Amid the recent global trade slowdown, green goods are the winning ticket

In accordance with UNCTADlast Global Trade Updatetrade in green goods, that use fewer resources and pollute lessgrew by four percent in the second half of the year, reaching record $1.9 trillion in 2022.

“This is good news for the planet, as these products are key to protecting the environment and combating climate change,” said UNCTAD economist Alessandro Nikita, one of the authors of the report.

Green products that performed particularly well in 2022 included electric and hybrid vehicles, non-plastic packaging and wind turbines.

The findings come days after the Intergovernmental Panel on Climate Change (IPCC) warned in his flagship report that greenhouse gas emissions must fall now and be cut by almost half by 2030 if the goal is to keep temperatures below 1.5 degrees Celsius above pre-industrial levels.

“Uncertain” outlook for 2023

Overall, global trade was at a record $32 trillion in 2022, but deteriorating economic conditions contributed to a downward trend in the second half of the year.

According to UNCTAD, trade outlook remains ‘uncertain’”; The UN body cited geopolitical tensions, high commodity prices and record levels of government debt, coupled with high interest rates, as reasons for concern. According to UNCTAD, global trade will stagnate in the first half of 2023.

However, in the second half of the year, “positive factors”, including a weaker US dollar – the main currency used in trade – stabilized shipping costs and reduced supply chain disruptions, could boost trade.

Green growth will continue

Despite global economic uncertainty, UNCTAD said growth in the production of environmentally friendly goods will continue, helped by momentum to combat climate change. last Technology and Innovation Report released last week described the moment as “the start of a green technological revolution.”

The report predicts that the market for electric vehicles, solar and wind energy, green hydrogen and other cleaner technologies will grow. quadruple by 2030 up to $2.1 trillion.

UNCTAD believes that international trade patterns will increasingly reflect the ongoing transition to a green economy.

Sustainable technology gap

UNCTAD also warned that developed countries capture most of the economic opportunities associated with green technologies, while developing countries lag behind.

“Missing this green technology wave due to insufficient policy attention or lack of investment aimed at developing skills and capacities would be long-term negative effects”, says the UN report on technology and innovation.

Among its recommendations, the UNCTAD report called on the international community to support emerging green industries in developing countries through global trade and technology transfer rules so that developing countries can “catch up economically by helping protect the planet.”