General

On March 23rd, the United Nations Conference on Trade and Development (UNCTAD) released its latest update on world trade, which found that driven by environmental products, world trade in 2022 has become more "green". The classification of environmental products or green products (also known as environmentally friendly products) referred to in the report is based on the OECD Comprehensive List of Environmental Goods, which uses fewer resources and emits fewer pollutants compared to traditional trade. According to statistics, the global trade volume of environmental products reached 1.9 trillion US dollars in 2022, accounting for 10.7% of industrial manufactured goods trade. In 2022, there will be significant structural adjustments in the commodity structure of world trade. Compare different types of goods based on monthly trade volume. According to the calculation of commodity value, the trade volume of environmental products in January 2022 was 100. The trade volume of environmental products in 2022 has accelerated since April, reaching 103.6 in August, and has remained relatively stable since then, reaching 104.2 in December. In stark contrast, other industrial manufactured goods rose to their highest value of 100.9 in June and July, starting from 100 in January, and then dropped significantly to 99.5 in December.

It is worth noting that the rapid growth of environmental products is significantly correlated with the growth of global trade, but it is not completely synchronized. In 2022, the world trade volume reached a record high of 32 trillion US dollars. Among them, the trade in goods is about 25 trillion US dollars, an increase of 10% compared to the previous year; Service trade is approximately $7 trillion, an increase of 15% compared to the previous year. From the time distribution of the whole year, global trade volume is mainly driven by the growth of trade volume in the first half of the year, while the weak (but still maintaining growth) trade volume in the second half of the year (especially in the fourth quarter) is a drag on the growth of trade volume throughout the year. Under significant pressure on the growth of global trade in goods in 2022, service trade has shown some resilience. In the fourth quarter of 2022, despite a decline in global trade volume, trade volume continued to grow, indicating that global import demand remained strong.

The acceleration of green transformation in the global economy has accelerated the trade of various environmental products to meet the needs of infrastructure construction and consumers. The green economy has redefined the comparative advantages of various parties in the international trade network and formed a new driving force for development. In the international trade of green products, regardless of the stage, it is possible to benefit from both environmental related trade in goods and services. Leading economies in environmental product production and technological innovation applications, fully leveraging their technological and innovative advantages, and expanding the export of related products or services; Economies that consume green products or services urgently need to import environmental products to meet the needs of economic green transformation and development, shorten the cycle of green transformation, and support the "greening" of their own economy. The development of technology has created more new ways to match and meet the supply and demand of green products, further supporting the accelerated development of green trade. Compared to 2021, the global trade volume of almost all major categories of goods in 2022 has decreased, except for the growth of road transportation and the important role of environmental products. The trade volume of electric and hybrid vehicles increased by 25% year-on-year, the trade volume of non plastic packaging increased by 20% year-on-year, and the trade volume of wind turbines increased by 10%. The strengthening of consensus on green development and the scale effect of products and services have reduced the cost of green economy, further increasing the market power for green trade development.

Faced with the serious challenges brought about by global climate change, no country or individual can be left alone. It requires both willingness and action. On March 13-19, the Intergovernmental Panel on Climate Change (IPCC) of the United Nations completed the comprehensive report of its 6th assessment report at its 58th meeting in Interlaken, Switzerland, warning that an increase in greenhouse gas emissions will lead to an "irreversible" change in the Earth. Therefore, the development of green industries needs to be further accelerated to address climate change by reducing emissions. In the 2023 Technology and Innovation Report, UNCTAD predicts that by 2030, green technologies such as electric vehicles, solar and wind energy, and green hydrogen energy will create an output value of $2.1 trillion, four times higher than the current level. Driven by this, international trade will also be closely related to a greener global economy. On the one hand, a greener global economy will reshape the global supply chain, create more sustained and strong market demand for the coordinated development of all parties in the supply chain, and drive and promote the development of green trade; On the other hand, green trade itself strengthens innovation under the stimulation of market competition, forming complementary and mutually beneficial cooperation through comparative advantages, providing resources, technology, and tools to support the transformation and upgrading of the green economy, and optimizing the transformation of supply and demand. And all of this requires support from more effective and reasonable international rules, as well as demonstration and guidance from key regions and economies. In 2023, the green transformation of world trade is still expected to accelerate, providing more support for all parties to achieve the goal of "carbon peaking and carbon neutrality".