CBP launches initiative: The Green Trade Strategy
From US Customs and Border Protection: “The CBP Green Trade Strategy aligns with broader Department of Homeland Security efforts and supports a whole-of-government approach to mitigating risk and seizing opportunities associated with climate change and environmental stewardship within the trade space.”
A study from University College London in 2020 found that over one fifth of carbon emissions come from global supply chains. Professor Dabo Guan of UCL Bartlett School of Construction & Project Management said: “Multinational companies have enormous influence stretching far beyond national borders. If the world's leading companies exercised leadership on climate change -- for instance, by requiring energy efficiency in their supply chains—they could have a transformative effect on global efforts to reduce emissions.” He went on to add, “However, companies' climate change policies often have little effect when it comes to big investment decisions such as where to build supply chains.”
It should be noted that the study also followed the flow of investments and found that emissions increased in developing countries with foreign investment. For example, India’s emissions nearly doubled between 2011 and 2016 with US investment and offshoring.
There are four key tactics within the Green Trade Strategy:
One is to incentivize green trade, which should lead to faster transitions to greener policies and feed into the
second focal point of accelerating green innovation.
The third is to strengthen environmental enforcement, which should lead to coordinated enforcement efforts and drive meaningful changes in trade agreements.
The fourth focal point is to improve resource efficiency.
Taken together, these actions will drive down greenhouse emissions.
The CBP is counting on this measure making an impact not just in the US, but that the world community will follow their efforts and implement their own versions of the Green Trade Strategy in developing greener standards for their operations with an eye toward the future.
We can help companies with their international trade strategies. Please reach out to your trusted partners at SecurCapital if we can assist with a Green Trade Strategy.