International Day of Biodiversity 2025 Archives

Trade Wars vs. Planetary Peace: Can International Trade Support Environmental Harmony?

By ISS Blog Bliss 22 May 2025 2339 views

In this blog to mark the International Day of Biodiversity, Kim-Tung Dao explores the interplay between international trade and environmental sustainability, which has become increasingly consequential in an era marked by escalating climate crises and geopolitical tensions. The resurgence of protectionist trade policies under President Donald Trump’s second term has intensified global economic disruptions, and trade cannot by itself ensure an equitable green transition in many contexts, but it can be a powerful driver.

The Environmental Footprint of Global Commerce

International trade has historically contributed to environmental degradation in multiple ways: maritime shipping alone accounts for approximately 3% of global CO₂ emissions, with this figure projected to rise significantly without robust regulatory intervention. The carbon footprint of transportation represents only one dimension of trade’s environmental impact, though.

Additionally, it is common to outsource manufacturing to regions with lenient environmental regulations. This effectively exports emissions alongside production, undermining domestic climate policies through what economists term “carbon leakage”. This process not only shifts the geographic distribution of emissions but often increases their total volume as production moves to less efficient facilities.

Perhaps most concerning is trade’s role in exploiting the natural world. Trade-driven demand for commodities like palm oil, soy, and beef has accelerated deforestation in critical ecosystems such as the Amazon rainforest and Southeast Asian forests, exacerbating biodiversity loss and climate change the conversion of these carbon-rich landscapes (through widescale deforestation) for agricultural production represents a doubly negative climate impact: releasing stored carbon while reducing future sequestration capacity.

Trade Wars: Disruption with Environmental Consequences

The ongoing retaliatory ‘trade war’ led by the US government has introduced significant environmental implications beyond pure economic considerations. The imposition of steep tariffs, some reaching as high as 145% on Chinese goods, has disrupted global supply chains in the clean energy sector, increasing costs for renewable technologies and potentially slowing the transition to a low-carbon economy. These price increases affect everything from solar panels to electric vehicle components, creating artificial barriers to clean technology adoption.

The first Trump administration’s withdrawal from the Paris Agreement via Executive Order 14162 signals a retreat from international climate commitments, potentially encouraging other nations to deprioritize environmental considerations in trade negotiations with the new Trump administration. This regulatory retreat threatens to undermine decades of progress in integrating sustainability principles into international commerce frameworks.

Further complicating matters, tariffs on electronics components, including lithium batteries and LED lights, have sparked concern among industry stakeholders, with the Consumer Technology Association warning of potential harm to clean energy innovation. These sectoral disruptions illustrate how trade policies ostensibly designed for economic protection can have far-reaching environmental consequences.

Trade as a Tool for Environmental Governance and Protection

Despite these challenges, trade agreements can serve as powerful instruments for environmental governance when properly structured. Modern trade deals increasingly incorporate environmental clauses aimed at promoting sustainable development. The United States–Mexico–Canada Agreement (USMCA), for instance, includes commitments to enforce environmental laws and combat illegal wildlife trade, representing an evolution in how environmental concerns are integrated into commercial frameworks.

Trade can accelerate the diffusion of clean technologies and sustainable practices across borders, creating economies of scale that drive down costs for environmental solutions. When markets for green technologies expand through trade, innovation accelerates and prices decline, making sustainability more economically viable globally. This positive feedback loop demonstrates trade’s potential as a catalyst for environmental progress. In addition, similar outcomes can also be achieved through state-led interventions: recent policy shifts, such as those documented by the International Energy Agency, show that governments are actively deploying clean energy policies and industrial strategies to foster innovation, reduce costs, and shape the emerging low-carbon economy.

Through regulatory cooperation mechanisms, trade agreements can promote the alignment of environmental standards, preventing a ‘race to the bottom’ in environmental protection. Harmonization of product standards, chemical regulations, and energy efficiency requirements can elevate environmental performance across entire industries and supply chains.

However, the effectiveness of such provisions depends on robust enforcement mechanisms and gen uine political will, both of which may be compromised under trade policies that prioritize economic nationalism over environmental objectives. Environmental chapters in trade agreements often lack the same enforcement mechanisms as commercial provisions, leaving them vulnerable to neglect.

Green Trade: Case Studies and Promising Developments

The global market for environmental goods and services represents a significant growth sector within international trade. According to the OECD, exports of green goods have nearly doubled over the past decade, reflecting growing demand for sustainable solutions across markets. This expansion demonstrates that environmental protection and economic opportunity need not be mutually exclusive.

The European Union’s Carbon Border Adjustment Mechanism (CBAM) aims to align trade practices with climate goals by imposing carbon tariffs on imports based on their ‘embedded emissions’: a potential model for integrating climate considerations into trade policy. This innovative approach addresses competitive concerns while creating incentives for trading partners to strengthen their own climate policies.

Circular economy initiatives supported through trade policies can reduce resource extraction and waste, fostering more sustainable consumption patterns globally. Trade frameworks that facilitate the movement of recycled materials, remanufactured goods, and repair services help extend product lifecycles and reduce environmental footprints across value chains.

Towards an EcoConscious Trade Regime: A Path Forward

Reconciling trade with environmental sustainability requires fundamental changes to global economic architecture. Environmental objectives must be embedded more directly within trade institutions and agreements, with mechanisms to resolve conflicts between trade and environmental rules. This institutional reform would elevate environmental considerations from peripheral concerns to central organizing principles.

Trade policies should explicitly support the United Nations Sustainable Development Goals and Paris Agreement commitments through incentive structures and compliance mechanisms. Creating positive linkages between trade benefits and environmental performance can harness economic motivation to drive sustainability improvements.

Innovative models like “doughnut economics,” as proposed by Kate Raworth, propose reorienting economic activity within ecological boundaries while meeting social needs, an approach that could inform more sustainable trade policies. This framework recognizes planetary limits as non-negotiable constraints within which economic prosperity must be pursued.

Trade agreements should incorporate support for workers and communities affected by the shift to more sustainable production methods, ensuring that environmental progress doesn’t exacerbate economic inequality. These just transition provisions acknowledge that sustainability transformations create both winners and losers, requiring active management of social impacts.

Trade is only one driver of green transitions

The current trajectory of international trade, characterized by rising protectionism and environmental deregulation, poses significant challenges to global sustainability efforts. However, trade also holds tremendous potential to drive environmental innovation and cooperation. Realizing this potential requires a deliberate and coordinated approach to integrating environmental objectives into trade policy, ensuring that economic growth supports rather than undermines planetary health.

As nations navigate complex trade relationships in an era of climate urgency, the choices made today will significantly shape both economic systems and environmental outcomes for generations to come. The imperative is clear: we must design trade policies that recognize ecological boundaries as fundamental constraints within which prosperity must be pursued.

References

Cristea, M., Hummels, D., Puzzello, L., & Avetisyan, H. (2013). Trade and the Greenhouse Gas Emissions from International Freight Transport. Journal of Environmental Economics and Management, 65(1), 153–173.

Curtis, P. G., Slay, C. M., Harris, N. L., Tyukavina, A., & Hansen, M. C. (2018). Classifying drivers of global forest loss. Science, 361(6407), 1108–1111.

Raworth, K. (2017). Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist.

Chelsea Green Publishing.

Opinions expressed in Bliss posts reflect solely the views of the author of the post in question.

About the author

Kim Tung Dao is a recent PhD graduate of the International Institute of Social Studies, Erasmus University Rotterdam. Her research interests include globalization, international trade, sustainable development, and the history of economic thought.

Are you looking for more content about Global Development and Social Justice? Subscribe to Bliss, the official blog of the International Institute of Social Studies, and stay updated about interesting topics our researchers are working on.

International Day of Biological Diversity: Embracing Javanese Local Wisdom as Pathways to a Sustainable Future

By ISS Blog Bliss 22 May 202523 May 2025 1463 views

Can local wisdom offer solutions to current environmental crises? As the world commemorates the International Day of Biological Diversity, we are reminded that the solutions to today’s ecological crises often lie in the knowledge systems of the past. In this blog, Irma Nugrahanti suggests how Javanese traditions like Gotong Royong and Memayu Hayuning Bawana offer guidance for pathways to sustainable development in Indonesia. Ancestral traditions can inspire an approach that is more harmonious with nature, which could inspire more just and inclusive climate strategies.

Banyuwangi, East Java Photo Credit : Author 2025

Indonesia is significantly vulnerable to various climate hazards and the effects of climate change. The 2023 INFORM Risk Index ranks Indonesia in the top third of nations most vulnerable to climate disasters, placing it 48th out of 191, encompassing risks like as flooding, droughts, and heatwaves. In addressing these issues, traditional Javanese local wisdom offers insightful pathways toward sustainable development and harmonious coexistence with nature. The ethical elements embedded in Javanese local wisdom, expressed through religious and cultural practices, offer important local knowledge for successful preservation strategies, facilitating the attainment of sustainable development goals by promoting a collective awareness of responsible conservation. As the largest ethnic group in Indonesia, the Javanese people have historically fostered a strong connection with their natural environment, conducting practices that prioritize resource conservation, waste reduction, and ecological balance. Bringing these cultural practices together within a feminist political ecology framework, particularly through kinship theories that emphasize interconnectedness and care ethics, demonstrates the potential of traditional knowledge in developing inclusive and sustainable policies.

Understanding Javanese Local Wisdom

Javanese local wisdom consists of beliefs and practices intricately woven into traditional norms, focusing on balance and interconnectedness. The Javanese principle of “Memayu Hayuning Bawana,” meaning “living harmoniously with nature and maintaining its balance”, embodies the concepts of ecological sustainability. These practices corresponds with kinship theory in political ecology where land, water, and trees are perceived as kins rather than commodities. It also highlights the interconnectedness of environment and humans through relational ethics, which emphasize mutual care and shared responsibility.

Another long-standing Javanese practice is “Gotong Royong”, gotong means “work” and royong means “together”; a deeply ingrained cultural expression of collaboration and solidarity. This concept signifies a commitment in which community members offer their labor, resources, and knowledge to address common needs and difficulties. This approach can be powerful for mobilizing grassroots opposition to environmental injustices, enabling communities to champion equitable and locally-based environmental policy. From political ecology perspective, it is important to look at environmental issues from political structures and power dynamics angles, for instance the allocation, access, and management of natural resources. Practices such as Gotong Royong illustrate an alternative ethic of interdependence and collective responsibility, proposing a grassroots framework for communal decision-making that challenges hierarchical approaches to resource management. Additionally, political ecology values indigenous and traditional ecological knowledge. This aligns with Gotong Royong practice that values community knowledge in managing environment. Currently, Gotong Royong is firmly ingrained across diverse Indonesian cultures. This has emerged as a significant characteristic of Indonesia’s values.

Nyadran, a tradition prevalent among Javanese communities, serves as both a spiritual ritual and a reflection of the harmonious relationship between humans and nature. In practice, Nyadran involves environmental cleaning, preservation of sacred natural sites, and caring for each other. By doing so, communities enhance their socio-ecological connection and strengthen their responsibility over the environment. Similarly, the Samin indigenous community in Central Java adheres to the “Sedulur Sikep” ideology, which underscores the importance of caring. Sedulur Sikep has three main principles: the principles of ngajeni (respecting), ngopeni (caring for), and demunung (against exploitation of nature) in natural resource management, which are reflected in organic farming practices, forest conservation, and water resource protection. This belief is rooted in how they see nature as “mother” which represents care, nurturance, and provider of life, hence it must be treated with utmost respect. Therefore, the Samin avoid nature exploitation and only take what they need to survive. This ethic of sufficiency and respect for the environment, strongly in line with feminist political ecology’s focus on kinship, care, and criticism of extractive systems.

Integrating Traditional Wisdom into Policy Making

Integrating traditional wisdom into policy requires practical measures. Despite these positive examples, there are challenges in acknowledging and integrating traditional wisdom into Indonesian policy frameworks. For instance, valuable insights from local and indigenous voices, particularly women, are frequently excluded. Feminist political ecology confronts these exclusions, arguing for inclusive decision-making procedures that recognize marginalized knowledge systems and advance environmental justice. Governments should implement inclusive governance models that ensure involvement from local populations, particularly women, recognizing their contributions to environmental management.

Additionally, when traditional knowledge is not institutionalized through formal curriculums, it is vulnerable to erosion, particularly due to modernization. In order to facilitate the intergenerational transfer of sustainable practices and local knowledge, it is suggested that traditional ecological knowledge should be valued as important as current modern knowledge. Allocating targeted financial planning such as budgeting for traditional wisdom-based sustainable programs, can improve their efficacy and scalability. Therefore, budgeting is essential for promoting the use and maintenance of local wisdom, especially in marginalized communities. Studies indicate that Indigenous and rural communities often have place-based knowledge systems essential for sustainable resource management and climate adaptation. A similar example from other regions, such as New Zealand, illustrates the significance of integrating Māori indigenous values, knowledge, and perspectives throughout the whole ecosystem’s services framework.

Historically, Javanese communities engaged in sustainable agriculture, land management, and resource conservation way before modern sustainability discourse. Through reflection, we can rediscover and invigorate these values, acknowledging that the key to sustainability is already in our cultural heritage and local traditions. Embracing and supporting them, including systematically integrating them into national and local climate mitigation and adaptation strategies, offers meaningful pathways toward culturally relevant and sustainable solutions to Indonesia’s current environmental concerns.

Opinions expressed in Bliss posts reflect solely the views of the author of the post in question.

About the author

Irma Nugrahanti is a PhD researcher at the International Institute of Social Studies (ISS), focusing on the intersection of gender, climate change, and public finance management. Her research highlights the importance of integrating a gender lens into climate budgeting policies and practices, particularly at the national and regional levels of public expenditure management. With a background in the non-profit sector, Irma has extensive experience in finance, program management, and policy advocacy, striving to bridge the gap between research and practice to create inclusive and sustainable climate policies.