Carbon border adjustement, trade and climate governance : issues for OPEC economies

Abstract

The relation between the climate regulation and the multilateral trade regime is a rising issue in the field of international governance. This article presents the options available to OPEC economies related to this. It analyses the option of introducing a carbon tax or border adjustment measures in the core of the WTO regime. It demonstrates that this option is not sustainable for both institutional and political economy reasons. This is why the article argues that the way to build a climate-compatible trade regulation which takes into account oil exporting countries' interests is to elaborate a cross-institutional cooperation between the WTO and the UNFCCCWorld Trade Organization ; multilateral trade regime ; climate governance