Development and building trade capacity
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.
Foreword
The WTO’s 13th Ministerial Conference (MC13) which took place earlier this year in Abu Dhabi reaffirmed the international community’s shared commitment to promote inclusive and sustainable development through trade. Aid for Trade remains a critical element of our collective commitment to ensuring that the benefits of trade are shared more widely particularly with developing economies and least-developed countries (LDCs).
Conclusion
The clean energy transition is critical to achieve net zero goals and is a key element of most economies’ nationally determined contributions under the Paris Agreement to keep global warming under a 1.5° Celsius threshold. The clean energy transition also has trade integration potential as it helps to advance industrial development and addresses capacity constraints in energy generation capacity.
Acknowledgements
This publication was prepared by Visvanathan Subramaniam (Economic Affairs Officer WTO) and Michael Roberts (Head of the Aid for Trade Unit of the Development Division WTO) under the supervision of Deputy Director-General Xiangchen Zhang and Taufiqur Rahman Director of the Development Division. The publication was edited and reviewed by Anthony Martin and Helen Swain of the Information and External Relations Division.
Overview of the Aid for Trade initiative
The Aid for Trade initiative led by the WTO grew out of the 2005 WTO Hong Kong Ministerial Conference. Its aim is to help developing economies integrate into world trade by mobilizing additional development support to address supply-side capacity and trade-related infrastructure constraints in these economies. In 2006 the Task Force on Aid for Trade was constituted by the WTO Director-General to report to the General Council with recommendations on how to operationalize Aid for Trade.
Opportunities for trade integration in clean energy value chains
Nearly 40 per cent of anthropogenic GHG emissions are caused by burning fossil fuels to produce electricity (IEA 2022b). Decarbonizing electricity generation is a critical step toward achieving net zero goals. Target 7.2 of the UN Sustainable Development Goals (SDGs) calls for a substantial increase in the share of renewable energy in the global energy mix by 2030 (UN General Assembly 2015).
Executive summary
Energy generation infrastructure has long been identified by Aid for Trade stakeholders as requiring additional predictable and sustainable financing to enable developing economies and LDCs to participate more fully in international trade. The energy sector is one of the largest recipients of Aid for Trade support accounting for nearly 25 per cent of all disbursements (US$ 116 billion) over the 2010-21 period.