Climate Change Effects on Global Trading

For the past couple of years, climate change has been the topic of a lot of discussions, both in media and in other environments. For example, there are summits that discuss the future of international trade while talking into account the climate changes.

Therefore, it is safe to say that the changing climate will affect global trading more and more. Let’s take a look at the effects of this issue on global trading.

What Is Directly Influenced by Climate Change?

Naturally, when asking this question, we’ll refer to the things that are related to global trading. In this respect, we have to mention the availability of raw materials.

For example, it is well-known that pine beetles affect Canada’s pine forests. In return, this has caused the timber export of Canada to drop significantly in the past few years. Sooner or later, we might not be able to rely on Canada’s supply of timber when it comes to manufacturing wooden pallets.

Naturally, the demand on the market – another thing directly influenced by climate change – will increase for certain products. The same goes with the costs of production, as well as with the exchange rates.

Climate changes can cause the redirection of trade flows, the increase of certain goods’ prices, or even the opening of new trade goods. Basically, climate change can influence the current aspect of global trading. One type of supply that is currently in low demand can easily become the most requested one on the market in a couple of years or so.

Greenhouse Gas Emissions

Another thing we have to look at when considering climate change is greenhouse gas emissions.

Even though these emissions don’t necessarily rise in countries that trade more, it has been shown that a 1% increase in economic activity due to trade liberalization increases greenhouse gas emission by 0.25%, to 0.5%.

On the other hand, trade can help reduce emissions per unit output if it facilitates the transfer of cleaner technologies. It can also do this by changing the regulations so that they adhere with the maintaining of the environmental quality.

Therefore, as a pallet courier, for example, you might have to move on to environment-friendly practices sooner than you thought. However, this must not be seen as a bad thing, mainly because it is believed that the demand for environmental quality will increase with income.

Industries Affected by Climate Change

As we know, the sea levels are slowly rising, causing the wetlands to slip away. In short, various types of seafood can no longer be obtained – or can be obtained very hard.

As a result, countries that did not have to rely on the import of seafood now have to do so in order to keep up with the market demand.

On the other hand, the rising temperatures also affectd the coffee industry. Given that the cool mountains of Equator are now warmer, coffee crops are decreasing in quality and the price of coffee will rise. The same goes for the beer and wine industries.


In the end, it is safe to say that climate change will most likely affect the entire world and all of its industries. Firstly, we have the environment that basically keeps us alive and healthy, and then we have global trading.

When it comes to the latter, rich countries may become poor – due to the need to import goods that are in high demand. On the other hand, poor countries may very well become rich, as they may have the goods that other countries now desperately need.

June 17, 2019 4:06 pm