Recent “green” policies – limited environmental benefits and distorted imports : what should trade policymakers do?

Abstract

The mask of “green growth” strategies can target or promote “green” production, consumption or investment. Trade policy commentators have questioned whether some state measures (often subsidy-like measures) are a new way to introduce discrimination against trading partners. This policy brief reports the results and implications from the author’s work in progress “Do green state measures make import patterns climate-friendly?” Transparent presentation of “green” policies and detailed follow-up documentation of proceedings can make unilateral climate change mitigation and adaptation initiatives more credible while putting peer pressure on other countries.