Cutting Through the Greenwash: A Practical Guide to Green Trade Compliance
Governments and regulators are ramping up efforts to address climate change through trade policies. In this episode of Simply Trade, sustainability expert Emily Cori breaks down the complex landscape of green trade initiatives and shares actionable strategies for importers and exporters.
Understanding the Expanding Regulatory Framework
Cori outlines the four pillars of the CBP’s green trade strategy, which aims to incentivize green trade, strengthen enforcement, accelerate innovation, and improve climate resilience. She also explains the scopes of emissions reporting that companies must track – Scope 1 for direct emissions, Scope 2 for indirect emissions, and Scope 3 for all other supply chain emissions.
Major regulations like the EU’s incoming carbon border tax are also discussed. While voluntary now, carbon reporting will likely become mandatory to avoid trade barriers in the future. Staying informed of evolving rules from agencies worldwide is critical.
Practical Solutions for Compliance Challenges
Traceability poses a significant hurdle, especially for manufacturers. Cori shares examples of traceability models but notes feasibility challenges. Offsetting emissions through sustainable practices like remote work or improved logistics is another compliance strategy.
Consultants can also provide carbon reporting, traceability mapping, and sustainability services to ease the burden. Resources like the EPA’s SmartWay program list certified green carriers. Outsourcing expertise helps navigate complex methodologies.
Takeaways for Future-Proofing Your Business
The key is getting started sooner rather than later. Companies should understand scope definitions, research offset programs, vet supply chain partners, and consult experts regularly. A voluntary mindset paired with continuous learning prepares businesses for long-term compliance in this shifting regulatory environment.
Special Guest: Emily Cori
Hosts: Lalo Solorzano and Andy Shiles
