Powering Trade: Fine-tuning Trade Policy for Solar and Wind Energy Value Chains

This paper examines current tariffs and other trade measures that either support or hinder the global expansion of solar and wind energy technologies. It highlights a persistent historical pattern in supply chains: developing countries remain mostly confined to exporting raw materials for solar and wind energy technologies, while importing manufactured renewable energy goods. These patterns restrict the development prospects of these countries and limit the collective ability of the world to harness the full potential of green energy technologies. The paper provides insights for trade policy improvements. For instance, lower tariffs on intermediate goods in Africa could foster the emergence or development of local green energy industries. In Latin America and the Caribbean, reducing border costs for intraregional trade could strengthen regional supply chains for renewable technologies. In Asia and Oceania, where trade defence measures are on the rise, implementing more effective trade remedy mechanisms could reduce recourse to trade defence duties.