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and Trade 236 Renewable energy supply products are often produced in developed and more industrialised developing countries using intermediate inputs sourced from developing countries. Therefore, trade in intermediate goods is an important entry point into the green economy for developing countries. For example, whereas wind- powered electric generating sets are mostly produced in the developed world and emerging economies, several developing countries are starting to emerge as important suppliers of components (Steenblik 2006). As well as exports from developing countries to developed countries, there are increasing opportunities for trade between developing countries (‘South-South trade’). Many are now adopting renewable energy targets, and accordingly need products and technologies that may not be locally available. Furthermore, developing countries are becoming some of the world’s largest and fastest growing markets for environmental goods whereas the markets in most developed countries are mature by comparison (Vossenaar 2010). A 2011 report from UNCTAD further elaborates on the advantages and opportunities of South-South trade of renewable energy supply products: “...developing-country partners have similar needs for many technologies, at least more so compared with developed-country markets. Solar cooking stoves, for example, are an innovation well suited to developing-country contexts, where there is generally ample sunshine, and they are uniquely adapted to the needs of developing-country consumers, many of whom have been forced to rely on traditional biomass for cooking. The same may be said for solar PV-powered lights and lanterns, the biggest markets for which are poor rural locations without grid access. As such, developing country partners can provide a market for [renewable energy technologies] that have been developed to serve domestic needs or for non-indigenous technologies that have been adapted to serve local needs. Of course this is not equally valid for all [renewable energy technologies]; installation of wind turbines, for example, does not vary among developed and developing countries” (UNCTAD 2011d). Furthermore, hydrogen fuel cells are emerging as viable renewable energy equipment and are even a potential export opportunity for certain developing countries. While hydrogen fuel cells are labelled as “post-2020 transportation technology” (Meyers 2008), there is great potential for developing countries to engage in green inter-state trade of hydrogen fuel technology and know-how. Brazil and South Africa exemplify different approaches to harnessing trade opportunities. For example, South Africa holds 75 per cent of global platinum reserves and therefore naturally assumes a key role as raw material exporter for fuel cell manufacturing. The country has also announced plans to export high-value products to growing international hydrogen fuel cell markets (Perrot 2013). Furthermore, Brazil invested a considerable sum of US$ 70 million into hydrogen-related technology between 2001 and 2007. In the near future, Brazil aims to scale-up these national investments and export hydrogen fuel buses (Antunes 2010). Hence, hydrogen fuel cells represent a feasible green trade opportunity for developing states. However, in order to become a widely disseminated renewable energy technology, the fuel cells’ current cost disadvantage must be mitigated and the technology’s durability improved. 6.4.2 Electricity produced from renewable energy sources In recent years, renewable-energy technologies have grown increasingly competitive with conventional energy supply technologies in terms of electricity generation capacity and unit cost. Many developing countries have a comparative production advantage as they possess abundant renewable energy resources, including solar energy, wind power, geothermal energy, biomass and hydroelectric power (see Figure 6). By scaling up renewable electricity generation, developing countries can therefore enhance national energy access while reducing their dependence on oil and natural gas. This leads to more diversified energy portfolios that are less vulnerable to supply fluctuations and price rises in energy markets.PDF Image | Renewable Energy
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