As global temperatures rise, international trade systems must evolve to support climate objectives, according to a new analysis by CEPR. With COP30 on the horizon, policymakers have a strategic opportunity to align trade regulations with environmental sustainability targets. The proposal suggests integrating climate considerations into trade agreements to accelerate decarbonization, promote green innovation, and prevent carbon leakage across borders. n nCurrent trade frameworks often lack mechanisms to penalize high-emission practices or reward low-carbon production. By reshaping these rules, nations could incentivize cleaner industrial processes and sustainable supply chains. The report emphasizes that coordinated action through multilateral forums like COP30 can overcome unilateral barriers and foster equitable transitions, especially for developing economies. n nTrade policy, the analysis argues, should no longer be treated separately from climate strategy. Instead, it should serve as a tool to enforce emissions reductions, support technology transfer, and ensure that environmental standards are upheld globally. n
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Rewiring trade for a warming world: How COP30 can turn climate goals into trade rules CEPR