6 Issues at the Country Level: A Diagnostic Framework For all countries, access to no- or low-carbon technologies (through trade and foreign direct investment) will be critical to new growth strategies. The climate and trade policy diagnostic framework presented in appendix C is a tool for gathering information on the link between trade and climate at the country level. It is intended to help researchers and policy makers to identify (1) key vulnerabilities in trade to rising temperatures, changing precipitation, and greater frequency of extreme weather events; (2) areas where trade can play a key role in supporting mitigation and adaptation to a changing climate as well as emerging constraints; (3) regulatory gaps in the climate and trade policy environment; and (4) recommendations of climate-relevant trade policy options. This chapter provides country-specific highlights for Vietnam and Ethiopia.
Vietnam Vietnam is vulnerable to tropical cyclones and storm surges, droughts, and floods and is considered one of the most hazard-prone countries in the world, with more than 80 storm events, around 45 million people affected, and nearly 19,000 killed from 1953 to 2010. Flooding is the second most threatening natural hazard, with around 60 major events, 5,000 killed, and 25 million affected in the past half century (World Bank and ADB 2020). Given its high exposure to floods and storms and the fact that two of its most important economic sectors—industry and agriculture—are located in coastal lowlands and deltas, Vietnam is one of the five countries that will be affected the most adversely by climate change. The United Nations Office for Disaster Risk Reduction (UNISDR) estimates Vietnam’s average annual losses to disaster at around US$2.4 billion, or almost 1.5 percent of gross domestic product (GDP). The absolute value of losses is projected to rise dramatically over the coming years, as the value of both the exposed assets and the climate-related hazard rises (World Bank and ADB 2020). Climate change will affect Vietnam’s current and future trade flows, so favorable climate-relevant trade policies are necessary. Climate change will drive up the costs of
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