The Future of Trade is Green
Up to
%
of today’s carbon emissions come from global trade.
Source: World Trade Organization, 2021
⬇
But emerging business models are green
Young people committed to greener consumption and sustainable business models. Governments are changing laws and regulations encouraging green investments. Support institutions are stepping up mentorship, certification and training.
“To move the sustainability agenda forward, first you’ve got to have political will at the highest level, that will drive change. Second, you’ve got to have strong public-private partnership and collaboration. Third, you’ve got to have talented, educated people”
Raja Badrulnizam Raja Kamalzaman, Senior Director for Strategic Planning, MATRADE, Malaysia
“We are heading towards green and inclusive trade… Nepal has tremendous hydropower potential and there is huge demand for clean energy in the region… Nepal has also committed to net zero emissions by 2045.”
Madhu Kumar Marasini, Secretary, Ministry of Industry, Commerce and Supplies, Nepal
“Mitigating the climate crisis is a big deal for me. Put the planet first, put people first, and profits will come naturally.”
Mawuse Christina Gyisun, CEO, Sommalife, Ghana; Youth Ecopreneur Awards Finalist
“There’s a lot to learn from nature. It has 3.8 billion years of research and development. Keep nature in the centre of your mind, every time you reach out to your community.”
Oyungurel Munkhbat, CEO, Airee, Mongolia; Youth Ecopreneur Awards Winner, Green Business Solutions
“If the world goes towards slow fashion, Mongolia produces high quality, organic, biodegradable fibres, drawing on centuries of history as nomadic herders.”
Tuulpurev Erdenebat, CEO, Munkh Cashmere, Mongolia
“What legacy do we leave for future generations? Only material goods? Or the atmosphere, so that they can live decently?
Thérèse Sekamana, CEO, LED Solutions; CEO, Green Energy Rwanda
“Kenya committed to 100% renewable energy by 2030… This is bringing about innovation. Fossil fuels are being replaced with renewables for transport, and satellite-based solar power is being used more in agribusiness, health and education. We’re seeing farming on rooftops through hydroponics… and lots of organic fertilizer innovations to support agriculture as well as conversion into mobile and laptop chargers…”
Joseph Murabula, CEO, Kenya Climate Innovation Center
More than
%
of small firms are very concerned about environmental risks.
Source: SME Competitiveness Outlook, International Trade Centre, 2021
⬇
They need resources to adapt
Small firms worry about changing temperatures, water scarcity, floods, access to supplies, air quality and rising sea levels. They seek information on climate change, shifting consumer patterns and market opportunities, new regulations, certification requirements and green financing sources to become eco-compliant.
Source: SME Competitiveness Outlook, International Trade Centre, 2021
“Vietnam is among the top five countries to be seriously affected by climate change in the future. We have 800,000 enterprises and 90% are MSMEs. They contribute just 30% of GDP and can contribute more. We must support them, so we launched a national strategy for green development and transformation. We are focusing on the green sector and wind energy.”
Vu Ba Phu, Director General, Vietrade
“Now our economy is based on mining. Our government is putting priority on the non-mining sector, including a draft law on non-mining export support, and the introduction of a single window system improved customs check procedures and duties. We’re working with ITC on a national export strategy and it includes renewable energy and ICT. We’re supporting sustainable, digital and green trade trends.”
Batkhuu Idesh, Director General for Trade and Economic Cooperation Policy, Ministry of Economy and Development of Mongolia
“In Kenya, we use an ecosystem approach. Technical partnerships co-create programmes, help with product development and standards to ensure clients are market ready. Formal partnerships with universities help identify innovations through students… For quality, we go through associations to influence policy such as the Association of Manufacturers, the Kenya Private Sector Alliance Association of Small Business, the Kenya Renewable Energy Agency. For funding, the EU is one of our largest partners, mostly around agriculture.”
Joseph Murabula, CEO, Kenya Climate Innovation Center
+%
of micro and small firms are not certified to a sustainability standard.
Source: SME Competitiveness Outlook, International Trade Centre, 2021
⬇
Due diligence for sustainable practices is transforming value chains
The European Union is introducing ambitious sustainability certification standards in 2025 and the US is on a similar path. Small firms in developing countries need to certify that their products are sustainable to enter these markets. Certification takes time, skills and capital. They need training and resources to comply, to ensure a just transition.
“These new regulations… support the diffusion of more clean and efficient production methods and technologies. And they create market access opportunities for green goods and services… For example, Mongolia benefits from the General Scheme of Preferences (for good labour practices), which allows Mongolia to export two-thirds of its products to the European market with zero tariff.”
H.E. Axelle Nicaise, Ambassador of the European Union to Mongolia
“If we take sustainability and inclusiveness seriously, being a donor organization, it’s about walking the talk. We have market research analysis about trends in Europe, how to go green, what kind of certification is needed and where to find buyers. We work on capacity building in Africa and Asia to overcome barriers to the European Union… We have to accept that it’s a learning process and we have to do it together.”
Judith Arends, Managing Director, Netherlands Centre for the Promotion of Imports from Developing Countries
Full session recording
Towards Green Trade
Session Recap
Partnerships for Green Trade
Session Recap
National Paths to Green Trade
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