From extreme storms to coastal flooding, the least developed countries (LDCs) are disproportionately affected by the impacts of climate change. More than two-thirds of climate-related disaster fatalities worldwide have occurred in these nations. This is why environmental sustainability is a cross-cutting issue that has been central to the trade capacity-building agenda of the EIF. The environment has not only been a cross-cutting priority for the EIF since the beginning of Phase Two, but it is also embedded in the EIF's strategic plan. Moreover, an indicator has been established to ensure that impact measurement considers environmental dimensions.

The partnership between The Gambia and the EIF began with country-led evidence‑based research and analysis to identify its pro-poor trade priorities. The resulting policy-guiding document – the 2007 Diagnostic Trade Integration Study (DTIS) – identified diversification and domestic production of goods and services in the areas of tourism, groundnuts and other agriculture products and fishing as sectors with the potential to spur sustainable development.

Climate change also impacts trade. Extreme weather events can reduce productivity, increase costs and supply chain disruptions in the short term and alter countries' comparative advantages and specialization in long term. The WTO World Trade Report 2022 finds that a rise of 1°C has been found to reduce the annual growth of developing countries' exports by between 2.0 and 5.7 percentage points.