustainability agenda in the international trading system and what is the path forward for furthering sustainability in trade policy? 4) how will countries reach sustainable global integration? 5) what will be the role of climate change in the future global trading system? 6) what are the possible impacts of climate change on international trade and investment? And 7) what is the European Union’s approach to environmental concerns in trade agreements?

Keywords: sustainability, climate neutrality, international trade, climate clubs, WTO, border tax adjustments, plurilateralism, free trade agreements

JEL Classification: K33, Q01, Q27, Q37, Q54, Q56, Q58