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Dr Atiq Rahman is a noted environmental activist from South Asia, and a member of the Intergovernmental Panel on Climate Change (IPCC) representing Bangladesh. He and his senior colleague Mr Khandaker Mainuddin share with Centad the inputs from the COP 13, Bali, December 2007.
Centad: The LDCs are the most vulnerable group of countries to the climate change impacts. What should be the foundation principles for global trade regulations to address the linked challenges of development and climate change?
Dr Atiq Rahman & Team: WTO framework should treat the LDCs especially those that are vulnerable to climate change impacts as distinct or special group. Studies may be undertaken to identify the sectors that would be affected due to climate change and assess the negative impacts on employment, poverty and trade balance situation of vulnerable LDCs. All goods and services from the LDCs should be allowed access without tariff and non-tariff barriers. In addition to goods and services, labour force from LDCs should be allowed entry on temporary and permanent basis into countries having shortage of labour. Imports from LDCs should not be restricted on grounds of safeguard measures adopted by developed countries. Special fund to help LDCs may be created through imposing levies on export and import of fossil fuels by the developing and developed countries.
Renewable energy technologies should be transferred to LDCs on preferential terms and made available to the poorer sections of society.
Centad: It has been observed that the recent policies are biased in favour of mitigation than adaptation. But it has also been observed that adaptation is a better option for the LDCs to evolve a sustainable development. How does an effective adaptation policy benefit the trade performance of the LDCs?
Dr Atiq Rahman & Team: It is true that adaptation is a better option than mitigation for the LDCs. However, LDCs should not be deprived of mitigation opportunities that could be availed by the poor nations. LDCs should be encouraged to take part in CDM activities through capacity building and they could be offered preferential terms for emission reduction. A higher price for unit reduction of GHGs could be offered to LDCs.
With regard to adaptation, LDCs should be provided with infrastructural facilities such as air, rail and road networks for trade facilitation. The building of such infrastructures should take into consideration the long-term effect of climate change. As most of the LDCs are producers of primary goods and raw materials, adaptation should give more emphasis on exportable agricultural crops and forest resources. Investment in forest resources especially in the low-lying coastal belt can serve both adaptation and mitigation purposes as well as preservation of biodiversity.
Blurb: Market access for the current LDC product should be ensured. LDCs need to be provided with technical assistance to comply with the voluntary standards and technical regulation imposed by the developed importing countries. Trade among LDCs should expand through south-south cooperation
Centad: Trade in general is envisioned to play supportive role to capacity development through technology transfer and economic diversification. But the threat of imposing environmental regulations can impede the expansion of trade. What do you think are the avenues that the LDCs should emphasise during negotiation to safeguard their trade interests?
Dr Atiq Rahman & Team: The sheer size and the subsistence nature of the economy is a real barrier to economic diversification for the LDCs in the short-run. Market access for the current LDC product should be ensured. LDCs need to be provided with technical assistance to comply with the voluntary standards and technical regulation imposed by the developed importing countries. Trade among LDCs should expand through south-south cooperation. This may be achieved through formation of new trade blocks or regional trade organisation if this cannot be achieved under the WTO framework.
Centad: The LDCs require huge financial support to undertake any climate-friendly initiatives. How can an effective multilateral framework be developed in this regard?
Dr Atiq Rahman & Team: Energy (fossil fuels) starved LDCs should be provided with energy-efficient and renewable energy technologies, based on their comparative advantages for different renewable sources. Special adaptation fund may be created under the UN system (may be with UNEP) for LDCs. The fund should be made available on flexible terms and without international bureaucratic control and formalities.
Centad: How can a conducive environment be created to implement the climate-friendly policies benefiting trade and development in the LDCs? Do the present frameworks of trade and climate change ensure the attaining of such goal(s)?
Dr Atiq Rahman & Team: Climate issues need to be further integrated with WTO and UN systems. The role of civil society in trade and development issues should be acknowledged. Equity and fairness at international and regional levels should be a major focus under a new paradigm encompassing both trade and development.
The present framework of trade and climate change has major shortcomings to ensure that goals are attained. Significant policy reforms are needed in all areas of trade, climate change and development.
- Dr Atiq Rahman is Executive Director, BCAS, and Khandaker Mainuddin is Fellow, BCAS.
Dr Atiq Rahman can be contacted at atiq.rahman@bcas.net
March 21, 2008
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