| Project Detail |
Project Name
Operationalizing trade reforms and strengthening trade climate linkages in ADB Operations
Project Number
58230-001
Country / Economy
Regional
Bangladesh
Cambodia
Indonesia
Kazakhstan
Lao Peoples Democratic Republic
Mongolia
Nepal
Papua New Guinea
China, Peoples Republic of
Sri Lanka
Project Status
Active
Project Type / Modality of Assistance
Technical Assistance
The TA will support ADBs DMCs in integrating climate change mitigation and adaptation into their trade-related strategy policies and investments. A TA approach enables targeted capacity building and knowledge support. The TA is expected to enhance DMCs capacity to adopt and implement trade policies for climate actions and promote sustainable trade practices.
Project Rationale and Linkage to Country/Regional Strategy
Despite the significant carbon footprint of trade, there is limited knowledge and capacity among DMCs to effectively integrate climate considerations into trade-related policies and investments. Specific constraints include the lack of evidence-based research and guidelines on the trade-climate nexus, inadequate training and capacity building for key stakeholders, limited identification of pipeline opportunities and limited resources to support implementation of, for example, PBLs that incorporate climate and sustainability dimensions.
An ADB-assisted TA is needed to strengthen ADBs overall engagement on this critical issue by generating knowledge solutions, providing technical expertise for project formulation and implementation, and capacity development, and developing pipeline opportunities. The TA will draw upon existing trade policies that have demonstrated strong climate linkages, such as the European Unions Carbon Border Adjustment Mechanism (CBAM) and the World Trade Organizations Environmental Goods Agreement. These policies can serve as models for DMCs seeking to enhance their trade regimes to advance climate action, even those that are not participating in the WTO negotiations nor directly affected by CBAM. The TA will provide concrete guidance on where, when, and how DMC trade policies can be improved to support climate objectives. Also, the TA aligns with Operational Plan for Priority 7 Fostering Regional Cooperation and Integration, 2019-2024. Developing Member Countries (DMCs) are failing to meet their Paris reform targets, posing a significant threat to global climate efforts.
Impact
Low-carbon development and climate resilience in Asia and the Pacific enhanced |
