World Energy Council: Tackling non-tariff measures a priority in addressing the energy trilemma
Environmental goods represent a trade market of approximately US$
1trillion annually. Reducing barriers to trade and investment would
support cost effectiveness and efficient decarbonisation of the energy
sector leading to more sustainable and accessible energy systems, finds
a new report by the World Energy Council.
While a number of international efforts have been progressing in the
elimination of tariff barriers, a comprehensive initiative to phase out
non-tariff barriers on products covered in the current multi-national
environmental goods tariff negotiations could be undertaken.
These topics are only just starting to be addressed within the World
Trade Organisation (WTO) rules and appear to be limited, states the
report launched at the APEC Market Access Group meeting in Lima, Peru,
on 18 August.
The World Energy Perspective 2016: ‘Non-tariff measures: next steps for
catalysing the low-carbon economy’, published by the Council’s Rules of
Trade Knowledge Network, includes experts from 28 countries. It explores
how an open global trade and investment regime focussing on energy and
environmental goods and services, can foster the transition to a low
carbon economy.
As a trade barrier, non-tariff measures (NTMs), frequently relate to
customs procedures and import requirements, technical standards and
other regulations that impede the flow of goods and services. NTMs
affect between 80% and 90% of trade. Therefore, understanding and
tackling NTMs that impact on the low-carbon energy sector should be a
priority in a country’s efforts to successfully address its energy
trilemma.
Christoph Frei, Secretary-General of the World Energy Council, said:
“Addressing the energy trilemma presents extraordinary challenges for
policymakers and requires an adequate global trade and investment
regime. This would encourage and leverage investment, innovation and
technology uptake, to meet the climate and energy objectives set by the
United Nations, G20 and COP 21.”
A session on trade and innovation will play a central part in
discussions at the 23rd World Energy Congress in October, which will see
global energy leaders address the critical energy frontiers facing the
global energy sector today. ‘The imperative of trade: Accelerating the
innovation transfer’ is one of the Congress sessions addressing
Governance frontiers. It will be led by Morlaye Bangoura, Commissioner,
Energy and Moines, ECOWAS, Nigeria along side Ricardo Melendez-Ortiz,
Chief Executive Officer, International Centre for Trade and Sustainable
Development (ICTSD), Switzerland and Timothy Richards, Executive Chair,
Rules of Trade, World Energy Council on the 12 October.
The report identifies significant NTMS directly affecting investments in
the energy industry:
● Local content requirements that are not carefully structured can
hamper local and foreign investments in research and development and
limit low-carbon technology transfer and energy projects due to a lack
of local capabilities
● Government procurement practices inhibit competition when they favour
domestic suppliers and imposing burdensome administrative compliance
● Transparent and efficient application of custom procedures help to
avoid arbitrary and unnecessary formalities in trading energy and
environmental goods
In order to support policymakers in moving forward with a NTM related
agenda the council has outlined some key recommendations:
● NTMs related to environmental goods should be addressed to enable the
energy sector to transition towards decarbonisation in cost-effective
and efficient manner
● Subsidies for energy technologies should be well designed or they
could result in inefficient and unsustainable use of subsidised energy
● Where existing rules apply these should be enforced as needed
● Where rules do not exist WTO members should consider developing them
Rather than introducing new measures, governments could find solutions
in adjusting existing measures to spur competition guarantee
transparency and correct failures in the trade system such as resolving
inefficiencies and discriminatory or duplicative measures.
The publication will be available to download for all after the embargo
date using the following link: https://www.worldenergy.org/publications/2016/non-tariff-measures-next-steps-for-catalysing-the-low-carbon-economy/
Media can get an exclusive preview of the Executive summary of the
report and its infographic using the following links – not to be
publicly shared before embargo is lifted:
· Executive summary: https://www.worldenergy.org/wp-content/uploads/2016/08/Exec-summary_Non-tariff-measures_next-steps-for-catalysing-the-low-carbon-economy.pdf
· Infographic: https://www.worldenergy.org/wp-content/uploads/2016/08/Infographic_Non-tariff-measures_next-steps-for-catalysing-the-low-carbon-economy-1.pdf
Ends
Notes to Editors:
World Energy Council
The World Energy Council is the principal impartial network of energy
leaders and practitioners promoting an affordable, stable and
environmentally sensitive energy system for the greatest benefit of all.
Formed in 1923, the Council is the UN-accredited global energy body,
representing the entire energy spectrum, with over 3,000 member
organisations in over 90 countries, drawn from governments, private and
state corporations, academia, NGOs and energy stakeholders. We inform
global, regional and national energy strategies by hosting high-level
events including the World Energy Congress and publishing authoritative
studies, and work through our extensive member network to facilitate the
world’s energy policy dialogue. Find out more www.worldenergy.org
and follow @WECouncil
World Energy Congress
The World Energy Congress is the World Energy Council’s global flagship
triennial event that enables dialogue among Ministers, CEOs and industry
experts on critical developments in the energy sector. Running since
1924, the 23rd World Energy Congress will be held in Istanbul, Turkey
from 9-13 October 2016 with the theme “Embracing New Frontiers”.
For more information about the World Energy Congress 2016 and to
register, visit: http://wec2016istanbul.org.tr/.
Follow the Congress at @WECongress for regular updates.
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