GENEVA, Switzerland, 26 October 2023: The United Nations Conference on Trade and Development (UNCTAD) announced that it will host the Trade House Pavilion at the 28th UN Climate Change Conference (COP28) to spark discussions and advance consensus on trade-related measures that can help drive both climate and sustainable development actions in partnership with the International Chamber of Commerce, the International Trade Centre and the World Trade Organisation.

Making the announcement through a Press release, UNCTAD said COP28 is slated for November 30 to December 12 in Dubai, United Arab Emirates, and the pavilion will bring trade and climate policymakers and experts together for the first time in a UN climate conference. In addition, UNCTAD said it will also contribute to the COP28 Trade Day on December 4, the first time the climate summit will dedicate an entire day to discussions on trade’s role in climate action.

Rebeca Grynspan, Secretary-General, UNCTAD, said: “Climate and trade policies need to work together. As the world is coping with the devastating effects of global warming, it’s time for trade to play its role in shaping climate action that fosters inclusive and sustainable development. Moreover, this starts with the international organisations with a trade mandate joining forces, and UNCTAD is pleased to work with our partners to host this first Trade House pavilion at COP28.”

A platform for solutions

UNCTAD said the pavilion would showcase how trade-led development can bolster climate action using coordinated and inclusive approaches to accelerate a global just transition to a low-carbon economy. The organisation further said it will also offer a platform for knowledge exchange and co-creation of pro-development solutions among stakeholders from across the globe. Furthermore, UNCTAD said it would comprise expert panel discussions on topics such as ensuring a just energy transition from a development perspective, South-South trade in environmentally preferable goods and services, and trade-related measures to advance the implementation of nationally determined contributions. The organisation also said the panellists will discuss services that support the energy transition, the role of plastic substitutes, sustainable investment, finance and the blue economy in supporting the just transition, among others.

Strong link between trade and climate change

UNCTAD said the link between trade and climate change has never been clearer, and trade-related emissions, those associated with the global production and distribution of goods and services, contribute to roughly a quarter of all carbon dioxide emissions. Therefore, UCTAD added more cooperation is needed to reduce trade-related emissions to meet the goals of the Paris Agreement on climate. UNCTAD said trade can also be a powerful tool to accelerate the energy transition and support resilient development pathways with low emissions, and it can facilitate access to environmentally preferable goods and services and to technologies and know-how critical to boosting innovation and building capabilities to support mitigation and adaptation efforts in all countries.

At the same time, UNCTAD added climate-related measures, such as industrial policies, carbon pricing and related border adjustments, which are increasingly affecting trade and investment, with serious potential development impact. The organisation further said the world needs to better understand the co-benefits and trade-offs between climate and trade policies and their sustainable development implications to ensure coherence in policy design and a just transition.

Challenges facing developing countries

UNCTAD said developing countries face challenges in mitigation, adaptation and transition to low-carbon economies, including financial and fiscal constraints, inadequate infrastructure and institutions, and limited access to necessary technologies, skills, knowledge and capabilities. A just transition, UNCTAD said, must offer development opportunities, including technological advancement to spur structural economic transformation, job creation, enhanced productive capacity and trade diversification.

Chantal Line Carpentier, Head -Trade, Environment, Climate Change and Sustainable Development Branch, UNCTAD, said: “A just transition requires coherent pro-development climate and trade measures, partnerships and policies. We must work together to explore innovative solutions that leverage trade as a force for good. Furthermore, UNCTAD is committed to partnering with all relevant stakeholders to co-create policy options and trade systems that allow developing countries to capture emerging trade opportunities while adapting to climate change and advancing their structural transformation.