A new Global Trade Update released by UN Trade and Development (UNCTAD) confirms that international trade is an indispensable and powerful policy tool for achieving the goals of the Paris Agreement, including limiting global warming to 1.5 degrees centigrade.
The report, published ahead of the United Nations Climate Change Conference (COP30) in Belém, Brazil (10-21 November), provides fresh data and policy analysis demonstrating how integrating trade policy into national climate plans can accelerate the shift to low-carbon economies, diversify exports, and generate essential revenues for climate adaptation efforts.
The findings reveal a decisive upward trend in global demand for climate-friendly products and technologies:
Surging Green Exports: In 2024, global exports of environmental goods reached a record $2 trillion, accounting for 14% of all global manufacturing goods traded. This signals robust economic momentum for climate solutions.
Cost Reductions in Clean Energy: International trade has been instrumental in making clean energy more affordable. The average global cost of producing electricity from new solar projects has fallen by an astonishing 41% between 2010 and 2024. Furthermore, onshore wind generation now costs $53 less than fossil-fuel power.
Massive Potential in Sustainable Cooling: Technologies like advanced thermostats and insulating glass are seeing major growth, with trade in these goods rising by 32% and 43% respectively between 2018 and 2023. The global market for sustainable cooling is valued at $600 billion and could deliver up to $8 trillion in economic benefits for developing countries by 2050.
Despite the clear momentum, the UNCTAD analysis cautions that policy barriers are slowing the deployment of critical green technologies, particularly in developing economies.
Average tariffs on solar and wind components range from 1.9% in developed economies to 7.1% in Africa, rising to 7.6% once non-tariff measures are included. Policy barriers also hamper the shift away from plastics, as tariffs on plant-based plastic substitutes average 14.4%, which is double the rate applied to conventional plastics.
The report urges policymakers gathering for COP30 to prioritize the removal of these trade barriers to ensure that green technologies and products can flow freely and affordably, ensuring a more equitable and rapid global transition.
