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Asia-Pacific countries, including the Philippines, are urged to take lead in exports of climate-smart goods and technologies (CSGTs), a promising sector with untapped opportunities.
CSGTs refer to products, components and technologies that tend to have a relatively less adverse impact on climate change and on the environment.
These comprise low-carbon technologies such as solar photovoltaic systems, wind power generation, clean coal technologies and energy-efficient lightning.
"CSGTs in particular are receiving considerable attention as a potential source of growth, as on a global scale such growth in environmental goods and services will create huge international business opportunities," according to a trade and investment report released by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
Asia and the Pacific is the most dynamic region when it comes to trade in climate-smart goods, with China and Japan the top two exporting countries. The region accounted for about 31.9 percent of world trade in CSGTs in 2008.
The estimated export potential in 2008 for climate-smart goods in Asia and the Pacific was $30 billion to $35 billion. "If Asian and the Pacific economies were able to utilize this potential, their exports of CSGTs would increase by nearly $7.34 billion," it noted.
Likewise, intra-regional demand for CSGTs was also very high in 2008, but many economies could not fulfill the import demand, it added.
Already several Asian economies like China, Japan and Republic of Korea have taken the lead in the development and use of CSGTs.
However, various economies in Asia and the Pacific, including low-income economies, also have untapped opportunities to become CSGT exporters.
The ESCAP report said regional climate-smart value chains could provide new opportunities for many less developed economies in the region to become parts and components suppliers to the leading CSGT exporters.
At the same time, the capacity of domestic small and medium enterprises (SMEs) in the area of CSGTs should be enhanced so that they can evolve into suppliers of low-carbon products and become effectively integrated with low-carbon value chains.
To promote trade and investments in these sectors, the report cited the need to reduce tariffs on trade in CSGTs.
Countries are also advised to ensure that regional or bilateral trade agreements or international investment agreements to which they are a party do not unduly undermine their policy for pursuing low-carbon growth, but instead are conducive to such growth.
Other policies related to standards and labeling, feed-in-tariffs, development of infrastructure as well as research and development capacity, technology development and transfer and effective legislation are also important. -- Danielle Venz, PHILEXPORT News and Features
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