Trade Policy Tools and Instruments for Addressing Climate Change and Sustainable Development

This document consists of remarks delivered by David Runnalls, President of the International Institute for Sustainable Development, at the Trade Ministers’ Dialogue on Climate Change Issues in Bali, Indonesia, on December 8-9, 2007. Runnalls argues that climate change and the multilateral trading system are interlinked, asserting that failure to address climate change constitutes a failure of the trade system. He outlines how trade policy can support climate goals through liberalization of low-carbon goods, the reduction of fossil fuel subsidies, and the facilitation of technology transfer to developing countries.

• Climate change poses a significant threat to global economic stability and human well-being, with estimates suggesting that unchecked climate change could lead to a 20% loss of global GDP. The most severe impacts are expected to affect the poor in developing countries who rely heavily on natural resources and lack the capacity to adapt.
• The multilateral trading system and climate change regimes are mutually dependent; the goals of the WTO—including economic growth, poverty alleviation, and environmental sustainability—cannot be achieved if climate change is not effectively addressed.
• Trade policy can be leveraged to support climate goals through several specific instruments: liberalizing trade for low-carbon goods and removing non-tariff barriers to clean energy investment; reducing trade-distorting fossil fuel subsidies; creating special rules for environmental subsidies that facilitate technology dissemination; and improving technology transfer and Intellectual Property Rights (IPRs) for developing countries.
• Achieving the mitigation goals of the UNFCCC requires substantial financial mobilization, with the UNFCCC Secretariat estimating a need for additional global investment and finance of 200 to 210 billion per annum, primarily driven by private investment flows rather than Official Development Assistance (ODA).

APA

Runnalls, D. (2007). Trade Policy Tools and Instruments for Addressing Climate Change and Sustainable Development. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/trade_policy_tools_bali.pdf

Chicago

Runnalls, David. Trade Policy Tools and Instruments for Addressing Climate Change and Sustainable Development. International Institute for Sustainable Development, 2007. https://www.iisd.org/system/files/publications/trade_policy_tools_bali.pdf.

Wikipedia

{{cite press release |last1=Runnalls |first1=David |title=Trade Policy Tools and Instruments for Addressing Climate Change and Sustainable Development |publisher=International Institute for Sustainable Development |date=December 2007 |url=https://www.iisd.org/system/files/publications/trade_policy_tools_bali.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{runnalls2007trade, author = {Runnalls, David}, title = {{Trade Policy Tools and Instruments for Addressing Climate Change and Sustainable Development}}, publisher = {International Institute for Sustainable Development}, year = {2007}, month = dec, url = {https://www.iisd.org/system/files/publications/trade_policy_tools_bali.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }