Trade integration vital to speed up global climate efforts: UN

UN Trade and Development (UNCTAD) has called for stronger global trade integration to accelerate climate action, warning that green trade barriers could undermine efforts to meet international climate targets. Climate risks are rising alongside escalating economic costs as the world remains on course to exceed the Paris Agreement's 1.5C threshold, the November 2026 Global Trade Update said. Trade in key mitigation technologies expanded rapidly, led by a 29% surge in battery trade and an 11% rise in electric vehicle trade during the first half of 2026.

Global exports of goods associated with solar and wind energy value chains also surpassed $1.8 trillion, outstripping growth across conventional manufacturing sectors. However UNCTAD warned that failure to accelerate climate mitigation through trade cooperation could result in global gross domestic product (GDP) losses of 10% under a 3C warming scenario. Despite expanding green trade, policy integration continues to lag, with only 7% of climate provisions in recent trade deals explicitly addressing the reduction of tariff and non-tariff barriers on green technologies.