WTO DG: Trade remains central to solving global climate crisis

The World Trade Organization is placing trade at the forefront as a key accelerator towards countries achieving net zero emissions by 2050. Dr. Ngozi Okonjo-Iweala, the Director General of the World Trade Organization, discussed the pivotal role of trade in combating the global climate crisis during an exclusive interview with CNBC Africa's Aby Agina at the Cop28 UN Conference. Several key points were highlighted during the conversation, emphasizing the urgent need for significant financing, the interconnectedness of climate change with critical sectors like health, and the crucial role of trade in facilitating the transition to a sustainable future. Dr. Okonjo-Iweala stressed the importance of implementing specific policy tools to leverage trade effectively in the fight against climate change. These tools include leveraging public procurement for green initiatives, aligning tariff policies with renewable energy goals, and phasing out environmentally harmful subsidies to redirect funds towards climate action. The discussion also touched upon the potential of redirecting existing subsidies, such as the $1.2 trillion in fossil fuel subsidies and $630 billion in agricultural subsidies, towards initiatives like the loss and damage fund. Dr. Okonjo-Iweala emphasized the need for a more certain mechanism to replenish the fund, moving away from voluntary contributions to ensure a steady influx of resources for climate adaptation and mitigation efforts. The interview shed light on the critical role of trade in driving sustainable solutions for the climate crisis, underscoring the importance of collaborative and decisive action on a global scale.