For global trade to facilitate the transfer of low-carbon technologies, the international community needs to support markets to gain the ability to deploy, operate, maintain, adapt, improve, and replicate the transferred technology

Amongst global business leaders,  86 per cent agree that global trade plays a significant role in fostering sustainable development across diverse regions according to the report  Resetting Globalisation: Catalysts for Change. However, the impact of trade on sustainability is nuanced, with a substantial carbon footprint evident in global supply chains. The trade of goods and services is a key contributor, accounting for 20-30 per cent of global greenhouse gas emissions, with three-fourths stemming from the energy and transportation sectors.

The report stated ,it also serves as a enabler for the dissemination of essential low-carbon technologies, such as solar panels and wind turbines. Additionally, trade facilitates the transfer of technical knowledge and competencies necessary for the effective operation of these technologies.

To optimise the positive aspects of global trade in transferring low-carbon technologies, there is a pressing need for international support to empower markets. This involves developing the capacity to deploy, operate, maintain, adapt, improve, and replicate the transferred technology. The ultimate goal is for nations to independently develop new technologies, creating a self-sufficient ecosystem.

Beyond addressing climate change, the pursuit of sustainable development through technology transfer has the potential to elevate output, employment, innovation, and enhance competitiveness. Cross-border collaboration and strategic investments emerge as critical components to realising these multifaceted benefits, according to the report.

In the context of Vietnam, where almost 85 per cent of business leaders affirm that global trade allows for sustainable development, the Just Energy Transition Partnership presents a comprehensive framework. This initiative aims to expedite the reduction of carbon emissions and boost the adoption of renewable energy in Vietnam. A coalition comprising the US, UK, and EU plans to invest USD15.5 billion to support Vietnam’s transition. This substantial funding will accelerate the development and implementation of various sustainable technologies, including wind and solar energy, energy efficiency, storage, electric vehicles, and vocational support for employment.