International Trade and Sustainability: Perspectives from Developing and Developed Countries

Acknowledgments
Contents
List of Contributors
Chapter 1: Prologue
1 Governing Trade and Climate to Achieve Sustainability
2 Democratizing Trade Governance for Sustainability
3 Structure
Chapter 2: Green Bills for Green Earth
1 Introduction and Overview of the Global Climate and Trade Regimes
2 Analyzing the Climate Change and International Trade Regimes
2.1 Do They Contradict Each Other?
2.2 Next Steps for the EU and the WTO to Combat Climate Change
2.3 The Paris Agreement and a Global Response to Greenhouse Gas Emissions
3 Analysis of the European Green Deal and the United States Green New Deal
3.1 Introduction
3.2 Main Features of the European Green Deal and US Green New Deal
3.2.1 The European Green Deal
3.2.2 The US Green New Deal
4 Assessing the EU’s Carbon Border Adjustment Mechanism
4.1 Introduction
4.2 Carbon Pricing
4.2.1 The Concept
4.2.2 Structuring Carbon Pricing
4.3 What Is a Carbon Border Adjustment Mechanism?
4.3.1 What Does This System Entail?
4.3.2 Global Reactions to the Measure
4.4 How Does the WTO Regime View the CBAM Structure?
4.4.1 The Relation Between Trade and Environment Per the WTO Regime
4.4.2 Analyzing the Compliance of CBAM with WTO Law
Is the EU Empowered to Impose CBAM Along with Pre-existing Border Taxation?
Triggering the Nondiscrimination Clause: The Two Headed Leviathan for the EU
A Game of Chance Played on the Whims of the EU? Analysis of the Most-Favored-Nation Clause
Charity Stays at Home: Where Is the Difference Between EU and Non-EU Products? Analysis of the National Treatment Clause
4.4.3 An “Exception-al” Measure for the Environment: Can the CBAM Fall Under the Ambit of the General Exceptions Envisaged in the WTO?
Assessing the Applicability of GATT Article XX(b)
Assessing the Applicability of GATT Article XX(g)
4.4.4 Way Forward
5 Concluding Remarks
Chapter 3: Mega-Regional Trade Agreements and Decarbonization
1 Introduction
2 Mega-Regional Trade Agreements and Climate Change Mitigation
2.1 Promoting Energy Efficiency
2.1.1 Improving Coherence of Energy Efficiency Standards
2.1.2 Improving the Overall Global Energy Governance Framework
2.2 Influencing Efforts Toward the Energy Transition
2.2.1 Mega-Regional Trade Agreements and Rules Against Fossil Fuels
2.2.2 Creating New Rules That Benefit Renewable Energy
3 India and China: Two Key Climate Players
3.1 Two Birds with One Stone: Development and Sustainability in India
3.2 China’s Global Ambitions
3.2.1 Is China Attempting to Fill a Climate Change Leadership-Vacuum?
3.2.2 Does China Have Credibility to Play a Leadership Role in Global Sustainability?
4 Looking Into a Decarbonized Future: Clean Energy Technologies and Shale Gas
4.1 Clean Energy Technologies
4.1.1 The Concept
4.1.2 Promoting Electrification
Environmental Benefits
Financial Benefits
Societal Benefits
Maximizing Benefits
4.2 Shale Gas as a Bridge to Sustainability
4.2.1 History of the Shale Gas Debate
4.2.2 The Advantages of Shale Gas in the Context of Decarbonization
4.2.3 The Disadvantages of Shale Gas in the Context of Decarbonization
4.2.4 The “Middle Way” and Solutions
5 Conclusion
Chapter 4: The Perspective of Small Pacific Islands and the Caribbean Community
1 Introduction
2 The International Trading System and Achieving Sustainability in the World
2.1 The Impact of Trade on Sustainability: Historical Developments and Status Quo
2.2 Trade Agreements: Contents and Effectiveness
2.2.1 Multilateral Trade Agreements
2.2.2 Bilateral and Regional Trade Agreements
2.3 Towards Achieving the 2030 SDGs and Beyond
2.4 Conclusion
3 The Role of Free Trade Agreements in the Energy Transition: Experiences in Small Pacific Islands
3.1 Free Trade Agreements and Fossil Fuels
3.1.1 Explicitly Dealing with Fossil Fuel Subsidies
3.1.2 Using FTAs to Coerce SDG Obligations and Vice Versa
3.2 Liberalising Renewables
3.2.1 Renewable Energy and Energy-Efficient Products
3.2.2 Creating Rules for Renewable Subsidies
3.2.3 Nuclear Energy as a Clean Energy Source
3.3 Conclusion
4 Trade Law as the Enforcer of Climate Change Obligations: The Perspective of CARICOM States
4.1 CARICOM’s Intergovernmental Trade Infrastructure to Address Climate Change
4.2 Trade Mechanisms Within CARICOM to Enforce Climate Change Obligations
4.2.1 Regional Trade Sanctions
CARICOM’s Implementation of Trade Sanctions for Climate Change Breaches
Configuration of Trade Sanctions
Recommendations
The Feasibility of Applying CARICOM Trade Sanctions to GHG Emissions
4.2.2 Domestic Trade Sanctions
Evaluation
Recommendations
4.2.3 Carbon Border Adjustments and Their Relation to CARICOM Investments
Can BTAs Be Applied to Carbon?
CBTAs and Most Favoured Nation Principle
CBTAs and National Treatment Principle
Carbon Leakage from CARICOM
4.3 Stimulating the Shift to Renewable Energy: Meeting Climate Goals
4.3.1 Climate Change Waivers
4.3.2 The Configuration of Renewable Energy Subsidies Under Part III of the RTC and the SCM Agreement
Market as Encompassing the Entire Energy Sector
The Forms Subsidies Should Take
4.3.3 Trade Liberalization in Capital and Financial Services: Green Bonds
4.4 Conclusion
5 Current Response of the International Community Towards SIDS/Least Developed Countries (LDCs) and Recommendations
5.1 Positive Aspects
5.2 Issues That Require Addressal
5.3 Recommendations
5.4 Conclusion
References
Chapter 5: The European Union’s Carbon Border Adjustment Mechanism
1 Introduction
2 Carbon Border Adjustment Mechanism: An Overview
2.1 Definition and Context
2.2 How CBAM Works
2.3 Controversies and Concerns About CBAM
2.4 WTO Compatibility
2.4.1 The General Agreement on Tariffs and Trade
Domestic vs. Imported Products
Treatment Between WTO Members
2.4.2 CBAM and Least Developed Countries
2.4.3 Reassurance of the European Commission
3 Designing a Carbon Border Adjustment Mechanism
3.1 Three Areas of Interaction Between International Trade and Sustainable Development
3.2 The EU’s Approach to CBAM’s Compatibility Issues
3.2.1 The Design of a CBAM Matters
3.2.2 How Has the EU Dealt with Compatibility Issues?
3.3 Value of the EU’s CBAM for the Pacific
4 Conclusion
Chapter 6: The BRIC and Climate Change Mitigation
1 Introduction
2 Brazil
2.1 Introduction
2.2 International Legal Framework and Climate Change
2.2.1 The Kyoto Protocol and the Paris Agreement
2.2.2 Brazil’s Intended Nationally Determined Contributions (INDCs)
2.3 Domestic Policies on Climate Mitigation
2.3.1 Current Projections Policy
2.3.2 Reality
2.4 Possible Solutions
2.5 Conclusion
3 India
3.1 Introduction
3.2 The Dilemma Between Development and Climate Change Mitigation
3.3 India in the International Legal Framework
3.3.1 Historical Position
3.3.2 Nationally Determined Contributions
3.4 Domestic Policies on Climate Change Mitigation
3.4.1 Cities and Climate Change
3.4.2 Non-state Actors
3.4.3 Solar Power
3.4.4 Electric Vehicles
3.4.5 India’s Unexploited Hydropower Potential
Background
The Role of Large Hydropower Projects in Enhancing South Asian Cooperation for Cross-Border Electricity Trade
3.5 Conclusion
4 China
4.1 Introduction
4.2 China’s Climate Change Policy in International Negotiations: From Kyoto to Today
4.3 Key Domestic Policies in Favour and Against Climate Change Mitigation
4.3.1 Carbon Pricing
4.3.2 Energy Efficiency
4.3.3 Renewable Energy
4.3.4 Support for Fossil Fuels
4.4 Is China on a Sustainable Climate Change Trajectory?
4.5 Are China’s Trade Ambitions Consistent with Global Success on Climate Change?
5 Russia
5.1 Introduction
5.2 Russia’s Climate Change Policy in International Negotiations: From Kyoto to Today
5.3 Key Domestic Policies in Favour and Against Climate Change Mitigation
5.3.1 Key Measures That Reduce Carbon Emissions
5.3.2 Support for Fossil Fuels
5.4 Is Russia on a Sustainable Climate Change Trajectory?
6 Concluding Remarks
Index