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Climate and Trade: on the road to COP26

What would an increase in carbon pricing mean for global emissions and macroeconomics?

This podcast episode was recorded on 6th July 2021.


Rem Korteweg, Senior Research Fellow, Clingendael Institute


Christian Bluth, Senior Expert, Bertelsmann Stiftung
Emily Lydgate, Senior Lecturer in Environmental Law, University of Sussex

The AIG Global Trade Series 2021 examines the ongoing transformation of the world’s multilateral trading system. 

In the year of COP26, the 2021 United Nations Climate Change Conference, ambitious climate policies are needed to address the climate crisis. But what does this mean for trade, when frequently globalization and global trade measures are accused of imperiling the climate agenda.

In this podcast, moderator Rem Korteweg of the Clingendael Institute is joined by Christian Bluth, Senior Expert, Bertelsmann Stiftung, and Emily Lydgate, Senior Lecturer in Law, University of Sussex. Listen as they discuss the value of the European Union’s proposed carbon border adjustment mechanism (CBAM), and the role of carbon clubs in combatting the climate crisis.

Is a CBAM the correct tool to deal with the climate challenge? Can a CBAM work for both developed and developing countries; or is there a trade-off between being ambitious and inclusive? How can China, the world’s largest climate emitter, be brought into a carbon club? And what role will the World Trade Organization play in allowing carbon clubs to emerge?

The Global Trade Series is a collaboration between AIG and the following international organizations with leading expertise on global trade: Georgetown Law, Institute of International Economic Law; Chatham House; the Clingendael Institute; the International Chamber of Commerce UK and France; the Delors Institute; the Research Institute of Economy, Trade & Industry, IAA; and the Bertelsmann Stiftung (Knowledge Partner).

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