How to align global economic governance with a green new deal

In his article in The European Sting, Thomas Hale discusses ideas in the December 2020 report he coauthored,  "Governance to support a global green deal: 11 ways to align global economic institutions with climate action in the next 12-36 months".

He also highlights the work of the Global Alliance for Trade Facilitation in helping governments in developing and least developed countries. As the COVID-19 pandemic impacts economies around the world, “build back better” has become an urgent mantra. While governments are committing trillions in emergency spending, delivering global climate goals – as well as broader aims of sustainable development and economic justice within and across countries – will require transformation as well as stimulus.

The report's recommendations develop the following ideas:

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• Support countries to best use policy space in current trade and investment rules

• Strengthen climate engagement at the World Trade Organization

• Coordinate national climate trade measures to increase effectiveness and fairness

• Develop climate-enhancing preferential trade and investment agreements

• Commit to net-zero trade finance

• Assert the legitimacy of green innovation and industrial policy with a political declaration

• Reform the Energy Charter Treaty

• Develop a climate-aligned “aid for trade” initiative

• Develop rules to support fossil fuel subsidy reform

• Ensure reform of investor-state dispute settlement advances climate goals

• Develop science-based climate standards in the International Organization for Standardization (ISO) and beyond