environmental goods and services: lessons from south-south trade and sustainable energy services...
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Environmental Goods AND Services:
Lessons from South-South Trade and Sustainable Energy Services
Joachim Monkelbaan, UNEPTrade, Policy and Planning Unit
Economics and Trade Branch (ETB)Green Economy Initiative
15 May 2014
UNEP’s GE-TOP Report (2013):
Green Economy and Trade – Trends, Challenges and Opportunities
• The report analyzes:- 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
Green Economy Trade Opportunities Report
NEW! South-South trade in renewable energy
• A trade flow analysis in select environmental goods, showing trends and opportunities
• Why trade?• Data from COMTRADE, reports by
industry associations and research papers.
Conceptual and methodological issues
• HS subheadings are too broad• E.g. PV cells and modules are classified under
HS 854140, as are other photosensitive semiconductor devices and LEDs
• Therefore paper makes extensive use of available national tariff line-level trade data
• Nine HS subheadings were identified for the analysis of trade in renewable energy products, covering solar PV, wind, hydro and biomass
5 trends in global and South-South trade in EGS
Trend 1: South-South trade has grown faster than global trade
Trend 2: Global trade in renewable energy goods outpaced trade in manufactures
Trend 3: Developing countries have become net exporters of many renewable energy goods
Trend 4: Asian developing countries are the largest players in South-South trade
Trend 5: Solar PV has dominated South-South trade in renewable energy
Favourable conditions for enhanced South-South trade in RE products
• Falling prices of RE technologies and equipment (amount of investment vs. capacity installed)
• Faster growth in RE investment in developing countries
• Markets are diversifying beyond Asia
Participation of China and other developing countries in global exports of RE products 2004-12 (%)
Developed and developing countries’ shares of total trade in HS 854140 (including solar
PV), 2004-12 (%)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2004 2005 2006 2007 2008 2009 2010 2011 2012
North-North
North-South
South-North
South-South
Chinese exports of PV cells (national TL 85414020) by market of destination,
2009-2012
4.9
17.0 16.8
8.3
2.8
1.02.4
1.4
1.2
0.9
2.80.2
1.0
1.6
1.2
1.0
0.8
1.4
1.0
2.3
0.6
0.0
5.0
10.0
15.0
20.0
25.0
2009 2010 2011 2012 2013
US
D b
illi
on
s
Developing countries
Other
Japan
United States
EU27
Solar PV cells and modules exported to developing countries
Green Economy implications for policy makers
1. Domestic policy initiatives
2. Investment initiatives3. Trade policy initiatives
Services
• Importance of services: green jobs• Classification (W/120) outdated and
unsuitable• GATS insufficient: rules, positive list
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)
Source: European Centre for International Political Economy, 2012
Trade Restrictiveness in services trade
Ways Forward for SE Services
• Mapping: identify the appropriate sectors and modes of supply, better data needed
• Institutions: seem unable to provide a framework, so innovative policy approaches are necessary; voluntary commitments (APEC)
• Identify services for liberalization based on (APEC/Davos) list of EGs?
• Cross-referencing between CTS-SS and CTE-SS
• Section on envt services in TiSA and EGSA?
Remaining questions
• How can HS subheadings be defined to allow precise analysis of trade flows in environmental goods?
• How to identify a larger range of environmental goods?• What conclusions about EGS value chains are hidden by
trade volume measurement? • What are opportunities for South-South trade in RE and
other EGs involving other developing countries? • To what extent do export-driven EGS represent a critical
Green Economy sector of developing economies? • Are renewable energy exports driven mainly by overall
industrial capacity?
