IMF Working Papers

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

By Ilya Stepanov, Diego A Gutierrez, Camilo E Tovar Mora

January 24, 2025

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Format: Chicago

Ilya Stepanov, Diego A Gutierrez, and Camilo E Tovar Mora. "Carbon Pricing at Export Markets: Trade-Related Implications in Trinidad and Tobago", IMF Working Papers 2025, 028 (2025), accessed February 23, 2025, https://doi.org/10.5089/9798229000666.001

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

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.

Subject: Climate change, Environment, Exports, Greenhouse gas emissions, International trade

Keywords: Border carbon adjustment, Carbon pricing, Climate change, Climate policy, Decarbonization, EU CBAM, EU’s Carbon Border Adjustment Mechanism (CBAM), EU's Carbon Border Adjustment Mechanism, EU's CBAM, Exports, Global, Greenhouse gas emissions, Intensity reduction, Trinidad and Tobago

Publication Details

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