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ACT will provide participating developing economies with tailored insights so that they can plan for the impacts of climate change on trade, leverage opportunities for climate action and trade growth, and define areas of collaboration with trade partners. The analysis will be adapted to each economy's specific situation and will explore how trade policy can support the achievement of National Adaptation Plans and Nationally Determined Contributions under the Paris Agreement on climate change, WTO said in a press release.
Egypt has taken interest in ACT and is likely to join the pilot phase. Domestic stakeholders will be involved in ACT's policy analysis through public-private dialogues, providing participating economies with an opportunity to explore specific ways in which trade can be leveraged to enhance climate change mitigation and adaptation efforts.
In addition, ACT will help policymakers and stakeholders in developing economies engage in international processes where appropriate, such as the WTO's Committee on Trade and Environment, and the WTO's Trade and Environmental Sustainability Structured Discussions.
The WTO's World Trade Report 2022 highlighted the need for global cooperation on international trade and related investment to enhance the mitigation of and adaptation to climate change, support a just low-carbon transition, and minimise trade frictions, the release added.
“The climate crisis is calling for rapid and effective collective action using every tool in the toolbox. Trade policy offers WTO members, including developing members, a wide variety of options to enhance their climate change adaptation and mitigation strategies. This new pilot initiative by the World Bank Group, the World Economic Forum, and the WTO secretariat will focus on supporting developing members to leverage trade to improve their climate resilience and decarbonisation plans in a way that is aligned with their specific needs and local circumstances,” said WTO trade and environment division director Aik Hoe Lim.
“By prioritising sustainable practices and harnessing the power of international trade, developing countries can not only mitigate the impacts of climate change but also create new economic opportunities and build a better future for their citizens,” said Mona Haddad, global director for trade, investment, and competitiveness of the World Bank Group.
“Urgent action is needed to meet climate goals. Many companies are undertaking supply chain decarbonisation and looking to green trade. Developing economies must be empowered to identify new opportunities and shape a future net-zero global economy,” said Sean Doherty, head, international trade and investment, World Economic Forum.
Fibre2Fashion News Desk (DP)