Mixing Apples and Oranges: The Limitations of Trade Policy in Mitigating Climate Change

One of the latest trends among policymakers is to combine trade policy with environmental objectives. International trade can facilitate the diffusion of clean energy technologies and innovations. It can also prompt economic actors to utilise resources more efficiently. But although there are several variants of combined trade and environmental policies, such instruments should not be used under the false belief that they will reduce carbon emissions globally. Trade policy cannot leave any stronger imprint on global carbon emissions.