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Finance & Economics

How trade policy can support the climate agenda

External Publications with Tom Moerenhout • June 23, 2022

Economic analysis has produced ample insights on how international trade and climate policy interact. Trade...

Economic analysis has produced ample insights on how international trade and climate policy interact. Trade presents both opportunities and obstacles, and invites the question of how domestic climate policies can be effective in a global economy integrated through international trade. Particularly problematic is the potential relocation of production to regions with low climate standards. Measures to level the playing field, such as border carbon adjustments (BCAs), may be justified for specific emissions-intensive and trade-exposed sectors but need to be well-targeted, carefully navigating tensions that can arise between the desire to respect global trade rules and the need to elaborate and implement effective national climate policies. The conformity of specific trade measures with international trade and climate change law is not entirely clear. Yet, clarity is needed to ensure that the industry actors affected will find the rules predictable and be able to adhere to them.

Our Work

Relevant
Publications

Assessing US Government Efforts to Support Fossil Fuel–Reliant Communities

The decline of domestic fossil fuel production in the United States poses serious economic risks for communities that rely on fossil fuel industries for jobs and public revenues. Many of these communities lack the resources and capacity to manage those risks on their own. The absence of viable economic strategies for affected regions is a barrier to building the broad, durable coalitions needed for an equitable national transition to cleaner energy sources.

Reports by Noah Kaufman • February 05, 2026
Assessing US Government Efforts to Support Fossil Fuel–Reliant Communities
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Finance & Economics

How trade policy can support the climate agenda

External Publications with Tom Moerenhout • June 23, 2022