Trading Towards Sustainability
Climate change - and efforts to mitigate and adapt to it - will affect global flows of trade and Indonesia’s ability to transition to a more environmentally sustainable economy on its path to become a high-income economy is, therefore, interlinked with trade policy. Environmental policy stringency (EPS) is increasing around the globe - a crucial challenge lies in harmonizing these with sustained economic growth, yet both goals can be reached. Although trade flows facilitate emissions, they are also a critical part of the solution, including through trade in environmental goods (EGs) and plastic substitutes - with important economic spillovers. This report provides a detailed analysis of the role of trade and trade policy on EGs and plastic substitutes in Indonesia’s green transition. Chapter one describes the need for, and urgency of, this transition, by looking at the carbon intensity of Indonesia’s trade, the impacts of environmental policies of Indonesia and key trading partners, and the roles of EGs. Chapter two examines where Indonesia stands on the level of trade in EGs and plastic substitutes and the competitiveness of EGs trade. Chapter three explores trade agreements and tariffs and simulates potential impacts of tariff reforms - including through multilateral actions. Chapter four examines what non-tariff measures (NTMs) apply on the products including inputs of firms exporting EGs and assesses which NTMs may be costly. Finally, chapter five concludes with policy recommendations.
| Main Authors: | , , , |
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| Format: | Report biblioteca |
| Language: | English en_US |
| Published: |
Washington, DC: World Bank
2024-01-22
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| Subjects: | TRADE, SUSTAINABILITY, TRADE POLICIES, GREEN TRANSFORMATION, PLASTIC SUBSTITUTES, |
| Online Access: | http://documents.worldbank.org/curated/en/099011624201039201/P500575175bdcd0ce1a9fc1815947fdfa7b https://openknowledge.worldbank.org/handle/10986/40925 |
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| Summary: | Climate change - and efforts to
mitigate and adapt to it - will affect global flows of trade
and Indonesia’s ability to transition to a more
environmentally sustainable economy on its path to become a
high-income economy is, therefore, interlinked with trade
policy. Environmental policy stringency (EPS) is increasing
around the globe - a crucial challenge lies in harmonizing
these with sustained economic growth, yet both goals can be
reached. Although trade flows facilitate emissions, they are
also a critical part of the solution, including through
trade in environmental goods (EGs) and plastic substitutes -
with important economic spillovers. This report provides a
detailed analysis of the role of trade and trade policy on
EGs and plastic substitutes in Indonesia’s green transition.
Chapter one describes the need for, and urgency of, this
transition, by looking at the carbon intensity of
Indonesia’s trade, the impacts of environmental policies of
Indonesia and key trading partners, and the roles of EGs.
Chapter two examines where Indonesia stands on the level of
trade in EGs and plastic substitutes and the competitiveness
of EGs trade. Chapter three explores trade agreements and
tariffs and simulates potential impacts of tariff reforms -
including through multilateral actions. Chapter four
examines what non-tariff measures (NTMs) apply on the
products including inputs of firms exporting EGs and
assesses which NTMs may be costly. Finally, chapter five
concludes with policy recommendations. |
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