Figure 1

Turning tensions into complementarities

ECONOMIC SECURITY DEVELOPMENT CLIMATE CHANGE Security-driven protectionism hurts development and increases social instability risks Economic security creates trade opportunities while building new supply chains Nationalistic approaches slow the net zero transition while supply chains are over-concentrated Coordinated investments accelerate transition while reducing over-concentration Clean energy trade creates economic opportunities and lowers costs of transition Climate impacts threaten development but development increases emissions

Lowy Institute