ENTICE: D1.2 – TCI Framework and Synthesis of Co-creation Results

This deliverable comprises a technical report describing the research process and summarizing the insights from two main outputs which are included as annexes. The first represents the TCI research framework which is intended to structure qualitative and quantitative research as well as stakeholder engagement of the ENTICE project. Its key elements include a succinct discussion of definitions of trade-, climate-, and industrial policy respectively and their interactions. It provides a concise summary of the economic foundations of trade-environment interactions and proposes a unified taxonomy of TCI policy instruments. A perspective on commodities and associated emissions across the value chain completes the framework. The second output is a manuscript for an academic perspective-type article which places the same economic foundations entailed in the TCI framework in the light of recent geopolitical and geoeconomic shifts and derives key research challenges on that basis: (1) we need to better understand complex and non-linear trade-climate links and especially understand path dependency and asymmetric effects; (2) we need to strengthen enabling conditions in terms of institutional quality and regulatory frameworks; and (3) we need to understand under what conditions can trade and industrial policy deliver co-benefits for both competitiveness and decarbonisation?