Asia-Pacific trade and investment report 2021: accelerating climate-smart trade and investment for sustainable development

International trade and investment are essential for economic growth in Asia and the Pacific, but they have also come with social and environmental costs, including the climate crisis. To address this, climate-smart trade and investment policies are needed to promote trade and investment in renewable energy and low-carbon technologies, while minimizing the negative effects of trade and investment, such as digitalizing trade and transport systems. Putting a price on carbon and eliminating fossil fuel subsidies are fundamental elements for making trade and investment more sustainable. COVID-19 recovery packages can provide opportunities to invest in low-carbon technologies and sectors, but the cost of inaction is far greater.

Format: Paperback / softback
Length: 158 pages
Publication date: 30 May 2022
Publisher: United Nations

International trade and investment have played a pivotal role in driving economic growth in Asia and the Pacific, serving as crucial instruments for implementing the 2030 Agenda for Sustainable Development. While these economic activities have brought about substantial benefits, they have also incurred significant social and environmental costs, particularly in the face of the escalating climate crisis. This report aims to explore how climate-smart trade and investment policies can effectively address climate change, considering the ongoing impact of the COVID-19 pandemic.

The relationship between trade, investment, and climate change is intricate, necessitating a balanced approach to maximize the positive impacts while minimizing the negative ones. One key strategy is to promote trade and investment in renewable energy and low-carbon technologies, which can help reduce greenhouse gas emissions and transition towards a more sustainable economic model. Additionally, digitalizing trade and transport systems can contribute to efficiency gains and lower carbon emissions.

However, achieving sustainability in trade and investment requires more than just promoting green technologies. It also involves putting a price on carbon and eliminating fossil fuel subsidies, which can encourage businesses to transition to cleaner energy sources and reduce their carbon footprint. Implementing border taxes on carbon to address carbon leakages and loss of competitiveness induced by domestic carbon pricing policies is another important step.

While implementing climate-smart policies may entail additional investments, particularly for emission-intensive sectors and economies, the cost of inaction is far greater. The COVID-19 recovery packages provide an opportunity to invest in low-carbon technologies and sectors, which can contribute to job creation, economic growth, and climate resilience.

In conclusion, international trade and investment can play a significant role in addressing climate change. By promoting climate-smart trade and investment policies, we can maximize the positive impacts while minimizing the negative ones. The COVID-19 recovery packages offer a window of opportunity to invest in low-carbon technologies and sectors, which should be seized in light of the urgency for action.

Dimension: 270 (mm)
ISBN-13: 9789211208320