World Bank WDR 2025 finds standards influence 90 percent of trade

The World Bank released its World Development Report 2025, "Standards for Development," on December 11 2025, finding that non-tariff measures linked to standards now influence nearly 90 percent of global trade, up from 15 percent in the late 1990s. Indian exporters and firms must treat ESG standards as mandatory market-access requirements rather than voluntary best practices, particularly under mechanisms like the EU's CBAM.

The World Development Report 2025, released December 11 2025, provides the first comprehensive global assessment of international standards, characterising them as the hidden infrastructure of modern economies. Major standard-setting bodies issued over 7,000 new rules in 2024 alone, and non-tariff measures linked to regulatory and technical standards now influence nearly 90 percent of global trade, up from 15 percent in the late 1990s. The report proposes a three-step "Adapt-Align-Author" framework and cites the EU Carbon Border Adjustment Mechanism (CBAM) as a key ESG compliance example.

The report affects developing-country governments, exporters, and firms reliant on global market access. Low-income nations participate in less than one-third of technical committees at bodies like the ISO, leaving them as passive "standard takers" exposed to costly, ill-fitting technological paths. Exporters from low-income countries lacking sophisticated compliance infrastructure risk being assigned potentially overstated default EU emissions values under CBAM, widening the trade and ESG compliance divide. Capacity gaps in "quality infrastructure"—metrology, testing, certification, and accreditation—further hinder compliance and competitiveness.

Governments and the international community should invest in quality infrastructure and support tiered standardisation through the Adapt-Align-Author framework: countries with low capacity should first adapt international standards locally, then align domestic markets with global standards, and ultimately author new standards in priority sectors. Businesses should treat ESG standards as mandatory market-access requirements, build measurement, reporting, and verification capacity to meet mechanisms like CBAM, and actively participate in standard-setting committees to shape rules reflecting their developmental needs.

Key figure — Trade influenced by standards: nearly 90 percent (up from 15 percent in late 1990s)