Trade and the environment: frameworks and methods for impact assessment

Abstract

This study provides an overview of existing approaches and methods for assessing the environmental impacts of trade and trade-related activities. It considers both approaches that are tailored to the assessment of trade- environment linkages and more generic approaches for environmental assessment and analyzes their respective usability in the context of trade-related development cooperation. The study thereby aims to contribute to a more extensive use of such tools, while improving the practice and application of environmental assessments of trade-related policies and programs. In doing so, the study will complement the existing study on the assessment of the socio- economic impacts from trade carried out by the Overseas Development Institute (ODI)1. The study is divided into two parts. Part I begins with a brief discussion on trade-related development cooperation followed by a short overview of the debate on trade, development and the environment. Next it provides an overview of existing approaches to conceptualizing environmental impacts from trade-related activities. After this, it provides a general introduction to impact assessment (IA) and the assessment of environmental impacts in this context. It closes with a brief overview of the assessment of environmental aspects in German development cooperation. Part II provides a more detailed review of existing frameworks and methods for assessing the environmental impacts from trade-related policies and programs.