Carbon Pricing at Export Markets: Trade-Related Implications in Trinidad and Tobago

Ilya Stepanov, Diego Gutierrez and Camilo Tovar Mora

No 2025/028, IMF Working Papers from International Monetary Fund

Abstract: This paper examines the potential impact of border carbon adjustments on Trinidad and Tobago’s exports. Despite its marginal contribution to global greenhouse gas emissions, the country’s high carbon intensity exposes the economy to global low-carbon transition risks. The paper aims to raise awareness and encourage discussions on critical actions needed to maintain export competitiveness, enhance diversification, support balance of payments stability, and finance a green transition. The analysis recommends building on existing policies to integrate transition risks into development strategies, promote carbon intensity reduction, accumulate relevant data, and explore innovative emissions reduction approaches, including carbon pricing.

Keywords: carbon pricing; border carbon adjustment; Trinidad and Tobago; EU’s Carbon Border Adjustment Mechanism (CBAM); decarbonization; climate policy; EU CBAM; EU's Carbon Border Adjustment Mechanism; intensity reduction; EU's CBAM; Greenhouse gas emissions; Exports; Climate change; Global (search for similar items in EconPapers)
Pages: 22
Date: 2025-01-24
New Economics Papers: this item is included in nep-ene, nep-env and nep-int
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