Least Developed Countries Report

Policymakers in the least developed countries are under pressure to transform carbon markets into a viable pathway to deliver on the Sustainable Development Goals and low-carbon structural transformation. This begs the question of whether and how these markets can both address the unique challenges of these countries and help them to contribute to global efforts to mitigate climate change. The report highlights the outcomes of past and current participation by least developed countries in carbon markets and identifies opportunities and risks from the emerging framework for carbon markets under the Paris Agreement. Towards the maximization of the benefits of carbon markets for LDCs, the report provides actionable recommendations for least developed country policymakers and climate negotiators, and for their development partners.

In 2023, the combined GDP of the LDCs was 10 per cent below the level it would have reached had the pre-pandemic (2010-2019) growth trend been sustained. As a result, at least an additional 15 million people in LDCs are now living in extreme poverty, with their governments severely constrained in their ability to sustain adequate investments in public services or invest in advancing development progress. The Report highlights the urgent need for concerted action to restore fiscal space in LDCs through the lasting resolution of the debt crisis, reform of the international financial architecture, and the mobilization of climate finance to enable needed investments towards low-carbon transition and green structural transformation. Without which, the SDGs and sustainable development cannot be realised. The Report advances several recommendations aimed at advancing the reform of global development finance, which in its current state, is deficient in terms of its quantity, quality, structure, cost and ease of accessibility. The Report also contains a detailed analysis of the possible role of central banks in shaping the financing of sustainable development and green structural transformation in LDCs. While the contribution of central banks to dealing with climate change has been discussed in developed countries, this is the first time this type of analysis is done in the context of the LDCs.

The Least Developed Countries Report is a comprehensive annual publication from the UN Trade and Development (UNCTAD). It offers a detailed socio-economic analysis and data on the world's Least Developed Countries (LDCs), as designated by the United Nations. The report is written for a wide audience, including governments, policymakers, researchers, and all those involved with development policies in the LDCs. Each edition focuses on specific development challenges that these countries face and provides policy recommendations to help them achieve a more sustainable future. The report may also include a statistical annex with basic data on the LDCs.