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Annex
This annex provides a comprehensive but non-exhaustive list of quality infrastructure elements for green hydrogen (GH2) that should be implemented according to an Expert Survey for IRENA’s ongoing project “Quality Infrastructure for Green Hydrogen: technical standards and quality control for the production and trade of renewable hydrogen”.
Acknowledgements/Abbreviations
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).
International Trade and Green Hydrogen
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.
Mapping supply chain issues from a trade perspective
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.
Technical Barriers to Trade Agreement
Technical Barriers to Trade Agreement The Technical Barriers to Trade Agreement aims to ensure that regulations standards testing and certification procedures followed by WTO members do not create unnecessary obstacles to trade. Annual Review of TBT Agreement The WTO Committee on Technical Barriers to Trade collects data on an annual basis on the implementation of the TBT Agreement. The information in this brochure is based on the 2022 review.
The role of trade in adapting to climate change
While reducing greenhouse gas emissions is essential to limit the consequences of climate change climate change is already having a major impact on the environment people and as a result the global economy. This chapter explores the impacts of climate change on international trade and discusses the role that trade trade policy and international cooperation can play in supporting climate change adaptation strategies. Climate change increases trade costs and disrupts production and supply chains. However trade and trade policies in conjunction with relevant policies and international cooperation can help to alleviate some of the impacts of climate change including on food security by contributing to enhancing economic resilience.
Foreword by the WTO Director-General
Climate change is an existential threat to people’s lives and is dramatically reshaping economic activity and trade. This year alone from the Horn of Africa to China from Europe to the Americas we have seen increasing heat and prolonged drought damage crops and reduce electricity production while low water levels in major rivers have made it difficult to transport industrial and agricultural goods. Severe flooding left a third of Pakistan under water devastating key export crops and putting the country’s food and economic security at risk.
Conclusion
Climate change is having a damaging effect on people the environment and the economy globally. Major economic investment and ambitious policy actions will be required to steer the economy towards a sustainable low-carbon growth trajectory which is necessary to mitigate climate change and adapt to its disruptive and costly consequences. Thus both climate change and climate policies will have significant consequences for international trade and trade policies.
Carbon pricing and international trade
Although different instruments can be used to mitigate climate change carbon pricing has attracted increasing attention. This chapter explores the role of carbon pricing in reducing greenhouse gas emissions and its implication on international trade and trade policies. Carbon pricing puts a price on carbon emissions which can motivate firms and individuals to make more climate-friendly investing and purchasing decisions. While the proliferation of carbon pricing schemes highlights the urgency to tackle climate change they may lead to an unnecessary complex patchwork of domestic and regional schemes. Greater international cooperation is essential to find common solutions to carbon pricing and the WTO remains an appropriate forum to contribute to these efforts.
World Trade Report 2022
Climate change is having a profound impact on people’s lives across the world. Mitigating and adapting to climate change will require major economic investment and coordinated action to transition to a sustainable low-carbon economy. The World Trade Report 2022 explores the complex interlinkages between climate change international trade and climate and trade policies. Although international trade generates greenhouse gas emissions which contribute to climate-related natural disasters it can also play an essential role in helping countries reduce emissions by increasing the availability and affordability of environmental goods services and technologies. International trade can also play a key role in helping countries adapt to the impacts of climate change and build future resilience. The World Trade Report 2022 shows how international trade and trade rules can contribute to addressing climate change. Ensuring trade and climate change policies are mutually supportive requires global coordination and transparency about government measures. The WTO already plays an important role in helping countries tackle climate change by maintaining a predictable trading environment underpinned by WTO rules that allow for international trade in critical goods and services needed to cope with the consequences of climate change and to reduce emissions. Further international cooperation at the WTO could strengthen the mutual supportiveness of trade and climate change policies so that the world is better equipped to transition to a low-carbon economy.
Acknowledgements
The World Trade Report 2022 was prepared under the general responsibility and guidance of Anabel González and Jean-Marie Paugam WTO Deputy Directors-General and was coordinated by José-Antonio Monteiro and Ankai Xu.
The decarbonization of international trade
The transition to a low-carbon economy will require the transformation of many economic activities including international trade. This chapter looks at the extent to which trade contributes to greenhouse gas emissions but also assesses its importance for the diffusion of the technology and know-how needed to make production transportation and consumption cleaner. Although carbon emissions associated with international trade have tended to decrease in recent years bold steps are needed to further reduce trade-related emissions. Greater international cooperation is needed to support efforts to decarbonize supply chains and modes of international transport.