Climate change is a systemic risk for the world, especially to developing countries, with considerable impacts on trade and investment, calling for collective solutions, multilateral cooperation, and coherent action. This High-Level Forum event taking place at COP-27, will elaborate on the role of trade and investment in supporting the just transition and climate transformation, as well as the ways and means to contribute to the global endeavor for climate change mitigation and adaptation in line with the Paris Climate Change Agreement. It is expected to pave the way for formulating a global alliance and roadmap for climate transformation through trade and investment.
To achieve a low carbon world, we need to scale-up predictable climate financing, decarbonize the logistics of trade and global value chains, as well as the green investments. Production and consumption form a critical part of the climate challenge. At the same time, trade and investment are a critical part of the solution. Climate change has a considerable impact on global value chains and international production networks by affecting trade flows and specialization, disrupting distribution, transport, and supply chains, and raising transaction costs. The economic consequences of climate change will be unevenly distributed and especially felt in developing countries, which combine high trade dependency with significant expected damages from climate change. The consequences will also be dire in regions that specialize in food and agricultural products, and threaten the existence of many Caribbean, Pacific and Indian Ocean states.
There is therefore a growing urgency and renewed emphasis for mobilizing financial resources for investment in climate change mitigation and adaptation, especially for developing countries. Investment in climate change mitigation, especially renewables, is booming but most of it remains in developed economies, and adaptation investment continues to lag well behind. In the current context, this is particularly worrying as emerging indicators tend to point to possible setbacks in the energy transition, with increased fossil fuel production in countries previously committed to reducing emissions. Trade can help lower the cost and improve the dissemination of climate technologies, goods, and services in support of nationally determined contributions. It can also support the creation of new products, services, and markets in the emerging new climate economy. Investment and Trade policies can and must be part of a global policy framework to achieve shared climate goals in the speed required by the climate emergency while ensuring a just transition.
The high-level event will elaborate on the role of trade and investment in just transition and climate transformation; as well as the ways and means to contribute to the global endeavor for climate change mitigation and adaptation. It is expected to pave the way for formulating UNCTAD-WTO Trade and Investment for Climate Actions – a Roadmap, and Global Alliance of Trade and Investment for Climate Transformation (with the participation of multi-stakeholders of global trade-investment community).
