NEW DELHI: As the United Nations Climate Change Conference (COP28) begins in Dubai from Monday, experts feel India must reiterate that the misconception that trade significantly contributes to global emissions must be corrected.
According to Ajay Srivastava, founder of Global Trade Research Initiative (GTRI), trade-related activities account for only about 3% of global greenhouse gas emissions, not the often-cited 25%, and that India must highlight the misconception.
As per GTRI, India must also highlight two other important issues during the conference in Dubai. The focus should be on the World Trade Organisation (WTO) prioritising its core mandate of regulating trade, rather than overreaching into areas better managed by specialised agencies, such as the International Maritime Organisation’s efforts in decarbonising global shipping, says Ajay Srivastava.
He also says that India should highlight the potential conflicts of the Carbon Border Adjustment Mechanism (CBAM) with the Paris Agreement. On 4 December 2023, COP28 in Dubai dedicates a day to explore the relationship between global trade and climate change.
Trade day will explore the interplay between global trade and climate change. The primary goal is to nudge governments worldwide to integrate climate-friendly measures into their national trade policies.
Other potential topics include green trade policies, the role of renewable energy in trade, and carbon pricing strategies. A separate session will revolve around the role of trade in securing essential minerals necessary for the energy transition.