International Trade and Access to Sustainable Energy: Issues and Lessons from Country Experiences

Authors :
Hari Manoharan, Madhavan Nampoothiri
Organisation:
International Centre for Trade and Sustainable Development (ICTSD)

How can trade policy respond to the needs and concerns of more than a billion people in the developing world that lack access to energy for fulfilling their daily needs such as cooking and lighting? An effective way would be address trade barriers to sustainable energy goods that are critical to providing such access. This paper looks at specific examples of sustainable energy goods-namely, solar technologies and associated products that have become an increasingly popular and cost-effective choice to deliver electricity to people not connected to the grid. However barriers to more widespread diffusion of these products still remain. The paper examines a number of domestic policy and market bottlenecks that stifle  growth and the rate of uptake for solar products and how they can be overcome. It then examines patterns of trade in products such as solar lanterns and solar panels,  policies that hinder trade such as import tariffs and taxation and a range of trade-relevant issues including, among others, those related to customs classification practices and delays in customs clearance and standardization. The paper finally explores how some of these trade-related barriers could be addressed within the context of a sustainable energy trade agreement for a positive impact on expanding access to sustainable energy.

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