Bridging the gap between successful trade and climate protection

What is it about?

The Stockholm conference was the first ever conference to focus on global environmental issues. 2022 will celebrate 50 years of the global climate action that started with this conference. Similarly, 2024 will celebrate 80 years of the Bretton Woods conference, which was held to discuss how global economic growth and trade can be promoted. It led to the formation of the World Trade Organization (WTO). Unfortunately, the resultant processes initiated by these two important events have not coincided much. Trade has increased greatly, along with changes in standards of living and products that are “made in the world.” Yet, the increase in trade has had a significant impact on the climate. Hence, there is a growing need for trade organizations and the WTO to become a part of the global climate governance mechanism. By looking at the intersection and conflict between world trade laws and climate protection, this review attempts to bridge the gap between the two. The paper first focuses on the developments within the WTO that help it adopt green trade practices. Then, it explores the opportunities within WTO and independent of the WTO for trade related climate protection. In this manner, the paper highlights the role of trade for a sustainable future.

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Photo by Kelly Sikkema on Unsplash

Photo by Kelly Sikkema on Unsplash

Why is it important?

Trade contributes a significant portion of the total greenhouse gas emissions of the world. There are emissions at every link of the value chain. The transportation sector alone was responsible for around a quarter of the emissions in 2010. Thus, looking at how trade and trade law can help reduce emissions is crucial. The analysis provided in the paper can promote green trade and make way for a sustainable future. To ensure that the steps taken are effective, political will and inclusion of different stakeholders is necessary. KEY TAKEAWAY: After several years of the Stockholm and Brent Woods conference, many reforms are still required in global trade laws to promote ecofriendly trade practices.