SDG 13: Climate Action | SDG 17: Partnerships for the Goals
Institutions: Ministry of Commerce & Industry | Ministry of Environment, Forest and Climate Change
The United Nations Conference on Trade and Development (UNCTAD) has urged governments to make trade policy a central driver of global climate ambition. Its Global Trade Update 2025 finds that integrating trade into Nationally Determined Contributions (NDCs) under the Paris Agreement could unlock both emissions cuts and growth opportunities.
Trade already accelerates decarbonisation by lowering costs and widening access to clean technologies. Exports of solar and wind components now outpace other industrial goods, while environmental-goods exports reached $2 trillion in 2024, or 14 per cent of global manufacturing. UNCTAD projects that expanding low-carbon industries can finance countries’ own NDC targets. Yet tariffs on green goods remain higher than on fossil-fuel products, averaging 7 per cent in Africa and 2–3 per cent in Asia-Pacific — a key barrier to diffusion.
The report warns that current NDCs cover only 30 per cent of global emissions, with just 11 of the 35 largest emitters submitting stronger pledges. It urges countries to weave tariff reform, environmental-goods trade and sustainability-standard harmonisation into their climate plans. Developing economies, it notes, are leading this integration: new NDCs from Brazil, Cambodia, Nepal and Singapore link emission targets to export competitiveness and technology access.
UNCTAD calls for international cooperation to lower trade barriers, improve access to affordable low-carbon technology, and strengthen capacity for monitoring embodied carbon in traded goods. The report highlights South-South partnerships and initiatives such as the UK–UNCTAD Sustainable Manufacturing and Environmental Pollution Programme as models for linking climate goals with inclusive industrial growth.
For India—preparing its updated NDC for COP30—UNCTAD’s findings reinforce the need to align trade policy with climate ambition. Tariff rationalisation for solar, wind and non-plastic goods, coupled with participation in emerging climate-compatible value chains, can advance both export competitiveness and decarbonisation. The approach supports India’s goals under Make in India Green and Mission LiFE, while expanding access to global green markets.
What is a Climate-Aligned Trade Policy? → A policy framework that uses tariffs, standards and partnerships to expand clean-tech trade, reduce emissions and finance climate action in line with the Paris Agreement.
Follow the full report here: UNCTAD Global Trade Update – November 2025