The recent Canada-EU summit injected a much-needed dose of climate action into the global political landscape, a stark contrast to the conspicuously silent G7 meeting. This renewed focus on environmental issues, spearheaded by Prime Minister Mark Carney and EU leaders, centers around integrating climate change policies directly into international trade agreements.

A key statement emerged from a June 23rd press conference in Brussels: “The future of trade does take carbon into account,” Carney declared, adding the provocative, yet insightful, phrase, “carbon is trade.”

This comment, a response to a question regarding a circulating US-EU trade deal draft from the U.S. Trade Representative’s Office, signals a potential paradigm shift. It suggests that the environmental impact of goods and services will no longer be a secondary consideration in trade negotiations, but rather a fundamental element shaping future agreements. The implication is profound: the very fabric of global commerce is poised for a green transformation.

Carney’s statement hints at a future where carbon emissions are not just an externality, but a core factor influencing trade negotiations and agreements. This approach reflects a growing global awareness of the inextricable link between economic prosperity and environmental sustainability.