When the G20 meets in Cannes, France it will have a packed agenda. No doubt top on their agenda will be the economic crisis and the slow road back to global recovery and economic renewal. In the midst of that crisis we need to remain focused not only on solving the immediate issue at hand but on creating a roadmap for recovery and growth.

In 2009, the leaders of the Group of 20 vowed to pursue a “green” economic recovery and to avoid the temptation, which always arises in times of economic crisis, to turn inwards and become protectionist. Today we face multiple challenges; social, economic and environmental and we need to focus on how we can stimulate sustainable growth. Removing barriers to the trade of clean and environmentally friendly products is one concrete initiative which would be a win-win initiative stimulating trade, creating jobs, and delivering green growth. The G20 countries together constitute 80 percent of the world’s energy consumption and greenhouse gas emissions. Taking positive action on both climate and trade are two areas which the G20 has repeatedly called for, but have taken no action. Today the market for clean tech is anything but a level playing field with some countries imposing punitive tariffs, which are an impediment to trade.

Europe can take the lead by calling for an initiative to boost green tech trade. The proposal is that each of the major economies would select from the World Bank list of 43 climate friendly technologies those products which they choose and reduce their respective tariffs. The World Bank list is based on a study of trade flows of those goods during 2002-2007. The list consists of products that had enjoyed increased trade among low and middle income countries like solar and wind energy technologies. Each country would commit to ensuring that the aggregate amount of tariff reductions on its basket of products would be at least 50%. The G20 should also pledge not to impose NTBs that would undermine the benefits of such reductions. The G20 should also make clear that this action is a first, not final, step in addressing trade liberalisation in environmental goods and services. The proposal is simple and easy to implement and would bypass the endless Doha Round discussions which have stalled in this area and show real leadership. By allowing each country select which products it includes we negate the requirement for long negotiations. Cutting tariffs on clean technologies is a constructive rather than a confrontational approach to trade and climate change.

Eliminating barriers could also boost trade by more than 60% for some technologies and favour their diffusion, in particular in emerging countries

A time of crisis is not just an opportunity for reflection it is a time for action and a time to show real leadership. The EU has demonstrated leadership in agreeing its 20/20/20 targets and if it is to realise the goals of its 2020 Strategy of ‘Smart, Sustainable and Inclusive Growth’ it will need to continue to lead. By tabling and supporting this initiative at the G20 it can seize the initiative – Carpe Diem.

About the Author: Fabian Delcros is Director of European Government Relations and Policy for GE (General Electric Company). Mr. Delcros is responsible for the leadership, coordination, and execution of GE’s government relations, policy initiatives and strategies in Europe.

Author : ge_europe
Print