Three Challenges, Shared Solutions – Framing a Global Agenda

KAS - E3G Forum on Climate, Trade and Development

The international community is faced with the challenge of mitigating climate change to keep global temperature increase within safe limits. At the same, the international community must provide opportunities for development of the Global South, especially in light of the COVID-19 pandemic, which has exacerbated the economic challenges in many of the developing countries.


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Trade can be an enabler of progress on these two objectives – climate and development – yet can also lead to setbacks if and when trade rules are not offering the right incentives. Experts argue that current trade frameworks are insufficient to accelerate climate action and achieve development opportunities for all. For both sessions we have discussants contribute from German, US and development perspectives.

The KAS - E3G Forum on Climate, Trade and Development aims to break down the silos and foster an integrated understanding of the climate-trade-development nexus.


First Session: The Climate-Trade-Development Nexus – Stocktaking

Policies and politics in any of these three areas – climate, trade and development – have a direct and indirect impact on each other. Too often they are regarded in silos. What is urgently needed from our global leaders and policy community are new interdisciplinary approaches to secure a more sustainable and equitable future. What is also needed is an in-depth cross-sectional analysis of this nexus and how each discipline can contribute to the improvement of climate, growth and development.


Welcoming Remarks:

Paul Linnarz, Director, KAS Office USA

Claire Healy, Director of the Washington DC Office of E3G


Opening Remarks:

Prof. James Bacchus, Distinguished University Professor of Global Affairs and Director, Center for Global Economic and Environmental Opportunity, University of Central Florida


Followed by a discussion with:

Dr. Susanne Droege, Senior Fellow for International and Security Studies - SWP (Germany)

Dr. Joseph S. Shapiro, Associate Professor, Agricultural & Resource Economics and the Department of Economics, UC Berkeley

Ian Mitchell, Co-Director of Development Cooperation in Europe and Senior Fellow, Center for Global Development

Second Session: The Climate-Trade-Development Nexus – Carbon Leakage

Carbon leakage is a concern for countries that are proactive on climate action. In these countries higher costs are imposed on domestic industries resulting in loss of competitiveness compared to countries with less stringent climate policies.

Both the EU and the US are developing policies to prevent carbon leakage for select industries via a carbon border adjustment mechanism. The goal is to establish a level playing field for domestic businesses vis-à-vis competing businesses in countries with weaker climate policies. The EU has proposed an EU Carbon Border Adjustment Mechanism, while the US is working on their own version. It is yet unclear to what degree developing countries will be affected by such trade measures.


Welcoming Remarks:

Paul Linnarz, Director, KAS Office USA



Dr. Susanne Droege, Senior Fellow for International and Security Studies - SWP (Germany)

George T. Frampton, Jr., Distinguished Senior Fellow, Director, Transatlantic Climate Policy Initiative, Global Energy Center, Atlantic Council

Madhura Joshi, Senior Associate, E3G (India)

Dr. Carolyn Fischer, Research Manager for Sustainability and Infrastructure, Development Economics Research Group at The World Bank



Max Gruenig, Senior Policy Advisor at E3G

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Jeanene Lairo

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