WCP Webinar Examines How Green Innovation and Governance Shape Firms’ Trade Participation

The WCP hosted a second Research Hub and Knowledge-Sharing Webinar on 16 December 2025, exploring how the adoption of green innovations affects firms’ engagement in international trade, and how governance quality influences these outcomes.

The webinar was led by the WCP Chair in Rwanda at the University of Rwanda and presented early findings from a global empirical study covering 10,918 firms across 103 countries between 2006 and 2024. The research examines how practices such as CO₂ monitoring, emissions reduction, and climate resilience are linked to firms’ participation in global markets.

Presenters showed that firms adopting green innovations are more likely to export, import, and engage internationally, with these effects being stronger in countries with higher governance quality. While green innovation can involve short-term adjustment costs, effective governance through transparency, regulatory efficiency, and trust helps firms translate sustainable practices into trade opportunities.

The discussion highlighted the relevance of these findings for developing countries, particularly in Africa, where pairing support for green innovation with governance and trade facilitation reforms could help firms integrate into greener global value chains. Participants also underscored the growing importance of emissions measurement and standards in shaping future trade dynamics.

The views expressed during the webinar are those of the presenters and do not necessarily reflect the views of the WTO or its Members.