"Ministers’ information" Reviews the report of the United Nations Trade and Development Organization
The Information and Decision Support Center of the Council of Ministers highlighted the report issued by the United Nations Trade and Development Organization (UNCTAD). On promoting trade and adjusting trade policy for solar and wind energy value chains, which addresses a continuing historical pattern in supply chains, where developing countries remain mostly confined to exporting raw materials needed for solar and wind energy technologies, while importing manufactured renewable energy technologies, where they are restricted These patterns limit the development prospects of these countries and limit the world’s collective ability to harness the full potential of green energy technologies.
The report explained that renewable energy is the key to addressing global change. Climate and energy poverty, as it has the potential to make the world’s prosperity dependent on the burning of fossil fuels and the associated carbon dioxide emissions. In addition, it has the potential to provide energy to 685 million people living without electricity and reduce the resulting poverty.
According to the report, trade in solar and energy technologies Wind is booming, supporting the overall transformation of the electricity sector. However, the expansion of the deployment of these technologies has not been rapid enough to replace fossil fuel-based power generation. Moreover, most developing countries are slipping into traditional trade patterns, acting as net exporters of raw materials for solar and wind value chains, and remaining net importers of upstream and downstream manufactured goods.
< p>The report indicated that to reduce dependence on fossil fuels and meet the growing global demand for renewable energy, it is necessary to significantly expand the world’s capacity to produce renewable energy, with trade playing a major role in facilitating this expansion. Although trade in renewable energy goods has been increasing, even faster than in other industrial goods, this growth is still far from sufficient.
The report added that tariffs Tariffs and other trade measures support or hinder the expansion of solar and wind technologies around the world. Trade costs along these value chains may remain high, making the technologies used less expensive and limiting manufacturing opportunities. Average tariffs in developing countries on green energy-related goods range from 2.5% in Asia and Oceania to 7.1% in Africa, with non-tariff measures adding further costs.
Explain The report suggests that reducing tariffs on intermediate goods across the solar and wind energy value chains could facilitate developing countries’ entry into the aggregation phase. For example, in Africa, tariffs on intermediate products could reach 8.1%, compared to 4.1% in Asia and Oceania.
The report indicated that there is scope for strengthening Regional integration by addressing both tariffs and non-tariff barriers. For example, tariffs within Africa are twice the level applied in other developing regions. Likewise, in Africa, Latin America and the Caribbean, regional producers can face up to four times higher non-tariff border costs for green goods than competitors from outside the region.
Connecting, Developed countries should re-evaluate their trade, investment and aid policies towards developing countries with regard to green goods. These policies must also be consistent with the global ambition for energy transition, universal access to energy, and sustainable development.
The report stated in its conclusion that the world must shift from current trade policy to the trade policy it needs by:
– Re-evaluating trade policy to achieve a better balance between fiscal concerns and the demands of the energy transition and universal access to Energy.
– Enhancing value addition through processing raw materials and assembling solar and wind energy technologies to drive structural transformation and integrate developing countries into global value chains.
– Harnessing South-South trade and regional integration to enhance the participation of developing countries in renewable energy value chains.
