The role of mega-regionals in the decarbonization of the economy

Abstract

A serious and ambitious implementation of the Paris Agreement on climate change of December 2015 requires rapid worldwide decarbonization implying a complete phase-out of the use of fossil fuels. Curiously, references to the role of international trade are entirely lacking in the text of the Paris Agreement. As trade liberalization is moving forward nonetheless and increasingly in regional or bilateral fora, this contribution looks at the role the mega-regional agreements play for the post-Paris decarbonization agenda. The analysis comprises both feasible risks and possible opportunities and takes into account the draft texts and negotiating mandates of the Trans-Pacific Partnership (TPP), the Transatlantic Trade and Investment Partnership (TTIP) and the Comprehensive Economic and Trade Agreement (CETA).