Trade in environmentally sound technologies: Opportunities and challenges for developing countries (DCO)

Arguments

The decline in developing country participation in environmental technologies

Topics: green technologies, trade policies, industrial policies

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Industrial development has been neglected for years, pushing countries to rely on emerging services sectors

Supporting facts:

• In Cairo, there are many unemployed doctors yet the country is still reliant on importing food

Topics: Industrial development, Emerging services sector

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Mismatch between development strategies and actual needs of developing countries

Supporting facts:

• Celine cites the example of Cairo in Egypt with an over-supply of doctors and under-supply of commodities, pointing to flawed strategies in the past

Topics: Development strategies, Developing countries

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The financing capacity for industrial development is a major challenge

Topics: Industrial development, Financing

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Report

The decline in developing country participation in environmental technologies is a significant concern. This decline can be attributed to a combination of factors, including recent industrial policies and mismatched development strategies. Industrial policies adopted by different countries may have inadvertently contributed to this decline.

It is argued that these policies have not prioritised the development of green technologies, resulting in limited opportunities for developing countries to participate in this sector. Furthermore, there is evidence of a mismatch between development strategies and the actual needs of developing countries.

One example highlighted is the case of Cairo in Egypt, where there is an oversupply of doctors but a reliance on importing food. This points to flawed strategies in the past, which have neglected the development of industries and instead focused on emerging services sectors.

This neglect of industrial development has limited the economic growth potential of these countries. The financing capacity for industrial development is also identified as a major challenge. Developing countries often face financial constraints that hinder their ability to invest in industrial development.

This lack of financing limits their participation in environmental technologies and hampers their overall economic growth. Additionally, there is a rising interest in the provision of environmental goods and services in regional trade agreements (RTAs). This indicates a growing recognition of the importance of incorporating sustainable practices in trade policies.

Further exploration of this trend is needed to understand the potential benefits and implications of incorporating environmental provisions in RTAs. In conclusion, the decline in developing country participation in environmental technologies, coupled with the neglect of industrial development and financing challenges, highlights the need for a comprehensive re-evaluation of trade policies, industrial policies and development strategies.

There is a pressing need to promote sustainable growth and address climate change by investing in green technologies and supporting the industrial development of developing countries. Incorporating environmental provisions in RTAs could also serve as a catalyst for sustainable development.

These insights emphasise the importance of international collaboration and strategic planning to create a more inclusive and sustainable economic future.

Arguments

The role of trade facilitation in trade in environmentally sound technologies.

Supporting facts:

• Trade facilitation has had an impact on global trade by US$231 billion.

• Digitalization and technologies such as electronic single windows and trade information portals have made trade faster, greener, and cheaper.

• The implementation of a single window in Vanuatu led to a reduction of 180,000 kilos of CO2.

• Implementation of ASICUDA in Timor-Leste resulted in a 95 percent decrease in physical trips and printed paper.

Topics: Trade facilitation, Environmentally sound technologies

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Challenges in the current trade facilitation ecosystem for handling environmentally sound technologies.

Supporting facts:

• Issues arise when customs officers have to treat products considered part of the secular economy due to lack of appropriate HS code classification.

• Standardization issues for new and reused products which are part of a climate-smart strategy.

Topics: Trade facilitation, Environmentally sound technologies, Challenges

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Challenges of developing countries in accessing green technologies.

Supporting facts:

• Developing countries’ share of global exports of green technologies has fallen from 48% to under 33%.

• Developing countries are not able to access green technologies, hindering their independence and trade capacity.

• Intellectual property rights issues limit the ability of developing countries to produce green technologies.

Topics: Developing countries, Green technologies, Access

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Industrial policy has become an urgent objective after being neglected for years

Supporting facts:

• Industrial development has been completely forgotten for many decades and the priority was more about having some kind of emerging services sector

Topics: Industrial Policy, Development Strategy

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Overemphasis on certain professions like medicine has led to unemployment and dependency on imports in developing countries

Supporting facts:

• In Cairo, there are a lot of doctors without jobs, and they still need to import food and primary commodities to produce basic needs

Topics: Employment, Import Dependency

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Industrial development needs significant financing and strong partnerships

Supporting facts:

• Industrial development means a lot of financing needs, and development banks are essential for that

Topics: Industrial Development, Financing

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Report

The analysis explores several important topics related to trade facilitation, challenges in handling environmentally sound technologies, accessing green technologies in developing countries, the need for consistency in international trade and climate change discussions, the significance of uniting developing countries for discussions on the intellectual property of green technologies, the neglected industrial policy, the impact of overemphasis on certain professions leading to unemployment and import dependency in developing countries, the issue of promoting strategies that do not align with the needs of developing countries, and the financing requirements for industrial development.

Regarding trade facilitation, it is highlighted that the implementation of digitalisation and technologies such as electronic single windows and trade information portals has had a positive impact on global trade by reducing costs and making trade faster, greener, and more efficient.

For instance, the implementation of a single window in Vanuatu resulted in a reduction of 180,000 kilos of CO2, while ASICUDA implementation in Timor-Leste led to a 95 percent decrease in physical trips and printed paper. These examples demonstrate the potential of trade facilitation in enhancing trade in environmentally sound technologies.

However, challenges are also identified within the current trade facilitation ecosystem. Issues arise when customs officers have to treat products from the secular economy due to the lack of appropriate HS code classification. Standardisation issues for new and reused products that are part of a climate-smart strategy are also mentioned.

These challenges highlight the need for addressing gaps in trade facilitation for environmentally sound technologies. In terms of accessing green technologies in developing countries, it is noted that the share of global exports of green technologies from developing countries has significantly decreased.

This decline has hindered the trade capacity and independence of developing countries, with intellectual property rights issues further limiting their ability to produce green technologies. Addressing these challenges is crucial for fostering sustainable development and reducing inequalities. The analysis also calls for governments to ensure consistency between international trade, intellectual property, and climate change discussions.

This consistency is essential in promoting sustainable practices and achieving the goals outlined in the Sustainable Development Goals (SDGs). Similarly, it is suggested that developing countries should unite for discussions on the intellectual property of green technologies, emphasising the importance of collaborative efforts to address intellectual property rights issues and enhance access to green technologies.

Additionally, the analysis highlights the neglected industrial policy, noting that industrial development has been overshadowed in favour of emerging service sectors. It argues for the urgency of industrial policy as a means to promote economic growth and development. Similarly, the overemphasis on certain professions, such as medicine, in developing countries has led to unemployment and import dependency for essential goods, which needs to be addressed for sustainable and inclusive growth.

Furthermore, the analysis brings attention to the issue of promoting strategies that do not align with the needs of developing countries. Development agencies are criticised for pushing strategies onto developing countries without considering their specific needs and circumstances. To ensure effective development, it is crucial to align strategies with the specific requirements and capacities of each country.

Lastly, it is acknowledged that industrial development requires significant financing and partnerships with development banks are essential to meet these financing needs. This underlines the importance of strong partnerships and collaborations to support industrial development and achieve the SDGs related to industry, innovation, and infrastructure.

In conclusion, the analysis provides insights into various aspects of trade facilitation, challenges in handling environmentally sound technologies, accessing green technologies in developing countries, the need for consistency in international trade and climate change discussions, the importance of uniting developing countries for discussions on intellectual property, the neglected industrial policy, the impact of overemphasis on certain professions in developing countries, the issue of promoting strategies that do not align with the needs of developing countries, and the financing needs for industrial development.

These findings highlight the complexities and areas that require attention to foster sustainable development and achieve the SDGs.

Arguments

Ake Urabo discusses the advancement of e-mobility in East Africa with Rwanda as a case study

Supporting facts:

• Ake is the president of an e-mobility company in Rwanda

• The company has made progress in the e-mobility sector in terms of charging infrastructure, ride-sharing services and electric vehicle adoption

• Rwandan government has supported this by reducing tariffs on electricity and exempting import duties on electric motorcycles and cars

• Efforts are being made to phase out Internal Combustion Engine Vehicles by 2025

Topics: e-mobility, Rwanda, East Africa

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Report

Ake Urabo, the president of an e-mobility company, discusses the advancement of e-mobility in East Africa, using Rwanda as a case study. He highlights the progress made in crucial areas such as charging infrastructure, ride-sharing services, and the adoption of electric vehicles.

This progress has been facilitated by the support of the Rwandan government, which has implemented measures such as reducing tariffs on electricity and exempting import duties on electric motorcycles and cars. The Rwandan government also aims to phase out Internal Combustion Engine Vehicles (ICEVs) by 2025, showcasing their commitment to sustainable transportation.

Ake Urabo’s discussion serves as a powerful example for the entire East African region. Furthermore, Ake expresses strong support for the adoption of environmentally sound technology in the e-mobility sector in East Africa. Despite acknowledging the challenges, he focuses on the opportunities that lie ahead.

His positive stance aligns with the principles advocated by the East African Community (EAC), which promotes environmentally sound policies. The EAC has a charter that specifically supports the integration of environmentally friendly practices in the e-mobility sector. Government incentives, such as reduced tariffs and tax exemptions, have also contributed to the growth of e-mobility in the region.

In conclusion, Ake Urabo’s discussion highlights Rwanda’s commendable efforts in e-mobility and the potential for a cleaner and greener future. The progress in charging infrastructure, ride-sharing services, and electric vehicle adoption, along with government support, exemplify the possibilities of sustainable transportation.

Ake’s focus on environmentally sound technology emphasizes the importance of collaboration and government incentives in driving the e-mobility sector’s growth in East Africa.

Arguments

Trade in environmental goods and services needs to be prioritized among developing countries

Supporting facts:

• The OECD and APEC have tried to compile lists of environmental goods

• Interests of developing countries haven’t been considered in these lists

• Trade in environmental goods and services for developing countries has not been a priority but is becoming more important

Topics: Trade, Environmental Goods, Services, Developing Countries

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Non-tariff barriers are a bigger trade obstacle than tariffs

Supporting facts:

• Standards, technical regulations, and labeling requirements differ between countries, creating trade barriers

• Non-tariff barriers can be 10 times bigger than tariffs as a trade barrier

Topics: Trade, Non-tariff barriers, Tariffs

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Trade liberalization in certain services can contribute to climate action

Supporting facts:

• Certain services need to be liberalized for successful implementation of wind parks, such as legal services, environmental services, maintenance services etc.

Topics: Trade, Services, Climate Action

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Investment is a significant aspect for climate action

Supporting facts:

• The World Economic Forum has published a report on actions that investment promotion agencies can take for climate investment

Topics: Climate Action, Investment

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Environmental goods and services provisions are increasingly being incorporated in RTAs

Supporting facts:

• Joachim Mulkelbaan’s sustainability impact assessment for the European Commission

• The New Zealand-UK agreement includes an updated list of environmental technologies

Topics: RTA, Environmental provisions

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Report

The analysis delves into several key topics, including trade, environmental goods, services, and climate action, with a specific focus on the role of developing countries. One important argument put forth is the need to prioritise trade in environmental goods and services among developing countries.

Currently, efforts have been made by organizations such as the OECD and APEC to compile lists of environmental goods, but the interests of developing countries have not been adequately considered in these lists. The analysis suggests that trade in environmental goods and services should be given more importance as it becomes increasingly significant for developing nations.

Another significant point raised in the analysis is that non-tariff barriers present a greater obstacle to trade than tariffs. This is highlighted by the fact that standards, technical regulations, and labelling requirements differ between countries, creating trade barriers. The analysis argues that these non-tariff barriers can be ten times more significant than tariffs as barriers to trade.

The analysis also underscores that trade liberalisation in certain services can contribute to climate action. It specifically mentions the liberalisation of services such as legal, environmental, and maintenance services as being crucial for the successful implementation of wind parks. By promoting the liberalisation of these services, countries can advance climate action initiatives.

Furthermore, the analysis highlights the importance of investment in addressing climate action. It references a report by the World Economic Forum that outlines actions that investment promotion agencies can take to promote climate investment. This suggests that investment plays a significant role in supporting climate action efforts.

In terms of governance and transitioning to a clean energy economy, the analysis argues that experimenting with new methods and fostering networked governance among various actors are essential. As the transition to a clean energy economy is uncertain, the analysis asserts that new approaches need to be explored and tested.

The analysis also touches upon the incorporation of environmental goods and services provisions in Regional Trade Agreements (RTAs). It states that such provisions are increasingly being included in RTAs. Additionally, it notes that developed countries have played a significant role in driving this trend.

Examples of this include the Inflation Reduction Act in the United States and various schemes in the European Union. Moreover, the analysis suggests that developing countries have the potential to participate in RTAs by attracting investment. An example given is Germany and Italy’s agreement with Tunisia for a hydrogen pipeline, implying that developing nations can engage in RTAs by leveraging investment opportunities.

Finally, the analysis suggests that a country’s future competitiveness will depend on its approach to climate change. It references a report by the World Economic Forum on carbon competitiveness, indicating that countries will need to address climate change effectively to stay competitive.

Overall, this analysis highlights the importance of prioritising trade in environmental goods and services among developing countries. It emphasizes the significance of addressing non-tariff barriers, promoting trade liberalisation in certain services, and recognising the role of investment in climate action.

The analysis also underscores the necessity of experimentation and networked governance in transitioning to a clean energy economy. Additionally, it mentions the growing inclusion of environmental provisions in RTAs and the responsibility of developed countries in driving this trend. Finally, it suggests that a country’s competitiveness in the future will be contingent on its response to climate change.

Arguments

The importance of electricity for economic development

Supporting facts:

• Electricity is necessary for community development and industry activities

• Electrification rate in Uganda is generally low, particularly in rural areas which stands around 10%

Topics: Rural electrification, Trade, Sustainable development

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Africa’s share in global trade is not proportional to its resources

Supporting facts:

• Africa accounts for 2% of global trade

• Africa’s potential is not fully harnessed due to various infrastructure issues like electricity

Topics: Global trade, Economic development

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Report

The analysis emphasises the importance of electricity in promoting economic development and community growth, especially in rural areas. Uganda has a low electrification rate, particularly in rural regions where it stands at around 10%. This limited access to electricity hinders various essential activities for community development and industry operations.

Furthermore, the analysis highlights the significance of reliable data in project development. Financially modelling projects require relevant and reliable data for effective planning and decision-making. It underscores the crucial role of data reliability in achieving industry innovation and infrastructure goals.

Additionally, the analysis points out the under-utilisation of Africa’s potential in global trade due to infrastructure challenges, particularly in the electricity sector. Despite possessing abundant resources, Africa only accounts for 2% of global trade. Inadequate infrastructure, such as unreliable electricity supply, prevents Africa from fully harnessing its economic potential and engaging in global trade at a level that aligns with its resource endowment.

The evidence presented in the analysis supports these arguments. The low electrification rate in Uganda, especially in rural areas, underscores the urgent need to expand access to electricity for driving economic development and improving the quality of life for communities.

The emphasis on data reliability underscores its critical role in ensuring successful project development and implementation. Furthermore, the observation that Africa’s share in global trade is disproportional to its resource abundance highlights the importance of addressing infrastructure issues, including electricity, to unlock Africa’s trade potential.

In conclusion, the analysis highlights the importance of electricity in driving economic development and community growth. It underscores the need to address Uganda’s low electrification rate, particularly in rural areas, and emphasises the crucial role of reliable data in project development.

Moreover, it draws attention to the infrastructure challenges, including electricity, that hinder Africa from fully realising its potential in global trade. By addressing these issues, Africa can enhance its economic prospects and contribute more substantially to global trade.

Arguments

The Digital Cooperation Organization’s (DCO’s) vision is a fair opportunity for everyone to prosper in a cross-border digital economy.

Supporting facts:

• DCO is an intergovernmental organization driving the digital economy of its member states.

• DCO’s mission is to achieve growth of the digital economy by unifying efforts to advance digital transformation and promote common interests.

Topics: DCO, Digital Economy

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DCO’s strategy consists of goals such as a thriving cross-border digital market, a data-driven digital economy, and a responsible digital economy.

Supporting facts:

• DCO combines public and private sectors to deliver on core functions of being an information provider, advocate, advisor and facilitator.

• DCO is composed of 15 countries across Asia, Africa, and Europe, with more countries soon to join.

Topics: Digital Economy, Digital Market, Data

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International trade plays a critical role in promoting sustainable development and combating climate change.

Supporting facts:

• Various challenges and opportunities in the trade environment of clean technologies were discussed.

• Developing countries can attract investment to set up clean energy industries.

Topics: Climate Change, Sustainable Development, International Trade

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Report

The Digital Cooperation Organization (DCO) is an intergovernmental organisation dedicated to driving the digital economy of its member states. It strives to achieve growth by advancing digital transformation and promoting common interests. The DCO combines both public and private sectors to deliver on its core functions, which include being an information provider, advocate, advisor, and facilitator.

Composed of 15 countries across Asia, Africa, and Europe, the DCO aims to establish a thriving cross-border digital market, a data-driven digital economy, and a responsible digital economy. Its vision is to create a fair opportunity for everyone to prosper in the global digital economy.

By bringing member states together, the DCO can unify efforts and pool resources to drive meaningful change in the digital realm. The organization recognises the potential of developing countries to leapfrog into sustainable development through the adoption of environmental goods and services.

However, it acknowledges that hurdles such as limited access to technology, complicated regulatory landscapes, and inadequate financing need to be addressed. To tackle these challenges, the DCO hosts sessions that aim to unravel complexities, highlight opportunities, and discuss overcoming obstacles faced by developing countries in their pursuit of sustainable development.

The DCO also places great emphasis on collaboration and partnerships. It actively supports and includes diverse perspectives, encouraging experts in the field and audience members to share their questions and insights. By fostering an environment of collaboration, the organization believes it can harness the collective wisdom and expertise of its stakeholders to drive positive change.

Recognising the critical role of international trade in promoting sustainable development and combating climate change, the DCO highlights the various challenges and opportunities in the trade environment of clean technologies. Developing countries have the potential to attract investment and set up clean energy industries.

The organization provides examples, such as Germany and Italy’s agreement with Tunisia for a hydrogen pipeline powered by Tunisia’s solar power. These collaborations demonstrate how developing countries can make policies that attract investment in clean energy industries, despite potentially lacking self-financing capabilities.

In conclusion, the Digital Cooperation Organization (DCO) is devoted to driving the digital economy, advancing digital transformation, and promoting common interests among its member states. By combining public and private sectors, the DCO strives to establish a thriving cross-border digital market, a data-driven digital economy, and a responsible digital economy.

It believes in the potential of developing countries to leapfrog into sustainable development, but acknowledges the challenges they face in accessing technology, navigating regulatory landscapes, and securing financing. Through collaboration and partnerships, the DCO seeks to harness diverse perspectives and expertise to drive positive change.

Additionally, the organization recognises the critical role of international trade in promoting sustainable development and highlights the opportunities for developing countries to attract investment in clean energy industries.