Current human-induced climate variability is linked to past economic patterns, which are responsible for the majority of greenhouse gas emissions. If climate change is to be effectively addressed, solutions will necessarily affect the global economy. International trade has become one of the pillars of the global economic system; overlap between climate change policies and the multilateral trading system administered by the World Trade Organization (WTO) therefore seems inevitable. International trade affects climate change, as it potentially increases economic activities that may in turn lead to increased greenhouse gas emissions. Conversely, taking measures to reduce greenhouse gas emissions might adversely affect competitiveness and hence reduce countries’ willingness to participate in such measures. This paper first provides a short overview of some of the key issues of overlap in the climate and trade regimes. After this general discussion, the paper will focus in more detail on recent debates on climate-related trade measures in both the United States and the European Union, and discuss their effectiveness, legality, the implications for developing countries, and effects on the climate negotiations. While proponents of such ‘border adjustment measures’ emphasize the need to include such measures as part of domestic climate policies to reduce emissions leakage to other countries, others have argued that these measures amount to ‘green protectionism’ to safeguard the competitiveness of energy-intensive industries in the North. The paper concludes with a discussion of options to address the interplay between the climate and trade regimes, identifying some advantages and drawbacks of using different forums, including the WTO and the United Nations Framework Convention on Climate Change.