Trade and Climate Change Adaptation

Sustainable Development Objectives for LDCs, SVEs, and SIDS

by Gloria Carrión

Information Note 13

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Least Developed Countries (LDCs), Small and Vulnerable Economies (SVEs), and Small Islands Developing States (SIDs) are highly vulnerable to climate change physical impacts, including droughts, floods, and hurricanes. Key economic sectors such as fisheries, agriculture, and tourism could face important risks in the context of climate change. Given these countries’ high dependence on such sectors for economic growth, food security and livelihood security, climate change poses imperative economic, social, and environmental challenges for LDCs, SVEs, and SIDs. New and effective sources of funding will thus be fundamental in order to address these underlying issues. Moreover, during the 13th UNFCCC Conference of the Parties in Bali, the need for deepening analysis and understanding of the trade and climate change nexus was highlighted. Indeed, trade policy could play an instrumental role in enhancing the adaptation measures taken by LDCs, SVEs, and SIDs. This information note identifies key trade and development areas where trade policy could facilitate climate change adaptation and the attainment of sustainable development objectives.

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