WEF - What Future for Climate and Trade 2023

This report delves into the intricate connection between climate change and global trade, highlighting the growing importance of carbon competitiveness in the efforts to combat climate change. As countries and companies intensify their endeavors to mitigate emissions, the impact of climate measures on global trade becomes more complex and far-reaching. The report introduces the concept of "carbon competitiveness," which refers to the relative degree to which countries and businesses can achieve competitiveness while reducing carbon emissions. It emphasizes that the level of carbon competitiveness attained in the next decade will significantly influence the success of climate change mitigation efforts. Four scenarios are presented to envision the future of climate and trade. These scenarios include "Climate on track," "Fractured effort," "Exponential disasters," and "Collective avoidance." Each scenario explores different trajectories and outcomes based on the actions taken by governments and businesses. To navigate these scenarios and achieve a net-zero economy, the report provides recommendations for both governments and businesses. Governments are encouraged to implement policies that support sustainable practices, invest in green infrastructure, foster international cooperation, and establish clear carbon pricing mechanisms. Businesses, on the other hand, are advised to adopt sustainable business models, invest in clean technologies, collaborate with supply chain partners, and disclose their climate-related risks and opportunities. In summary, this report underscores the critical role of carbon competitiveness in shaping the future of climate and trade. It emphasizes the need for collaborative action, urgent implementation of sustainable measures, and the potential for economic growth through the transition to a net-zero economy.