WEBVTT

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Tim, welcome.

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For the first time, trade is on
the agenda at COP.

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But why is that?

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Why now?

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Well, I think the pace of global
decarbonization's got to a stage

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where it's simply now impossible
for the climate and trade

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agendas to exist in isolation
from one another.

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I think countries and companies
are realizing that we need

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global trade to decarbonize, but
also we need to decarbonize

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global trade.

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How are regulations shifting the
balance of global trade?

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Well, we're starting to see new
regulations like the EU's Carbon

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Border Adjustment Mechanism that
extends the long-standing

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concept of carbon pricing to
imports.

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And that's really critical
because for the first time,

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these rules will incentivize the
decarbonization of global supply

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chains in energy-intensive
sectors such as steel, aluminum,

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and cement.

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And where are the opportunities
for a competitive advantage for

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business leaders in this
shifting environment?

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Well, there are a number.

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Firstly, those that move ahead
of the game to decarbonize their

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own operations will continue to
be competitive in developed

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markets that are setting higher
climate standards like Europe

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and the United States.

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But secondly, what we're also
seeing is the growth in the

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technology and the products
needed to decarbonize things

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like green hydrogen, for
example, or green energy.

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And that ought to be a focus for
investment for competitive

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advantage.

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Tim thank you so much.