WTO Report Says Trade Aid Could Broaden Opportunities in Energy Transition

July 5, 2024 08:05:00

The World Trade Organization Secretariat report has revealed that trade aid will be vital to broadening opportunities in the global transition to green energy. Launched late last month at the Global Review of Aid for Trade, the report noted that least-developed countries (LDCs) as well as developing economies have access to significant trade opportunities as the world transitions to renewables. It also outlined the role finance will play in helping such nations leverage available trade opportunities in the clean-energy-related product and service value chain.

The “Aid for Trade in Action: Supporting the Transition to Clean Energy” report acknowledged that countries are adopting clean energy at accelerating rates, bringing the share of global electricity produced by solar, wind, hydrogen, nuclear and hydropower now generated to nearly 40%. Experts predict that the share of clean energy will continue to rise even faster as renewables become cheaper and countries ramp up green-energy adoption to meet national and global carbon-emission goals.

According to the report, the green-energy transition provides numerous opportunities for least-developed countries and developing economies to increase their trade volume and diversify their exports. It noted that Aid for Trade has already started offering financial support for the transition to clean energy, channeling 30% of all its climate objective commitments ($60 billion) from 2011 to 2021 into the energy sector. Despite the magnitude of this investment, it still isn’t enough to make an impact in terms of overall climate finance flows.

Less than one-fifth of clean-energy investments go to LDCs and developing economies, limiting their ability to effectively leverage trade opportunities. As per the report, developing economies and LDCs could increase their participation in global trade through three key segments: minerals and metals, services, and machinery and equipment manufacturing. The report also outlined different carbon-credit-related development opportunities as well as the potential benefits of using carbon capture and storage systems to reduce emissions from current exports.

LDCs and developing economies with natural resources could use financial aid to develop sustainable extraction facilities and attract foreign investment. Investing in the clean-equipment manufacture segment also offers a potentially rewarding financial opportunity as the segment is projected to surpass $1 trillion by the middle of the century, while a robust clea- energy-related services sector could help increase the odds for cross-border trade, increase growth opportunities and create new employment opportunities. Forward-thinking economies could use these opportunities to develop themselves into manufacturing value chain hubs over the next several decades.

In the more developed economies of the west, enterprises such as FuelPositive Corp. (TSX.V: NHHH) (OTCQB: NHHHF) are positioning themselves to reap the benefits of providing alternative energy solutions to meet the growing need for clean energy.

NOTE TO INVESTORS: The latest news and updates relating to FuelPositive Corp. (TSX.V: NHHH) (OTCQB: NHHHF) are available in the company’s newsroom at https://ibn.fm/NHHHF

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