Sustainable Energy Services In a Sustainable Energy Trade Agreement. Joachim Monkelbaan ICTSD 20 June 2013

Transcription

1 Sustainable Energy Services In a Sustainable Energy Trade Agreement Joachim Monkelbaan ICTSD 20 June 2013

2 Sustainable Energy Growing global demand for sustainable energy, but cost remains prohibitive in many countries Trade in energy services can be a driver of greater selection, competitive pricing, and greater dissemination

3 What s the challenge? Still many barriers to trade in SE services Slow progress on removing these barriers Classification (W/120) outdated and unsuitable GATS insufficient: rules, positive list

4 Services involved in solar and wind power projects Assessment of solar and wind resources (i.e. energy potential); Site analysis; Project development; Real estate services; Project financing; Due diligences (technical, regulatory, financial, legal); Project licensing and legal services; Project engineering and design; Environmental impact analysis; Construction of solar and wind power facilities; Solar field quality and performance testing; Retail sale of solar panels, mirrors and wind turbines; Installation of equipment; Maintenance of equipment; Operation of solar and wind power facilities; Transmission, distribution and sale of electricity generated by solar and wind power.

5 Identifying Complementary Services Energy is crosscutting Energy, transport, building, industry, telecom To narrow the scope, look at key sustainable energy technologies Improve energy efficiency in power projects Monitoring/testing/analysis of emissions Smart Grids

6 Services most important for SE supply Construction services (CPC 54) Financial services (CPC 71) Other professional, business and technical services (e.g. engineering) (CPC 83) Telecommunications (CPC 84)

7 Trade Restrictiveness in services trade (tariff ad valorum equivalents) by sector weighted by trade volumes Source: European Centre for International Political Economy, 2012

8 Services to Focus on: Other Services Major exporters and importers of architectural, engineering and other technical services (millions USD) These sectors are critical for the provision of sustainable energy services

9 Commitments in business services *Many countries include significant limitations on their commitments

10 Services to Focus on: Construction Global spending on construction services is 9-10% of gross domestic product more than $6 Trillion. Public sector is the largest client segment. In developing countries, up to 50% of construction expenditures are government procurement Most important drivers: increased spending on infrastructure and non-residential development

11 Sustainable Energy Services and Green Jobs Transformation to a greener economy could generate 15 to 60 million additional global jobs over the next two decades (ILO) In 2012, the renewable energy sector employed close to 5 million workers (double the number from ). Energy efficiency is an important source of green jobs in the construction sector, which was especially hard-hit by the recession.

12 Estimated Employment per Megawatt, Renewable and Fossil Fuel Powered Plants Average Employment over Life of Facility (Jobs per megawatt of average capacity) Manufacturing, Construction, & Installation Operations & Maintenance/Fuel Processing Total Coal-Fired Natural gas-fired Biomass Wind power Solar PV

13 Ways Forward for SE Services Mapping: identify the appropriate sectors and modes of supply Institutions: seem unable to provide a framework, so innovative policy approaches are necessary Identify services for liberalization based on (APEC) list of EGs? Cross-referencing between CTS-SS and CTE-SS

14 Sustainable Energy Trade Agreement Contribute to massive and rapid deployment of more efficient, cleaner technologies that promote climate change mitigation, clean growth and energy security By spurring trade, a SETA can provide new incentives for innovation and investment in sustainable energy technologies

15 Political Feasibility Three Main Options for Liberalisation of Services: 1. Section on envt or SE services in ISA 2. Craft an agreement outside the WTO 3. Focus on sectoral agreements such as a SETA Feasibility and size of gains will depend on domestic political institutions and reforms, including regulation and appropriate institutional frameworks

16 Key Finding Only a handful of major trading countries have made a full commitment Many limitations in Mode 3 and 4 Public Procurement is an important driver Sustainable energy technologies and services are highly complementary, and should be viewed in the context of sustainable development A SETA could provide for an enabling framework that can address all of these issues in order to massively scale-up both goods and services related to sustainable energy.

17 Questions What is first step to progress? Who can take the leadership? How ensure benefits for diverse parties? How improve classification? Why NOT open up?

18 Thank you!