Africa’s transition to renewable energy is at risk of stalling due to high clean-tech tariffs and persistent trade barriers, despite global prices for solar and wind technologies dropping significantly over the last decade.
The United Nations Conference on Trade and Development (UNCTAD) issued the warning in its latest global trade and climate briefing on its website.
According to UNCTAD, global trade remains a powerful but underutilized tool for climate action.
The agency notes that the average global cost of electricity from new solar projects has fallen 41% since 2010, while onshore wind power is now 53% cheaper than fossil-fuel generation. These price drops should, in theory, accelerate clean-energy adoption worldwide.
“By lowering the cost of clean technologies and opening markets for low-carbon goods, trade can be a powerful tool for climate action. The average global cost of electricity from new solar projects has fallen 41% since 2010, while onshore wind power is now 53% cheaper than fossil-fuel generation,” UNCTAD noted.
However, UNCTAD warns that high trade costs and tariff regimes are slowing momentum, particularly in Africa.
“Average tariffs on solar and wind components range from 1.9% in developed economies to 7.1% in Africa, rising to 7.6% when non-tariff measures are included,” UNCTAD stated.
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The report argues that reducing tariffs on low-carbon goods is one of the most effective ways governments can meet climate commitments while supporting economic growth, job creation, and industrial diversification.
Such reforms, UNCTAD notes, would also align with the Paris Agreement, which requires countries to submit updated Nationally Determined Contributions (NDCs) every five years.
According to UNCTAD, between 1 January 2024 and 30 September 2025, only 64 Parties submitted updated NDCs ahead of COP30 in Belém, Brazil—representing just 30% of global emissions.
For Africa, the risk is particularly acute. High tariffs and trade barriers could prevent the continent from accessing the affordable technologies needed to expand energy access, meet development goals, and adapt to accelerating climate impacts.
What you should know
Recently, experts urged the Nigerian government to deepen investments and introduce stronger policy incentives for large-scale solar installations nationwide, noting that such efforts could unlock an estimated $2.5 billion carbon market opportunity for the country.
In a policy shift signaling stronger climate finance ambition, President Bola Tinubu recently approved the National Carbon Market Framework, operationalized the Climate Change Fund, and restored the National Council on Climate Change (NCCC) to the federal budget line.
