Based on UNCTADnewest of Global trade updatetrading “green goods”, use less resources and cause less pollution4% in the second half of the year, reaching record $1.9 trillion in 2022.
“This is good news for the planet, because These goods are the key to protecting the environment and fighting climate change,” said UNCTAD economist Alessandro Nicita, one of the report’s authors.
Green goods that perform particularly well in 2022 include electric and hybrid vehicles, plastic-free packaging, and wind turbines.
The findings come days after the Intergovernmental Panel on Climate Change (IPCC) is warned in top report that greenhouse gas emissions need to be reduced now and cut by nearly half by 2030, if the goal is to keep temperatures from rising more than 1.5 degrees Celsius above pre-industrial levels.
‘Uncertain’ outlook for 2023
Overall, global trade is worth a record $32 trillion in 2022, but deteriorating economic conditions contributed to the downward trend in the second half of the year.
According to UNCTAD, the Trade outlook remains “uncertain”“; The UN agency cited geopolitical tensions, high commodity prices and record levels of public debt combined with high interest rates as reasons for concern. UNCTAD forecasts that global trade will stagnate in the first half of 2023.
However, in the second half of the year, “positive factors” include a weaker US dollar – the main currency used in trade – stable transportation costs and fewer supply chain disruptions, can promote trade.
Continue green growth
Despite global economic uncertainties, UNCTAD says green goods growth will continue to sustain, fueled by the impetus for climate action. Latest UNCTAD Technology and Innovation Report released last week described the moment as “the beginning of a green technological revolution”.
The report predicts that the market for electric cars, solar and wind energy, green hydrogen and other environmentally friendly technologies will quadruple in value by 2030 reached 2.1 trillion USD.
UNCTAD believes that international trade patterns will increasingly more closely reflect the ongoing green economic transition.
Long-term technology gap
UNCTAD also warning that developed countries are seizing most of the economic opportunities associated with green technology, while developing countries are lagging behind.
“Missing out on this green technology wave due to inadequate policy or lack of investment in skills and capacity building will long-term negative consequences,” the United Nations agency’s Technology and Innovation report maintains.
Among its recommendations, the UNCTAD report calls on the international community to support emerging green industries in developing economies through global trade rules and technology transfer – so that developing countries can “catch up economically, while helping to save the planet.”
