Special panel discussion: Harnessing the GSTP to forge a development-led sustainable transition among member countries
2023-09-19 13:00 - 14:30 UTC | Geneva, Switzerland
Bold actions commensurate with the urgency of the current climate situation are needed for a successful energy transition. Most of the energy transition must be based on renewable sources. A record-breaking $1.3 trillion in worldwide investments in energy transition technologies was reached in 2022. Global annual spending in these technologies must more than double to $5 trillion to maintain Paris Agreement target of limiting future global warming to 1.5°C. By 2030 global energy transition investments must reach $5.5 trillion annually over the next 8 years. UNCTAD estimates that developing country investment levels must reach $1.7 trillion annually. However, developing countries have only attracted $544 billion in FDI for clean energy in 2022.

The magnitude of required investment indicates a corresponding huge, growing commercial market for low carbon energy technologies that developing countries must seize as producers and exporters of renewable energy goods and services. The opportunity cost of not participating in this growing market and risks of leaving developing countries behind is high.

This event will examine how the GSTP can be harnessed to ensure its member states reap commercial and development benefits from the energy transition. It will explore how the preferential reduction of tariffs among GSTP participants on low carbon technologies, inputs and upstream goods required for their manufacture can create new investment, production, and trade opportunities.

It will also consider how GSTP investment, production and trade in renewable energy technologies can be supported by GSTP rules of origin provisions and through a government procurement preferential agreement among member states. Additionally, options for South-South transfer of technology mechanisms such as patent pools, joint research and training centers could contribute for a faster sharing and uptake of innovative solutions.

By enabling increased cooperation and coordinated industrial policy, GSTP can be turned into an effective instrument for maximizing its members’ participation in, and allowing them to benefit from, a global energy transition while avoiding dependency-led scenarios which might otherwise occur wherein they assume increasingly large debts to finance their imports of renewable energy technologies from developed countries.

Programme

Moderator

Mr. Awni Behnam, Former Assistant Secretary General of the United Nations and Former Senior Advisor to the Secretary General of UNCTAD

Speakers

Ms. Chantal Line Carpentier, Head, Trade, Environment, Climate Change and Sustainable Development Branch, DITC/Mr. Robert Hamwey, Economic Affairs Officer, TED, DITC (The potential of South-South cooperation on low carbon technology goods, sustainable food products and plastic substitutes)
Mr. Christophe Bellmann, Head of Policy Analysis and Strategy
Forum on Trade, Environment & the SDGs (TESS) (The potential for South-South cooperation on food products)
Mr. Carlos Correa, Executive Director of the South Centre (The potential of South-South cooperation on transfer of green technologies).

Open discussion

Bold actions commensurate with the urgency of the current climate situation are needed for a successful energy transition. Most of the energy transition must be based on renewable sources. A record-breaking $1.3 trillion in worldwide investments in energy transition technologies was reached in 2022. Global annual spending in these technologies must more than double to $5 trillion to maintain Paris Agreement target of limiting future global warming to 1.5°C. By 2030 global energy transition investments must reach $5.5 trillion annually over the next 8 years. UNCTAD estimates that developing country investment levels must reach $1.7 trillion annually. However, developing countries have only attracted $544 billion in FDI for clean energy in 2022.

The magnitude of required investment indicates a corresponding huge, growing commercial market for low carbon energy technologies that developing countries must seize as producers and exporters of renewable energy goods and services. The opportunity cost of not participating in this growing market and risks of leaving developing countries behind is high.

This event will examine how the GSTP can be harnessed to ensure its member states reap commercial and development benefits from the energy transition. It will explore how the preferential reduction of tariffs among GSTP participants on low carbon technologies, inputs and upstream goods required for their manufacture can create new investment, production, and trade opportunities.

It will also consider how GSTP investment, production and trade in renewable energy technologies can be supported by GSTP rules of origin provisions and through a government procurement preferential agreement among member states. Additionally, options for South-South transfer of technology mechanisms such as patent pools, joint research and training centers could contribute for a faster sharing and uptake of innovative solutions.

By enabling increased cooperation and coordinated industrial policy, GSTP can be turned into an effective instrument for maximizing its members’ participation in, and allowing them to benefit from, a global energy transition while avoiding dependency-led scenarios which might otherwise occur wherein they assume increasingly large debts to finance their imports of renewable energy technologies from developed countries.

Programme

Moderator

- Mr. Awni Behnam, Former Assistant Secretary General of the United Nations and Former Senior Advisor to the Secretary General of UNCTAD

Speakers

- Ms. Chantal Line Carpentier, Head, Trade, Environment, Climate Change and Sustainable Development Branch, DITC/Mr. Robert Hamwey, Economic Affairs Officer, TED, DITC (The potential of South-South cooperation on low carbon technology goods, sustainable food products and plastic substitutes)

- Mr. Christophe Bellmann, Head of Policy Analysis and Strategy

- Forum on Trade, Environment & the SDGs (TESS) (The potential for South-South cooperation on food products)

- Mr. Carlos Correa, Executive Director of the South Centre (The potential of South-South cooperation on transfer of green technologies).

Open discussion

View meeting on unctad.org
https://unctad.org/node/42356
