Faced with the urgency of climate change, many countries are embracing policies to tackle it. However, these policies are not only reshaping the landscape of global trade flows but also risking further fragmentation and inequality.  One challenge concerns the consequences for low-income countries that rely on export-led growth and especially their Small and Medium-sized Enterprises (SMEs) part of global supply chains. To successfully navigate this challenge and promote a just and inclusive transition to a greener world, bold policies are needed that foster coordination and incentivize firms to decarbonize. 

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