New Study Advocates Climate-Smart Trade Policies for CAREC Region

A 2024 CTTN research report “Decarbonizing Trade through Climate Regulations: Policy Implications for the CAREC Region” establishes that strategic climate governance could simultaneously enhance low-carbon exports and mitigate regional vulnerabilities. Based on 2010-2019 bilateral trade analysis, co-authors Dr. Hadiqa Tanveer and Dr. Mubinzhon Abduvaliev identify government pollution control expenditures and green bond instruments as effective catalysts for environmental goods trade, while environmental taxes demonstrate negligible impact. The study underscores ISO 14001 certification and environmental provisions in trade agreements as critical accelerators, particularly in Asian and developed markets.

The report prescribes three priority actions for CAREC members: escalating investments in digital infrastructure and pollution abatement systems, standardizing climate clauses in regional trade agreements, and incentivizing voluntary adoption of global environmental standards. Researchers emphasize differentiated implementation strategies, noting developing economies face institutional capacity constraints and financing gaps. China’s dominance in low-carbon exports (6.82% of total) and Georgia’s ISO 14001 compliance rates are highlighted as operational benchmarks.

With trade constituting 35% of CAREC’s aggregate GDP, the findings stress the imperative to embed climate resilience in economic planning. The analysis identifies Kazakhstan and Georgia as moderately prepared for climate disruptions, versus Afghanistan and Pakistan’s elevated exposure due to hydrological risks and extreme weather patterns. Aligning trade frameworks with decarbonization objectives under the CAREC 2030 Strategy, the authors argue, could stabilize economic outputs, secure sustainable investments, and bolster multilateral coordination ahead of the 2025 UN climate negotiations.