Reforming the Global Trading System

Around the world, new policies like the Inflation Reduction Act or the European Union's Carbon Border Adjustment Mechanism aim to accelerate the pace of decarbonization. But these same policies have also fueled trade tensions and raised concerns about protectionism.  A successful clean energy transition means much more trade in clean energy technologies and products, according to the International Energy Agency. A rules-based global trading system, governed by the World Trade Organization, underpins much of that trade. But increasingly the WTO has faced challenges and calls for reform, particularly around issues of sustainability and climate change.  So what reforms are needed to align the global trade framework with climate goals and policies around the world? And how can the World Trade Organization support both economic progress and sustainable development?  This week host Jason Bordoff talks with Dan Esty about how climate policy and trade policy intersect. Dan is the Hillhouse Professor at Yale University and director of the Yale Center for Environmental Law and Policy. He just finished public service leave working at the World Trade Organization and is co-leading the Remaking Global Trade for a Sustainable Future Project. Dan has written numerous books on environmental responsibility and economic progress, including Green to Gold and Greening the GATT. He previously served in a number of leadership roles at the Environmental Protection Agency, and as the Commissioner of Connecticut’s Department of Energy and Environmental Protection from 2011 to 2014.