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Photo ID 491876. 23/06/2011. Sapa, Viet Nam. UN Photo/Kibae Park.

Climate-Resilient Trade and Production

This brief provides an overview of the state of knowledge on transboundary climate risks in Europe, and explores how this knowledge could help Member States, businesses and the EU as a whole to advance climate-resilient trade and production. Findings and recommendations will inform the development of the new EU Adaptation Strategy and the ongoing EU Trade Policy Review, as well as national efforts to adapt to climate change.

Policy Brief

Published on 19 August 2020

Kevin M. Adams et al (2020), 'Climate-Resilient Trade and Production: The Transboundary Effects of Climate Change and Their Implications for EU Member States', Adaptation Without Borders Policy Brief (1), August 2020

Key messages

  • Climate change impacts around the world are already creating cascading risks that intersect with trade patterns and international supply chains. These risks can reverberate across the global economy and pose a growing challenge for EU Member States.
  • Several European countries have conducted assessments of transboundary climate risks but have yet to develop policy responses based on the resulting insights. This is a complex task, involving a wide range of public and private actors, within and outside the EU. Three key priorities should guide decision-making:
    > effectiveness in reducing risk;
    > a clear designation of responsibility;
    > and fairness in the distributional impacts of the policies’ effects.

“When the current EU Adaptation Strategy was reviewed in 2018, the evaluation raised concern that the strategy did not meet the EU’s needs with regard to climate change impacts beyond it’s borders”

  • The EU is well placed to support Member States in identifying, managing and reducing transboundary climate risks by developing innovative governance mechanisms; creating common methodologies and guidance; fostering cross- sector and international cooperation; and harnessing new strategic partnerships.
  • Addressing transboundary climate risks fits well with the European Green Deal and the EU’s COVID-19 recovery plan, which aim to create a more sustainable, inclusive and climate-resilient economy. The EU Adaptation Strategy and the Trade Policy Review present important opportunities to build a global European economy resilient to transboundary climate risks, in recognition of our interdependent world.