In the last two decades, trade has continued to expand, creating economic growth and progress towards eradicating poverty in developing countries. At the same time, however, the increasing volume of trade has put additional stress on natural resources, led to increases in Green house gases emissions, and contributed to social inequalities.

World trade patterns show that developing countries, and particularly least developed countries, still depend heavily on natural resource based products and raw materials for their exports. To achieve long-term and sustainable economic development, however, there are significant and real opportunities for developing nations to diversify their economies and position themselves to benefit from the growing global demand for more green goods and services.

While still representing only a small percentage of the global market, trade in certified products and in environmental goods and services is on the rise in absolute terms. For example, the global market in low-carbon and energy efficient technologies, which include renewable energy supply products, is projected to nearly triple to US$ 2.2 trillion by 2020.

The report, finds that developing countries with abundant renewable resources are well-positioned to capitalize on the opportunities to increase their share in international markets for sustainable goods and services.

The report analyzes six economic sectors - agriculture, fisheries, forests, manufacturing, renewable energy and tourism - where trade opportunities exist, and identifies measures, such as policy reforms and certification, that can help developing countries benefit from these markets.

But there are several areas where public and private actions can support developing countries' efforts to access greener international markets. These include:

• Public investments in key economic infrastructure, technical assistance, targeted education and training programs, and access to sustainable resources, such as electricity from renewable energy sources.
• Market-based instruments, such as the elimination of subsidies that encourage unsustainable production, consumption and trade, and pricing policies that take account of the true environmental and social costs of production and consumption.
• Regulatory frameworks that support green industries and incorporate sustainable development considerations in national development plans and export promotion strategies.
• Resource and energy-efficient production methods, so as to ensure long-term competitiveness in international markets.
• Regional and multilateral fora that can help to liberalize trade in environmental goods and services, remove environmentally harmful subsidies, and provide opportunities for collective action to address global environmental and social challenges.