Ten Observations on Climate Change and Green Growth

The document provides a matrix of how different climate mitigation policies impact developing countries. It highlights that while mechanisms like the Clean Development Mechanism (CDM), REDD+, and technology transfer generally offer positive outcomes for growth and investment, other policies like border tax adjustments can lead to reduced trade and lower global growth. The effects of carbon taxes and emission trading schemes are mixed, depending on factors such as carbon leakage and the allocation of revenues.

• Border tax adjustments are projected to have predominantly negative impacts on developing countries, including a loss of export revenues for exporters in affected sectors and lower global growth and welfare due to increased protectionist tendencies.
• The Clean Development Mechanism (CDM) and REDD+ are identified as positive drivers for developing countries, facilitating financial inflows through Foreign Direct Investment (FDI) and the sale of credits to countries with emission targets.
• Carbon taxes and emission trading schemes have indeterminate or mixed effects; they can cause 'leakage' where exports increase to countries without taxes, but may also provide aid if revenues are allocated to developing countries.
• The liberalisation of environmental goods and services (EGS) is expected to benefit developing countries by lowering tariffs, creating new export opportunities, and facilitating technology transfer.
• Technology transfer, whether through FDI or aid, is viewed as a catalyst for productivity and growth, although mandatory transfer requirements could potentially hamper FDI.

APA

Maxwell, S. (n.d.). Ten Observations on Climate Change and Green Growth. Climate and Development Knowledge Network. https://cdkn.org/sites/default/files/files/Interactions-between-climate-policies-growth-and-poverty_Maxwell.pdf

Chicago

Maxwell, Simon. Ten Observations on Climate Change and Green Growth. Climate and Development Knowledge Network, n.d. https://cdkn.org/sites/default/files/files/Interactions-between-climate-policies-growth-and-poverty_Maxwell.pdf.

Wikipedia

{{cite report |last1=Maxwell |first1=Simon |title=Ten Observations on Climate Change and Green Growth |publisher=Climate and Development Knowledge Network |url=https://cdkn.org/sites/default/files/files/Interactions-between-climate-policies-growth-and-poverty_Maxwell.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{maxwellndten, author = {Maxwell, Simon}, title = {{Ten Observations on Climate Change and Green Growth}}, institution = {Climate and Development Knowledge Network}, url = {https://cdkn.org/sites/default/files/files/Interactions-between-climate-policies-growth-and-poverty_Maxwell.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }