- Growing awareness and concerted action on harnessing trade for climate goals
- Renewed commitments to scale high-quality climate finance, particularly in developing countries
- New cooperation mechanisms to accelerate just and equitable transitions
GENEVA, Switzerland – Trade and finance can work better for climate action. The latest UN climate summit, COP30, proposes three pathways forward.
Top initiatives to scale climate finance
From previous COP discussions, expectations that the Baku to Belém Roadmap would serve as an implementation plan to mobilize at least $1.3 trillion annually by 2035 for developing countries to fight climate change were not fully realized.
To speed up progress, COP30 agreed two tracks:
- A new work programme on climate finance
- The Veredas Dialogue to make global finance flows consistent with efforts towards low greenhouse gas emissions and climate-resilient development
Additionally, countries called for a tripling of adaptation finance by 2035, which is essential for enabling economies, communities and systems to adjust to a changing climate but remains drastically underfunded.
In this regard, questions remain around the baseline for tripling and types of financing. Further consensus is needed to ensure this commitment can be meaningful in securing adaptation progress.
Trade for climate action: Growing awareness and concerted efforts
Trade has gained prominence in climate talks, as climate policies increasingly intersect with trade rules. Meanwhile, some trade-related climate measures – for instance, environmental standards, subsidies or carbon border adjustment mechanisms – raise concerns over market access.
COP30 established a dedicated dialogue to consider opportunities and challenges for international cooperation related to the role of trade. UN Trade and Development (UNCTAD) will participate in the dialogue as a key stakeholder, alongside the World Trade Organization and the International Trade Centre.
COP30 unveiled UNCTAD’s latest guide to policymakers, focused on leveraging trade and investment measures to decarbonize economies and adapt to climate change at lower costs.
Trade was also elevated within the non-negotiated action agenda of COP30, with UNCTAD contributing to:
- The Integrated Forum on Climate Change and Trade, launched by President Luiz Inácio Lula da Silva of Brazil, to further global cooperation in aligning economic and climate objectives.
- The initiative entitled “Harnessing Trade Policy for NDCs, Low-Carbon Economic Diversification and Climate Resilience”, which UNCTAD will co-lead along with nearly a dozen global entities.
International cooperation key to just, equitable transitions
Notably, countries at COP30 agreed to develop a dedicated mechanism to enhance international cooperation for just and equitable transitions.
The process will start in 2026, with further operational details to be hammered out at COP31.
UNCTAD underscores that just transitions need to be interlinked and mutually reinforcing with other Sustainable Development Goals, while offering development opportunities for developing countries.
Therefore, a new cooperation mechanism for just transition should also tackle the structural constraints currently holding back developing countries in making their economies greener and more sustainable.
In connection to this mechanism, new workplans are set to begin in 2026 for the globally agreed Technology Implementation Programme and the forum on the impacts arising from implementing climate-change response measures.
For developing countries, the mechanism and related developments could bring opportunities, such as facilitating affordable access to climate-related technologies, or mitigating negative cross-border impacts from other jurisdictions’ climate policies.
Looking ahead to Antalya
COP31 will feature an innovative leadership arrangement: Türkiye will act as COP31 Presidency and host the conference, while Australia will lead the negotiations, and a pre-COP session will take place in a Pacific island nation.
UNCTAD remains committed to helping developing countries tap into trade and climate finance for just transitions, so that multilateralism and international cooperation supercharge a sustainable and equitable future for all.
