Faced with the urgent need to take action on the climate crisis many governments are implementing or considering a range of trade-related climate measures (TrCMs) and policies ranging from standards and regulations through subsidies, to internal taxes, border carbon adjustments, and reporting requirements.

In practice, however, differences in approaches and methodologies have resulted in a patchwork of national, bilateral, and regional efforts, as well as supply chain or sector-specific initiatives and public-private partnerships. While these environmental efforts can present a range of opportunities for business and for environmental impact, there are growing concerns that the lack of coherence and the fragmented nature of TrCMs is generating tensions among major trading partners and adding compliance cost for companies. The concerns are especially high in developing countries that face significant difficulties in meeting new climate-related requirements, lack the fiscal space and resources to support large-scale economic transformation, and in which many local businesses, especially MSMEs, lack affordable access to relevant technologies and finance, or face challenges with compliance costs.

In this context, a core challenge is how to advance climate ambition through trade-related actions while ensuring approaches that are fair, equitable, and account for different national circumstances and capacities, including levels of development and climate vulnerabilities.

At the World Trade Organization (WTO), despite the challenging geo-political and geo-economic context, there is growing readiness among a broad range of members to explore how they might foster cooperation on trade and trade policies addressing climate change and sustainable development, as illustrated by the large number of countries submitting proposals and engaging in discussions on this topic.

In recent months, evolving discussions have focused specifically on the design, coherence, fairness, and interoperability of TrCMs and exploring the role that the WTO could play in this area, including through a series of thematic sessions of the Committee on Trade and Environment (CTE). Looking ahead, there appears to be an interest among a range of WTO members in exploring the potential for an outcome on this topic at the 14th WTO Ministerial Conference in March 2026 in Cameroon, possibly in the form of the development of guidance or good practices regarding the design and implementation of TrCMs.

As a contribution to this critical discussion, this expert roundtable provided an opportunity to: review different understandings of the concept of interoperability; explore why and where cooperation on this topic would make a positive contribution to the climate agenda and to sustainable development priorities; hear the varying perspectives and priorities of countries on this topic; identify existing initiatives and gaps; and explore areas where cooperation in the WTO could add value to what already exists, without duplicating efforts.