Green Economy and Trade - Trends, Challenges and Opportunities

Prepared by the Trade, Policy and Planning Unit of the United Nations Environment Programme (UNEP), this report is a key component of the Green Economy and Trade Opportunities Project (GE-TOP). The aim of GE-TOP is to identify opportunities and barriers inherent in a transition to a green economy, and to assist all stakeholders to build capacity. This report uses a case-based approach to examine six sectors: agriculture, fisheries, forests, manufacturing, renewable energy and tourism.

The report begins by introducing the concept of a green economy and the types of opportunities arising from the transition, namely trade in environmental goods and services, standards and certification, and the greening of global supply chains. The report then presents a comprehensive analysis of each of the six sectors. It concludes by summarising the opportunities and enabling conditions identified. The necessity for greening products and processes is aided by growing opportunities with regard to market desirability and added value. Sustainable agricultural methods can increase productivity and there will be a growing market for business-to-business trade in the verification and certification of production methods and goods. Moreover, green energy represents a growing and potentially large industry, and emerging economies are becoming significant players in the trade in environmental goods and services.

The following five enabling conditions are identified by the report:

• Strategic investment and spending: economic infrastructure, targeted education programmes, technical assistance and access to sustainable energy should be considered crucial.
• Market-based instruments: subsidies to unsustainable products should be reformed, and environmental and social costs should be factored into pricing policies.
• Improving national regulatory frameworks, transparency and accountability.
• International frameworks: these are necessary for technology, skills and resource transfer and dissemination.
• Enhancing dialogue and capacity building: facilitate and support trade opportunities that arise, particularly with regard to access to export markets.