02/12/2019

Trade Deals May Be An Effective Method Of Enforcing Climate Action

Sydney Morning Herald - Editorial

As world leaders gather this week in Madrid to try to breath some life into the Paris Agreement climate accord, it has its work cut out. With US President Donald Trump triggering the one-year get-out clause and the latest United Nations Emissions Gap Report starkly revealing a world further off course than ever from meeting its emission goals, it's increasingly looking like an agreement in name only. It may explain why some countries are looking elsewhere to enforce change.
Australia's Trade Minister Simon Birmingham recently got a taste of this. During negotiations with the European Union, France proposed tying a free trade deal to Australia adopting climate change targets enforceable by sanctions. As part of a government that has repeatedly defied pressure on it to set more ambitious targets, Senator Birmingham was always going to baulk, stating: "I think it would be unprecedented to see those type of provisions proposed in an agreement."
Global trade deals increasingly take account of nation's climate policy. Credit: Jessica Shapiro


Not quite. Only last week, in the midst of the British election, Labour leader Jeremy Corbyn revealed leaked government documents detailing the United Kingdom's attempts to include reference to climate change in a future trade agreement with America. As expected, while Mr Trump remains  president, the request was rebuffed.
And this year the president of the European Commission, Ursula von der Leyen, promised in a speech to the European Parliament a carbon border tax, which is meant to protect local companies from "unfair" competition by raising the cost of products from countries that fail to take adequate action against climate change. As long as it does not turn into protectionism under another guise, it's an idea with some merit.
Big business has become much more vocal about the need to do more on climate change.
Even the World Trade Organisation is starting to discuss ways in which climate change could become part of future negotiations. As global trade has greatly expanded, there is a growing awareness of the detrimental impact more economic activity will have on greenhouse gas emissions. Extreme weather will also play havoc with the roughly 50,000 cargo ships at sea at any one time and coastal infrastructure, especially ports, will become highly vulnerable.
So when Senator Birmingham says he believes trade agreements were "overwhelmingly commercial undertakings between countries" and should "focus on commercial realities", he is most likely in the land of wishful thinking. And it's not like those most affected by these changes to trade negotiations are going to be too surprised or possibly put out.
Much to the annoyance of the Coalition, big business has become much more vocal about the need to do more on climate change. It should also be remembered that trade negotiations are increasingly about non-trade matters. The recent free trade agreement with Indonesia included a deal over the number of work visas for young Indonesians coming to Australia.
While the Herald is hopeful the climate talks in Madrid this week prove surprisingly successful, what seems more likely is that many countries will continue to put national interest in front of the need for collective global action. As climate warnings become more dire, the heavy lifting on getting countries to move quicker may end up in unlikely forums. Trade deals may be just the forum that turns action on climate change into an enforceable reality.

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