International transport, both aviation and maritime shipping, is a critical element of the global economy and trade. At the same time, it is also one of the main drivers of human-induced climate change.
This background paper is intended to explore the many aspects of regulating international transport emissions in the context of trade. The global effort to address climate change will require the regulation of greenhouse gas emissions from the international transport sector.
However, regulation can translate to higher costs of moving people, resources and goods around the globe. Developing countries can be particularly affected by higher transport costs. On the other hand, regulating emissions from maritime and air transport could potentially generate resources to finance climate change adaptation and mitigation measures.