ABSTRACT
This chapter explains the global scene on the links between energy and climate change, trade and energy as well as climate change and trade. It provides a textual analysis of environmental or climate-change-related provisions in several EU (European Union) free trade agreements (FTAs). The chapter explores in normative terms, the potential of the EU's external trade towards contributing to global decarbonization. Climate change has been caused by the way resources have been consumed, and climate change policy necessitates a substantial change in the allocation of resources.' The increased competition for energy resources, climate change and greenhouse gas emissions controls, technological advances and limitations have all contributed to a contradictory, fragmented regulatory web. Similarly, there is an increasing interest in inserting climate-related provisions in the World Trade Organization context and in FTAs. The trading system could also be more accommodating to climate objectives if countries reduced tariffs for environmental goods and services and removed or reduced fossil fuel subsidies.
