This paper discusses some of the challenges and opportunities in infrastructure investment in developing countries. Infrastructure investment in emerging and developing countries will need to more than double over the next decade. This means a significant step-up in the amount of public and private finance flowing to these countries. Such investment will be crucial not only to ensure that emerging and developing countries meet their growth and development aspirations, but also to ensure that they lay the foundations for sustainable growth, which entails low emissions and resilience to climate change.
A new Development Bank for Infrastructure and Sustainable Development could provide a new channel through which developing country governments could borrow to finance economically productive infrastructure assets - whilst still remaining within prudent levels of debt. In addition, a new institution could make up for the deficiencies of the existing architecture and help catalyze the private sector investments required.
Climate change is an unprecedented challenge facing humanity today, one that requires a quick and concerted response. With this context in mind, a rapid scale up in the deployment of renewable or sustainable energy sources is essential in order to reduce the emissions responsible for global warming. In this paper, Gary Hufbauer and Jisun Kim examine the conditions necessary for achieving a credible, low cost alternative to fossil fuel-based energy, placing an emphasis on how trade policy can be used to spur development in the sector, and the key issues that need to be addressed in order to accomplish a sustainable energy trade agreement (SETA). This publication is a joint effort by ICTSD, the Global Green Growth Institute (GGI) and the Peterson Institute for International Economics (PIIE).
This paper analyses the existing legal frameworks within which a possible Sustainable Energy Trade Agreement (SETA) could be negotiated to address energy-related trade governance and the resulting legal challenges and opportunities. It looks at a number of options under which a SETA could be given legal shape within and outside the World Trade Organisation (WTO) and assesses the pros and cons of the various approaches. It touches on a number of important considerations, such as the negotiating procedures, issues of accession, relationship to existing WTO rules and obligations, and dispute settlement. The paper also puts forward arguments as to why the WTO would provide the best forum to house such an agreement. The paper, produced by the International Centre for Trade and Sustainable Development (ICTSD), is part of a joint initiative on the promotion of sustainable energy, undertaken by the Global Green Growth Institute, the Peterson Institute for International Economics and ICTSD.
This summary was prepared by Eldis.
Intended to inform decision-makers in the public, private and third sectors, this policy paper finds that following a two degrees Celsius path requires radical action in both developed and developing countries and that the overall pace of change is ‘recklessly slow’. According to the authors, the transition to a low carbon and resource-efficient economy should be based on equitable access to sustainable development, as well as recognition that rich countries have a responsibility to support the transition of developing countries. This transition will involve breaking the link between growth and emissions, but not stop growth. The authors emphasise that accelerating the pace of change towards a low carbon, resource-efficient economy is both feasible and crucial, and that rapid transformative change is possible with the right incentives.
The authors criticise the rigidity of the processes under the United Nations Framework Convention on Climate Change (UNFCCC), as well as the behaviour and narrow-mindedness of the participants hindering progress. Additionally, they highlight the power that vested interests continue to have. Conclusions include the following:
The government as an entity is quite often the largest, single consumer of goods and services in developed as well as developing countries. Government procurement can be a powerful tool for positive environmental change by creating a market for environmental goods and services. At the same time, procurement policies will need to be designed and implemented in a manner that does not discriminate against trading partners. What sort of space is available in the context of existing trade-rules for governments to pursue proactive procurement policies for sustainable energy goods and services? Is there a need to review existing rules so as to enhance their effectiveness with regards to the objectives of strengthening markets for renewable energy? This paper, by Alan Herve and David Luff, sheds light on these questions and also explains how a possible Sustainable Energy Trade Agreement could spur reform while ensuring a level playing field in procurement markets for producers of sustainable energy goods and services worldwide.