International standards are a common language for a fragmented global economy

This year’s World Economic Forum Annual Meeting took place during a moment of global uncertainty. Conversations often returned to the same underlying tension: we are innovating faster than ever, yet our ability to collaborate and coordinate that innovation is under strain.

Economic, technological and sustainability ambitions are rising directly alongside geopolitical fragmentation and regulatory divergence, which are making it harder to align action across borders.

That question was at the heart of one particular session I spoke at, China Manufacturing Horizon: The Next Five Years, which examined how international collaboration mechanisms must evolve in practice if we are to scale innovation while supporting shared and inclusive growth.

What this highlights is not unique to China, but a global challenge. As economies pursue similar transformation agendas, the question is no longer just how fast they can innovate, but how coherently those innovations can scale across borders, especially in developing countries.

This is where International Standards become strategically important. When used as part of national development strategies, rather than as technical afterthoughts, standards provide stability and common ground in an era of geopolitical uncertainty and fragmented regulation. They reduce technical barriers to trade, lower compliance costs, improve market access and increase predictability for businesses of all sizes. For many exporters, they remain the gateway into regional and global value chains.

They also play a central role in sustainability. Standards on renewable energy and environmental management help translate climate objectives into practical tools for industry. Carbon accounting standards, in turn, help turn climate ambition into measurable, comparable and verifiable action, which is essential if political commitments are to deliver real-world outcomes.

This theme came through strongly in discussions at this year’s Annual Meeting around the COP30 Action Agenda, in a roundtable on harmonizing global carbon accounting. A recurring message was that one of the biggest barriers to effective climate action is not a lack of commitment, but a lack of coherence. Companies are navigating multiple reporting systems, overlapping requirements and inconsistent methodologies, which undermines confidence in the data that underpins climate decisions.

This is why, in 2025, ISO and Greenhouse Gas Protocol launched a landmark partnership to co-develop one harmonized global framework for greenhouse gas accounting and reporting. By aligning terminology, measurement and reporting practices, the partnership aims to create a common global language for emissions – one that reduces reporting burdens and strengthens the credibility of climate disclosures. Over time, this shared framework will also make it easier for policymakers to embed aligned requirements into regulation, helping avoid the fragmentation that currently weakens climate policy implementation.

Several other Davos sessions this year focused on artificial intelligence and cybersecurity. These discussions reinforced a simple point: trust is now a core economic asset. Organizations need ways to manage AI risks, protect data and demonstrate accountability. Regulation plays a role, but regulation alone cannot keep pace with technological change.

This creates an opportunity for leaders to shape practical, adaptable frameworks that enable innovation without compromising societal trust. International Standards provide exactly that: a common language that builds stability and trust beyond borders. They are developed through consensus, grounded in technical expertise and designed to be used across jurisdictions. In a period where traditional multilateral mechanisms are under pressure, this kind of practical cooperation is becoming increasingly valuable.

Looking back on Davos, what stood out most was not a single technology or policy proposal, but a shared recognition that coordination itself has become a strategic challenge.

Shared standards create the conditions under which solutions can scale, trust can be built and cooperation can remain possible, even in a fragmented world.

In that sense, standards are an inherent part of the governance infrastructure of the new economy.