Tim, welcome.
For the first time, trade is on the agenda at COP.
But why is that?
Why now?
Well, I think the pace of global decarbonization's got to a stage
where it's simply now impossible for the climate and trade
agendas to exist in isolation from one another.
I think countries and companies are realizing that we need
global trade to decarbonize, but also we need to decarbonize
global trade.
How are regulations shifting the balance of global trade?
Well, we're starting to see new regulations like the EU's Carbon
Border Adjustment Mechanism that extends the long-standing
concept of carbon pricing to imports.
And that's really critical because for the first time,
these rules will incentivize the decarbonization of global supply
chains in energy-intensive sectors such as steel, aluminum,
and cement.
And where are the opportunities for a competitive advantage for
business leaders in this shifting environment?
Well, there are a number.
Firstly, those that move ahead of the game to decarbonize their
own operations will continue to be competitive in developed
markets that are setting higher climate standards like Europe
and the United States.
But secondly, what we're also seeing is the growth in the
technology and the products needed to decarbonize things
like green hydrogen, for example, or green energy.
And that ought to be a focus for investment for competitive
advantage.
Tim thank you so much.