In recent years Western countries have encouraged India to play a more active global role, as have other emerging powers. India has attempted to do so in many areas, and it has sought to be recognized as a global actor, not least by campaigning for a permanent seat on the UN Security Council.

This report considers the implications of the Kyoto Protocol on competitiveness and addresses the WTO-compatibility of measures to offset competitive losses. From the outset the Kyoto Protocol and the United Nations Framework Convention on Climate Change have had to contend with perceived tension between effective action to slow climate change and maintenance of competitiveness. This report explores the nature of the concerns over competitiveness, trying to dissect them in a meaningful way and assess the need for concern.