Trade in renewable energy technologies is one of the fastest growing markets in the world, and South-South trade in these goods is growing faster than global trade in renewable energy according to the report ‘South-South Trade in Renewable Energy: A Trade Flow Analysis of Selected Environmental Goods,' which was launched by the UN Environment Programme (UNEP), during the first UN Environment Assembly in Nairobi, Kenya.
29 June 2014: Trade in renewable energy technologies is one of the fastest growing markets in the world, and South-South trade in these goods is growing faster than global trade in renewable energy according to the report ‘South-South Trade in Renewable Energy: A Trade Flow Analysis of Selected Environmental Goods.’ This report was launched by the UN Environment Programme (UNEP) during the first UN Environment Assembly in Nairobi, Kenya.
In 2013, developing countries collectively accounted for over one-third of new solar photovoltaic capacity and nearly two-thirds of new wind power capacity added globally. According to UN Under-Secretary General and UNEP Executive Director Achim Steiner, the environmental goods and services market is estimated to grow to US$1.9 trillion by 2020, and offers opportunities for developing countries to drive the green economy transition.
The report stresses the key role of South-South trade in environmental goods and services in catalyzing the transition to a green economy. It analyzes trade flows in selected environmental goods, identifies key growth markets, and highlights related social, economic and environmental opportunities for the expanding South-South trade. Renewable energy products examined include solar photovoltaic cells and modules, wind turbines, hydroelectric turbines, biomass feedstock and solar water heaters.
Analyzing the period 2004-2011, the report highlights key aspects of South-South trade in renewable energy goods, including: faster growth in most renewable energy categories than globally; transformation of developing countries into net exporters; leadership of East and South-East Asian developing countries, particularly China, in South-South exports; and a number of positive trends providing favorable conditions for further trade. The report stresses key trends underpinning South-South trade in renewable energy products: falling global prices; impact of government policy on market and trade trends; and the need for trade liberalization coupled with flanking policies, such as taxation or regulation.
The UNEP report shows how South-South trade can catalyze production and trade in environmental goods and services. It stresses the need for targeted investments, enabling policies and capacity building in supporting developing countries’ ability to participate in sustainable value chains and transition to low-carbon, resource-efficient, green economies.
The report outlines policy recommendations for accelerated South-South trade in renewable energy goods, including: identification of opportunities; design of appropriate incentives and support; implementation of trade policies favorable to local renewable energy potential; promotion of investments; improved grid capacity for renewables; and investment in labor skills development. [UNEP Press Release] [Publication: South-South Trade in Renewable Energy: A Trade Flow Analysis of Selected Environmental Goods] [IISD-RS Coverage of the UN Environment Assembly]