Green Policies in Global Trade: Challenges for Developing Countries

At the CIECI 2024 conference in Hanoi, international experts explored the intersection of green policies and global trade. While these policies are crucial for tackling climate change, they present significant challenges for developing countries navigating global trade and investment dynamics.

Key insights from the event included:

Barriers in Compliance: Advanced economies are using financial grants and state loans to achieve sustainability goals, but developing nations face challenges due to limited resources and historically looser environmental regulations.

Geopolitical Tensions: Tariff changes between major powers, such as the US and China, further complicate trade policies and the integration of green practices into global supply chains.

Carbon Leakage and Inequities: As Prof. Peter Richard Draper, of the University of Adelaide pointed out, "Compliance with ethical supply chain standards is becoming a prerequisite for accessing public procurement contracts and avoiding penalties." However, localisation requirements often favour suppliers from regions that are already compliant, creating additional barriers for developing nations.

The Path Forward: Experts emphasized the need for international cooperation, equitable trade policies, and access to resources to help developing nations align with global green standards without hindering their economic growth.

The conference underscored that while green policies can catalyse sustainable development, they require careful balancing to ensure that trade and investment practices support rather than hinder growth in developing economies.

Let's continue to discuss how we can make green trade a force for inclusive global progress.