This publication is part of a series of sectoral briefing notes on Trade and climate scenarios on the road to 2050: Implications for developing countries and climate-resilient development. The series aims to provide an overview of current and anticipated transformations in trade on the road to 2050 in the context of the unfolding climate crisis and the international community’s climate action agenda and to discuss potential scenarios and implications for developing countries and climate-resilient development.
This sectoral briefing note looks at the future implications of the twin digital and green transitions for the digital sector, trade, and climate-resilient development, and highlights some of the key implications for developing countries. It first discusses the interlinkages between the digital transformation, climate change, and trade, before reviewing key initiatives at the international level aimed at supporting emissions reductions in the digital sector. The paper then explores the potential impacts on trade of digital decarbonization pathways and the related opportunities and challenges for developing countries. The briefing note concludes with a set of key priority areas for policy action, engagement, and international cooperation to support digital and green transitions and climate-resilient development in developing countries.
This briefing note and the series aim to contribute to a better understanding of emerging trade and trade policy trends and dynamics and their implications within the various sectors, thereby supporting developing countries in identifying and advancing their climate and trade-related interests and priorities in international discussions.
The briefing notes in the series—covering sectors ranging from agriculture to carbon markets, critical minerals, digital transformation, energy transition, fisheries, heavy industries, shipping, and textiles and garments—will be collated into a final compilation released in September 2025.
Yasmin Ismail is Senior Policy Advisor, TESS
Nadira Bayat is a senior sustainable development policy and programming specialist.
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Recommended citation: Ismail, I. & Bayat, N. (2025). Digital Transformation – Trade, climate, and net zero pathways: Scenarios and implications for developing countries and climate-resilient development. Forum on Trade, Environment, & the SDGs (TESS).
