ENTICE

Despite the wide recognition of the complex interactions between trade (policy) and climate (policy), even state-of-the-art capabilities in macroeconomic models face substantial limitations, such as lack of granular data, dependence on conventional trade theories, limited empirical evidence on trade-climate interactions, limited representation of the value and material chains in existing and emerging key sectors, heavy reliance on frameworks not accounting for endogenous technical change, limited understanding of the role of developing countries in global trade, as well as other limitations.

The ENTICE project aims to develop novel data and modelling capacities to enhance knowledge and inform policymakers on the positive and negative impacts of trade and trade policy on climate and the environment, by combining well-established macroeconomic modelling with new trade theories, empirical analyses, and enhanced data granularity. The project team focuses on emissions and climate change issues but also integrates the broader effects on the environment, biodiversity, pollution, and natural resources depletion. The ENTICE work programme includes:

• a novel theoretical conceptualisation of trade, climate, environment, and industry interactions;
• significant improvements to sectoral detail and relevant granularity in the GTAP database;
• integrating the new data into a toolbox of well-renowned CGE, macroeconometric, integrated assessment, and sectoral models as well as other methodologies.

The ENTICE project team analyses the interactions between trade (policy), climate (policy), the environment, and broader economic and sustainability objectives in the EU and beyond. In presenting its findings, the team places considerable emphasis on transparency, legitimacy, open science and data, as well as on research and development that directly respond to stakeholder needs and the discourse on trade and climate policy.

This project has received funding from the European Union’s Horizon Europe Innovation Action programme under Grant Agreement No. 101184775.