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Carbon, Clauses, and Chains: The New Architecture of Sustainable Global Trade
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Author(s): Bayu Tri Cahya (Universitas Islam Negeri Sunan Kudus, Indonesia), Muhammad Agus Irawan (Universitas Islam Negeri Sunan Kudus, Indonesia), Umi Hanifah (Universitas Duta Bangsa Surakarta, Indonesia), Muslim Marpaung (Politeknik Negeri Medan, Indonesia)and Irma Suryani Lubis (Politeknik Negeri Medan, Indonesia)
Copyright: 2026
Pages: 32
Source title:
The Ripple Effects of Environmental Policies: Economic, Financial, and Institutional Perspectives
Source Author(s)/Editor(s): Mohieddine Rahmouni (King Faisal University, Saudi Arabia)
DOI: 10.4018/979-8-3373-8998-1.ch005
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Abstract
The international trade architecture is shifting from a focus on pure economic growth to global emissions mitigation, primarily to combat carbon leakage. By utilizing instruments like the Carbon Border Adjustment Mechanism (CBAM) and integrating environmental provisions into trade agreements, green production standards are harmonized to protect climate goals from policy asymmetries. This transition is systemically transmitted through Global Value Chains (GVCs), where multinational transparency demands drive the adoption of environmental standards in developing nations. Ultimately, the synergy between carbon pricing, legal clauses, and GVC connectivity shifts the global paradigm from cost efficiency to sustainability, fostering transnational decarbonization and inclusive green growth.
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