Concept

In today’s interconnected global economy, understanding the trade-climate nexus is more critical than ever. Trade policies significantly influence environmental outcomes, while climate change affects trade flows. However, the complex relationship between these areas remains insufficiently explored, often due to data limitations, gaps in economic modelling, and the evolving nature of global supply chains.

The ENTICE project aims to bridge these knowledge gaps by advancing our understanding of the trade-climate-industry (TCI) nexus. It examines how trade policies impact environmental sustainability and how climate policies shape global trade dynamics. By developing fact-based insights and innovative modelling tools, ENTICE supports informed decision-making at this crucial intersection of trade, climate, and sustainability.

Key Areas of Focus

Trade, Climate & Industry

The project assesses the role of exports, imports, global supply chains, trade agreements, market competition, and trade openness versus fragmentation in shaping environmental outcomes.

Climate & Environment

ENTICE explores the impacts of biodiversity, natural resources, energy resources, and climate change policies on trade flows and policies.

Challenges & Risks

The project addresses key environmental risks such as resource depletion, emissions, pollution, biodiversity loss, carbon leakage, and free-riding.

Opportunities & Policy Solutions

ENTICE explores opportunities for knowledge and technology diffusion, productivity gains, economies of scale, reduced pressure on local systems, and increased awareness. The project also evaluates climate mitigation policies, environmental standards, sustainable resource management, and competition and equity measures.

Methodological Approach

ENTICE employs a multidisciplinary research framework combining:

01

Model Ensemble

Computable General Equilibrium (CGE) Models
Macroeconometric Models
Integrated Assessment Models
Sectoral Models

02

Empirical Analysis

Statistical Analysis
Econometric Estimations

03

Data Development

Enhanced (GTAP) Database
Sectoral Data Matrices
I/O Data Splitting Tool

04

Stakeholder Insights

Transdisciplinary Listening Mechanism

Project Timeline

ENTICE started in January 2025 and is scheduled to run until December 2028. Over this period, the project will generate empirical evidence, policy recommendations, and modelling advancements to support decision-making at the trade-climate interface. By integrating economic, environmental, and policy perspectives, ENTICE provides a comprehensive approach to tackling the challenges and opportunities within the trade-climate nexus, supporting a more sustainable and equitable global economy.