Climate regulation: Implications for trade competitiveness in Caribbean states

Abstract

The right to development and the fairness in the application of the burden to mitigate greenhouse gas emissions, especially as they relate to Small Island Developing States (SIDS) are discussed in this paper. It poses some questions, such as: what are the implications of international trends relating to trade and carbon emissions reduction schemes for Caribbean SIDS’ competitiveness from the perspective of environmental justice and the principles of common but differentiated responsibilities? While there have been several studies on SIDS’ vulnerability to climate change, they focus mostly on the effect of climatic events, especially natural disasters and sea level rise, on island states, and consequent adaptation efforts and challenges. This paper draws attention to one way in which the global fight for a green economy works to the detriment of Caribbean SIDS. Climate regulation in the areas of maritime and air transport make long hauls more expensive and reduce the trade competitiveness of Caribbean SIDS. Both in the case of regulation of international transport, and in the case of carbon border taxes being applied to imports, the special vulnerabilities of SIDS have not led to special treatment for these countries. This paper argues that this aspect of climate change regulation requires specific attention at the international and domestic level. The trade and environment discourse must consider the special development challenges and vulnerabilities of SIDS if the principles of justice, fairness and common but differentiated responsibilities are to be observed.