Leveraging Trade to Support Climate Adaptation in Developing Countries

The report examines the nexus between international trade and climate adaptation, arguing that trade can be a vehicle for developing countries to access necessary goods, services, and financing. It identifies three pathways for this: domestic trade policy measures, trade-related financing mechanisms, and international collaborative frameworks. Using case studies from Fiji, Kiribati, and Tonga, the report demonstrates how National Adaptation Plans (NAPs) can be used to identify specific adaptation needs—such as hydrometeorological equipment or rainwater harvesting systems—and map them to trade policy instruments like tariff reductions or Aid for Trade (A4T) funding.

• Climate change poses systemic risks to global trade by disrupting supply chains and affecting the volume and value of traded goods, particularly in agri-food commodities where yields in lower-latitude regions are already declining.
• Trade infrastructure is highly vulnerable to climate risks; over 50% of seaports, which handle 80% of global trade, are exposed to climate-related threats.
• The report proposes three pathways to leverage trade for adaptation: domestic policy measures to enhance access to adaptation goods/services, utilizing trade-related financing, and establishing international collaborative frameworks.
• Domestic trade policy instruments, including tariffs, subsidies, and green government procurement, can be used to lower barriers for the import of adaptation goods and services.
• There is a significant global adaptation finance gap, with annual costs estimated to reach USD 300 billion by 2030 and USD 500 billion by 2050, while tracked finance flows for adaptation were only USD 30 billion in 2017–2018.
• Aid for Trade (A4T) and the Enhanced Integrated Framework (EIF) are identified as primary entry points for facilitating adaptation finance in least developed countries (LDCs).
• Regional Trade Agreements (RTAs) can support adaptation through the liberalization of environmental goods, harmonization of standards, and the promotion of climate-resilient foreign direct investment (FDI).
• National Adaptation Plans (NAPs) serve as critical tools for mapping specific climate vulnerabilities to trade-related solutions, as seen in the Pacific region where countries prioritize resilient ports and sustainable fisheries.

APA

Dekens, J., Hammill, A., Hoffmann, D., & Bellmann, C. (2021). Leveraging Trade to Support Climate Adaptation in Developing Countries. International Institute for Sustainable Development. https://www.iisd.org/system/files/2021-10/trade-support-climate-adaptation-developing-countries.pdf

Chicago

Dekens, Julie, Anne Hammill, David Hoffmann, and Christophe Bellmann. Leveraging Trade to Support Climate Adaptation in Developing Countries. International Institute for Sustainable Development, 2021. https://www.iisd.org/system/files/2021-10/trade-support-climate-adaptation-developing-countries.pdf.

Wikipedia

{{cite report |last1=Dekens |first1=Julie |last2=Hammill |first2=Anne |last3=Hoffmann |first3=David |last4=Bellmann |first4=Christophe |title=Leveraging Trade to Support Climate Adaptation in Developing Countries |publisher=International Institute for Sustainable Development |date=October 2021 |url=https://www.iisd.org/system/files/2021-10/trade-support-climate-adaptation-developing-countries.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{dekens2021leveraging, author = {Dekens, Julie and Hammill, Anne and Hoffmann, David and Bellmann, Christophe}, title = {{Leveraging Trade to Support Climate Adaptation in Developing Countries}}, institution = {International Institute for Sustainable Development}, year = {2021}, month = oct, url = {https://www.iisd.org/system/files/2021-10/trade-support-climate-adaptation-developing-countries.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }