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Reconciling Trade and Climate Policies

  • Nicole A. MATHYS

    (Office fédéral suisse de l'énergie (OFEN))

  • Jaime de MELO



The outcome of the 15th conference of the Parties to the UNFCCC in Copenhagen showed a shift from a top-down approach with a collective target favoring environmental objectives to a bottom-up accord favoring political feasibility. There is no meaningful binding agreement in sight, also because the global climate regime and the global trade policy regime appear to be on a collision course. Following a review of the challenges ahead, the paper argues that trade will have a second-order contribution to world-wide CO2 emissions. Evidence shows increasing carbon transfers through trade, but the magnitude of carbon leakage effects may be less than feared in some circles.

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Paper provided by FERDI in its series Working Papers with number P37.

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Date of creation: Feb 2012
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Handle: RePEc:fdi:wpaper:502
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