Trade in Renewable Energy Powers Ahead, but Barriers Slow Transition
Global trade in clean technologies is significantly lowering costs and widening access to renewable energy sources. As the world convenes for the COP30 climate conference in Belém, Brazil, UN Trade and Development (UNCTAD) emphasizes that trade can be a driving force for climate action.
Trade as a Catalyst for Climate Action
According to UNCTAD’s latest Global Trade Update, international trade supports countries in their shift toward low-carbon economies by improving accessibility to renewable technologies and reducing energy costs. However, persistent high trade expenses and structural barriers continue to hinder this transition.
“Trade can power climate action.” — UNCTAD Global Trade Update
UNCTAD urges alignment between global markets and the Paris Agreement to speed up the clean energy transition and fund climate efforts worldwide.
Growth in Clean Energy Trade
- Between 2013 and 2022, global trade in solar-energy goods surged by 56%, while wind-related goods increased by 39%.
- By comparison, overall industrial goods grew only 23% during the same period.
- The average global cost of electricity from new solar projects fell by 41% between 2010 and 2024.
- Onshore wind power is now 53% cheaper than fossil-fuel-based generation.
Persistent Barriers and Regional Disparities
Despite these advances, tariff and non-tariff barriers remain a major obstacle, especially in developing regions. Average tariffs on renewable energy components vary significantly:
- Africa: 7.1% tariffs on solar and wind components.
- Asia and Oceania: 2.5%.
- Developed markets: below 2%.
When accounting for non-tariff measures, the total trade cost in Africa rises to 7.6%, and for intermediate renewable components, tariffs can reach as high as 8.1%.
UNCTAD’s Call for Action
“Aligning trade policies with the Paris Agreement is essential to accelerate the low-carbon transition.” — UNCTAD
The organization highlights the urgent need to harmonize trade regulations, lower tariffs, and strengthen climate financing to unlock the full potential of renewable trade and global sustainability goals.
Author’s Summary: Clean-tech trade boosts renewable energy access and cost efficiency, but high tariffs and trade barriers still impede a faster low-carbon transition worldwide.