This article is part of a Synergies series on climate and trade curated by TESS titled Addressing the Climate Crisis and Supporting Climate-Resilient Development: Where Can the Trading System Contribute? Any views and opinions expressed are those of the author(s) and do not necessarily reflect those of TESS or any of its partner organizations or funders.

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The world is currently on a deeply unsustainable pathway, putting the future of life at risk. Humanity has already breached seven of the nine planetary boundaries, including those related with climate and biodiversity. Not only we are on the brink of permanently exceeding the 1.5°C global warming limit, but with wildlife populations having plummeted by an average of 73% since 1970, we are nearing irreversible ecological tipping points in many critical ecosystems, from the Amazon to coral reefs. Time is running out.

We know that secure and prosperous economies cannot exist without a stable climate and thriving biodiversity. In fact, the global economy is heavily exposed to compounding nature and climate risks that threaten sustainable development and economic growth and resilience. A World Bank report estimates that the collapse of just some of the ecosystem services provided by nature could result in a decline in global GDP of $2.7 trillion annually by 2030, hitting low-income and lower-middle-income countries the hardest.

The existential threat for humanity represented by biodiversity loss and the climate crisis require us to navigate the current geopolitical, economic, and financial challenges and move ahead decisively to accelerate progress in transforming our economies and major economic sectors, from agriculture and fisheries to finance, and energy. International trade policy and cooperation are major levers that we should use to their full potential to make adequate progress on nature and climate. 

There are opportunities we should seize to meet the urgency of protecting our planet’s life-support systems.

First, we are not without direction or robust multilateral commitments. The 2030 Agenda, the Paris Agreement, and the Kunming-Montreal Global Biodiversity Framework give us clear global goals and targets as well as guidance on how to get there. Those can and should be used to drive transformative action through a whole-of-government and a whole-of-society approach to deliver impact on the ground.

Second, there are major opportunities in the international trade policy and cooperation space arising from the shocks that have hit the international trading system, pressures on public finance, and discussions on World Trade Organization (WTO) reform.

For instance, we have a once-in-a-generation opportunity to rethink strategically what is the overall narrative and objective of the international trading system and trade policymaking and cooperation. We should seize this opportunity and build on the work done in recent years, ensuring that nature, climate, and sustainable development are at the core of the overall goals and priorities of the international trading system. 

Another case in point is the issue of harmful subsidies; the elephant in the room. Current financial incentives, such as environmentally harmful subsidies, are driving nature loss by encouraging practices that degrade ecosystems. An estimated $2.6 trillion is being spent each year on public subsidies that accelerate the production or use of natural resources or undermine ecosystems. This further enables an estimated $5 trillion in private financing to such activities. Trade diplomats and the WTO showed, with the first fisheries subsidies agreement, their ability to tackle this issue when sustainable development is the guiding light. We should build on this success. Eliminating or repurposing harmful subsidies could also be an important means for governments to free critical public resources. 

Finally, we need to move away from short-term crisis management and focus on more strategic approaches that drive longer-term transformation. This requires the development of trade scenarios and strategies as well as national sectoral pathways consistent with nature-positive and net-zero goals.

There are many complementary ways to turn those opportunities into reality. We should tap into ongoing work to strengthen the current multilateral trading system while also taking advantage of opportunities to develop plurilateral agreements to innovate and speed up action. We should also think outside the box and devise innovative approaches such as the Integrated Forum on Climate Change and Trade, launched at the 2025 UN Climate Change Conference (COP30 ) in Belém.

The next five years are critical for nature, climate, and people. This is our window to shift course before the combined impacts of climate change and nature loss trigger cascading, runaway effects. The risk of failure is real, and the consequences are profound. International trade policy and cooperation can and should be a major lever to turn things around.

* This article is derived from a presentation at a panel on Opportunities, challenges, and pathways for enhanced cooperation on trade, climate, and sustainable development at the TESS TCSD Conference 2025.

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Daudi Sumba is Chief Conservation Officer at WWF International.

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Synergies by TESS is a blog dedicated to promoting inclusive policy dialogue at the intersection of trade, environment, and sustainable development, drawing on perspectives from a range of experts from around the globe. The editor is Fabrice Lehmann.

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