Trade and Environment Briefings: Trade and Green Economy - Policy Brief 1: June 2012

Trade liberalisation has the potential to facilitate the transition to a green economy by fostering the exchange of environmentally friendly goods and services, increasing resource efficiency, generating economic opportunities and employment, and contributing to poverty eradication. However, if managed poorly, unrestrained trade can contribute to environmental degradation, unsustainable resource use and increased wealth disparities. In other words, the impact of trade on a green economy transition depends in large part on how trade policies are designed and applied and whether adequate national and institutional conditions (e.g. institutional and regulatory regimes) exist to cope with the impact of liberalisation.