The effects of climate change on international trade: Risks, opportunities, and policy orientations

Abstract

Currently, climate change has reached a scale where it significantly impacts the dynamics of international trade. Notably, natural disasters exacerbated by climate change threaten logistical infrastructure, causing damage to ports, roads, and transportation networks. This phenomenon leads to disruptions in supply chains and subsequent cost escalations. Concurrently, environmental regulations—such as carbon taxes, green trade agreements, and sustainable production standards—are fundamentally reshaping the foreign trade policies of nations. While risks are increasing for certain sectors, it is evident that new market opportunities are emerging for eco-friendly technologies and green products. For example, melting glaciers in the North Pole bring about shorter transfer route options. This article examines the effects of climate change on foreign trade by addressing its economic, logistical, and political dimensions within the relevant literature, offering strategic recommendations for developing countries like Türkiye. The objective is to contribute to how sustainable trade can be operationalized while mitigating the threats posed by climate change, and to provide an original perspective to the literature in this field from Türkiye's standpoint.