Enabling the Energy Transition and Scale-Up of Clean Energy Technologies: Options for the Global Trade System – Synthesis of the Policy Options

The urgency of climate-change mitigation is well-accepted. Yet, the scale-up of clean energy which it requires is hampered by numerous trade-related obstacles and a lack of clear governance frameworks on trade and clean energy that increase costs of clean energy technologies (CETs) as well as increasing uncertainty for investors. This article proposes a number of policy options to address obstacles to trade in CETs, improve energy trade governance, and use trade policy proactively in support of clean energy. Whereas many of the systemic options are challenging, requiring a great degree of convergence among the full WTO membership, short-term proposals more easily within reach are also identified. A variety of options are also suggested for improving market access. Relevant policy processes, including regional trade agreements, the Environmental Goods Agreement (EGA), and the Trade in Services Agreement present interesting opportunities for implementing several of these options. The article further proposes that existing policy space, in particular in the area of subsidies, needs to be clarified, and in some cases strengthened.