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.