An edition of Environmental Policy and the Green Transition: Impact on Global Trade and Supply Chains
Environmental Policy and the Green Transition: Impact on Global Trade and Supply Chains
on October 6th, 2025 | History
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The study aimed to identify the main changes in international trade in the context of achieving carbon neutrality. The research methods included analysis of the legal framework, analysis of official sources of documents, and secondary analysis of relevant reports. The study findings demonstrated that the green transition is shaping changes in supply chains and global trade. Therefore, the commitments under the Paris Agreement formed a regulatory framework within the European Union that promotes the sustainable supply of critical materials for the green transition. In the European Union, the green transition is being implemented under the European Green Deal to achieve carbon neutrality by 2050. Various mechanisms were created for this purpose, including the Emission Trading System, which can help achieve this goal but creates risks of economic polarisation within the European Union. Export restrictions on critical raw materials, which reached 30% in 2022, also pose a significant obstacle to the green transition. The problem of resource allocation was also evident in times of geopolitical tension. This is determined by the fact that most rare earth resources are in the bowels of the People’s Republic of China and the countries that cooperate most closely with the Chinese government. At the same time, the resources of the United States and European countries are limited. This created opportunities for the formation of new trade relations. For instance, representatives of the European Union are actively cooperating with Africa to achieve both domestic carbon neutrality goals and the sustainable development of the African continent. As a result, international trade may change dramatically in the context of intensified trade between green governments, but this may only be possible in the long term.
Publish Date
2025-08-25
Publisher
Unknown
Language
English
PPI
300
Previews available in: English
Subjects: Critical resources; Investment; Renewable energy; Energy security; Trade restrictions