Download 6a. Lessons from South-South Trade and Sustainable

Environmental Goods AND Services:
Lessons from South-South Trade
and Sustainable Energy Services
Joachim Monkelbaan, UNEP
Trade, Policy and Planning Unit
Economics and Trade Branch (ETB)
Green Economy Initiative
15 May 2014
Green Economy Trade Opportunities Report
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
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 SouthSouth 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 (%)
100%
90%
80%
70%
60%
North-North
North-South
50%
South-North
40%
South-South
30%
20%
10%
0%
2004
2005
2006
2007
2008
2009
2010
2011
2012
Chinese exports of PV cells (national TL
85414020) by market of destination, 2009-2012
25.0
1.4
20.0
0.8
1.0
USD billions
1.0
1.6
2.4
15.0
Developing countries
Other
10.0
17.0
16.8
1.0
Japan
1.2
United States
0.9
EU27
1.4
2.3
1.0
5.0
0.6
0.2
2.8
8.3
1.2
4.9
2.8
0.0
2009
2010
2011
2012
2013
Solar PV cells and modules exported to
developing countries
Green Economy implications for policy makers
1. Domestic policy initiatives
2. Investment initiatives
3. 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)
Trade Restrictiveness in services trade
Source: European Centre for International Political Economy, 2012
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?
Thank You
www.unep.org/greeneconomy