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Efforts to Liberalize Trade and Investment in Renewable Energy Services Many countries have lowered barriers to trade and investment in environmental goods and services (including renewable energy services) to encourage the use and deployment of environmental technologies in response to environmental and energy concerns and with the goal of mitigating climate change. Multilateral efforts in recent years to specifically address barriers to trade in renewable energy goods and services have yet to produce binding commitments in this area. However, multilateral efforts to address trade in services more broadly have gained some traction. At the same time, regional and bilateral efforts to address trade and investment in renewable energy services—and environmental goods and services more broadly—have advanced at a faster pace. No agreements specific to renewable energy services have been reached in recent years. In 2009, the United States proposed establishing an Environmental Goods and Services Agreement (EGSA), a plurilateral initiative within the WTO but outside of the Doha round, to reduce barriers to trade in certain “climate-friendly” technologies.91 However, the EGSA never materialized, largely due to definitional concerns among several WTO member countries, as well as differing views on product coverage. Member countries continue to discuss classification issues related to renewable energy services.92 In June 2013, the United States announced its intention to re-launch negotiations to establish a plurilateral initiative to reduce barriers to trade in environmental goods, including clean energy technologies such as solar, wind, hydro, and geothermal power.93 There has been recent progress in other multilateral efforts to address liberalization of trade in services more broadly. For instance, the United States and 20 of its trading partners plan to address barriers to services trade by initiating negotiations on a new trade agreement on services (the so-called Trade in Services Agreement) in 2013. In addition, in June 2013 the United States announced its intention to work in the Trade in Services Agreement negotiations towards lowering barriers to trade in environmental services, including renewable energy services.94 Regional and bilateral efforts to liberalize trade in renewable energy goods and services are also underway. For instance, in 2012 members of the Asia-Pacific Economic Cooperation (APEC), of which the United States is a member, agreed to reduce applied tariff rates to 5 percent or less by the end of 2015 on 53 separate environmental goods, including wind turbines and blades, generator sets, and solar panels. 95 In 2013, the United States stated its intention to continue to work with other APEC members to further facilitate trade in environmental goods and services, including renewable energy services.96 Some WTO members are said to view the APEC agreement on trade in environmental goods and services as a platform to revive efforts at the WTO to address barriers to trade in environmental goods and services.97 However, other WTO members, 91 Inside U.S. Trade, “USTR Explores Smaller Environmental Goods Tariff,” November 27, 2009; USITC, Certain Environmental Goods, 75 Fed. Reg. 28652 (May 21, 2010). 92 WTO, “Energy Services: Overview of Classification Issues,” March 5, 2012. 93 Executive Office of the President, “The President’s Climate Action Plan,” June 2013, 19. 94 Ibid., 19–20. 95 APEC, “Annex C—APEC List of Environmental Goods,” September 8–9, 2012. 96 Marantis, Statement to the Senate Committee on Finance, March 19, 2013, 4. 97 Inside U.S. Trade, “Danish Minister Says Time Is Ripe,” May 3, 2012. 2-23PDF Image | Renewable Energy and Related Services: Recent Developments
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