'Business and climate are no longer an either-or choice'

PHILIPPEVARIN, chair ofthe International Chamber of Commerce, which represents over Li S million companies in 170 countries' is on an India visitwhile COP29 is unden Nay. ln an inte Niew in New Delhi, he tells Veenu Sandhu that any investment today must factor in sustainability from the very beginning' and explains why green trade finance is critical. Edited excerpts:

- PHILIPPE VARIN

How do you assess the current global trade environment, especially in the context of rising protectionism and geopolitical tensions?

To address this, we need to consider both the short-term and medium-term perspectives. In the short term, trade and global GDP have not seen significant disruptions. Global trade is expected to grow by 2.7 per cent this year and 3 per cent next year, according to forecasts. However, within this broader picture, we observe varying trends. Asia is growing at 4 per cent, while the EU lags at about 1 per cent.

This macroeconomic stability hides some underlying shifts. For example, tensions are mounting, as evidenced by the sharp rise in trade barriers. Last year, there were 3,000 barriers globally, a significant jump from 600 barriers just five years ago.

These barriers, which include export restrictions and regulatory measures like the EU's carbon border adjustment mechanism may create fragmentation. A major concern is the current functioning of the World Trade Organisation (WTO), with its dispute settlement body being frozen and critical issues like digitalisation and the sustainability transition making slow progress despite efforts. The WTO remains the most important forum for creating, monitoring and enforcing trade rules. A recent ICC report showed that dissolution of the WTO system would result in GDP losses of close to $4 trillion over a five-year period for developing countries alone.

Regarding a recent development, Gautam Adani has been indicted on bribery charges in a US federal court. Will this impact India's image as a business destination?