Paths towards economic and trade resilience

Looking at the big picture, climate change will have different and complex effects on world markets and trade due to climate induced changes in transportation costs, competitiveness, sectoral comparative advantages and trade policies. Trade patterns, flows, and volumes will progressively change due to future climate change impacts. Unless developing countries enhance their trade resilience ex-ante through adaptation measures and actions, they will export substantially less in climate-sensitive sectors ex-post as climate change impacts accumulate over time. When adaptation is neither possible or costeffective, diversification within the sector, or economic restructuring to move resources to other less climatesensitives sectors, can be pursued.

Sustainable Development Goals:

ALL SDG Goals