Trade and Investment in Environmental Goods

Transcription

1 Trade and Investment in Environmental Goods The case of Renewable Energy Technologies and South-South Trade Anja von Moltke Head, Trade, Policy and Planning Unit UNEP Economy and Trade Branch

2 Trade Related SDGs Goal 1 Goal 2 Goal 3 Goal 4 Goal 5 Goal 6 Goal 7 Goal 8 Goal 9 Goal 10 Goal 11 Goal 12 Goal 13 Goal 14 Goal 15 Goal 16 Goal 17 End poverty in all its forms everywhere End hunger, achieve food security and improved nutrition and promote sustainable agriculture 2.b: Correct and prevent trade restrictions and distortions in world agricultural markets in accordance with the mandate of the Doha Development Round. Ensure healthy lives and promote well-being for all at all ages Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all Achieve gender equality and empower all women and girls Ensure availability and sustainable management of water and sanitation for all Ensure access to affordable, reliable, sustainable and modern energy for all Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all 8.a: Increase Aid for Trade support for developing countries, particularly LDCs, including through the Enhanced Integrated Framework for LDCs. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation Reduce inequality within and among countries Make cities and human settlements inclusive, safe, resilient and sustainable Ensure sustainable consumption and production patterns Take urgent action to combat climate change and its impacts Conserve and sustainably use the oceans, seas and marine resources for sustainable development Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels Strengthen the means of implementation and revitalize the global partnership for sustainable development 17.10: Promote a universal, rules-based, open, non-discriminatory and equitable multilateral trading system under the WTO including through the conclusion of negotiations within its Doha Development Agenda 17.11: Increase significantly the exports of developing countries, in particular with a view to doubling the LDC share of global exports by : Realize timely implementation of duty-free, quota-free market access on a lasting basis for all least developed countries consistent with WTO decisions Indirectly related to trade Directly related to trade Explicit mention of trade

3 Shifting global context of international trade Population Growth 7 billion consuming and producing on the planet soon another 3 billion Integration Unprecedented increase in global integration and global value chains due to technological advance, reduction of tariffs, and capital mobility Fragmentation Increasing fragmentation of trade and investment Environmental challenges Increasing environmental challenges (climate change, air pollution, heath, natural resource extraction) also with trade impacts

4 Green Economy Trade Opportunities Project - Green economy trade opportunities in six sectors in developing countries - How trade-related challenges can be addressed sustainably - How to develop national capacity for the transition to a green economy -> Trade in EGS is expected to grow to US$1.9 trillion by 2020.

5 South-South Trade Report

6 Developing countries have have become net exporters of renewable energy goods Developing countries Balance of Trade in Selected RE Products, (US$ millions) Source: UN Comtrade data, UNEP analysis

7 South-South trade makes up a large portion of some sectors of global RE trade South-South Trade as a Share of Global Trade by Sector (%) Source: UN Comtrade data, UNEP analysis

8 Asian developing countries are the largest players in South-South trade Participation of China and Other Countries in South-South exports (%) Source: UN Comtrade data, UNEP analysis

9 A Number of Countries are Emerging as Increasingly Significant Importers of Solar PV Solar PV Cells and Modules Exported to Developing Country Markets (US$ millions, % of total) Source: UN Comtrade data, UNEP analysis

10 South-South Trade in Practice GE-TOP Ghana GE-TOP Ghana: Assess opportunities for solar energy exports to West African Power Pool region Considerable solar electricity generation potential: Generate up to 167,200 GWh of solar electricity annually with an installed capacity of 106 GWp

11 Developing countries increasingly drive RE markets US$ 131 billion invested in RE in 2014 Source: Frankfurt School-UNEP Centre/BNEF Global Trends in Renewable Energy Investment 2015

12 Investment in RE - global trends Global investment in clean energy rose 17% in 2014 to US$270 billion RE investment overall increased by six times since 2004 Global fossil fuel subsidies: USD 300 billion 2007, USD 544 in 2012; six times more than subsidies to renewables Phasing out global fossil fuel subsidies by 2020 could Reduce global primary energy demand by 5 % Reduce energy-related CO2 emissions by 5.8 % Source: Frankfurt School-UNEP Centre/BNEF Global Trends in Renewable Energy Investment 2015

13 How to stimulate Finance and Investment in Renewable Energy Financing Three golden rules to mobilizing finance Create a level playing field Allow for easy market access Mitigate the investment risk (politically, regulatory)

14 Trade in EGS can create new opportunities Climate Change Mitigation, Adaptation and Resource Efficiency. Access to affordable environmental goods, creation of services Integration into GVC and growth in green industries Regional production, trade and investment in EGS.

15 Powerful signal EGA can be a powerful signal to setting and implementing the post 2015 agenda and to climate summit. If : - Environmental credibility - Future extension - Inclusiveness - Capacity building

16 Thank you!