MILAN, Italy, May 4. It is important to protect environmental goods and services from protectionist measures, ADB Chief Economist and Director General, Economic Research and Development Impact Department Albert Park said speaking at the session “Globalization as a Force for Sustainable Development” during the 58th Annual Meeting of ADB in Milan, Trend reports.
Park emphasized the crucial role of global trade in facilitating the transition to a net-zero economy, especially in enabling countries to access clean energy technologies, resources, and equipment at affordable prices. “We need to try to protect environmental goods and services from protectionism and tariffs, even if we need to carve out separate agreements on those things,” Park stated. “It’s so important for the transition to net zero.”
He expressed concern over the geopolitical tensions, particularly between the United States and China, which have led to protectionist pressures on essential goods like electric vehicles (EVs), batteries, and solar panels. “It’s very unfortunate that because China is a main producer of EVs, batteries, and solar panels, it’s caught up in this geopolitics with the United States,” Park added, noting the potential negative impact on the global clean energy transition.
Park also discussed the potential impacts of the Carbon Border Adjustment Mechanism (CBAM), noting that while the effects on Asia had been modest thus far, the expansion of such measures could lead to greater concerns. However, he also saw this as an opportunity for carbon pricing reforms. “We’re seeing more countries put in place emissions trading systems, thinking harder even about carbon taxes. This will make their policies more aligned with Europe and help manage concerns that may arise,” he explained.
He acknowledged the challenges posed by Asia’s heavy manufacturing base, which contributes significantly to global greenhouse gas emissions, but stressed the importance of cleaner production methods. “There’s enormous work to do in different countries to promote greater energy efficiency of production,” he said. “Regardless of trade, this will impact how trade magnifies or doesn’t the global emissions problem.”