Climate Change and Trade

The document examines how climate change threatens Kenya's trade sector, particularly agriculture and tourism, through infrastructure damage and supply chain disruptions. It discusses the potential for 'green protectionism' via carbon labeling and border carbon adjustments, while suggesting that Kenya could gain a competitive advantage by branding its low-carbon niche products.

• Climate change threatens Kenya's trade sector by disrupting supply and distribution chains, which may increase the cost of commerce. This is especially critical for the agriculture and tourism sectors, which are impacted by flooding, water scarcity, droughts, coastal degradation, and temperature increases.
• Specific climate-related risks to Kenyan trade include damage to road infrastructure from floods and droughts, as well as the potential for rising temperatures to hinder port operations and ship navigation. Additionally, higher temperatures can reduce the loading capacity of aircraft, which may limit the volume of airfreight for commodities like horticultural produce exported to the European Union.
• The 1997-1998 El-Niño rains caused economic losses of US$1 billion in Kenya, primarily due to reduced trade activities resulting from damage to transport infrastructure.
• There is a risk that carbon-labeling, 'food miles' calculations, and border carbon adjustments could act as 'green protectionism' and create barriers to market access for Kenyan goods. However, the document notes that Kenya is more likely to face restrictions based on sanitary and phytosanitary measures or food safety standards than on carbon footprints.
• While some argue for sourcing products locally to reduce 'food miles', the document states that the actual carbon footprint is complex. It cites arguments that Kenyan flowers airfreighted to Europe may generate fewer carbon emissions than flowers grown in the Netherlands.
• Kenya may find a global competitive advantage by developing environmentally responsible and climate-friendly niche products. For example, branding horticultural produce as low-carbon could be an opportunity, as such products may be less carbon-intensive on a life cycle basis than those from destination markets.

APA

Climate and Development Knowledge Network (2014). Climate Change and Trade. https://cdkn.org/sites/default/files/files/Climate-Change-and-Trade.pdf

Chicago

Climate and Development Knowledge Network. Climate Change and Trade. 2014. https://cdkn.org/sites/default/files/files/Climate-Change-and-Trade.pdf.

Wikipedia

{{cite report |author=Climate and Development Knowledge Network |title=Climate Change and Trade |date=April 2014 |url=https://cdkn.org/sites/default/files/files/Climate-Change-and-Trade.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climateanddevelopmentknowledgenetwork2014climate, author = {{Climate and Development Knowledge Network}}, title = {{Climate Change and Trade}}, institution = {Climate and Development Knowledge Network}, year = {2014}, month = apr, url = {https://cdkn.org/sites/default/files/files/Climate-Change-and-Trade.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }