Domestic-Level Climate and Trade Policy Interaction in Bangladesh

This chapter analyses the domestic climate policy measures of Bangladesh and their potential interaction with multilateral trade regulations under the World Trade Organization (WTO) system. It examines the economic measures contained in various climate policy documents and climate-motivated actions within Bangladesh’s trade policy framework. The findings indicate that many of the planned economic measures, including subsidies and export incentives, may require careful design and monitoring to avoid trade-distorting implications. The efficient implementation of these measures also needs to be prioritised. Bangladesh faces the risk of scrutiny and potential challenges at the WTO if incentives inconsistent with the country’s multilateral trade commitments continue for too long. The chapter also highlights the need for better integration between climate and trade policy authorities to ensure a coherent and sustainable approach to policymaking.