How does climate change impact on international trade?

4 March 2024

Climate change is affecting prospects for trade and economic development around the world. Extreme weather can disrupt supply chains, damage the transport infrastructure necessary for trade in goods, and restrict people’s ability to travel. Changing climatic conditions and the policies introduced to address them are shifting the patterns of comparative advantage, creating risks for countries that rely on climate-vulnerable sectors but also new economic opportunities for countries with plentiful renewable energy sources such as wind, sunlight and minerals critical to the manufacture of clean infrastructure.

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