Climate-Aligned Trade

8 Actions for the G7 to Advance Climate-Aligned Trade

Ahead of the 2024 Ministerial Meeting on Climate, Energy and Environment on April 28th-30th, the Consortium for Climate-Aligned Trade (CCAT) has developed new recommendations for G7 members to advance mutually supportive trade policies that accelerate climate action and decarbonize industry.

Decarbonizing the industrial sector requires a global effort and ambitious leadership. G7 members can lead this effort by ensuring their policies to decarbonize and grow their economies are built cooperatively and practice the principle of interoperability.

CCAT recommends eight critical actions the G7 should take to advance climate-aligned trade and include in their communiqué:

  1. Reaffirm G7 commitment to decarbonize industrial sectors and agree to meet the Paris Agreement timeframe.
  2. Reaffirm the importance of emissions intensity of traded goods as an important metric of climate-aligned trade policy.
  3.  Reaffirm commitment to work together on data and technical issues, both directly and via international institutions.
  4. Agree to strive toward the interoperability of emissions data systems.
  5. Agree to coordinate in the refinement of product-level emissions intensity measurement regimes.
  6. Set a time-bound goal to create a framework for interoperability.
  7. Increase dialogue with emerging markets and developing economies on carbon intensity accounting and support them with building infrastructure and technological assistance.
  8. Agree to quantify the climate benefits of any climate-focused subsidies.