What do we know about climate change? What is the relationship between trade and climate change? How does trade affect greenhouse gas emissions and can more open trade help to address climate change? What is the range of national measures that can contribute to global mitigation efforts? These are just some of the questions discussed by Trade and Climate Change by the World Trade Organization and the United Nations Environment Programme.

EXECUTIVE SUMMARY
This Report provides an overview of the key linkages between trade and climate change based on a review of available literature and a survey of relevant national policies.

It begins with a summary of the current state of scientifi c knowledge on existing and projected climate change; on the impacts associated with climate change; and on the available options for responding, through mitigation and adaptation, to the challenges posed by climate change (Part I).

The scientific review is followed by an analysis on the economic aspects of the link between trade and climate change (Part II), and these two parts set the context for the subsequent discussion in the Report, which reviews in greater detail trade and climate change policies at both the international and national level.

Part III on international policy responses to climate change describes multilateral eff orts at reducing greenhouse gas (GHG) emissions and adapting to the risks posed by climate change, and also discusses the role of the current trade and environment negotiations in promoting trade in climate mitigation technologies.

The final part of the Report gives an overview of a range of national policies and measures that have been used in a number of countries to reduce greenhouse gas emissions and to increase energy efficiency (Part IV). It presents key features in the design and implementation of these policies, in order to draw a clearer picture of their overall effect and potential impact on environmental protection, sustainable development and trade. It also gives, where appropriate, an overview of the WTO rules that may be relevant to such measures. ...

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Trade and Climate Change
A report by the United Nations Environment Programme and the World Trade Organization

FORWARD
Climate change is one of the greatest challenges facing the international community. Mitigating global warming and adapting to its consequences will require major economic investment and, above all, unequivocal determination on the part of policy-makers.

With a challenge of this magnitude, multilateral cooperation is crucial, and a successful conclusion to the ongoing global negotiations on climate change would be the first step towards achieving sustainable development for future generations. As we march towards Copenhagen, we all have a responsibility to make a success of these negotiations. Climate change is not a problem that can aff ord to wait. It is a threat to future development, peace and prosperity that must be tackled with the greatest sense of urgency by the entire community of nations.

The WTO and UNEP are partners in the pursuit of sustainable development. As the principal UN agency for the protection of the environment, UNEP has years of experience in the field of climate change. Th e WTO has also launched its first ever trade and environment negotiation under the Doha Development Agenda. Certain climate change mitigation measures intersect with existing WTO rules and recent discussions in various fora have brought to the fore the importance of better understanding the various linkages between trade and climate change.

This report is the outcome of collaborative research between the WTO Secretariat and UNEP. It reviews how trade and climate change policies interact and how they can be mutually supportive. The aim is to promote greater understanding of this interaction and to assist policy-makers in this complex policy area.

The report uniquely examines the intersection between trade and climate change from four different but correlated perspectives: the science of climate change; trade theory; multilateral efforts to tackle climate change; and national climate change policies and their effect on trade.

The report underlines that, as a critical fi rst step, governments must urgently seal a scientifically-credible and equitable deal in Copenhagen: one that addresses the need for both significant emission reductions and adaptation for vulnerable economies and communities.

Moreover, it highlights that there is considerable scope and flexibility under WTO rules for addressing climate change at the national level, and that mitigation measures should be designed and implemented in a manner that ensures that trade and climate policies are mutually supportive.

With these findings in mind, we are pleased to present this report. It is an illustration of fruitful and increasing cooperation between our two organizations on issues of common interest.

Pascal Lamy
Director General
WTO
Achim Steiner
Executive Director
UNEP

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