Do these acronyms – chemical symbols, to be precise – mean anything to you? I apologise for unearthing any long-buried horrors from your school science days. While you ponder your mark out of a maximum score of six, I would like to offer you a brief distraction – or rather, a reprieve.

Here are five words you probably didn’t know are acronyms: Laser, which stands for ‘light amplification by stimulated emission of radiation’; scuba, which stands for ‘self-contained underwater breathing apparatus’; radar, which stands for ‘radio detection and ranging; GIF, which stands for ‘graphics interchange format’; and taser, named by its inventor, Jack Cover, after his favourite children’s book character, Tom Swift, standing for Thomas A Swift Electric Rifle.

Now for your assessment: CO2 stands for carbon dioxide, GH2 for green hydrogen, GHG for greenhouse gas, H2 for dihydrogen (hydrogen in a stable gaseous form), LH2 for liquid hydrogen and NH3 for ammonia.

If you have made it this far, you might be questioning the relevance of the science reflection and the fleeting reference to acronyms. Well, blame it on Angela Ellard. “Who?” you might ask. She is the deputy director- general of the World Trade Organisation (WTO) and spoke at the Hamburg Sustainability Conference on October 7. During her address, she argued that well-designed and effectively implemented trade policies serve as a crucial toolkit for facilitating a people-centred clean energy transition amid the escalating climate crisis. In other words, “effective trade policies are essential for the clean energy transition”.

For context, the WTO released its 56-page report, ‘Trade Policy Tools for Climate Action’, at the twenty-eighth UN Conference of the Parties (COP28) in Dubai, United Arab Emirates, from November 30 to December 13, 2023. The publication aims to shed light on how trade policy actions for climate could accelerate the transition to a climate-friendly global economy as part of the WTO’s efforts to leverage the power of trade to deliver on collective sustainable development objectives, particularly those related to the climate crisis.

It examines the trade policies governments could consider as part of their climate change mitigation and adaptation strategies. The report covers ten policy areas where governments have introduced measures to support the transition to a low-carbon economy, improve the flow of climate-friendly goods and services, decarbonise supply chains, and build resilience against extreme weather events and climate change.

The ten ‘policy tools’ are: trade facilitation; government procurement; regulations and certification; services; import tariffs; subsidies; trade finance; food and agriculture; sanitary and phytosanitary measures; and internal taxation and carbon pricing.

At the conference, Ellard noted that trade policies can help lower clean energy costs, decarbonise supply chains, harmonise standards, redirect subsidies towards sustainability, and create new economic opportunities in emerging low-carbon markets, ultimately fostering sustainable development.

She highlighted key challenges, pointing to the significant tariff disparities that currently favour high-carbon goods over renewable- energy equipment. While crude oil and coal face minimal tariffs, renewable-energy technologies can incur duties as high as 12% ad valorem. A reassessment of these tariffs could enhance the competitiveness of renewable energy and accelerate its adoption.

Ellard also highlighted the challenges arising from the 73 different carbon pricing schemes globally, which inflate compliance costs and threaten climate objectives. Trade policies can facilitate greater interoperability and collaboration on carbon pricing frameworks to alleviate trade tensions and expedite the transition to sustainability.

Another challenge is the importance of redirecting harmful subsidies towards more beneficial objectives, she said, highlighting that government support for fossil fuels exceeded $1.4-trillion in 2022. Ellard noted that the clean energy transition presents immense opportunities for developing economies rich in renewable-energy resources and critical minerals.

Looking ahead to COP29, Ellard emphasised the significant opportunity for global leaders to integrate climate finance, investment and trade. She concluded that a sustainable clean energy transition is both an environmental necessity and an economic opportunity, achievable only through collaboration.

The WTO remains committed to supporting the creation of an environment that leverages trade tools to achieve sustainable environmental goals and bolster the resilience of renewable-energy supply chains, while ensuring that it does not create trade barriers.