Aid for Trade in Asia and the Pacific: Navigating Climate Policy Dynamics for Sustainable Trade Competitiveness

With the climate crisis threatening the multilateral trading system and potentially accelerating global trade fragmentation, the report argues that national trade policies and regulations need to be aligned with climate action. This will help overcome barriers in the trade of environmental goods and services, facilitate green technology transfers and adoption, and enable energy-intensive goods to be produced in locations with low-carbon energy potential. The report underscores the importance of developing integrated policy frameworks, mobilizing climate finance, fostering public–private partnerships for sustainable infrastructure, and building capacity to strengthen resilience and trade competitiveness.