This paper explores the potential new trade opportunities and challenges that climate change mitigation policies adopted primarily in developed countries may create for exporters in Low Income Countries (LICs). It forms part of a larger program of work being undertaken at ODI to assess the effect of climate change and natural resource scarcity on the competitiveness of businesses in low income countries.

This paper builds on previous studies which include research which explored various scenarios were identified regarding the potential future climate change regime; in addition to research exploring synergies and potential clashes between the trade and climate change regimes.

The paper:

• takes stock of the trade related aspects of climate change negotiations to date.
  

• discusses the extent to which such measures may present challenges to LIC exporters and reduce competitiveness, or whether such policy measures might be leveraged as opportunities and therefore increase export competitiveness.
  

• conclude by highlighting the need for policy makers to develop synergies where they exist between the trade and climate change regimes, and adapt existing export diversification strategies.