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Trade flows, barriers and market drivers in renewable energy supply goods

This paper points out the challenges in identifying goods used solely for renewable energy generation purposes for computing trade statistics. It also highlights goods for which identification is relatively easier and those sectors which appear to be more trade-intensive than others. In addition, it shows the key exporting and importing countries of renewable energy equipment in a range of sectors including solar, wind, hydro-electricity, geothermal, ocean and biomass. Finally, the paper assesses to what extent tariffs drive trade flows in these technologies, compared to a number of other policy drivers including regulations and incentives. Overall, the paper addresses the issue of the need for a level playing field, particularly for developing country producers. The playing field can be leveled through subsidies provided to renewable energy in the developed world being made available to developing countries while addressing the trade-distorting ones through WTO rules and disciplines.