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Trade Policy Tools and Instruments for Addressing Climate Change and Sustainable Development

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Trade Policy Tools and Instruments for Addressing Climate Change and Sustainable Development

This paper was written as the second of a pair of background papers to the Trade Ministers' Dialogue on Climate Change Issues, held in conjunction with the United Nations Climate Change Conference in Bali, Indonesia, December 8-9, 2007 (UNFCCC COP 13, Kyoto Protocol MOP 3). It examines in some depth the ways in which trade and investment policy might be employed to further climate change objectives. The discussion covers: liberalizing trade in low emission goods, allowing subsidies for greenhouse gas reductions, addressing domestic barriers to clean energy investment, amending intellectual property rights and lowering fossil fuel subsidies.

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