Trade and Climate Change (Policy Considerations for Developing Countries)

Historically, developing countries have contributed marginally to the global climate change problem, and yet today, they are suffering the most adverse consequences. Furthermore, to address mitigation and adaptation to climate change, these developing countries must also contribute to the collective solutions. How they navigate this transition will be framed by how trade and climate policies are designed or revised, and the extent to which these policies deliver effective, efficient, and equitable outcomes. To contribute to this debate, this report provides analysis and proposes tools that can be used to guide policymakers in developing countries on key issues related to trade. Part 1 analyzes climate change and the evolving comparative advantages of developing country trade; and Part 2 takes an in-depth look into the design of climate-related trade policy instruments that support developing country trade. Part 3 concludes with a summary of how developing countries, with support from the World Bank and others, can respond to these twin challenges for trade of adapting to the changing climate and adjusting to climate policies implemented to reduce greenhouse gas emissions.