Why in the news?

  • A ‘Forum for Climate and Trade Cooperation’ was launched by the COP30 President Andrei Lago.

Forum for Climate and Trade Cooperation

  • Other Name: Integrated Forum on Climate Change and Trade (IFCCT)
  • Aim: It provides a sustained, inclusive space for countries to debate, coordinate, and address frictions arising from climate-linked trade measures without formal negotiation pressures.
  • Associated Initiative: The forum responds directly to the Paris Agreement’s Global Stocktake, which calls for open international economic systems that help all countries tackle climate change.
  • Objectives
    • To bridge the gap between climate policies and international trade regimes by fostering dialogue and cooperation.
    • To address challenges like carbon border adjustment mechanisms (CBAM), supply-chain disruptions, subsidies, and industrial policies affecting climate commitments.
    • To promote mutually empowering, progressive solutions for sustainable development and inclusive economic growth.
    • To reduce trade frictions at the climate-trade interface and enable experimentation with new approaches.
  • Features and Principles
    • Non-binding, non-negotiated, and informal dialogue platform that fosters candid discussions.
    • Open-ended consultation process extending through 2026, shaping the forum’s agenda and themes.
    • Equal weight to climate and trade perspectives ensuring interdisciplinarity.
    • Supportive of existing WTO and UNFCCC mandates, avoiding duplication of negotiations.
    • Science-based and pragmatic approach aiming for practical solutions adaptable across different national circumstances.
  • Membership and Governance
    • Open to all Parties to the UN Framework Convention on Climate Change (UNFCCC).
    • Co-chaired by Brazil and a developed-country partner, ensuring balanced global representation.
    • Involves government officials, WTO leadership, climate experts, industry bodies, and civil society.
    • Supported by an expert panel balanced between developed and developing countries to enhance technical depth.
  • Significance
    • Fills a critical policy gap by integrating trade and climate change discussions to prevent fragmentation.
    • Supports developing countries by creating predictability and interoperability amid proliferating unilateral climate trade measures.
    • Helps shape future trade rules around climate to be fair, inclusive, and climate-aligned.
    • Facilitates structured dialogue as a foundation for trust, understanding, and cooperation between trade and climate governance systems.