Navigating the trade and environment nexus: A call for actionable equitable policies
trade policies, the intersection with environmental and other considerations has become a pressing concern, particularly for the developing and emerging world. As the global community grapples with climate change, plastic waste, biodiversity loss, and pollution, the need for a balanced approach that fosters sustainable development, meaning the triumvirate of economy, equity, and ecology, is more crucial than ever.
Challenges Faced by the Developing World
For example, navigating the intricate intersection of trade and ecological concerns poses a myriad of challenges to the Global South. With limited capacities, competing priorities, and the relentless pursuit of economic development, striking a delicate balance becomes an intricate tango. The recent influx of new measures, exemplified by the Carbon Border Adjustment Mechanism (CBAM) championed by developed nations like the European Union, underscores the pressing demand for developing countries to harmonise their policies with environmental imperatives.
Adding complexity to this challenge is the undeniable reality that the developed world not only operates but increasingly shifts its polluting industries to less developed, labour-intensive countries. This trend poses additional hurdles for developing nations committed to reducing their carbon footprint, particularly as they actively attract these industries to boost foreign direct investment (FDI). Furthermore, it benefits the firms in the rich world who can reduce their environmental burden and thus not attract violation of CBAM measures. The intertwined dynamics of industrial relocation and FDI attraction create a multifaceted scenario, necessitating comprehensive strategies to navigate the intricate web of
