Trade remains an underutilised tool in climate action. The global production and distribution of goods contribute to about a quarter of all carbon dioxide emissions and a significant share of biodiversity loss and global pollution. But trade can also enhance access to energy-efficient goods and the technologies needed for the energy transition, adaptation and mitigation of climate change. New sustainability-linked trade measures—such as the EU’s Carbon Border Adjustment Mechanism (CBAM) and the European Union Deforestation Regulation (EUDR)—are reshaping global commerce. While designed to level the playing field and prevent carbon leakage, these policies affect the export competitiveness of developing economies, prompting shifts in supply chains and trade flows. How can governments ensure that environmental standards strengthen rather than fragment global markets?What support is needed to help developing countries adapt, remain competitive and capture new opportunities in sustainable trade?