Enhanced access to reliable sources of clean energy is crucial for nations and communities to develop and prosper. This is necessary not only to meet the projected increasing demand for energy but more importantly to gradually phase out fossil fuels which are hazardous to health, the environment and are the main cause of climate change.
Trade has an important role to play in fostering a global shift to clean energy. A free and open rules-based multilateral trade system can allow for specialization, economies of scale and increased competition, and contribute to transfer of technologies, contributing to reducing the cost of clean energy, thereby making it a viable option to fossil fuels.
Currently, the multilateral trading system does not deal with clean energy in a holistic manner. Consequently, a range of barriers to trade in goods and services related to sustainable energy remain, including tariffs as well as numerous non-tariff barriers. Atthe same time, the WTO isfacing an increasing number of disputes related to clean energy and to countries’ ambitions to build and strengthen their renewable energy sectors.
While the WTO is currently preoccupied with the stalled Doha Development Agenda, it is necessary to explore and highlight some of the most salient issues that should be taken up by the organization in the medium to long-term, and to identify options for a way forward.
It is against this background that ICTSD and Chatham House are establishing a group of leading experts, within the framework of ICTSD’s broader E15 initiative, to explore options to strengthen the multilateral trading system in the area of clean energy.
For more information about the initiative, members of the group and background papers, please visit www.e15initiative.org