GENEVA (ChatnewsTV) — Five leading international organizations released a report on October 23 urging coordinated global approaches to climate action, carbon pricing, and mitigating cross-border policy effects to meet international climate goals. The joint report, titled “Working Together for Better Climate Action: Carbon Pricing, Policy Spillovers, and Global Climate Goals,” comes as nations ramp up efforts to combat climate change.
Produced by the World Trade Organization (WTO) in partnership with the International Monetary Fund (IMF), Organisation for Economic Co-operation and Development (OECD), United Nations Conference on Trade and Development (UNCTAD), and the World Bank, the report highlights the need for global cooperation to enhance the effectiveness of climate policies.
“Trade-related climate policies are on the rise, with over 5,500 measures linked to climate objectives notified to the WTO from 2009-2022,” said WTO Director-General Ngozi Okonjo-Iweala. “Future work should focus on more ambitious carbon pricing policies that close the climate action gap while addressing cross-border spillovers.”
The report stresses that while carbon pricing has become a crucial tool, with 75 taxes and emission trading schemes now covering 24% of global emissions, a coordinated global framework is necessary to prevent trade tensions and ensure fair competition. The report also calls for improvements in transparency and data collection, particularly concerning carbon prices and emissions embedded in trade.
IMF Managing Director Kristalina Georgieva emphasized the urgency of these efforts, noting, “Global emissions need to be cut urgently to put the world on track to achieve the Paris goals. Carbon pricing should be part of a comprehensive policy mix, supported by public investment and sectoral policies.”
The organizations also discussed the need for enhanced international cooperation to prevent negative impacts on developing countries, a concern highlighted by UNCTAD Secretary-General Rebeca Grynspan. “We must ensure that climate-related measures, including Border Carbon Adjustments, are evidence-based and minimize negative spillovers, particularly for less advanced economies,” Grynspan said.
OECD Secretary-General Mathias Cormann pointed to the importance of aligning national approaches to reducing emissions, stressing that “net-zero requires coherent and better-coordinated global policies to maximize opportunities and avoid negative cross-border impacts such as carbon leakage.”
The report also addresses the growing partnership between the World Bank and lower-income countries, emphasizing tailored climate policies that create jobs and boost development. Axel van Trotsenburg, Senior Managing Director at the World Bank, highlighted the need for cooperation, stating, “Carbon pricing can drive development progress, but more cooperation is needed to ensure policies benefit lower-income economies.”
