Climate and Trade Explainer

The Gender and Trade Coalition was initiated in 2018 by feminist and progressive activists to put forward feminist trade analysis and advocate for equitable trade policy.

This article is the fourth in a series of short, Q&A format 鈥榚xplainers鈥 unpacking key trade issues produced for the Gender and Trade Coalition by Regions Refocus. It was written by Erica Levenson (Regions Refocus) with inputs from Maureen Penjueli (PANG), Adam Wolfenden (PANG), and Ranja Sengupta (Third World Network). The authors give their thanks to Mariama Williams (Global Afro-Descendant Climate Justice Collaborative), who reviewed various versions of the article and provided helpful feedback. Read the full article and catch up on past explainers .

1. How is Trade Connected to Climate Change?

For the past 500 years in which capitalism has been the dominant economic system, continuing profit accumulation has been dependent on the unsustainable use, commodification, privatization, and destruction of natural resources on the one hand, and exploitation of human resources on the other. While natural resources have always fueled the metaphorical fire of capitalism, the Industrial Revolution greatly increased the ease and speed with which they could be destroyed. It is scientifically proven that greenhouse gas (GHG) emissions are the main cause of climate change, with carbon dioxide (CO2) that results from the burning of fossil fuels as the number one source of warming and methane (largely emitted by the industrial agriculture sector) at number two. [1] Trade in particular has contributed to climate change: international trade alone accounts for an estimated 20鈥30% of annual GHG emissions.[2]

The current structural configuration of the economy, with trade at the center, is fundamentally incompatible with the reduction of GHG emissions. Free trade aims to expand the volume of trade in terms of production as well as consumption, so as to increase the potential gains to countries from

participating in international trade鈥 as established by Ricardo鈥檚 theory of comparative advantage.[3] But this theory pays no attention to the distributional impacts of free trade, or its environmental impacts. Trade-related production activities are often hugely detrimental to the environment and come at the price of forever contaminating or destroying essential ecosystems. Since all modes of transport鈥 air, land, sea, and train shipping鈥 are fossil fuel-dependent, an increase in consumption necessarily means an increase in GHG emissions. Gasoline and diesel power every form of shipping; maritime transport, fueled by diesel, makes up the majority of international trade in terms of both volume and value.[4]

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Anti-Colonial Solutions to climate change

When we discuss the climate crisis in economics, we are often confronted with a debate resting on technical solutions, emissions paths, and energy use: a certain amount of time to go from coal to turbines means a certain amount of carbon dioxide emitted, which means a certain likely degree of global temperature change. In environmental economics, climate change and its associated environmental problems are often framed as 鈥榚xternalities鈥; that is, unfortunate and unintended spillovers caused by market mechanisms. Often, social issues are taken into account within this narrative through sunny phrases like 鈥渟ustainable development鈥 or 鈥渏ust transition.鈥 The responsible parties are often individuals, states, or firms that are often thought to take action within the market. What does this debate look like if we take two different questions as starting points: not how to solve the climate crisis through market mechanisms and regulation, but how to solve the climate crisis while attending to the colonial legacy and exiting from contemporary neo-colonial accumulation patterns? Let us take a look.

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Building up debt traps: Risk, climate adaptation and microfinance

How to adapt to a changing climate is one of the foremost questions of our era. In the last decade, microfinance has shot to prominence as a highly-promoted tool of adaptation to climate and environmental change. In commissioned by the Grameen Foundation and Oxfam US, Dowla argues that 鈥榳ithin the populations that will be most affected by global warming, the plight of many individuals is linked to the ability of microfinance institutions to adapt to the consequences of climate change鈥.

With access to already-existing as well as newly-adapted financial products and ser颅vices, the argument goes that people and communities will be better placed to . 鈥楪reen microfinance鈥 would facilitate adaptation in two key ways: via coping capacity enhancement, and via adaptive capacity enhancement. Recommended strategies include improving access to microcredit for climate change responses as well as promoting insurance schemes to reduce the burden of climate risk on society.

In contrast to these emerging discourses and practices that frame microfinance as a key tool of climate adaptation, our recent research with rice farmers in rural Cambodia finds that microfinance loans are leading to an over-indebtedness emergency that significantly undermines borrowers鈥 long-term coping and adaptive capacity in a changing climate. Such loans often push households to borrow more, work more, sacrifice food quality and quantity, quit farming, and erode and sell their assets, including land. The cost of financialised coping strategies can trap rural populaces in financial obligations which they struggle to service and which manifests ultimately as over-indebtedness. Microfinance ends up promoting : one that is individualised, incremental, and geared towards the further integration of populations into processes of capital accumulation.

This form of adaptation is highly profitable. Indeed, as Dowla argues in that same , each new climate-linked shock 鈥榦pens up opportunities for the microfinance institutions and their clients鈥. Yet the corollary to this profitability is that the costs of such an adaptation tend to be borne by the poor, who find themselves exposed not only to the rigours of the environment but now the global market too.

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Green financialization and de-risking in Zambia鈥檚 renewable energy transition

By Simone Claar and

Zambia鈥檚 has a history full of hopeful prospects and broken dreams. In the 1980s and again in the early 2010s, Zambia experienced an economic upswing. Labelled as an emerging middle-income country and called the new 鈥, a mix of copper extractivism, an aspiring tourism sector, as well as political stability led to an impressive rise. However, the phase was short-lived, as Zambia’s political economy remains fragile: dependent on the price of copper and the world market, it is regularly on the verge of state bankruptcy due to a significant  burden. A history of structural adjustment programs in exchange for IMF loans and dependency on billion-scale Chinese loans means that Zambia became the first African country to declare bankruptcy in the wake of the Covid pandemic, first asking for a moratorium, and later for restructuring its Eurobond loans and Chinese loans. In this context, Zambia’s dependence on development financing is highly evident and deeply anchored in the state structures. Zambia’s political economy of energy and the ongoing energy transition reflect this tedious situation. Rising energy demands and lack of investment mean that widespread load shedding has become a frequent phenomenon. Climate change and recurring droughts negatively affect hydropower performance, which makes up 95 per cent of installed capacity. The current roll-out of renewable energy is a beacon of hope. Nevertheless, its financial structures give rise to the assumption that Zambia may also be the first African state where the miracle of green capitalism and “white magic” () is becoming manifest, resulting in both shiny solar panels and a loss of political and economic sovereignty. Analyzing Zambia’s energy transition’s political and financial toolbox, we delineate how green financialization and de-risking are executed based on blended development finance. 

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A 笔别辞辫濒别鈥檚 Green New Deal 鈥 An Exercise in Just Knowledge Production

In his speech before the聽聽makes the following astute observation regarding the African petite bourgeoisie and its public intellectuals:聽聽

“Our professors, engineers and economists are content simply to add a little colouring, because they have brought from the European universities of which they are the products only their diplomas and the surface smoothness of adjectives and superlatives. It is urgently necessary that our qualified personnel and those who work with ideas learn that there is no innocent writing. In these tempestuous times, we cannot leave it to our enemies of the past and of the present to think and to imagine and to create. We also must do so.”

In the same speech, Sankara continues to caution against planning for the uplifting of a nation if such plans are ignorant of, or are wilfully erasing, the disinherited masses and the wretchedness inherited by them. Sankara’s postulation, emerging from the socio-political contexts of the African continent, provides a sound theoretical foundation for knowledge production in the contemporary worlds we inhabit. The popular narratives around climate change have strived to communicate the gravity of planetary collapse and measures required to avert ecological and environmental crises worldwide. Nevertheless, the urgency of envisioning a new world shows little self-reflection as to its epistemic positions and privileges. Climate change discourses in the Global North, academic or otherwise, have largely been constrained by the desire to brave the planetary crises with limited disruption to existing race and class privileges. In terms of how the problems of climate change are identified and defined and the range of solutions to address them, the western epistemologies remain rudimentary.

Consequently, the range of green new deals or the visions for just-transition and sustainable utopias remain agnostic to the everyday realities and struggles of the Global South against imperialism and colonialism. It is unclear if Black, Indigenous, and People of Colour are better placed to partake in these futures than they are now. Max Ajl’s A People’s Green New Deal provides a refreshing and rich scholarly alternative to how an ideal green new deal should be imagined.

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Debunking the “Eco-Fortress Nationalism” of the AOC/Markey Green New Deal

tractor, tiller, tilling, equipment, agriculture, karnataka, india, transportation, mode of transportation, land, land vehicle, field, one person, landscape, agricultural machinery, day, nature, rural scene, plant, environment, driving, farm, dirt, agricultural equipment, outdoors, farmer, 4K

Photo: Farming in Karnataka, India.

Max Ajl鈥檚 笔别辞辫濒别鈥檚 Green New Deal is a brutal reminder for the American left that even the most celebrated and progressive developments in American politics are still simply American politics, in other words they are a politics for America, and America first. Ajl situates both the longer history of environmental destruction and the response to it within a planetary frame without losing sight of geographical unevenness. The book is divided into two parts. The first part is where Ajl systematically debunks the American-centrism of the Cortez/Markey Green New Deal (GND). The second part is an imagination-widening exposition of an alternative 笔别辞辫濒别鈥檚 Green New Deal that centers the livelihood of the majority of the world鈥檚 people by putting forth an anti-imperial and anti-capitalist framework for a just transition. 

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聽A 笔别辞辫濒别鈥檚 Green New Deal: A Symposium

Max Ajl鈥檚聽A 笔别辞辫濒别鈥檚 Green New Deal聽intervenes in current debates regarding green planning, green future, green stimuli, and eco-socialism. It surveys a wide range of existing literature on the ecological and social crisis, ranging from ruling-class 鈥済reat transitions,鈥 to eco-modernist聽elixirs聽of聽the聽right and聽the聽left which bank on technological solutions to today鈥檚 social and ecological problems. It then considers and聽critiques an array of liberal, left-liberal, and social democratic proposals, some of them going under the eco-socialist moniker, and shows how they rest on continued exploitation and primitive accumulation of the periphery.听

A 笔别辞辫濒别鈥檚 Green New Deal contributions lie in, first, using frameworks of dependency theory, accumulation on a world scale, and ecologically uneven exchange to illuminate the costs and consequences of distinct approaches to the climate crisis, left and right. Second, the book鈥檚 emphasis on agriculture, land use, and agro-ecology makes it unique amongst books on the Green New Deal and parallel debates. Its emphasis on decolonization, national sovereignty, anti-imperialism, and climate debt repayments from the North to the South is a third contribution. A fourth is how it deals with technology. 

This review forum assesses the contribution of聽A 笔别辞辫濒别鈥檚 Green New Deal.听Sakshi 蝉颈迟耻补迟别蝉听APGND聽in terms of a counter-epistemology to Eurocentric and empire-blind resolutions, if not really solutions, to the social and ecological crises to which mainstream Green New Deals are addressed.听Sheetal Chhabria 补蝉蝉别蝉蝉别蝉听APGND鈥檚 contribution to thinking on a planetary scale about appropriate planning for a just transition, while criticizing the book鈥檚 uncritical embrace of certain Indian nationalist tropes. G眉ney I艧谋kara raises questions regarding political agency and organization, the role of national-level planning in any form of national-level green transition, and how to approach anti-imperialism on a world scale.听聽

Read the contributions:

How To Write About Pipelines

Writing about Indigenous rights or climate and environmental justice movements as a non-Indigenous person is difficult and complex. The magnitude of difficulty becomes manifold if the authorial voice falls somewhere on the white, western knowledge spectrum. What we have to say matters less than what we have learned in thinking with the Indigenous people and their knowledge forms. For non-Indigenous scholars, there is a constant need to be alert to the possibilities of reproducing colonial power structures and epistemic frameworks while engaged in knowledge production. The only way out of this conundrum is to constantly learn from Indigenous voices and epistemologies and be sensitive to structural inequities and epistemic injustices that have marred the academe. It is not adequate to merely provide nodding acknowledgement to the idea of environmental justice. Interrogating the colonial and settler colonial structures within environmental movements must be a continuous process. Particularly, the idea of Indigenous environmental justice is yet to assume the place it deserves in the literature on environmentalisms, environmental activism, or even Marxist ecology. While Black-Green solidarity and alliance is an indispensable condition for the flourishing of the environmental movements, the work towards achieving it has been disappointingly slow. These concerns resurfaced as I read Andreas Malm鈥檚 new work .

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