Millions of people in the Global South still lack access to electricity or clean water, yet the world is demanding a rapid global shift away from fossil fuels. Wealthier nations often advocate for steep emissions cuts. Still, countries in Africa, Latin America, and South Asia require dramatically higher standards of living, which will require more infrastructure, investment, and technology. And a lot more energy, including from coal, oil, and natural gas. Embracing economic freedom will drive economic and environmental progress. One specific way is through the establishment of more free-trade zones. 

Free-trade zones (FTZs) often called foreign-trade zones or special economic zones are geographically defined areas where businesses benefit from reduced tariffs, tax exemptions, and simplified customs procedures. By lowering costs and cutting red tape, they attract foreign direct investment, encourage industrial development, and boost exports. If redesigned with sustainability in mind, such zones could enable countries in the Global South to bypass fossil fuel-based infrastructure and instead build cleaner, more resilient energy systems tailored to their own needs and priorities.

The argument is straightforward: by establishing special economic zones that prioritize not just profit, but also energy efficiency, renewable power, and low-carbon industries, governments can transform trade hubs into centers of green development. This isn’t about waiting for the next COP conference or World Economic Forum event. It’s about giving countries the economic freedom to thrive.

What might this look like? Imagine a zone where imported green technology is exempt from tariffs, and companies receive land and fast-track permits if they invest in battery storage or electric transportation. Governments could also partner with universities and vocational schools within these zones to train the next generation of engineers, planners, and technicians, thereby creating clean energy and fostering long-term employment opportunities. Realistically, countries should be lowering all trade barriers for all products and investments. 

Some countries are already moving in this direction. Kenya’s Konza Technopolis, sometimes referred to as “Africa’s Silicon Savannah,” is experimenting with solar-powered infrastructure and energy-efficient building codes. In the Dominican Republic, firms operating in free-trade zones are beginning to shift to renewables not out of idealism, but to cut energy costs and stay competitive. Meanwhile, Rwanda has invested in green industrial parks that promote water recycling, waste-to-energy systems, and clean transport.

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These examples are small and far from perfect, but they show what’s possible when trade zones are designed for more than just exports. It’s essential to address FTZs’ shortcomings. Free-trade zones alone will not solve climate change and shouldn’t be treated with a one-size-fits-all approach. But as part of a broader toolkit of energy and environmental solutions, they offer strategic benefits. They can encourage technology transfer, improve energy access, and strengthen regional supply chains for renewable infrastructure, all without waiting on donor countries or global climate deals that often stall.

For Western nations, supporting these efforts isn’t just about doing the right thing; it’s about investing in shared stability. A Global South that can produce its solar panels, build its storage systems, and power its cities cleanly is a stronger partner in global trade and security. It also reduces pressure on fragile supply chains and helps everyone sustainably meet rising energy demands.

We’re used to thinking of climate progress as something that happens through significant treaties, lengthy negotiations, and massive multilateral funding. But sometimes, change starts in a few square kilometers of land when governments decide to make the rules work for people and the planet. 

The green bypass is straightforward: provide clean energy innovators with a space to grow, remove the barriers that hinder them, and enable countries in the Global South to chart a new path forward. And free-trade zones, if reimagined, can help provide that.

The views and opinions expressed are those of the author’s and do not necessarily reflect the official policy or position of C3.