COP 30 key issues: trade and climate agenda

This briefing by the International Institute for Sustainable Development (IISD) examines the intersection of international trade and climate policy ahead of COP 30. It focuses on the use of trade tools—such as border carbon adjustments, green subsidies, and deforestation-free import rules—to advance climate goals while highlighting the risks of market fragmentation and the potential for these measures to deepen inequities between developed and emerging economies.

• Border Carbon Adjustments (BCAs), also known as carbon border adjustment mechanisms (CBAMs), are designed to prevent "carbon leakage," which occurs when production shifts to countries with less stringent climate regulations. Research indicates that for every 100 tonnes of CO₂ reduced domestically, between 13 and 25 tonnes may reappear in other locations.
• Several nations are implementing or exploring BCAs. The European Union's CBAM enters its definitive phase in 2026, and the United Kingdom plans one for 2027. Other entities exploring similar measures include Canada, Australia, the United States, Iceland, Norway, and Chinese Taipei.
• BCAs face criticism for potentially conflicting with the principle of Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC), as they often apply uniform treatment to all partners regardless of their historical emissions or mitigation capacities. To mitigate this, the document suggests integrating targeted flexibilities and support for developing countries.
• Trade-related tools to combat deforestation include public-led regulations like the European Union Deforestation Regulation, which bans imports that cannot be verified as deforestation-free; private-led voluntary standards such as the Forest Stewardship Council and Rainforest Alliance; and public-private partnerships like the Cocoa and Forests Initiative in West Africa.
• The IISD identifies three primary objectives for the trade and climate community at COP 30: increasing transparency and dialogue regarding climate-related trade measures, establishing financial and technical support mechanisms for developing countries, and creating cooperative frameworks to harmonize standards.

APA

Baršauskaitė, I., Bonnet, A., & Sarmiento, F. (2025). COP 30 key issues: trade and climate agenda. International Institute for Sustainable Development. https://www.iisd.org/articles/explainer/cop-30-key-issues-trade-and-climate-agenda

Chicago

Baršauskaitė, Ieva, Antoine Bonnet, and Florencia Sarmiento. COP 30 key issues: trade and climate agenda. International Institute for Sustainable Development, 2025. https://www.iisd.org/articles/explainer/cop-30-key-issues-trade-and-climate-agenda.

Wikipedia

{{cite report |last1=Baršauskaitė |first1=Ieva |last2=Bonnet |first2=Antoine |last3=Sarmiento |first3=Florencia |title=COP 30 key issues: trade and climate agenda |publisher=International Institute for Sustainable Development |date=4 November 2025 |url=https://www.iisd.org/articles/explainer/cop-30-key-issues-trade-and-climate-agenda |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{barauskait2025cop, author = {Baršauskaitė, Ieva and Bonnet, Antoine and Sarmiento, Florencia}, title = {{COP 30 key issues: trade and climate agenda}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = nov, url = {https://www.iisd.org/articles/explainer/cop-30-key-issues-trade-and-climate-agenda}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }