• Analysis and Studies
• Growth in the Trade of "Green Goods"

In the year 2022, global trade reached an unprecedented milestone, reaching a staggering $32 trillion. However, this impressive growth story took a negative turn during the latter part of the year, largely due to deteriorating economic conditions and mounting uncertainties. The outlook for the first half of 2023 appears to be one of stagnation, casting shadows on the global trade landscape.

Despite these challenging circumstances, there is a notable bright spot in the realm of international trade – the remarkable performance of "green goods." These environmentally friendly products, designed to consume fewer resources and produce minimal pollution compared to their conventional counterparts, demonstrated remarkable resilience throughout 2022. According to the latest Global Trade Update by UNCTAD, published on March 23, trade in green goods experienced a robust growth rate of approximately 4% in the latter half of the year. The combined value of these green products soared to an all-time high of $1.9 trillion in 2022, marking an increase of over $100 billion compared to the previous year.

Noteworthy among the green goods that outperformed the downward trade trend were electric and hybrid vehicles, showing a remarkable growth rate of 25%. Additionally, non-plastic packaging and wind turbines witnessed growth rates of 20% and 10%, respectively. UNCTAD's projections indicate that green industries are poised for significant expansion as nations intensify their efforts to combat climate change and reduce emissions.

In its recent Technology and Innovation Report for 2023, UNCTAD has laid out an ambitious forecast, projecting that the global market for electric vehicles, solar and wind energy, green hydrogen, and a host of other green technologies will reach an astonishing $2.1 trillion by 2030. This projection represents a fourfold increase from their current market value, signifying a profound shift in the international trade landscape.

The Global Trade Update emphasizes that international trade patterns are expected to increasingly align with the global transition toward a greener economy. This shift underscores the growing importance of sustainable and environmentally friendly practices in the world of trade and economics, signaling a promising future where trade and environmental stewardship go hand in hand.