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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Regional initiatives are emerging as the engine driving global trade and climate policy in an era when multilateral cooperation appears to be in retreat. Global power politics are increasingly supplanting collaborative initiatives, as tariff wars and shifting alliances threaten long-established trade rules. Meanwhile, efforts to tackle climate change are faltering even as its impacts worsen—a paradox that imperils both the global economy and the most vulnerable countries.

Fragile states, which have contributed little to global challenges, bear the brunt of environmental and economic shocks. These countries are frequently marginalized by a global trading system that offers scant support, even as they face escalating climate risks. The urgency of the situation demands a fresh approach to global challenges, particularly in rethinking the interplay between trade and climate policies. As geo-economic imperatives gain precedence, regional initiatives present a promising means to counterbalance the fragmentation of global governance.

Regional trade initiatives offer three distinct advantages over traditional multilateral systems. First, they provide flexibility. Smaller groups of countries with shared interests can craft bespoke solutions that address their specific needs. The Africa Continental Free Trade Agreement (AfCFTA) exemplifies this approach. Concluded in 2018, the AfCFTA eschews a one-size-fits-all environmental policy in favour of a bottom-up method, whereby member states develop their own guidelines to integrate trade and climate objectives.

The AfCFTA’s treaty’s preamble acknowledges the need to connect trade and the environment, but it leaves the operational link to national trade strategies rather than imposing top-down obligations. To support this, the UN Economic Commission for Africa (UNECA) has developed guidelines to help countries incorporate climate change considerations into their trade policies. For instance, Namibia has aligned its industrial strategy with climate action, while Côte d’Ivoire has integrated its trade priorities with commitments under the Paris Agreement. Such flexibility allows countries to tailor policies that directly confront their developmental challenges without being forced into rigid frameworks.

Second, regional initiatives are better suited to reflect local contexts. By designing policies that resonate with the unique circumstances of each region, these initiatives can more effectively address the nature of the challenges faced. In the Horn of Africa, the Intergovernmental Authority on Development (IGAD) has devised a regional climate policy that prioritizes adaptation measures for countries exposed to severe climate impacts. This policy is crafted not only to mitigate environmental risks but also to address broader developmental issues, such as political instability and civil unrest, which are often exacerbated by climate change. By focusing on local realities, regional initiatives can offer more practical and immediate solutions compared to the often-theoretical prescriptions of global agreements.

Third, regional platforms foster innovation in governance. The East African Community (EAC) has demonstrated this by expanding its remit beyond traditional trade liberalization. Through initiatives such as the EAC Climate Change Fund, the region has enhanced its capacity to attract climate finance and coordinate comprehensive climate policies. This experimentation in governance paves the way for solutions that integrate trade, climate, and development objectives into a coherent strategy. Such innovative approaches not only bridge the gap between policy and practice but also create models that could be replicated in other regions facing similar challenges.

African countries have a long history of aligning trade and climate agendas. Initiatives such as the Africa Energy Transition Bank, administered by the Africa Export Import Bank, are innovative examples of efforts to transition towards cleaner energy sources. Similarly, export finance instruments provided by the African Development Bank are being reconfigured to support both climate action and economic development. These regional measures are gaining importance at a time when older trade instruments—such as the Africa Growth and Opportunity Act (AGOA) and EU preferential schemes—are gradually losing their influence. This shift reflects the US and EU’s move towards more strategic, reciprocal trade agreements and an increased focus on continental economic integration in Africa.

Beyond policy measures, regional initiatives can serve as laboratories for testing new models of cooperation. In a fragmented global system, these initiatives allow countries to experiment with novel approaches to governance, trade liberalization, and sustainable development. They offer a platform for dialogue among countries that share common challenges, enabling them to pool resources and expertise to address issues more effectively. Such collaboration can generate valuable lessons that may later inform broader global governance frameworks and help reshape the international order.

Moreover, regional initiatives help to reframe the narrative around underdevelopment. For many fragile states, underdevelopment is not merely an economic condition but a catastrophic risk that undermines the prospects of improving citizens’ lives. The global trading system, by marginalizing these countries, often exacerbates their challenges, leaving them exposed to the dual threats of economic instability and environmental degradation. Regional initiatives, by contrast, provide a more inclusive and context-sensitive approach that directly addresses the root causes of underdevelopment. This is evident in initiatives such as “Green Pan-Africanism,” where regional collaboration seeks to integrate trade, climate, and development policies in a way that supports sustainable progress.

As gridlock in global governance persists, the role of regional initiatives in driving the global trade and climate agenda cannot be overstated. They offer a flexible, context-specific, and innovative framework that is essential for countries facing the brunt of economic and environmental shocks. Rather than relying solely on a gridlocked multilateral system, policymakers must recognize that regional solutions are not merely an alternative—they are a necessity. By harnessing the strengths of regional initiatives, countries can transform fragmented global governance into a more coordinated effort that effectively addresses the intertwined challenges of trade, climate change, and underdevelopment.

In this era of intense geo-economic competition, regional initiatives provide a promising route to reinvigorate global governance. By adopting these strategies, policymakers can forge a more secure and sustainable future for vulnerable countries, ensuring that the global trade and climate agenda advances in a genuinely inclusive and effective manner.

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Kennedy Mbeva is Research Associate at the Centre for the Study of Existential Risk, University of Cambridge.

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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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