Renewable Energy Technologies Tariffs and trade flows: some issues

Transcription

1 Renewable Energy Technologies Tariffs and trade flows: some issues

2 Recent developments in trade in core RE technologies G14 as a group: trade in core RE technologies (solar PV, wind) declined in value terms between 2011 and 2013 (after strong growth in previous years) Falling prices of solar PV and wind-powered generators (cost reductions, a positive development) Other factors (policy uncertainty in several countries, antidumping and countervailing duty actions) Some recovery during 2014 (US, China) Japan: PV imports growing strongly Cost reductions, in combination with domestic policies, drivers of RE investment in several non-ega developing countries (see also UNEP study on South-South trade) 2

3 APEC list: ex-outs for RE goods (20 HS subheadings) Solar cells (HS ) Wind-powered generating sets (HS ) Wind-turbine blades (HS ) AC generators for wind turbines (HS ) and parts (HS ) Meteorological equipment (HS ) Other electric generating sets (HS ) Parts of static converters (HS ) Solar heliostats (HS ) and parts (HS ) Solar water heaters (HS ) and parts (HS ) Parts of biomass boilers (HS ) Auxiliary plant for use with boilers (HS ) and parts (HS ) Gas turbines for electrical power generation (HS ) and parts (HS ) Parts of steam turbines used for RE generation (HS ) Total G14 trade (exports plus imports, excl intra-eu) in 2013 (all trade in subheading) HS Subheading Instruments used to monitor heat from geothermal or biomass heating systems (HS ) Automatic regulating or controlling instruments (HS ) USD b HS HS HS Total 20 HS 363 Source: COMTRADE 3

4 RE technologies on the APEC List (20 HS subheadings) The overall simple average MFN-applied tariff is only 2% Around half of all G14 imports are fully duty-free on an MFN basis Considering only dutiable items, the simple average MFN-applied tariff at 4.6% is more significant Even where tariffs are low their elimination may make certain RE technologies more cost-competitive, including by reducing the impacts of cumulative tariffs facing products that cross borders several times in the context of global value chains CLIMATE AND ENERGY Promoting the transition to a low carbon economy and a sustainable energy future 4

5 Strengths and weaknesses of the APEC list in the area of RE technologies Strengths Covers various RE subsectors, including core RE technologies (solar and wind) Includes both equipment and parts (value-chain approach may be especially effective in reducing costs) Weaknesses Possible gaps Some technologies (e.g. hydropower) not included Parts of value chains not included Classification issues Dual use products Some technologies are hidden under basket categories (including at national tariff line level) Need ex-outs 5

6 Solar PV Subheading HS that provides for trade in solar cells and modules is fully covered by the Information Technology Agreement (ITA). Since all EGA participants are ITA signatories, tariffs have already been eliminated For further tariff liberalisation a non-ita country would need to join the EGA Room for tariff reductions in value chains (e.g. solar inverters) Addressing NTBs at some stage could facilitate RE energy deployment. The EGA could also play a role in helping to prevent trade friction CLIMATE AND ENERGY Promoting the transition to a low carbon economy and a sustainable energy future 6

7 Wind energy APEC List Possible additions Component HS Component HS Wind-powered generators Tower Blades Gearbox Generator Ball bearings Parts Clutches Meteorological equipment Power converter Automatic regulators AC generators (alternators) Transformers ; Electronic control equipment CLIMATE AND ENERGY Promoting the transition to a low carbon economy and a sustainable energy future 7

8 Total installed capacity 600 MW 3.6 GW Solar thermal Annual installed capacity 100 MW 882 MW Annual investment USD 1.8b USD 6.8b Source: IEA: Technology Road Map, Solar Thermal Electricity, 2014 Edition APEC List Possible additions Component HS Component HS Heliostats (solar tower) Mirrors (Parabolic through) Parts for heliostats Fresnel reflector modules (Fresnel lens) Stirling motors, micro-turbines (Parabolic dish) Generation of steam for solar thermal electricity 1/ Also other RE technologies (e.g. biomass, geothermal) Parts of steam, water boilers Heat exchange units Auxiliary plant for use with boilers Steam turbines (output exceeding 40 W) Parts of steam turbines Steam turbines (output not exceeding 40 W) / Source: World Energy Council 2015, Catalysing the low-carbon economy 8

9 Additional products: G14 MFN-applied tariffs (simple average, subheading-averaging method) Non-exhaustive selection (34 HS subheadings) MFN-applied tariffs somewhat higher than for RE technologies on the APEC list: 2.8% (5.4% for dutiable subheadings) and maximum of 15% Major markets: China (8.5%), EU (4.1%), US (2.5%) Several products have significant tariffs in key markets Ball bearings: EU (8%), China (4-8%), Korea (8%), US (5.8%) AC generators, transformers (China, Chinese Taipei) Hydraulic turbines: China (10% turbines; 6% for parts), EU (4.5%), US (3.8%) Steam turbines: US (6.7%) Fresnel reflector modules (HS ): China (15%) EU (6.7%) 9

10 Tariff cuts for intermediate products Help reduce costs May help certain developing countries participate in value chains Tariff eliminations for equipment and parts could perhaps be implemented by creating specific TLs for RE technologies (or other environmental end-use) in national tariff schedules Annex A, section 2 of the ITA (Semiconductor manufacturing and testing equipment and parts thereof) has a large number of HS subheadings with exouts. Several tariff schedules have TLs for the purpose of semiconductor manufacturing 10