Chennai: The UN climate summit COP31 in Turkey will launch a global network to tackle fragmentation in carbon markets and help channel more investment into climate projects, particularly in developing countries. Reducing unnecessary trade barriers could help make climate technologies more affordable and accessible, especially in vulnerable developing economies, finds UNCTAD.
Convened by UN Trade and Development (UNCTAD), the Global Carbon Market Network will seek to strengthen links between carbon and capital markets, improve transparency and credibility, and facilitate cross-border transactions.
Carbon markets remain fragmented across different standards, registries and trading systems. Concerns over credit quality, transparency and double counting have weakened confidence and constrained market development, particularly in developing economies.
The Network will promote cooperation among exchanges and market institutions, including technical work on market integrity, measuring and verifying emissions reductions, and digital technologies to improve transparency and reduce transaction costs.
Carbon pricing is expanding. Emissions trading systems and carbon taxes now cover nearly 30% of global greenhouse gas emissions and generate more than $107 billion in public revenue in 2025.
Voluntary carbon markets have particular potential to channel private investment across borders. Stronger links between markets could help build confidence in these transactions and expand financing for projects that reduce or remove emissions in developing countries
UNCTAD also called for faster implementation of climate commitments, including trade cooperation to improve access to climate technologies.
Between 2015 and 2025, the world experienced the 11th warmest years on record. In 2025, the global average temperature was about 1.4°C above pre-industrial levels against the Paris Agreement’s 1.5°C goal.
As per reports, at 3°C of warming, losses equivalent to 10% of global GDP is projected. In poorer countries closer to the equator, losses could reach 17% of GDP. Because many of these technologies are produced through international value chains, trade policies can affect their cost, availability and deployment.
Global exports of goods associated with solar and wind energy value chains exceeded $1.8 trillion in 2025, growing faster than exports of other manufactured goods. Reducing unnecessary trade barriers could help make climate technologies more affordable and accessible, especially in vulnerable developing economies.
Developing economies are already exporting substantial amounts of goods and services in sustainable sectors, including $1.3 trillion in biodiversity-based goods in 2024, $1.2 trillion in ocean goods and services in 2025 and an estimated $204 billion in non-plastic substitutes in 2024.
According to the report, these sectors can help broaden production and export bases and strengthen resilience to external and climate-related shocks.
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