International Economics is analysing how recent trade-related green policies targeting the private sector can support MSMEs in developing countries to manage trade-offs and deliver on the just transition in selected sectors, such as energy, agriculture, extractives and low-skilled manufacturing.
The project supports the Donor Committee for Enterprise Development (DCED) Green Growth Working Group (GGWG).
The past few years have witnessed a surge in the number of trade-related green policies aiming to promote sustainable production and trade practices in local and global value chains. Trade-related green policies also play a key role in supporting MSMEs in developing countries by encouraging green technology adoption through incentives like subsidies and improving market access via reduced tariffs. To support a Just Transition through trade and MSME development, the DCED Green Growth Working Group (GGWG) established a Task Force to explore how recent green trade policies affecting the private sector can help MSMEs in developing countries navigate trade-offs – such as seizing sustainable market opportunities while managing barriers like technology adoption and compliance costs. In this context, International Economics will conduct a study to assess how recent green trade policies targeting the private sector can help MSMEs in developing countries navigate trade-offs and contribute to a just transition in key sectors such as energy, agriculture, extractives, and low-skilled manufacturing.
In order to assess how trade-related green policies can support MSMEs in developing countries in navigating the challenges and opportunities of the green and just transition, our Team will review a few policy frameworks – such as trade agreements, environmental regulations, and industrial support measures – with a focus on sectors like energy, agriculture, extractives, and low-skilled manufacturing.
The research will result in three policy briefs, each featuring a sector-specific case study that highlights relevance to MSME employment; environmental impact or greening potential; and a strong trade dimension. The selection of policies and case studies will be guided by a set of parameters, including policy type (national, bilateral, multilateral), geographic coverage, and their implications for export-oriented MSMEs. The Team will also consider regional diversity, with a focus on countries in Sub-Saharan Africa and Southeast Asia that play a key role in global green value chains.
Trade-related green policies also have a significant role in supporting the private sector in developing countries by creating incentives for MSMEs to adopt green technologies, access new markets through the reduction of tariffs or trade barriers for sustainable goods and services, as well as financial support to promote strategic green industries such as climate-smart agriculture and renewable energy.
At International Economics, we build tailor-made strategies for both import and export-oriented business solutions. We carry out sensitivity analysis, and prepare detailed resource scheduling and standard performance dashboards to track the implementation process and financial ratio performance of your products and services. We can also work on corporate leadership and change management strategy. Finally, we develop the analytics and risk matrices and use our cognitive computing insights to update these in real-time.
