Affordable and Clean Energy

Division on International Trade and Commodities, by Chantal Line Carpentier, Claudia Contreras, Malick Kane and Valentina Olave. Sofia Dominguez, Clovis Freire, Elizabeth Gachuiri, Lorena Jaramillo, Amelia Santos, Prachi Sharma, David Vivas, Dong Wu and Kexin Xie of UNCTAD provided valuable inputs, comments and suggestions, as did Karen Suassuna and Lorenzo Formenti (International Trade Centre) and Pierre Horna (United Nations Economic and Social Commission for Asia and the Pacific).

In the same way that tariffs have been used as policy instruments to reduce carbon emissions, public procurement, subsidies and tax exemptions can be used to facilitate the importation of sustainable goods needed to support the transition to a low-carbon economy. Public procurement programs can be tailored to include provisions to facilitate the import of carbon-efficient goods when equivalent products are unavailable domestically and in the absence of plans to develop local production. This can be supported by introducing a “sustainability lens” that includes requirements to favour the sourcing of low-carbon products and services in all public procurement biddings. Examples of public procurement measures included in reviewed NDCs range from the public acquisition of LED light bulbs to electric or hybrid vehicles and energy-efficient appliances.

To meet the goals of the Paris Agreement,1 Parties are required to prepare, communicate and update successive nationally determined contributions (NDCs) every five years, aiming for the highest possible ambition (UNFCCC, 2016). NDCs embody each country’s commitment to reduce emissions, adapt to climate impacts, and promote sustainable development.

Measures focusing on sustainable export value chains are among the most common trade-related measures in NDCs (UNCTAD, 2023a). Among the trade policy tools developing countries use to support climate action, these types of measures are also the ones with the strongest development focus and the broadest scope. Examples of sustainable export value chains or sectors targeted by trade-related measures in NDCs include timber and non-timber forest products, agrifood and livestock, and tourism (UNCTAD, 2023a).

To meet the goals of the Paris Agreement, parties are required to prepare, communicate, and update their successive Nationally Determined Contributions (NDCs) every five years, aiming for the highest possible ambition. NDCs represent each country's commitment to reducing emissions, adapting to climate impacts, and promoting sustainable development. The first global stock-take under the Paris Agreement, which concluded in December 2023 at the United Nations Climate Change Conference (COP28), noted significant, albeit insufficient, progress toward the goals of the Paris Agreement. It called for a comprehensive transformation across all sectors, which is essential to lowering emissions, strengthening resilience, and mobilizing resources in a just and sustainable manner to accelerate and enhance efforts to meet the agreed-upon goals. Addressing the challenges of climate change requires a comprehensive and integrated approach that connects climate policy with broader economic and development strategies. Effective climate action needs to be closely linked to human capital development, industrial strategy, climate policy—including carbon pricing as part of the policy mix available to countries—and climate-aligned trade and investment policies. Moreover, integrating climate ambitions into national and subnational development plans, economic strategies, and sectoral policies is essential for promoting policy coherence and maximizing synergies between climate action, economic growth, and social development. In this context, international trade plays a critical role in advancing the objectives of the Paris Agreement and the SDGs. It facilitates access to environmentally friendly goods and services, technology, and knowledge—particularly those essential for the implementation of NDCs and mitigation and adaptation plans—while supporting the development of climate-resilient and resource-efficient value chains. This guide provides policymakers with a six-step process to better integrate trade-related measures into NDCs.

The publication proposes a method for hydrogen classification needed to jumpstart production and international trade in hydrogen. It also presents several project ideas in selected UNECE member States that would accelerate deployment of hydrogen.

This report was developed by the Energy Division of the Economic and Social Commission for Asia and the Pacific (ESCAP) under the overall direction and guidance of Hongpeng Liu, Director of the Energy Division, and Michael Williamson, Chief of Sustainable Energy Development and Utilization Section, Energy Division, ESCAP.

The 2025 Regional Trends Report on Energy for Sustainable Development: Transforming Energy Systems for a Low Carbon Future in Asia and the Pacific offers an extensive analysis of the region’s progress and challenges in moving towards a low carbon energy future.

The Asia-Pacific region has traditionally had one of the highest levels of energy intensity worldwide, suggesting large energy use per unit of economic production.