Unlocking Climate-Smart Trade: Enhance Efficiency and Drive Sustainable Solutions

A new initiative aims to significantly reduce carbon emissions from cross-border trade while boosting efficiency and sustainability in Africa and the Asia-Pacific region. Started on March 10, this project brings together various United Nations agencies to rethink global trade practices.

The three-year program, titled Climate-smart trade facilitation for economic and climate resilience in Africa and Asia-Pacific, harnesses digital solutions to cut down on paperwork and streamline logistics for more sustainable trading.

Targeting countries like Cambodia, Rwanda, and Vanuatu, the initiative is led by the UN Conference on Trade and Development (UNCTAD) and the UN Economic and Social Commission for Asia and the Pacific (ESCAP), with funding from the UN Development Account.

The Trade Challenge and the Digital Solution

Trade facilitation has often focused on efficiency—making processes faster and cheaper. However, the environmental impact of these processes has frequently been overlooked. According to Angel Gonzalez Sanz, acting director of technology and logistics at UNCTAD, “Every outdated, paper-based trade procedure comes with an environmental cost." He emphasizes that moving towards digital trade can make both the economy and the environment healthier.

Some progress is already evident. For instance, Vanuatu is successfully using UNCTAD’s ASYCUDA system to eliminate physical documentation in cargo clearances, reducing paper usage by over 95%. Kenya’s TradeNet system has integrated 35 different government agencies onto one platform, automating processes and reducing paper waste significantly.

Innovations for a Sustainable Future

This new project builds on prior concepts of climate-smart trade, which were introduced through a collaborative study by UNCTAD, ESCAP, and the UN Environment Programme. In it, they plan to introduce a CO2 emissions calculator. This tool will help governments and businesses measure the environmental impact of trade in real time, enabling better policy decisions.

Recent data from the UN global digital and sustainable trade facilitation survey highlights an urgent need for improvement in the areas of green trade facilitation and cross-border paperless solutions.

Rupa Chanda, director of trade, investment, and innovation at ESCAP, notes that effective trade facilitation can help realign supply chains towards greener practices, which may include investing in carbon reduction strategies. “By building capacity and leveraging data-driven solutions, we equip countries to embrace digital trade systems,” she explains.

Next Steps for Change

Over the next three years, this initiative plans to:

• Develop a database to track emissions related to trade.
• Implement a CO2 emissions calculator for managing carbon footprints.
• Offer technical assistance for adopting digital trade solutions.
• Provide hands-on training for policymakers and customs officials.

By weaving sustainability into trade procedures, the project aims to transform global trade into a force for economic growth while protecting the environment. As climate change poses increasing challenges, reducing trade-related emissions is becoming essential. The future of trade must focus on efficiency and sustainability simultaneously.

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