The uptake of renewable energy (RE) has been identified by a number of governments as a primary means for mitigating CO2 emissions from the electricity sector, and for making the transition to a low-carbon economy. The electric power output of some RE technologies, however, including those based on intermittent wind and solar energy, can vary considerably over short periods of time and thereby introduce instability into the electricity system. The risk of instability increases with higher shares of intermittent power sources connected to the electrical grid. Different means have been used to deal with this intermittency problem. Cross-border trade in electricity appears to be one of them since it enables countries to gain access to a more diversified portfolio of plants, producing over a wider geographic area. Preliminary results from an examination of the European electricity market confirm the importance of cross-border electricity trade in increasing the effective capacity factor of intermittent plants in the context of a growing share of intermittent renewables in the power sector.
Trade has the potential to drive a green economy by fostering the exchange of environmentally friendly goods and services, increasing resource efficiency, generating economic opportunities and employment, and contributing to poverty eradication. If managed poorly, however, unrestrained trade can contribute to environmental degradation, unsustainable resource use, and increased wealth disparities, all of which hinder a green economy transition and sustainable development objectives.
The magnitude of climate change and of the ensuing changes in production systems requires us to seek solutions to meet these challenges and to guide us in making the necessary production transitions, while simultaneously guaranteeing social cohesion, participation in decision-making and best use of potential benefits in terms of job creation. In this sense, the Green Jobs Programme of the ILO, in collaboration with the Sustain Labour Foundation, the International Foundation for Sustainable Development, has conducted this case study on the Social Dialogue Tables Initiative conducted in Spain as a mechanism for trade unions and employers' organizations, together with industry, environment and labour institutions to assess the effects on the competitiveness, employment and social cohesion of the Kyoto Protocol in Spain. This is a draft report. The final report will be ready in the coming months.