Trade in clean technologies is driving down costs and expanding access to renewable energy, but barriers still hold back its potential.
As the world gathers for the COP30 climate change conference in Belém, Brazil, the latest Global Trade Update from UN Trade and Development (UNCTAD) sends a clear signal: trade can power climate action.
Trade facilitates access to renewable energy technologies, helping countries transition to low-carbon economies. It also helps reduce the cost of renewable energy, making it more accessible.
But high trade costs and other barriers still hold back momentum. UNCTAD calls for aligning markets and trade with the Paris Agreement to accelerate the low-carbon transition and finance climate action.
Trade in solar and wind energy goods outpace industrial goods
Between 2013 and 2022, trade in solar-energy goods rose 56% and wind-related goods 39%, far ahead of the 23% growth in overall industrial goods.
And clean energy is getting cheaper. The average global cost of electricity from new solar projects fell 41% between 2010 and 2024. Onshore wind power now costs 53% less than fossil-fuel generation.
But tariffs and non-tariff measures remain a barrier
However, average tariffs on components used for renewable energy remain high, particularly for developing countries.
For example, average tariffs on solar and wind components stand at 7.1% in Africa and 2.5% in Asia and Oceania, compared with under 2% in developed markets. When non-tariff measures are added, Africa’s total trade costs rise to 7.6%. Tariffs on intermediate components can reach 8.1% in Africa and 4.1% in Asia.
UNCTAD says regional integration and South–South cooperation could help cut barriers, lower costs and allow developing countries to participate more fully in emerging low-carbon value chains.
Still need to decarbonize economies and trade
Three decades after the first climate agreements, the link between growth and emissions remains close. Since 1990, global GDP has risen 191% while CO2 emissions have increased 66%.
Economic expansion still depends on fossil fuels, making it harder to meet the Paris Agreement’s temperature goals.
But just 35 economies account for 91% of total CO2 emissions and 73% of global exports. While the data underscores the need to decarbonize economies, it also highlights the urgency of ensuring a just energy transition – one that enables vulnerable countries to seize new opportunities rather than shoulder the costs of change.
More countries must deliver ambitious climate plans
Only 11 of the 35 largest emitters have submitted updated, more ambitious climate action plans – known as Nationally Determined Contributions – ahead of COP30.
At the conference in Belém, UNCTAD will urge countries to devise climate plans that leverage trade opportunities for low-carbon growth and economic diversification.
Nearly half of UN member countries remain commodity dependent, relying on raw materials for over 60% of their export revenue. To fully harness the potential of trade in renewable energy components, developing countries rich in critical minerals must move up global value chains.
Expanding and diversifying exports in low-carbon industries can generate the revenues needed to finance the climate transition and meet the goals set under the Paris Agreement.