This report examines the potential for trade to shift production to the lowest-emission locations and thus reduce overall emissions, and explores the viability of policy approaches to spur such a shift.

International trade has become one of the pillars of the global economic system; an overlap between climate change policies and the multi-lateral trading system administered by the World Trade Organization (WTO) therefore seems inevitable. International trade affects climate change as it potentially increases economic activity that may in turn lead to increased greenhouse gas emissions.