How EU Trade Policy Can Enhance Climate Action addresses the strategic need for a robust EU framework for low-carbon investment.
To address the strategic need for a robust EU framework for low-carbon investment, How EU Trade Policy Can Enhance Climate Action recommends that the European Commission i) investigates the economic, legal, and administrative viability and implementation timeline of carbon price adjustments at the border, ii) examines the possibility to extend the EU ETS to include consumption of carbon intensive materials and the potential of product standards to achieve the same aim. All these approaches have different advantages and shortcomings in terms of political acceptability, effectiveness and implications for the world trade system. To support partner countries in advancing climate action, both bilateral and multilateral measures should be prepared.