Trade Governance for the Energy Future: Five Key Pillars for International Cooperation

| 14 April 2023
Fiscal, Trade, Policy Briefs | Tags: Energy, Global Value Chains, Renewables

DOWNLOAD POLICY BRIEF

Transitioning from fossil fuels to renewables is at the core of ensuring global access to affordable, reliable, and sustainable energy. Demand for renewables is expected to accelerate in light of their multiple benefits compared to fossil fuels, ranging from their increasing affordability, lower exposure to global economic shocks, and multiple contributions to sustainability including for combating climate change, supporting health, and reducing environmental destruction.

Building resilient and sustainable global value chains (GVCs) for the goods and services that underpin this transition is critical. Past bottlenecks in these GVCs have already put a spotlight on the challenges ahead of us. Enormous demand growth is likely to exacerbate the strain. There are no quick fixes and strengthening the resilience and increasing sustainability along these value chains is essential. To target this objective, international cooperation is key.

To this end, this policy brief outlines five key pillars: (1) monitoring global value chains, (2) defining and strengthening standards, (3) leveraging fiscal policies, (4) averting export restrictions, and (5) aligning finance.

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