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Trends, Challenges and Opportunities deployment. However, in many developing countries this cost problem could be mitigated by tapping readily accessible sources of government funding, particularly the significant flows of public subsidies to fossil fuels. Switching the flow of subsidies from fossil fuels to renewable energies is easily justifiable because of the positive social and environmental externalities from renewable energy use. Therefore, if financial resources need to be raised nationally, this should and can be done without placing the financial burden on the poorer segments of society (UNEP 2012c). 6.5.3 National regulatory frameworks • devise a renewable energy strategy to foster exports. A review of countries’ strengths and opportunities at the national level can help identify export prospects. It is important to recognise that scaling up renewable energy generation in a country has the potential to facilitate new export opportunities in those technologies, particularly where comparative cost, knowledge or technology advantages exist. In addition, investment promotion plans are needed in order to attract the necessary capital to unlock trade potential. • establish and maintain an enabling policy framework for renewable energy. The development of reliable and predictable market conditions, transparent regulatory frameworks, and clear long-term commitments is critical to the development of the sector. Such commitments could be manifested by targets for investment in additional capacity and penetration rates within the energy mix. Setting targets to achieve these goals can send a strong signal to potential investors (UNEP 2011). 6.5.4 International frameworks • Build on climate change negotiations. International trade in renewable energy supply equipment and renewable energy will most likely benefit the post-2015 negotiations under the UNFCCC. In this regard, the Rio+20 Outcome Document highlights the importance of increasing the share of renewable energy for addressing climate change (UN 2012a, paragraph 128). • enable green trade opportunities in energy by reaching an international agreement to liberalise trade in environmental goods and services (eGS). Lowering tariff and non-tariff barriers from goods such as wind turbines, solar panels, hydrogen fuel cells and energy-efficient light bulbs, to services such as environmental engineering, will likely lead to new green trade opportunities and real increases in trade (ICTSD 2009). The WTO’s Doha Round includes negotiations on the liberalisation of trade in EGS (WTO 2001). EGS liberalisation should be sensitive and responsive to developing country concerns and provide a certain degree of flexibility and policy space. • Negotiate a framework for sustainable biofuel trade. An internationally accepted framework for determining what kinds of biofuels qualify as sustainable would enable governments and industry to implement measures to accelerate the required technology development and uptake. This could include a global road map for second-generation biofuels and international standards with respect to the sustainability of biofuels. 6.5.5 Enhancing dialogue and capacity building • Promote green trade financing for renewable energy. A global programme of green trade financing for developing countries would be helpful to create synergies between international and national initiatives (UNFCCC 2012b). This would respond to the Rio+20 Outcome Document, which calls on UN agencies to assess the technology needs of developing countries, explore options to address them, and foster related capacity building (UN 2012a, paragraph 73). • Promote the dissemination of green technologies. Openness to trade and investment could enable domestic actors to engage in catch-up innovation. The potential that cooperation among developing countries offers in overcoming many of the technological challenges could be further explored through dialogue between governments, intergovernmental organisations and/or regional development banks. The launch of the Green Climate Fund offers an ideal platform for cooperative engagement among stakeholders (UNFCCC 2010). 245 Renewable EnergyPDF Image | Renewable Energy
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