UC Irvine Journal of International, Transnational, and Comparative Law

Combating climate change is one of the most important areas for international cooperation and negotiation. The urgency of the climate crisis requires countries, especially large carbon emitters such as China, to be more active in taking climate actions. This Note mainly focuses on the two most important trade-related climate policies for reducing carbon emissions: border carbon adjustment and low-carbon subsidies. Both policies have or would likely raise legal challenges under the existing WTO legal framework. This Note introduces the two policies, analyzes why they are disputed among WTO Members, discusses China’s viewpoints, and suggests the possible actions that China can take in helping to mitigate trade policy conflicts over carbon emissions under the current WTO trade system.