This chapter synthesizes key findings of a novel paradigm for international climate governance, transitioning from traditional treaty-based approaches to club-based strategies. The chapter underscores the critical role of integrating trade and climate law to address the systemic shortcomings of the Paris Agreement, particularly its lack of enforceability and susceptibility to free riding. It evaluates the potential of climate clubs as a pragmatic, minilateral approach to climate governance, leveraging market-based instruments like carbon pricing, border carbon adjustments, and emission trading systems to foster cooperation and drive ambitious climate action. The chapter further summarizes the legal intricacies of climate clubs under the Paris Agreement and WTO regulations. It demonstrates how climate-related trade instruments can align with principles of non-discrimination, the most favored nation and national treatment, by focusing on the evolving interpretations of “like products” based on non-product-related process and production methods. It also analyzes the potential application of the GATT 1994 Article XX exceptions to justify the environmental objectives of climate clubs while ensuring fair trade practices. The chapter proposes future research directions, including the just transition mechanisms, the role of consumer preferences in shaping non-discrimination analyses, and integrating behavioral economic insights into policy frameworks.

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Epilogue

  • Türkan Gülce Budak

摘要

This chapter synthesizes key findings of a novel paradigm for international climate governance, transitioning from traditional treaty-based approaches to club-based strategies. The chapter underscores the critical role of integrating trade and climate law to address the systemic shortcomings of the Paris Agreement, particularly its lack of enforceability and susceptibility to free riding. It evaluates the potential of climate clubs as a pragmatic, minilateral approach to climate governance, leveraging market-based instruments like carbon pricing, border carbon adjustments, and emission trading systems to foster cooperation and drive ambitious climate action. The chapter further summarizes the legal intricacies of climate clubs under the Paris Agreement and WTO regulations. It demonstrates how climate-related trade instruments can align with principles of non-discrimination, the most favored nation and national treatment, by focusing on the evolving interpretations of “like products” based on non-product-related process and production methods. It also analyzes the potential application of the GATT 1994 Article XX exceptions to justify the environmental objectives of climate clubs while ensuring fair trade practices. The chapter proposes future research directions, including the just transition mechanisms, the role of consumer preferences in shaping non-discrimination analyses, and integrating behavioral economic insights into policy frameworks.