Action on Climate and Trade (ACT), a new initiative from the World Trade Organisation (WTO), the World Bank Group, and the World Economic Forum (WEF), aims to assist developing economies, including least-developed countries, use trade to achieve their climate change mitigation and adaptation goals. The programme, which will first take the form of a pilot phase, will be centred on collaborating with participating developing economies to create climate-related analysis tailored to their trading situations.
To help participating developing economies prepare for the effects of climate change on trade, take advantage of opportunities for climate action and trade growth, and identify areas for partnership with trading partners, ACT will offer them specialised insights. The investigation will analyse how trade affects each economy’s unique circumstances and In a news release, the WTO stated that policy can assist in achieving national adaptation plans and nationally determined contributions in accordance with the climate change provisions of the Paris Agreement.
Egypt is likely to participate in the pilot phase after showing interest in ACT. Through public-private dialogues, domestic stakeholders will be included in ACT’s policy analysis, giving member economies the chance to examine particular ways that trade may be used to strengthen efforts to mitigate and adapt to climate change.
Additionally, ACT will support participants in developing economies who wish to participate in international procedures like the WTO’s Trade and Environmental Sustainability Structured Discussions and the Committee on Trade and Environment.
The World Trade Report 2022 from the WTO emphasised the need for international cooperation on The announcement further stated that trade and related investment should be used to reduce trade frictions, support a just low-carbon transition, and improve climate change adaptation and mitigation.
“Rapid and effective collective action is required to address the climate problem, and all available tools must be used. Trade policy provides WTO members with a wide range of alternatives to improve their climate change adaptation and mitigation plans, especially developing country members. According to WTO Trade and Environment Division Director Aik Hoe Lim, the new pilot project from the World Bank Group, the World Economic Forum, and the WTO secretariat will concentrate on helping developing members leverage trade to improve their climate resilience and decarbonization plans in a way that is in line with their unique needs and local circumstances.
By placing a focus on sustainable By implementing sustainable development practises and making the most of global trade, developing nations can not only lessen the effects of climate change but also generate new business opportunities and improve the lives of their citizens, according to Mona Haddad, the World Bank Group’s global director for trade, investment, and competitiveness.
“To meet climate targets, immediate action is required. Many businesses are decarbonizing their supply chains and pursuing green trade. The future net-zero global economy must be shaped by developing economies, according to Sean Doherty, head of international trade and investment at the World Economic Forum.
