Renewable Energy

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Renewable Energy ( renewable-energy )

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and Trade 246 This chapter has illustrated the manifold challenges and opportunities at the intersection of trade, energy, and the transition to a green economy. As highlighted in the Rio+20 Outcome Document, the renewable energy sector has a significant role to play in encouraging a transition to a green economy and in addressing the challenge of access to sustainable modern energy services for all. International trade can play a significant role in the greening of the energy sector, in particular, by acting as a vehicle for technology transfer for renewable energy and by responding to demand for sustainably sourced energy. This demand has led to several trade opportunities, including exports of raw materials and components for renewable energy supply products and finished products, exports of energy from renewable sources, exports of renewable natural resources to produce energy and the selling of carbon credits on international markets. However, in order for developing countries to benefit fully from these opportunities, many obstacles must be overcome. Creating suitable enabling conditions, including public and private sector investments, regulation, market-based instruments, R&D, and instalment of appropriate infrastructure, can help to address the main challenges to more sustainable trade in renewable energy. Facilitative measures should be conducive to the further development and use of renewable energy and must adhere to proper international frameworks. There is also a pressing need to phase out harmful fossil fuel subsidies and remove barriers that hamper the widespread diffusion of climate friendly technologies.

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