Development and building trade capacity

This publication is one of the outcomes of the 2022 World Trade Congress on Gender – the first research conference on trade and gender to be held internationally. The Congress was organized by the WTO Trade and Gender Office and the WTO Gender Research Hub, with the cooperation of the Development Division, the Administration and General Services Division, the Information and External Relations Division, and the Office of the Director-General.

This publication has been prepared under the overall guidance of Aik Hoe Lim of the World Trade Organization (WTO) and Roland Roesch of the International Renewable Energy Agency (IRENA).

Hydrogen produced exclusively from renewable power – known as green hydrogen – is widely recognised as a key pillar in replacing fossil fuels and decarbonizing sectors that cannot easily be electrified, such as some industrial processes, shipping and aviation. This publication – jointly produced by the International Renewable Energy Agency (IRENA) and the World Trade Organization (WTO) – explores how trade policies can support the development of green hydrogen markets. The publication highlights in particular how lowering tariffs on key products, building reliable infrastructure, realigning domestic support programmes and developing green government procurement can foster the development of green hydrogen supply chains and the transition to a low-carbon economy. International trade could also play a significant role in matching supply and demand for green hydrogen, as the potential for domestic production in some economies might not be enough to satisfy domestic demand. The publication also addresses the challenges and opportunities for developing economies offered by green hydrogen and its derivatives, such as green methanol and green ammonia. It underscores the importance of international cooperation and the need to align regulatory frameworks to encourage technology development, enhanced transparency and market growth.

Green hydrogen has a number of uses. It can be used directly as an energy carrier and chemical input in multiple end-use applications. It can also be combined with a sustainable carbon source or with nitrogen, to produce derivative compounds such as methanol or ammonia, which can be used as feedstock for chemical production (e.g., plastics and fertilizers) or as sustainable fuels.

The services sector has been the main source of economic growth in recent decades. Logistics, finance and information technologies are essential to the functioning of modern economies while business services, healthcare and entertainment are among the world’s fastest growing sectors. This publication – co-published by the WTO and the World Bank – underlines the contribution that trade and investment in services can make to economic growth and development. It highlights, in particular, the importance of re-energizing international cooperation on services trade and encourages reflection on how best to mobilize assistance for developing and least-developed economies in implementing services sector reforms so that they can reap the gains from expanded trade and investment in services.

This publication is the result of a joint effort of the World Bank and the WTO. The publication was co-authored and coordinated by Martin Roy of the WTO and Pierre Sauvé of the World Bank under the supervision of Deputy Director-General Anabel Gonzalez and Xiaolin Chai, Director of the Trade in Services and Investment Division, at the WTO, and Mona Haddad, Global Director of Trade, Investment and Competitiveness, and Sebastien Dessus, Practice Manager, Trade and Regional Integration, at the World Bank. The publication was edited by Ross McRae and Anthony Martin of the WTO.