The Law and Economics of a Sustainable Energy Trade Agreement

486 Pages·2016·2.963 MB·English

by  Gary C. Hufbauer (editor), Ricardo Meléndez-Ortiz (editor), Richard Samans (editor)

The Law and Economics of a Sustainable Energy
Trade Agreement
Thewidelyacceptedneedtoreducetheworld’sdependenceonfossil
fuels and move instead to low-carbon, renewable alternatives faces
ahostofchallenges.Whilstthegreatestchallengesremaininengineer-
ing,politicalandpublicpolicyissuescontinuetoplayaveryimportant
role. This volume, which consists of contributions from leading fig-
ures in the field, presents the case for a Sustainable Energy Trade
Agreement (SETA). It shows that by addressing barriers to trade in
goods and services relevant for the supply of clean energy, such an
Agreementwouldfosterthecrucialscaling-upofcleanenergysupply
and promote a shift away from fossil fuels. In doing so, it illustrates
how the Agreement would help to address a number of overarching
sustainable development priorities, including the urgent threat of
climatechange,enhancedenergyaccessandimprovedenergysecur-
ity.Thebookwillappealtoacademicsandpolicymakersworkingat
theinterfaceoftradeandenergypolicy.
Gary C. Hufbauer is the Reginald Jones Senior Fellow with the
Peterson Institute of International Economics (PIIE), a position
he has held since 1992. He was formerly the Maurice Greenberg
Chair and Director of Studies at the Council on Foreign Relations
(1996–1998).Hehasauthoredorco-authoredoverthirtypublications
onInternationalTrade,InvestmentandTaxIssues.Asaseniorofficial
intheUSTreasuryDepartment,henegotiatedtrade,taxandfinancial
agreements.
Ricardo Meléndez-Ortiz is co-founding Chief Executive of the
InternationalCentreforTradeandSustainableDevelopment(ICTSD).
Heisaformernegotiatorinbilateralandmultilateraltrade,environment
and development negotiations and processes, and served as Principal
Advisor to the Colombian Minister of Economic Development and as
ChiefofAdministrationintheOfficeofthePresidentofColombia.Heis
currentlytheConveneroftheE15Initiative,ajointICTSD–WEFunder-
takinglookingintothefutureoftheglobaltradeandinvestmentsystem,
andanAdvisortotheGlobalCommissiononBusinessandSustainable
Development.
RichardSamansisManagingDirectorandMemberoftheManaging
BoardoftheWorldEconomicForum(WEF).From2011–2013,hewas
Director-General of the Global Green Growth Institute (GGGI). He
haspreviouslyservedintheUSWhiteHouseasSpecialAssistanttothe
PresidentforInternationalEconomicPolicy,andasNationalSecurity
CouncilSeniorDirectorforInternationalEconomicAffairs.
The Law and Economics of
a Sustainable Energy Trade
Agreement
Editedby
Gary C. Hufbauer, Ricardo Meléndez-Ortiz
and Richard Samans
UniversityPrintingHouse,CambridgeCB28BS,UnitedKingdom
CambridgeUniversityPressispartoftheUniversityofCambridge.
ItfurtherstheUniversity’smissionbydisseminatingknowledgeinthepursuitof
education,learningandresearchatthehighestinternationallevelsofexcellence.
www.cambridge.org
Informationonthistitle:www.cambridge.org/9781107092860
©InternationalCentreforTradeandSustainableDevelopment(ICTSD)2016
Thispublicationisincopyright.Subjecttostatutoryexception
andtotheprovisionsofrelevantcollectivelicensingagreements,
noreproductionofanypartmaytakeplacewithoutthewritten
permissionofCambridgeUniversityPress.
Firstpublished2016
AcataloguerecordforthispublicationisavailablefromtheBritishLibrary
ISBN978-1-107-09286-0Hardback
CambridgeUniversityPresshasnoresponsibilityforthepersistenceoraccuracyof
URLsforexternalorthird-partyinternetwebsitesreferredtointhispublication,
anddoesnotguaranteethatanycontentonsuchwebsitesis,orwillremain,
accurateorappropriate.
Contents
ListofFigures pagevii
ListofTables viii
ListofBoxes x
ListofContributors xi
ListofSelectedAbbreviationsandAcronyms xvi
Foreword:TradePolicyCanHelpCombatClimateChange
h.e. mogens jensen xxi
Acknowledgements xxiii
1 Introduction:SettingtheHorseBeforetheCart
toPreserveaViableWorld
gary c. hufbauer, ricardo mele´ndez-ortiz
and richard samans 1
2 IssuesandConsiderationsforNegotiatingaSustainable
EnergyTradeAgreement:May2012
gary c. hufbauer and jisun kim 20
3 TradeinSustainableEnergyServices:October2013
joachim monkelbaan 85
4 GoverningCleanEnergySubsidies:What,Why,
andHowLegal?:August2012
arunabha ghosh with himani gangania 140
5 TradeLawImplicationsofProcurementPracticesin
SustainableEnergyGoodsandServices:September2012
alan herve´ and david luff 196
6 SellingtheSunSafelyandEffectively:SolarPhotovoltaic
Standards,CertificationTestingandImplicationsfor
TradePolicy:December2013
sunny rai and tetyana payosova 242
v
vi Contents
7 AddressingLocalContentRequirementsinaSustainable
EnergyTradeAgreement:June2013
sherry m. stephenson 316
8 InternationalTechnologyDiffusioninaSustainable
EnergyTradeAgreement:September2012
thomas l. brewer 349
9 LegaloptionsforaSustainableEnergyTradeAgreement:
July2012
matthew kennedy 390
Index 456
Figures
3.1 TheRelationBetweenEGS,CFGSandSEGS page89
3.2 ContributionoftheWindEnergySectorintheEUtothe
DirectandIndirectEmploymentForecast,2020and2030 122
3.3 ComparisonofJob-YearsAcrossTechnologies 123
3.4 TradeRestrictivenessinServicesTrade(Tariffadvalorem
Equivalents)bySectorWeightedbyTradeVolumes 125
4.1 GlobalFinancialNewInvestmentinRE,QuarterlyTrend,
2002–2011 142
4.2 WorldwideShareofManyRESourcesinTotalElectricity
GenerationRemainsSmall 144
4.3 RE’sShareinGermany’sElectricityConsumptionhasRisen
Steadily 169
4.4 RE’sShareinTotalElectricityCapacityintheUnitedStates 175
4.5 CleanEnergySubsidiesHaveMultipleRationales,Impacts
andCounteractiveReactions 186
6.1 StakeholdersandRationaleforStandards 244
6.2 TheRoleofNationalCertifyingBodies 254
6.3 CumulativeInstalledPVCapacityintheTopEightCountries 256
vii
Tables
2.1 ListofSETAProducts,TradeValuesand
TariffRates page23
2.2 TariffRatesforSETAProductsbySelected
Countries,TariffYear2010 31
2.3a TradewithOtherCoreandCandidateCountries:
NAFTA,2010 44
2.3b TradewithOtherCoreandCandidateCountries:
EU-27,2010 50
2.3c TradewithOtherCoreandCandidateCountries:
China,2010 56
2.4 TradeofAll39SETAProductsbetweenSelected
Countries,2010 64
2.5 SomeCasesofLCRsinPlace,asofJanuary2012 67
2.6 Top10SolarPVCell/WindTurbine
Manufacturers,2010 76
2.7 TradeofAPEC50EGs,2010 78
2.8 ComparisonofSETA,WorldBankandAPEC
Lists 79
3.1 KeySectoralMitigationTechnologies,and
CorrespondingServicesCategories 98
3.2 MajorExportersandImportersofArchitectural,
EngineeringandOtherTechnicalServices 100
3.3 SectoralCommitmentsonOtherProfessional,
TechnicalandBusinessServices 102
3.4 SnapshotofGATSCommitmentsinServices
RelatedtoWindEnergy 104
3.5 MarketAccessandNationalTreatment
LimitationsonMode1:OtherProfessional,
TechnicalandBusinessServices 105
3.6 MarketAccessandNationalTreatment
LimitationsonMode3:OtherProfessional,
TechnicalandBusinessServices 107
viii