After almost two and a half years of negotiations, there are indications that an EGA will be reached by the end of 2016.
This endeavor comes shortly after international landmark agreements were reached last year on sustainable development goals (SDGs) and climate change, which have further highlighted the need for all policy areas to contribute to a more sustainable future.
Promoting a rapid scale-up of clean energy supply and reducing the use of fossil fuels are crucial to tackle climate change and contribute to meeting the SDGs such as “ensuring access to affordable, reliable, sustainable and modern energy for all” and “promoting sustained, inclusive and sustainable economic growth”. The EGA tariff negotiations cover a range of clean energy technologies as well as certain energy efficiency technologies. Addressing such tariff barriers is an important step forward as it may help lower the cost of and enhance access to the relevant technologies on a global scale.
It is also important to understand the drivers of cleantech trade as well as barriers beyond tariffs. As many clean energy technologies are produced in global value chains, there is potential for many countries to engage in different segments of their production. Clear and predictable policy frameworks are among the key drivers, while barriers range from cumbersome and divergent standards to restrictions on services to a lack of financing.
This event shed light on some of these barriers and drivers, based on interventions from industry representatives and drawing on recent research. The objective was to inform the EGA negotiations as these run to a close and to draw the attention of negotiators to possible future steps for the EGA.
This high-level international workshop brought together policy-makers, private sector and non- governmental experts for in-depth discussions on the development of emissions trading systems and related issues.
The workshop covered the following themes: an opening session on the Paris Agreement and how international trading can be used to achieve and surpass NDCs; an update on China’s national ETS and in the Asia‐Pacific region; a dedicated roundtable to the EU ETS; a session about the new market mechanisms that might emerge from the Paris Agreement; a discussion on the evolution of GHG emissions trading in North America; and a session on the global market-based mechanism that is to be agreed later this year for the aviation sector.
ICTSD was represented by Ingrid Jegou (Director, Climate, Energy and Natural Resources) who joined a panel on linking and carbon market clubs.
Attendance was by invitation only and the audience was a select group of key actors in the field.