Strengthening Global Value Chains in the Clean Energy Sector
Channel: ICTSD
Date: 16/06/2015

Eliminating tariffs on environmental goods - currently the main mandate of the Environmental Goods Agreement (EGA) negotiations - would lead to considerable gains. Not only would it allow firms to optimise their supply chains, resulting in economies of scale and more competitive and affordable environmental technologies, it would also offer a much-needed impetus to the global trade system, capable of generating momentum for further, necessary trade reform. 

It is therefore essential, in a first step, to successfully bring the EGA tariff negotiations to a timely conclusion. In doing so, it is important to consider the role of developing countries in global supply chains of environmental, and in particular clean energy products. While developing countries are currently largely outside the EGA, they have much to gain from a strengthened world market in these technologies.

It is also desirable to reflect upon how to ensure that the EGA becomes as relevant and effective as possible, even after a first delivery. The EGA has been set out as a “living agreement” which would evolve over time as new challenges arise, the market develops and political progress is within reach. One important step for such a living agreement would be to eventually widen the scope of the EGA beyond tariff elimination. Indeed, the more tangible barriers to trade in environmental technologies mostly relate to non-tariff-barriers (NTBs), for example standards and the proliferation of local content requirements.

Against this background, the SETI Alliance and ICTSD will host this dialogue during the upcoming EGA negotiating session. The session will include presentations from business representatives about projects in developing countries, exploring how tariffs and NTBs affect the optimisation of supply chains and the integration of developing countries in the world market. In addition, the session will feature expert presentations from ICTSD on options for mutual recognition of standards for clean energy technologies, and the OECD on their upcoming research on achieving a level playing field for international investment in solar and wind energy.

Speakers: 

Peter Brun, Managing Director, SETI Alliance

Jodie Roussel, TrinaSolar

Hannu Vaananen , ABB

Ronald Steenblik, Senior Trade Policy Analyst, OECD

Geraldine ANg, Policy Analyst, Green INvestment, OECD

Mahesh Sugathan, Senior Research Fellow, ICTSD

Organized by the SETI Alliance and the ICTSD.
Location: Geneva, Switzerland

Info at http://www.ictsd.org/themes/climate-and-energy/events/strengthening-global-value-chains-in-the-clean-energy-sector