International cooperation on trade is crucial for a swift and equitable transition to clean energy, a key strategy to combat climate change. This was the core message at an event organized by the WTO Secretariat on World Environment Day, June 5th. The event underscored the role of trade policy in supporting clean energy initiatives, particularly for developing nations and least-developed countries (LDCs).
Deputy Directors-General Jean-Marie Paugam and Xiangchen Zhang highlighted the potential of trade policies to expedite the clean energy transition. DDG Paugam emphasized the importance of rebalancing tariffs and aligning standards with climate goals to accelerate decarbonization efforts and integrate developing economies into green value chains.
DDG Zhang noted the critical role of global cooperation in achieving net-zero emissions. He pointed out that developing nations are increasingly recognizing how Aid for Trade can help them seize opportunities arising from the green transition.
The event, titled "Supporting the Transition to Clean Energy," previewed an upcoming WTO publication on the role of Aid for Trade in unlocking opportunities in the clean energy sector for developing and LDC members. This publication will be launched at the Global Review of Aid for Trade 2024.
Vishvanathan Subramaniam from the WTO's Aid for Trade Unit showcased trade opportunities emerging from the clean energy transition and provided examples of how Aid for Trade can assist developing and LDC members in leveraging these opportunities. Aik Hoe Lim, Director of the WTO Trade and Environment Division, highlighted that the clean energy transition addresses some root causes of land degradation, aligning with the United Nations' theme for this year's World Environment Day.
Additional speakers from various organizations shared insights on integrating developing economies into the clean energy supply chain. Dr. Ajay Mathur of the International Solar Alliance noted that despite significant investments in the solar energy sector, Africa has received less than 3% of these funds. He stressed the need for financing guarantees to attract investment in underserved regions.
Dr. Roberta Boscolo from the World Meteorological Organization discussed how renewable energy potential varies with changing weather patterns, emphasizing the need for market adaptations to boost investments in energy storage and grids.
Cyn-Young Park from the Asian Development Bank identified vulnerabilities in the global supply chain for critical minerals and recommended measures for "greening" and enhancing investment in this sector. Haoyan Xue from the Global Energy Interconnection Development and Cooperation Organization focused on the importance of developing energy interconnections in Africa.
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