Strengthening the Connection Between Trade and Climate Change: A Path to Sustainable Solutions

At a recent workshop about climate change adaptation, experts expressed concern over the weak connection between trade and climate change in Vietnam. As an economy deeply integrated into global trade, Vietnam faces significant challenges from climate change, yet current trade policies do not adequately address adaptation needs.

Katharina Sophie Schmidt, a policy advisor at the International Institute for Sustainable Development (IISD), emphasized that climate change is reshaping agricultural production and resources. It affects the energy demand and consumer preferences, leading to shifts in supply and demand for various goods. Trade, while potentially beneficial, can also worsen climate issues. Increased emissions from transportation, the risk of carbon leakage to countries with weaker regulations, and overuse of natural resources all highlight the need for smarter trade policies.

Governments worldwide are taking steps to promote sustainability. The European Union, for example, has introduced green policies that discourage deforestation and adjust border taxes based on carbon output from imports. However, Schmidt pointed out that in Vietnam, climate change adaptation is still not sufficiently integrated into trade policies, especially for consumer goods and exports. Many businesses and farmers struggle to access the necessary technology and resources to combat the impacts of climate change.

Despite these challenges, trade can also support climate adaptation. It can generate economic growth that funds investments in resilience and helps create jobs that strengthen households’ abilities to adapt to changing conditions. By diversifying imports and exports, countries can reduce risks associated with climate change.

Mai Kim Lien, a deputy director at the Ministry of Agriculture and Environment, highlighted the importance of integrating climate adaptation into new free trade agreements. This can help connect trade with efforts to tackle climate change more effectively.

Vietnam has laid out a National Adaptation Plan (NAP) aiming to cut vulnerability to climate change. It outlines 27 priority tasks for agriculture, including the introduction of resilient crop varieties and efficient water use technologies. These goals reflect a growing recognition that adaptation is integral to future planning.

Anne Hammill, IISD’s vice president, stressed that adaptation is essential for Vietnam, particularly in agriculture, where climate change disrupts food production and supply chains. International trade can introduce new, resilient crop varieties and technologies essential for adaptation.

One notable initiative is addressing import tariffs on critical adaptation products. Research shows that lowering tariffs on items like rainwater harvesting tanks and irrigation components could enhance their adoption among farmers. This could make a tangible difference, especially in regions where agriculture relies heavily on rainfall.

To further support farmers, Hammill suggests promoting trade policies that help cooperatives and small businesses access green finance and technology. Transparency in supply chains is also crucial for a sustainable future.

As climate change continues to challenge global systems, reshaping trade policies could hold the key to a more resilient Vietnam. Adapting these strategies not only benefits the economy but also plays a vital role in safeguarding the environment for future generations.



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agriculture, industry, Vietnam, climate change