Changes in the EU's External Economic Relations in The Context of Sustainable Development with Special Attention to Trade and Financial Flows

The project aims to assess the ongoing changes in EU trade and financial flows in the context of sustainable development, with particular attention to environmental impacts. Key objectives include: evaluate trends and changes in trade and investment policies concerning sustainability criteria, particularly decarbonization; evaluate trade involving carbon emission embodied in products, evaluate trade involving environmental goods and green technologies, evaluate trends in investments, specifically focusing on sectors related to Sustainable Development Goals (SDGs), and assess investment incentives, evaluate the impact of remittances on sustainable development, including the environment.

The surge in international trade since the latter 20th century, driven by reduced barriers and technological advancements, raised concerns about one-third of global carbon emissions linked to trade. Despite sustainability initiatives, trade impacts CO2 emissions significantly, about one-fifth from cross-border production consumption. This is accompanied by a rising trade in environmentally friendly goods and technologies which brings new opportunities in contrast to existing challenges related to negative environmental impacts.

Moreover, foreign investments are increasingly directed towards SDG-aligned sectors, supported by incentives promoting sustainable development. Remittances, representing large financial flows crucial for developing nations, offer research possibilities as their environmental impact tends to be negative.

The EU, committed to sustainability, incorporates environmental standards into trade policies. The transitional phase of the Carbon Border Adjustment Mechanism requires further assessment, despite predictive studies conducted earlier.