INTERNATIONAL MONETARY FUNDTrade in Low CarbonTechnologies:The Role of Climate and Trade PoliciesSamuel PienknaguraWP/24/75IMF Working Papers describe research inprogress by the author(s)and are published toelicit comments and to encourage debate.The views expressed in IMF Working Papers areWORKING PAPERthose of the author(s)and do not necessarilyrepresent the views of the IMF,its Executive Board,or IMF management.2024MARFUND2024 Intemational Monetary FundIMF Working PaperResearch DepartmentTrade in Low Carbon Technologies:The Role of Climate and Trade PoliciesPrepared by Samuel Pienknagura*Authorized for distribution by Florence JaumotteMarch 2024IMF Working Papers describe research in progress by the author(s)and are published to elicitcomments and to encourage debate.The views expressed in IMF Working Papers are those of theauthor(s)and do not necessarily represent the views of the IMF,its Executive Board,or IMF management.ABSTRACT:Curbing carbon emissions to meet the targets set in the Paris Agreement requires thedeployment of low carbon technologies (LCTs)at a global scale.This paper assesses the role of climate andtrade policies in fostering LCT diffusion through trade.Leveraging a comprehensive database of climatepolicies and a new database identifying trade in low carbon technologies and the tariffs applied to these goods.this paper shows that the introduction of new climate policies has a positive and significant impact on LCTimports.Zooming into specific climate policies,the paper finds that,except for non-binding ones,all climatepolicies stimulate LCT imports.The paper also highlights the role of trade policies as an engine of LCTdiffusion-reductions in tariffs applied on LCT goods have a sizeable impact on LCT imports.On the flip side,results suggest that more protectionist measures would impede the spread of low-carbon technologies.RECOMMENDED CITATION:"Trade in Low Carbon Technologies:The Role of Climate and Trade Policies."by Samuel Pienknagura,IMF working paper,2024.JEL Classification Numbers:F14,F18.Q55,Q58Climate policies;trade;low carbon technologies;technologicalKeywords:diffusion.Author's E-Mail Address: