International Green Economy Collaborations

Abstract

This paper identifies and describes a new but a rapidly growing area of economic and climate governance: International Green Economy Collaborations (IGECs). Examples such as the US-EU Carbon-Based Sectoral Arrangement on Steel and Aluminum Trade illustrate the twin drivers of the emergence of IGECs: green growth imperatives and geo-economics. We argue IGECs are related but distinct from either Green Industrial Policy or Deep Trade Agreements. IGECs are particularly well suited to support green transition by addressing cross-border market failures between partner countries and by facilitating deep cooperation on embedded emissions accounting rules. Their role in bifurcation of the global economy, and its implications for the net zero transition remain to be seen. Show more