What contribution can trade policy make towards combating climate change?

This report covers three different but related issues in international trade and climate change. First, by comparing the climate impacts of specific EU-produced goods with their imported counterparts, the report quantifies some of the ways in which international trade contributes to increased global greenhouse gas emissions. Secondly, the report examines ways in which market-based policy instruments could be employed within the context of trade policy. Lastly, the report examines the legal opportunities and obstacles to employing trade-related measures as a means of combating climate change, including the possibilities for altering the WTO rules. The climate impacts of trade are substantial and key mechanisms exist that could help deal with these impacts, although full realisation of these opportunities requires the establishment of clear institutional and legal frameworks.