Developing countries are disproportionately affected by climate change, which has significant economic and social impacts due to climate-related events and disasters.

To limit future climate change impacts, all countries must transition to net-zero emissions by the middle of this century. At the same time, developing countries are seeking to foster climate resilient development pathways, particularly for the most vulnerable. This requires transformative approaches with large public investments and support to scale up renewable energy supply and efficiency, introducing infrastructure adaptation programs, and novel green industrial and services policies to drive growth, value addition, economic diversification, and job creation.

The European Union Green Deal and the United States Inflation Reduction Act are examples of a new direction for the world’s largest economies, with a strong emphasis on industrial decarbonization to achieve the Paris Agreement targets. Developing countries need to reflect on what type of industrial and trade policies and cooperation for climate action is available and would make sense for them in today’s context. What are some of the principles that all countries need to consider when designing trade-related climate policies to enable a just transition?

This dialogue was part of IISD's Trade and Sustainability Hub in the margins of the WTO's 13th Ministerial Conference.