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Friday, 05 March 2010

Aid for trade and climate change financing mechanisms

Trade and climate change issues are intricately linked, especially in Africa, whose economies rest on agriculture, a sector that is highly vulnerable to climate change. The cumulative evidence shows that sub-Saharan Africa will be the most affected region of the world. Climate change-induced events, such as droughts, global warming and sea-level rise, will have substantial impacts on Africa’s agricultural crops, livestock and fisheries, water resources, coastal zones, infrastructure, as well as human health. This brief focuses on the links between climate change-adaptation measures adopted by African Least Developed Countries (LDCs) and Small Vulnerable Economies (SVEs) and their trade impacts. Africa’s position in world trade is marginal, and various factors, including Africa’s geography, concentration on low-value, inefficient agriculture, distorted policies, deficient infrastructure and poor institutional support, have prevented AfricanLDCs and SVEs from taking advantage of existing market access privileges to integrate the world economy in ways that make an impact on economic development and
poverty alleviation.

Source: ACP-EU-Trade