The Consortium for Climate-Aligned Trade (CCAT) has developed these recommendations for G7 members to advance mutually supportive trade policies that accelerate climate action and grow the low carbon economy.
International trade is tied to 25% of global greenhouse (GHG) emissions, making it critical that trade policies are aligned with climate goals. Conversely, climate action has the potential to alter the economy in ways that promote free and fair trade.
More diplomatic dialogue is urgently needed, including during this year’s G7 process, to accelerate industry transformation and reduce carbon leakage. While there are other relevant forums, the G7 offers an important opportunity for like-minded major economies to find common ground on how best to harness trade policies to support climate action.
CCAT recommends seven critical actions the G7 should take to advance climate-aligned trade. G7 members should:
- Reaffirm G7 commitment to decarbonize industrial sectors and agree to meet the Paris Agreement timeframe.
- Elevate reducing emissions intensity of traded goods as the primary focus of climate-aligned trade policies.
- Affirm that climate-related trade policies can be useful and appropriate policy tools for tackling the climate crisis.
- Set a time-bound goal to create a mutually supportive and rules-based framework well before 2030 for aligning climate-related trade policies.
- Pledge to strive to find common ground and reduce trade tensions when managing differences on climate-related trade policies.
- Agree to work together to expand trade in climate-friendly goods and services in ways that help create resilient and secure supply chains.
- Commit to work together on data and technical issues, both directly and via international institutions.