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Trends, Challenges and Opportunities 6 renewable energy 6.1 Introduction The challenges posed to the global community and national governments, in terms of energy security, climate change, health impacts and poverty are pressing, making the greening of the energy sector an imperative. The shift to renewable energy — along with major energy efficiency improvements — plays a critical role in addressing some of the most prominent challenges the world is faced with today. The Rio+20 Outcome Document, “The Future We Want” (UN 2012a, paragraphs 125-129), highlights the importance of this transition and emphasises “the need to address the challenge of access to sustainable modern energy services for all... [including through] increased use of renewable energy sources and other low emission technologies”. International trade can play a significant role in greening the energy sector. In particular, trade is an important vehicle for renewable energy technology transfer. The Rio+20 Outcome Document (UN 2012a, paragraph 271) also highlights “the role of foreign direct investment, international trade and international cooperation in the transfer of environmentally sound technologies”. This chapter identifies the trends and trade opportunities in the renewable energy sector associated with a transition to a green economy. It explores how developing countries can respond to international demand for sustainable goods and services in this sector. Some promising trade opportunities in the renewable energy sector that are highlighted in this chapter are: • Exports of raw materials or components for renewable energy supply products, or of finished renewable energy supply products (e.g. solar panels, wind turbines, and hydrogen fuel cells); • Exports of energy produced from renewable resources (e.g. solar or wind power); • Exports of renewable natural resources to produce energy (e.g. feedstock for biofuels, biogas and biomass); • Cross-border provision of renewable energy services; and • Selling carbon credits on international markets. The chapter also reviews some of the challenges that developing countries face in order to participate in the regional and global energy markets and offers suggestions on how to address them. 6.2 environmental and economic context for greening the economy This section provides background on the context and current state of renewable energy and reviews current trade patterns in the energy sector. 6.2.1 Context Energy is the lifeblood of the world economy. Energy interacts with all other goods and services that are vital for economies and the economic and functional reliance on energy is expected to further increase. In particular, global energy demand has been estimated to grow by more than one-third until 2035, with China, India and the Middle East accounting for 60 per cent of this demand increase (IEA 2012a). As highlighted in the Green Economy Report (GER) (UNEP 2011), the global community and national governments are faced with several challenges with respect to the energy sector. These include: • access to energy: Currently 1.3 billion people – one in five globally – lack any access to electricity. Twice that number – nearly 40 per cent of the world’s population – relies on wood, coal, charcoal, or animal waste to cook their food (IEA 2010a). 219 Renewable EnergyPDF Image | Renewable Energy
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