Trade-offs and Synergies: Assessing the Impact of Climate Change Policies on International Trade Patterns"

Answer from top 10 papers

International trade patterns are influenced by climate change policies, which can lead to both trade-offs and synergies. Martínez‐Martínez et al. (2023) highlights that international trade can serve as an adaptation mechanism to climate change, potentially reducing the number of undernourished people by mitigating regional climate impacts through trade. However, it also notes that trade integration must be carefully implemented to avoid exacerbating food insecurity in export-oriented regions. Halsnæs et al. (2023) provides evidence that climate change affects bilateral trade flows, with extreme weather events having a particularly negative impact on international compared to domestic trade.
Interestingly, while Martínez‐Martínez et al. (2023) emphasizes the adaptation benefits of trade, Chen and Woodland (2012) discusses the complex interactions between trade, environmental policies, and climate change, including the potential for trade to increase emissions and the pollution haven problem. Janssens et al. (2020) further explores the trade-offs associated with mitigation actions and sustainable development, indicating that the impacts of such policies on international trade patterns are context-specific and can have equity implications.
In summary, climate change policies interact with international trade in complex ways that can result in both synergies and trade-offs. While trade can be an adaptation tool to address climate impacts (Martínez‐Martínez et al., 2023), it can also be affected by climate-induced events (Halsnæs et al., 2023) and contribute to emissions (Chen & Woodland, 2012). Mitigation actions must be carefully designed to balance sustainability with trade (Janssens et al., 2020). Policymakers should consider these interactions to optimize the benefits of trade in the context of climate change and to minimize potential negative consequences.

Source Papers

Synergies and Trade-Offs Between Sustainable Development and Energy Performance of Exterior Lighting

The aim of this review was to map synergies and trade-offs between sustainable development and energy efficiency and savings regarding exterior lighting. Exterior lighting, such as public road and street lighting, requires significant amounts of energy and hinders sustainable development through its increasing of light pollution, ecological impact, and global climate change. Interlinkages between indicators in sustainability and energy that have positive interactions will lead to a mutual reinforcement in the decision-making process, and vice versa, interlinkages between trade-offs may lead to unwanted and conflicting effects. Very few studies have presented a clear vision of how exterior lighting should be contributing to, and not counteracting, the sustainable development of our planet. This study was conducted through a theoretical and systematic analysis that examined the interactions between sustainable development and energy performance based on a framework using indicators and variables, and by reviewing the current literature. Additionally, 17 indicators of energy efficiency and energy savings were identified and used in the analysis. Most interactions between variables for sustainable development and energy performance (52%) were found to be synergistic. The synergistic interactions were mostly found (71%) in the ecological and environmental dimension showing that environmental and ecological sustainability goes hand in hand with energy efficiency and savings. Trade-offs were found only in the economic and social dimensions accounting for 18% of the interactions identified. This review shows that the interactions between sustainable development and energy performance can be used to establish more efficient policies for decision-making processes regarding exterior lighting.

Open Access
Assessing the synergies and trade-offs of development projects in response to climate change in an urban region

A synthesis of the complex relationships, including synergies and trade-offs, between urban development projects and climate change mitigation and adaptation objectives can ensure that all these relationships are taken into consideration. We used a systems approach and applied an impact matrix and chain effect analysis methods to projects in the highly urbanized Taipei metropolitan region to identify the influences and effects between urban development projects and climate change objectives. Three types of urban plans and projects were analyzed: flood control, transportation, and urban planning. The magnitudes of the influences and effects between these projects and plans were derived through interviews with experts familiar with Taipei's urban development. This pilot study found no synergy in the response to climate change mitigation and adaptation for the urban development projects analyzed. The current standalone policies and plans related to urbanization in Taipei have resulted in trade-offs for flood control and public transit projects because they contribute positively toward one climate objective but negatively impact another. A high-level policymaking mechanism that ensures coordination and collaboration between different sectors is needed to supervise sectoral policies. Prior to the approval and implementation of a plan, policymakers should request the assessment of synergies and trade-offs between plans and projects to ensure a synergistic effect to climate change issues. This study confirms that the strategy from individual sector in a metropolitan region will result in trade-off between climate change issues is a global problem. This paper also strengthens the concept that the assessment of synergy/trade-offs between policy and plans should be conducted using systemic approach.

Beyond synergies: understanding SDG trade-offs, equity and implementation challenges of sectoral climate change mitigation options

Mitigation actions needed to achieve the ambitions of the Paris agreement to limit global temperature rise to 1.5 °C or below 2 °C have to align with sustainable development. In the near term, this implies a better understanding of context-specific challenges in integrating sustainability with climate policies during the designing, planning, implementation and financing stages. Through a review of selected studies across regions, this paper draws out conclusions focussing on mitigation–sustainable development goal (SDG) trade-offs, with implications on costs and equity for different development contexts. Studies show that trade-offs depend on how the option is implemented and at what scale; mitigation options such as afforestation, biomass production and digitalisation are examples of this. Some options could also result in significant adverse environmental impacts as in the case of battery waste and raw material resources for electric vehicle (EV) or air pollution associated with compact urban development. We find the most important factors influencing equity include unequal access (e.g. urban green spaces and public transportation), high costs (e.g. EV) and financial constraints. Major knowledge gaps include (i) limited empirical evidence of SDG-related trade-offs associated with scaling up mitigation options, (ii) limited understanding of the extent to which benefits are experienced by different groups, (iii) an understanding of the extent to which local context was considered when assessing mitigation–SDG interaction, including the engagement of stakeholders and (iv) synergies and trade-offs associated with cross-sectoral policies. The paper recommends ex-post analysis of detailed and place-based cases that document how synergies and trade-offs emerged and how these were addressed.

Open Access
An assessment of potential synergies and trade-offs between climate mitigation and adaptation policies of Nepal

Climate actions are centered on either mitigation or adaptation or both. Mitigation and adaptation actions can interact with each other resulting in synergies or tradeoffs. An integrated approach that considers these interactions is important to harness the synergies to create win-win situations and to avoid trade-offs for no-regret decisions. In this context, this study presents a qualitative analysis of the existing national level climate policies of Nepal to identify the extent and mechanism of their mitigation-adaptation interactions based on expert survey. Four key sectors having inter-relationships between mitigation and adaptation were identified as Agriculture, Forestry and Land use (AFOLU), urban planning, energy and water. We used Analytical Hierarchical Process (AHP) to rank and prioritize the opportunities and barriers for harnessing synergies and avoiding trade-offs of mitigation-adaptation interlinkage with these sectors in view. Our results show that such interactions in the Nepalese policy context are present mostly in the form of synergies in the order of AFOLU > Urban Planning > Energy > Water. We identified that developing an institution dedicated to climate change at the national level is the most important opportunity while inadequate institutional co-ordination is the most important barrier for harnessing these synergies.