Institute for International Trade

Policy & Engagement 

POLICY BRIEF 26

International Trade and Sustainable Development: The Future of Climate and Biodiversity Governance 

History shows that existing approaches to international treaties, like the Paris Agreement, have not yet delivered adequate action to avoid catastrophic climate change by the turn of the century. A new approach to climate and biodiversity governance is therefore needed. Specifically, one that can consider tensions brewing across the principles of national interests and trade liberalism, and the critical issue of sustainable development that can ensure global economic stability and continued productive trade between nations.

This policy brief explores how we can achieve this balance through improved governance, emphasizing the need for polycentric governance that promotes collective action among governments, businesses, and individuals worldwide.

Key Highlights:

Polycentric governance: A shift towards collective decision-making across various jurisdictions.

Sustainable trade agreements: Emphasising sustainable development in trade agreements, integrating environmental considerations into negotiations and dispute settlements.

Transparency & accountability: Ensuring robust data collection and scenario planning, including independent monitoring mechanisms.

Multi-stakeholder initiatives: Encouraging collaboration among businesses, governments, and civil society to develop and implement sustainable trade practices.

Dr. Tracey Dodd, Prof. Johanna Kujala, Dr. Riikka Tapaninaho, Dr. Annika Blomberg, Dr. Anna Hannula, Heta Leinonen, and Filippe Delarissa Barros

The views expressed here are the author’s alone and not those of the Institute for International Trade.