Monica Contestabile’s Post

Dear friends and colleagues, I am happy to share with you our latest publication in the journal #NatureSustainability, which examines the impact of #InternationalTrade on the global Sustainable Development Goals (#SDG). Our findings suggest that over the last three decades, global trade (with its many benefits and drawbacks), has exacerbated global #polarization for most SDGs. This means that while trade has fostered progress in some countries, it has hindered it in others. Given that achieving the SDGs requires advancement across all countries, it is crucial to reassess trade agreements and frameworks to ensure that these are grounded in #GlobalPolicyCoherence and #GlobalPartnerships for a rapid global #SustainabilityTransition.

Interesting read: Polarizing and equalizing trends in international trade and Sustainable Development Goals A new study discusses the multifaceted influence of international trade on the United Nations Sustainable Development Goals (SDGs). It emphasizes that trade can both promote and hinder progress towards these goals, directly impacting people, economies, and livelihoods globally. The study uses consumption-based proxies to capture global demand for goods and services, assessing their environmental and social impacts from 1990 to 2018.Key findings include: Polarizing and Equalizing Trends: International trade can lead to both polarizing trends (widening disparities) and equalizing trends (reducing disparities) in SDG progress. Developed countries often outsource environmentally and socially detrimental production to developing countries, exacerbating inequalities. Environmental and Social Proxies: Various proxies such as greenhouse gas emissions, air pollutants, land use, biodiversity, energy, materials, water stress, nitrogen emissions, women's participation in the workforce, labor skills, poverty, and occupational accidents are used to measure the impact of trade on SDGs. Outsourcing Effects: High-income countries tend to outsource pollution-intensive and resource-intensive production to low-income countries, worsening environmental and social conditions in the latter. For example, outsourcing greenhouse gas emissions and air pollutants to countries like China and India has led to increased local pollution in these regions. Policy Implications: The study underscores the need for international frameworks and trade agreements to account for spillover effects and mitigate adverse impacts. Policies promoting fair trade, environmental sustainability, and labor standards are crucial for achieving the 2030 Agenda for Sustainable Development. Overall, the text highlights the importance of considering the global impacts of consumption and trade to accurately measure and promote progress towards the SDGs. https://lnkd.in/dXefD7VZ

🌍 How global trade impacts progress towards the UN's Sustainable Development Goals (SDGs) 🌍 A new Nature Sustainability article co-authored by Stefan Giljum & Stephan Lutter explores the complex relationship between international trade and the SDGs: 💡 International trade can both promote and hinder progress towards sustainability. However, if the Agenda 2030 is to be realized, countries must take into consideration their influence beyond the national borders. 💡 Trade intefragion has led to the outsourcing of environmental and social impacts from industrialized economies to countries of the Global South. Revealing supply-chain impact hotspots is essential for informing strategies to reduce the impacts of trade. Consumption-based indicators provide a useful basis for tracking a country’s impacts across borders. 📈 Data from 1990 to 2018 shows equalizing trends (reduction of disparities) for the SDG 1 (No Poverty) and SDG 8 (Decent Work and Economic Growth). For the remaining SDGs, a polarizing trend can be observed, where international trade improved the SDG performance of selected countries (for example, high-income countries) and deteriorates that of other countries (for example, low-income countries). Check out the full article here: https://lnkd.in/dpkdskDN

The #ASEAN region has registered staggering economic growth and trade numbers in recent times but may be doing so at the cost of its environment, being one of the most affected by the damages of climate change. The region is a net exporter of emissions to the world – emissions embodied in exports and imports have risen remarkably over time, with #Vietnam being a significant contributor, owing to its role as a vital production and exporting hub in ASEAN. While ‘green clauses’ in trade agreements have had limited success, green economy agreements (#GEAs) are a promising alternative; the Singapore-Australia GEA (#SAGEA) contains takeaways that ASEAN countries can incorporate in potential future GEAs, moving closer to aligning economic growth and environmental protection. Read the full article in our #researchfeature on ACI Perspectives: https://lnkd.in/gwx2kJqj Research by: Ammu George, Ulrike Sengstschmid, Taojun Xie Blog article by: Akshaya Balaji #NUSResearch #lkyspp #Singapore-Australia #GreenTrade #Emissions #NetZero #ClimateChange Lee Kuan Yew School of Public Policy

📣 I’m excited to share our recently published policy brief for T20 Brasil 2024, titled "Advancing Fair and Sustainable Trade: Strategies for G20 Action in the Wake of Environmental Regulations", prepared for Task Force 4: "Trade and Investment for Sustainable and Inclusive Growth." It was a pleasure collaborating with such an incredible team of researchers 🤝 —María Victoria Arias Mahiques, Marcello De Maria, Leonardo Park, Angeles Sancisi, Sabine Papendieck, Valeria Piñeiro, Susan Elizabeth Martins Cesar de Oliveira, Nelson Illescas, Louise Nakagawa, and Thiago Kanashiro Uehara— bringing together diverse perspectives and expertise from Argentina, Brazil, the United Kingdom, and the United States 🗺 . In this policy brief, we explore the implications of the new due diligence regulations aimed at discouraging overseas deforestation 🌳, such as the EU Deforestation Regulation (EUDR). Developing countries (DCs), least developed countries (LDCs), and small non-EU suppliers are at risk of being excluded from global value chains 🚢, not because they have engaged in deforestation, but because they face struggles demonstrating compliance with the strict regulations ⚠️. The brief highlights these challenges and proposes actionable steps for the G20. While there is no one-size-fits-all solution, we recommend three critical areas for G20 action 🛠️: 1. Participatory Governance 2. Capacity Building 3. Economic Incentives You can access the policy brief here 👉 https://lnkd.in/dw6vdR4A The T20 is a G20 engagement group that brings together think tanks and research centers from G20 members and guest countries and organizations to provide policy recommendations to G20 leaders. I hope our policy brief contributes to influencing global policy through research, while amplifying the voices of the Global South.

Rising Sustainability Pressures in China: Policy and Investment Urgency https://lnkd.in/gZHea2ni #PalmOilMagazine #PalmOil #PalmOilPlantation #Commodity #Sustainability #China

In a recent article from Yale E360, the spotlight is on #Indonesia ambitious plan to leverage carbon credits to promote sustainable development. Companies can earn #carboncredits to sell on the global market by investing in green projects that reduce greenhouse gas emissions. This strategy helps combat climate change, stimulates local economies, and provides businesses with a lucrative new revenue stream. The concept of carbon credits may seem complex, but it's a system that allows companies to offset their carbon emissions by investing in #environmental projects. For instance, a company in Australia can invest in reforestation projects in Indonesia, earning carbon credits that can be used to meet their #emission reduction targets or sold for profit. With its vast tropical forests and biodiversity, Indonesia is uniquely positioned to become a global leader in this space. The country has already launched several initiatives to develop its bioeconomy, including community-based forest management and #sustainable agricultural practices. These projects not only sequester #carbon but also create jobs and improve the livelihoods of local communities. Business professionals need to pay attention to this emerging market. By understanding and investing in carbon credits, companies can enhance their #sustainability profiles, meet regulatory requirements, and tap into new economic opportunities. As the world shifts towards greener practices, those who adapt and innovate will be the ones to thrive.

Sustainability & International Trade During my 20+ years working with sustainability matters, I recall several moments when I tried to push the private sector towards considering the relevance of sustainability to public and private foreign trade deals, besides trying to convince my own peers that this was a huge opportunity in a win-win scenario (for many times, my e-mails were not even answered!). Needless to say, no matter how much I tried, I could move the needle mere centimeters. In my view, that was a world in which sustainaibility matters were still deemed as non-relevant and "non-financial", far away from corporate risk management systems and strategic planning. By 2019, I recall reviewing versions and discussing a lot the EU-Mercosur agreement's text versions and hearing "don't be naive this is all about trade-barriers, environmental discussions are just an excuse and will be withdrawn". Finally, we are in December 2024, and #Mercosur and the #EuropeanUnion have finally concluded negotiations of the EU-Mercosur Partnership Agreement. The EU is Mercosur's second-biggest trade in goods partner, after China and ahead of the United States. For Brazil, the agreement has an strategic value, as the EU is our second main trade partner (in the ballpark of USD 92 bi in 2023) and holds almost half of the stock of direct foreing investment. The new chapter on trade and sustainable development provides the agreement of the parties to protect the environment, fighting climate change and deforestation; and promoting corporate social responsibility on the following basis: 🧩 sustainable development challenges are a collective duty to be coped with according to shared and differentiated liability 🧩 several commitments to effectively fine tune trade and environment, grounded on collaboration and balance - such as integration of value chains aimed at decarbonizing economy and stimulating trading of sustainable products 🧩 cooperation to implement relevant treaties, such as the #UNFCCC, the #ParisAgreement, the #CBD. The official final texts are to be released in the coming days. There are still several procedural steps prior to its execution, publication and turning into effect (legal revision, translation, execution, countries' internal approval, endorsement, full force and effect). It will be great if Brazil succeeds to conclude procedures in the next couple of months, as 2025 promises to be the bioeconomy year with #COP30. I will keep following it up and revert here with news. Sources: https://lnkd.in/ddcU7H4D (Portuguese) https://lnkd.in/dVqsJm57 (English) #lowcarboneconomy #sustainabledevelopmentgoals #bioeconomy #sustainableeconomy #sustainability #circulareconomy

🌍 Malaysia, CPTPP, and ESG: A New Era for Sustainability and Trade 🌱 Malaysia’s membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the recent inclusion of the United Kingdom, marks a pivotal moment for our nation’s economy and commitment to sustainable practices. Under Chapter 20: Environment, the CPTPP reinforces the importance of harmonizing trade and environmental policies, mandating high standards of environmental protection and sustainable resource management. As global trade integrates deeper environmental considerations, Malaysian firms must step up their ESG (Environmental, Social, and Governance) efforts to stay competitive. The CPTPP emphasizes: 📜 Compliance with Multilateral Environmental Agreements (MEAs): Ensuring alignment with global treaties such as the Paris Agreement and biodiversity preservation frameworks. 🌱 Sustainable Business Practices: Encouraging corporate social responsibility (CSR) and voluntary mechanisms like environmental audits and green certifications. 🌊 Marine Protection and Resource Sustainability: Addressing pollution, overfishing, and illegal trade practices for sustainable resource use. With this membership, Malaysian businesses have the opportunity to lead by adopting ESG principles that not only align with global trade standards but also attract international investments. The CPTPP's environment chapter provides a clear framework for sustainable practices that support economic growth while protecting our natural resources. 💡 As trade becomes more intertwined with sustainability, embracing ESG is no longer an option; it's a necessity. Let’s ensure Malaysian businesses leverage this trade agreement to drive innovation, build resilience, and lead in sustainable global markets. 📢 How is your organization adapting to these new ESG-linked trade requirements? Share your insights below!

🌍 Welcoming Asim Tiwana, Director General of the Trade Development Authority of Pakistan (TDAP), to the Climate Hub Forum Board of Advisors! 🌱 We’re thrilled to have Asim Tiwana join our Board of Advisors, bringing his invaluable expertise in trade development to help drive climate action. Trade plays a pivotal role in shaping economies and livelihoods across the globe, yet the traditional models can carry significant environmental impacts. At Climate Hub Forum, we believe that transitioning to Green Trade practices is essential for a sustainable future, particularly in developing countries where economic growth and climate resilience must go hand in hand. Why Green Trade Matters: Trade influences everything from energy consumption to resource extraction, making it a key factor in our collective carbon footprint. But as climate change intensifies, it increasingly disrupts trade systems—impacting supply chains, agriculture, and infrastructure worldwide. To create a resilient, low-carbon future, trade policies must embrace sustainable practices that consider the environment at every level. The Role of Developing Countries: Developing nations, with rapidly growing economies, are uniquely positioned to pioneer Green Trade. By investing in sustainable infrastructure and adopting policies that encourage low-carbon and eco-friendly practices, they can not only mitigate environmental risks but also lead a global shift toward responsible trade. Asim Tiwana’s insights will help Climate Hub Forum advocate for this crucial policy shift, ensuring trade becomes a vehicle for positive environmental change. Our Mission at Climate Hub Forum: We are committed to building a platform where trade is a powerful catalyst for climate action. With the guidance of leaders like Asim Tiwana, we’re working to foster international collaborations, craft climate-resilient trade policies, and support businesses in embracing green practices. Together, we can drive a transition where economic growth aligns with climate goals. Join us as we redefine trade for a sustainable future—where development meets climate responsibility, benefiting communities and ecosystems worldwide. #Cop29 #GreenTrade #SustainableDevelopment Aasim Tiwana #ClimateResilience #TradeForClimate #JoinTheChange Aamir Sadozai COP28 UAE WBCSD – World Business Council for Sustainable Development Erum Khan Aamir Sadozai #Sustainable COP29 Azerbaijan