TRADE RESEARCH

Trade and Environmental Sustainability

Trade both shapes and is shaped by the world’s environmental challenges. As countries pursue economic growth, trade has often enabled the relocation of carbon-intensive and resource-intensive production, creating uneven environmental burdens across regions. At the same time, global value chains depend on stable climate conditions, secure water resources, and sustainable agricultural systems, making environmental health a prerequisite for long-term economic resilience.

The global economy now faces a decisive test: whether the rules, incentives, and standards governing trade can align with pathways toward decarbonization, resource efficiency, and sustainable food and water systems. From carbon border measures and green industrial policies to circular economy models and climate-risk disclosure, the intersection of trade and sustainability is central to national policies, corporate strategy, and multilateral cooperation to square climate goals with resource efficiency.