Trade in Sustainable Energy Services

Facilitating trade in goods that can promote sustainable energy is intuitive and potentially powerful in the search for energy security, the provision of access to energy, and the mitigation of climate change. Much less recognised, however, is that the global market in services related to sustainable energy is closely linked to the goods market and it is much larger. Joachim Monkelbaan of ICTSD examines the role of trade in services within the context of sustainable development and suggests ways forward in ongoing negotiations as well as those under discussion such as ‘sustainable energy trade initiatives’ (SETIs). Removal of trade barriers in energy goods and services should go together. In so doing, policymakers can find larger gains (both in trade and climate change reduction terms) than doing so separately. The paper outlines the benefits of facilitating trade in sustainable energy services; how to identify such services; and how to analyse specific commitments by different WTO Members in this field.