UNEP report focuses on greening global trade

A new report released this week by the United Nations Environment Programme (UNEP) has highlighted how greening global trade is vital to achieving sustainable development.

Achim Steiner, UN Under-Secretary General and UNEP Executive Director, has stated that while greening global change represents a significant challenge it holds genuine opportunities for protecting biodiversity and mitigating greenhouse gase (GHG) emissions.

The report has noted that in the last two decades the increasing volume of trade has put additional stress on the worlds natural resources,and has contributed to increased GHG emissions.

While representing only a small percentage of the global market, trade in certified products and environmental goods and services is on the rise.  For example, the global market in low-carbon and energy efficient technologies, which include renewable energy supply products, is projected to nearly triple to US$ 2.2 trillion by 2020.

UNEP's report, 'Green Economy and Trade – Trends, Challenges and Opportunities', concludes that developing countries with significant renewable resources are well-positioned to capitalise on the opportunities to increase their share in international markets for sustainable goods and services. 

The report has analysed six economic sectors – agriculture, fisheries, forests, manufacturing, renewable energy and tourism – where trade opportunities exist, and has identified measures, such as policy reforms and certification, that can help developing countries benefit from these markets.

The reoport has also indicated that suppliers would possibly have to comply with an increasing number of environmental and social requirements.  In the lead-up to the United Nations Conference on Sustainable Development (Rio+20), several countries expressed concerns about such difficulties to access export markets due to complex regulatory regimes. Furthermore, achieving compliance can be expensive, especially for small and medium-sized enterprises.

Public and private sector support has been deemed as necessary in assisting businesses green their production and supply chains and regulatory cooperation, technical and financial assistance and capacity building, will be central if developing countries are to take advantage of the green trade opportunities.

In response to the calls made at Rio+20 for more action by the international community, UNEP will provide sector-specific assistance to developing countries through inclusive stakeholder processes to seize opportunities arising from the transition to a green economy.