Multi-year Expert Meeting on Trade, Services and Development, tenth session
10 July 2023
Distinguished delegates, esteemed experts, ladies and gentlemen,
I am deeply honored to be speaking once again at UNCTAD’s 10th Multi-Year Expert Meeting on Trade, Services, and Development. I commend this Expert Meeting’s relentless dedication to fostering a fairer and more inclusive global economy. Today, we gather to discuss a crucial topic – the role of trade and services in enhancing science, technology and innovation for a fair transition to sustainable energy.
Our world stands at the crossroads. On one hand, we are witnessing an unprecedented acceleration in technological advancement, which holds the promise of solving some of the most pressing challenges of our time. On the other hand, we face a looming climate crisis, widening economic inequalities, growing debt distress, fragmenting international cooperation and energy poverty that still plagues billions.
Due to the growing cost-of-living crisis, last year for the first time in decades, the number of people without access to modern energy was set to rise, mostly in least developed countries. Around 75 million people who recently gained access to electricity are likely to lose the ability to pay for it, and 100 million people may have reverted to the use of traditional biomass for cooking. In total, over 2 billion people, about one in every four people in the world, are still energy poor.
Ladies and gentlemen, this is our moment of truth – a moment where we can either harness the winds of change or be swept away by the storms of inaction. Our goal is to ensure that no one is left behind as we transition to a more sustainable energy future.
Trade and investments are the lifeblood of our interconnected world, and services the backbone of modern economies – and they have indispensable roles in this transition. They are the channels through which knowledge, technology, and innovation flow across borders. This flow must be seen not just as a transfer but as an exchange, a dialogue and a partnership.
Firstly, let us look at the role of trade. In order for science, technology, and innovation to thrive, they must be embedded in an international framework that facilitates the transfer of renewable energy technologies. We must work towards the elimination of trade barriers that hinder the dissemination of clean technologies and services. Furthermore, developed nations must actively engage in capacity-building and technology transfer to developing countries. This not only fosters global partnerships but also ensures that sustainable energy solutions are accessible and affordable for all.
It is true, for example, that as the IEA says, solar energy is now one of the cheapest sources of energy available, beating even coal and natural gas in some instances. Well, this is only true if you have the technologies, and indeed the start-up funding to set up the solar panels, which are very capital intensive. If you do not have either, solar energy quickly becomes very expensive.
Secondly, the services sector must evolve to support this sustainable transition. The development of renewable energy sources, the modernization of grid infrastructures, and the implementation of energy efficiency measures all require specialized services. From engineering and consultancy to finance and maintenance, the services sector must be equipped with the necessary skills and knowledge to support and accelerate the energy transition.
A key application, for example, is on implementing and operating smart grids, which incorporate digital sensors and “Internet of things” automation and communication systems. This allows for the real-time collection of data on energy demand, reducing waste. According to the IEA, the use of these technologies could cut total energy use in residential and commercial buildings by as much as 10 per cent by 2040.
Furthermore, we must not forget the importance of inclusivity and fair transition. As we embrace new technologies, we must also address the social dimensions of this transformation. This includes ensuring that workers in traditional energy sectors are re-skilled and integrated into the emerging green economy, and that vulnerable communities are given the support they need. To be able to achieve this, we need more services in the economy, especially in terms of training and education and related services-support to active labour market policies.
Lastly, as I mentioned already, we have massive investment shortfalls to cover, especially in the Global South. Last week we launched UNCTAD’s World Investment Report, which estimates that developing countries face an investment gap of $2 trillion annually for the energy transition, out of a $4 trillion annual funding gap for the Sustainable Development Goals. Since the agreement of the 2030 Agenda in 2015, this gap has only gotten wider, as international cooperation has fragmented further.
However, it is important to make this very clear: Renewable investments are not costs; they are the seeds we sow for a better future. They will pay dividends in the form of cleaner air, healthier communities, and a more resilient global economy. So it is important to make the case that bridging the investment gap is not only a matter of justice, or peace; it is also good and smart economics, fair and simple.
Distinguished delegates, ladies and gentlemen, dear friends,
In closing, let us remember that the sustainable energy transition is not just a goal, it is a journey. A journey that demands the collective wisdom, strength, and spirit of all nations and peoples. This is why we all gather here once more, to think collectively on how to answer these growing challenges, bringing perspectives from all the corners of the globe.
Distinguished delegates, there is much at stake. I wish you a very productive, fruitful, and engaging discussion.
Thank you.
