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Climate change is creating serious economic risks, with global losses potentially reaching the equivalent of 10% of world gross domestic product (GDP) if temperatures rise 3 degrees Celsius above pre-industrial levels, the United Nations Conference on Trade and Development warned.
In its “Global Trade Update: November 2026” report, UNCTAD said global temperatures last year were about 1.4°C above the pre-industrial average, with the 2015-2025 period marking the 11 hottest years on record.
The report said global warming is expected to exceed the Paris Agreement target of 1.5°C and warned that the economic effects are already significant.
If global temperatures reach 3°C above pre-industrial levels, economic losses could amount to around 10% of global GDP, UNCTAD said.
For lower-income countries closer to the equator, the losses could reach as much as 17% of GDP.
UNCTAD said the risks underline the need for faster implementation of climate commitments and wider access to technologies needed to cut emissions and adapt to climate change.
The report also pointed to growing trade opportunities linked to low-carbon and sustainable industries.
Global exports of goods connected to solar and wind energy value chains exceeded $1.8 trillion in 2025 and grew faster than exports from other manufacturing industries, according to UNCTAD.
The agency called for greater trade cooperation to improve access to climate technologies, saying affordable access is essential both for adaptation and emissions reduction.
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