Disruption for Good: How Next-Gen Technology is Solving Trade's Biggest Sustainability Bottlenecks

Abstract

Global carbon emissions from goods transport are about 11% of total global carbon emissions (WTO, 2023) while global trade of merchandise reached more than USD 25 trillion in 2023 [5]. In this article, authors take a closer look at the convergence of blockchain traceability, artificial intelligence (AI) route optimisation and green finance instruments that challenge unsustainable trade practices. The article shows potential emissions reductions of up to 28%, significant costs reductions of up to 35% in compliance across borders and billions of dollars in sustainable trade finance using country-level data from the EU, China, Singapore, Brazil, and the United States. The Policy implications as well as an architectural framework for next generation sustainable trade ecosystems are presented.