Carbon Pricing at Export Markets: Trade-Related Implications in Trinidad and Tobago
IMF Working Papers, January 24, 2025
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- Carbon Pricing at Export Markets: Trade-Related Implications in Trinidad and Tobago
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Bibliographic details
- Authors: Ilya Stepanov, Diego A Gutierrez, Camilo E Tovar Mora
- Published: January 24, 2025
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798229000666.001
Summary
- Examines potential impact of border carbon adjustments on Trinidad and Tobago’s exports.
- Notes Trinidad and Tobago’s marginal contribution to global greenhouse gas emissions but highlights the country’s high carbon intensity and exposure to global low-carbon transition risks.
- Aims to raise awareness and encourage discussion on actions to:
- maintain export competitiveness,
- enhance diversification,
- support balance of payments stability,
- finance a green transition.
Key findings and implications
- High carbon intensity increases vulnerability to border carbon adjustments in export markets.
- Risks to export competitiveness could affect the balance of payments.
- Transition-related risks warrant integration into development strategies and export policy planning.
Policy recommendations and strategic actions
- Build on existing policies to integrate transition risks into development strategies.
- Promote carbon intensity reduction across the economy.
- Accumulate relevant emissions and trade-related data to inform policy and compliance.
- Explore innovative emissions reduction approaches, including carbon pricing.
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- Working Paper