We are working with UK partners to monitor developments in UK trade policy and provide updates and analyses of the impact on climate commitments. Our work on alternative business models also aims to develop a strong trade approach proposal that would support climate targets. Finally, open trade can lead to improved energy efficiency – of the technical effect – so that the production of goods and services leads to fewer greenhouse gas emissions. This reduction in emissions intensity can be achieved in two ways. First, freer trade will increase availability and reduce the costs of environmentally friendly goods, services and technologies. This is particularly important for countries that do not have access to these goods, services and technologies or whose domestic industries do not produce enough or at affordable prices. Additional market access can encourage exporters to develop new products, services and technologies to mitigate climate change. Second, increased trade revenues may encourage society to demand better environmental quality, i.e. less greenhouse gas emissions. Fossil fuel subsidies promote the production or consumption of fossil fuels. They lead to higher emissions of climate-altering greenhouse gases, but also local pollutants, such as.

B pulmonary obstruction of particles in the air. They also cost billions of dollars to some countries that could be spent on social needs such as health care or education. Removing fossil fuel subsidies would improve the competitiveness of clean energy technologies and free up funds that could be reallocated to help achieve the sustainable development goals. There are several other opportunities to defer the relative prices of low-carbon and carbon products in an economy beyond a general tax or cap system, whether through tariffs, purchases, financing, corporate governance, subsidies, technical standards, investor advertising, tax rules and policies or emissions trading. Some of these instruments have the potential to influence prices fairly directly, others rather indirectly due to a change in purchasing behaviour that generates increased economies of scale for producers using low-carbon technology. The first are the creation of a tariff differential in international trade, the differential tax treatment of energy-intensive equipment, regulatory differences and information rules for carbon-intensive assets of financial institutions, and the reduction of fossil fuel subsidies.