Talks@Bruegel: ⁠Advancing decarbonisation through trade with Han-koo Yeo

Trade policy and trade negotiations can play an important role in advancing climate resilience and decarbonising the economy. The EU’s CBAM has brought the climate agenda at the fore of trade policy around the world, but faces a critical task of catalyzing more harmonized global carbon pricing into the trading system rather than to trigger tit-for-tat green trade wars. How can traditional trade agreements such as the CPTPP or RCEP incorporate green elements into their framework? Would new economic agreements such as the Indo-Pacific Economic Framework be a useful platform for international cooperation on decarbonization? How could trade/economic agreements contribute to the promotion of carbon markets based on the Article 6 of the Paris Agreement? Can a sectoral approach work for important sectors such as steel and critical minerals? We will discuss these policy issues.