The United Nations regime for the protection of the global climate contains provisions related to trade. So far, there has been no conflict between climate protection and existing rules for international trade. But, in the future, conflicts may occur in a number of sectors when new investments in both mitigation and adaptation will be mobilised, and the development and transfer of environment friendly technologies to developing countries may pose problems related to intellectual property rights (IPRs). The Johannesburg Rio + 10 agreement provides the basic principle for mutual supportiveness of trade and multilateral environmental agreements (MEAs), in particular for climate protection.

The threat of climate change

Given its potential impact on ecosystems and human activities, climate change is recognised as one of the most important challenges for this century. Given also that greenhouse gas (GHG) emissions resulting from anthropogenic activities, such as the burning of fossil fuels, agriculture and deforestation, are among the causes of the recently observed changes in the climate system substantial mitigation action and adaptation is urgently needed. The measures adopted are relevant to trade.

Provisions of the UNFCCC and its Kyoto Protocol relevant to trade

The United Nations Framework Convention on Climate Change (UNFCCC) and its Kyoto Protocol (KP) make numerous references to trade. The decisions adopted for their implementation by their supreme organ, the Conference of the Parties (COP), consistently provide opportunities for both mutually supportive and conflicting situations with the current rules on international trade.