Title: Trade: a catalyst for achieving the Paris Agreement

Trade policy is one of the most powerful, yet underused, tools to accelerate the global transition to low-carbon economies, meet the Paris Agreement goals, and finance climate action, especially in developing countries.

Key facts & figures:

• Trade in solar & wind technologies is growing faster than other industrial goods (solar +56%, wind +39% since 2013).
• 2024: exports of environmental goods reached $2 trillion (14% of global manufacturing exports).
• 2023: non-plastic substitutes exports = $485 billion.
• 2021: biodiversity-based products exports = $3.7 trillion.
• Tariffs on clean energy goods remain higher than on fossil fuels (e.g., Africa: 7.1–7.6% vs. almost zero on many fossil fuels).
• Current NDCs (as of Oct 2025) are insufficient to meet Paris targets; only 11 of the 35 largest emitters have submitted more ambitious plans.
• Developing countries submitted ~90% of the new NDCs, but 80% of their targets are conditional on international support (finance, technology, capacity-building).

Main recommendations:

1. Systematically integrate trade measures (tariff cuts, standards harmonisation, South-South cooperation) into NDCs.
2. Remove tariff & non-tariff barriers on low-carbon technologies and environmental goods.
3. Use trade to diversify exports, create new green value chains, and generate revenues to fund climate action.
4. Strengthen international cooperation on MRV of embodied carbon, interoperability of sustainability standards, and climate-friendly trade agreements.

The report positions trade not just as part of the climate problem (embodied emissions), but as a major part of the solution, cheaper clean tech, new export markets, and fiscal space for developing countries.

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