WORLD TRADE REPORT 2022 - World Trade Organization
WORLD TRADE
REPORT
2022
Climate change and
international trade
What is the World
Trade Report?
The World Trade Report is an
annual publication that aims to
deepen understanding about
trends in trade, trade policy issues
and the multilateral trading
system.
What is the 2022
Report about?
The 2022 World Trade Report
explores the complex interlinkages
between climate change and
international trade, revealing how
international trade and trade rules
can contribute to addressing
climate change.
Find out more
Website:
General enquiries:
enquiries@
Tel: +41 (0)22 739 51 11
Cover image:
Kamarjani, Bangladesh
Technicians travel with their equipment by rickshaw to install a solar power system at a rural house
built on Kharzanir Chor, an island on the Jamuna River. These islands come and go over a period
of around 10 to 20 years and thus connecting them to the national grid is impractical. However,
a programme of rural electrification is being rolled out using solar panels and batteries installed
at individual homes.
? Laurent Weyl / Argos / Panos Pictures.
CONTENTS
Contents
Acknowledgements and disclaimer
Abbreviations
Foreword by the WTO Director-General
Key messages
Executive summary
A. Introduction
1. The next great transformation
2. Harnessing the transformative power of trade
3. Overview of the report
B. The role of trade in adapting to climate change
1. Introduction
2. Why does climate change adaptation matter?
3. International trade and trade policy can support climate change adaptation strategies
4. International cooperation is essential to assist countries in adapting to climate change
5. Conclusion
C. The trade implications of a low-carbon economy
1. Introduction
2. Achieving a low-carbon economy is an imperative but faces challenges
3. A low-carbon economy would change trade patterns and provide new trading opportunities
4. International cooperation is essential to achieve a low-carbon economy
5. Conclusion
D. Carbon pricing and international trade
1. Introduction
2. Carbon pricing policies can be an important strategy to reduce carbon emissions
3. Uncoordinated carbon pricing policies may undermine climate action and lead to trade tensions
4. Greater international cooperation is required to advance ambitious carbon pricing policies
5. Conclusion
E. The decarbonization of international trade
1. Introduction
2. Accounting for carbon emissions originating from international trade is complex
3. International trade affects carbon emissions in multiple ways, both positive and negative
4. Reducing trade-related carbon emissions requires greater international cooperation
5. Conclusion
F. The contribution of trade in environmental goods and services
1. Introduction
2. There is scope for intensifying trade in environmental goods and services
3. Trade in environmental goods and services can contribute to climate change mitigation
4. The development and deployment of environmental goods and services require
greater international cooperation
5. Conclusion
G. Conclusion
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134
Opinion pieces
Danae Kyriakopoulou, ¡°Climate inaction: implications for international trade¡±
Gauri Singh, ¡°Green hydrogen requires an appetite for action¡±
Daniel C. Esty, ¡°Trade implications of GHG pricing¡±
Sophie Punte, ¡°Building momentum for zero-emissions freight movement¡±
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60
92
110
Bibliography
136
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WORLD TRADE REPORT 2022
Acknowledgements
The World Trade Report 2022 was prepared under
the general responsibility and guidance of Anabel
Gonz¨¢lez and Jean-Marie Paugam, WTO Deputy
Directors-General, and was coordinated by Jos¨¦Antonio Monteiro and Ankai Xu.
Director-General Ngozi Okonjo-Iweala, Chef de
Cabinet Bright Okogu, Yuvan Beejadhur and Trineesh
Biswas from the Office of the Director-General,
Robert Koopman, former Director of the Economic
Research and Statistics Division, and Aik Hoe Lim,
Director of the Trade and Environment Division,
provided valuable advice and guidance.
The lead authors of the report are Marc Bacchetta,
Eddy Bekkers, Cosimo Beverelli, Mateo Ferrero,
Emmanuelle Ganne, Rainer Lanz, Jos¨¦-Antonio
Monteiro, Roberta Piermartini, Daniel Ramos and
Ankai Xu. Other authors are Absar Ali, Antonia
Carzaniga, Svetlana Chobanova, Lory Iunius,
Jonathan Hepburn, Thomas Kr?uchi, Juneyoung Lee,
Kathryn Lundquist, Sajal Mathur, Hanh Nguyen, Yves
Renouf, Victor Stolzenburg, Enxhi Tresa, Ayse Nihal
Yilmaz, Khadija Zaidi and Ruosi Zhang.
Other written contributions were provided by Marc
Auboin, Christophe Degain, Peter Donelan, Kartikeya
Garg, Simon Hess, Gergana Kiskinova, Katharina
Laengle, Reto Malacrida, Jeanne Metivier, Marie
Isabelle Pellan, Philippe Pelletier, Rishab Raturi,
Melvin Spreij, Ludivine Tamiotti, Antony Taubman,
Jessyca Van Weelde and Xiaoping Wu.
The following colleagues in the WTO Secretariat
provided valuable written comments on drafts of the
report: Ratnakar Adhikari, Antonia Carzaniga, Mireille
Cossy, Violeta Gonzalez, Ulla Kask, Arne Klau,
Gabrielle Marceau, Clarisse Morgan, Juan Pablo
Moya Hoyos, Marie Isabelle Pellan, C¨¦dric Pene,
Michael Roberts, Stela Rubinova, Melvin Spreij,
Karsten Steinfatt, Sainabou Taal, Antony Taubman,
Cristian Ugarte and Xiaoping Wu. Valuable research
assistance was provided by Francesco Bellelli, Basile
Feller, Tracy Frei, Benjamin Ignoto, Socrates Kraido
Majune and Xiao Yang.
External contributions were received from Daniel
C. Esty (Yale Law School), Danae Kyriakopoulou
(London School of Economics and Political Science),
Sophie Punte (We Mean Business Coalition) and
Gauri Singh (International Renewable Energy
Agency). Background research were also received
from the following WTO Chairs, in coordination
2
with Mustapha Sadni Jallab and with support from
Sandra Rossier of the Knowledge and Information
Management, Academic Outreach and WTO Chairs
Programme Division: Soledad Aguilar (Latin American
Faculty of Social Sciences), Osman Gulseven (Sultan
Qaboos University), Nada Hazem, Myriam Ramzy and
Chahir Zaki (Cairo University), Sufian Jusoh (National
University of Malaysia), Zhang Lei and Jiang Yue
(University of International Business and Economics),
Thuto Lucy Matobo (National University of Lesotho)
and Boopen Seetanah (University of Mauritius).
The following individuals from outside the WTO
Secretariat also provided useful comments on
early drafts of the report: Rolando Avendano,
Magnus Benzie, Chad Bown, Paul Brenton, Vicky
Chemutai, Brian R. Copeland, Rob Dellink, Klaus
Desmet, Yann Duval, Koffi Aseye Makafui Elitcha,
Robert J. R. Elliott, Daniel C. Esty, Marco Fugazza,
Ian Douglas Gillson, Christian Gollier, Jean-Marie
Grether, Stephane Hallegatte, Katy Harris, Dirk
Heine, Bernard Hoekman, Michael Jakob, Euijin
Jung, Stephen Karingi, Alexander Kasterine, Alexey
Kravchenko, Vesile Kulacoglu, Bruno Lanz, Jia Li,
Jeremy Lucchetti, Tatiana S. Manolova, Nicole
Mathys, Jason McCormack, Nanno Mulder, Hildegunn
Kyvik Nord?s, Ralph Ossa, Joseph Pryor, Bernard
Sinclair-Desgagn¨¦, Ronald Steenblik, Aleksandar
Stojanov, Shawn W. Tan, Mara Tayag, Robert Teh,
Shunta Yamaguchi and Irina Zodrow.
Gratitude is also due to the speakers of the World
Trade Report 2022 Webinar Series on Trade and
Climate Change for their insightful presentations:
Brian R. Copeland, Klaus Desmet, Katy Harris, Maria
Huge-Brodin, Jenny Minier, Joseph Sarkis, Misato
Sato, Joseph S. Shapiro, Bernard Sinclair-Desgagn¨¦
and Tatiana S. Manolova. Special thanks also go to
Isabelle Albrow Gerard, Carole Boureux, Viktoriya
Lazorenko and Anne Lescure for helping with the
organization of the webinars.
Jos¨¦-Antonio Monteiro and Ankai Xu of the Economic
Research and Statistics Division managed the
drafting of the Report. The text production of the
Report was managed by Diana Dent and Anne
Lescure of the Economic Research and Statistics
Division. The production of the Report was managed
by Anthony Martin and Helen Swain of the Information
and External Relations Division. William Shaw and
Helen Swain edited the report. Gratitude is also due
to the translators in the Language and Documentation
Services Division for the high quality of their work.
ACKNOWLEDGEMENTS AND DISCLAIMER
Disclaimer
The World Trade Report and its contents are the sole responsibility of the WTO Secretariat, except
for the opinion pieces written by the external contributors, which are the sole responsibility of their
respective authors. The Report does not reflect the opinions or views of members of the WTO. The
authors of the Report also wish to exonerate those who have commented upon it from responsibility for
any outstanding errors or omissions.
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