The trade implications of a low-carbon economy

The global economy needs to effect wide-ranging and immediate changes to reduce its greenhouse gas emissions sufficiently to limit climate change. This chapter explores how the transition to a low-carbon economy could impact international trade patterns, and outlines the role that trade, trade policy and international cooperation can play in supporting a just low-carbon transition. Although a low-carbon transition entails short-term investment and adjustment costs, it can also provide important economic benefits and opportunities. The WTO has an important role to play in increasing the ambition and viability of climate change mitigation actions.