Trade has an essential role to play in creating a more resilient system – one that can resist or adapt to environmental and economic shocks. It can do so by facilitating the exchange of goods, services and technology—including environmentally sound technologies—required for adaptation, mitigation and disaster preparedness and response. In this way trade contributes to the achievement of the Paris Agreement, SDGs and the Sendai Framework for Disaster Risk Reduction.
Developing countries face the challenge of “double exposure” to both economic shocks and environmental challenges such as climate change and natural hazards,
which are becoming more frequent and severe. Investments in low emission, climate resilient agriculture, renewable energy generation, and climate smart
infrastructure, for example, could help reduce vulnerability to extreme weather events and build economic resilience.