As the world struggles to co-operate on the energy transition, international trade rules can be a foundation for the new low-carbon economy.
Ed Crooks is joined by regular guest Amy Myers-Jaffe, Director of New York University’s Energy, Climate Justice, and Sustainability Lab, and new guest on the Energy Gang: Dan Esty, who is the Hillhouse Professor of Environmental Law and Policy at Yale University. Dan goes a long way back in clean energy: he was on the US delegation that negotiated the original Framework Convention on Climate Change back in 1992. And he has recently been working for Ngozi Okonjo-Iweala, Director-General of the World Trade Organisation, to develop a sustainability strategy for the global trading system.
Dan argues that the trade system may be the best way to get everyone in the world, and businesses in particular, to “lock arms and move together” to decarbonise the global economy. The goal is to make sure that “no one's competitively disadvantaged by stepping out in front of the pack when it comes to this movement to a clean energy future."
Ed, Amy and Dan explore this concept in this week’s show. The trade system provides a structured framework of rules that can enforce environmental standards globally. By integrating these standards into trade policies, countries can be encouraged to adopt low-carbon technologies without fearing competitive disadvantages. Businesses and countries are reluctant to switch to clean energy if they think their competitors won't do the same. Trade rules can make sure everyone plays fair.
What’s more, a reformed trade system that promotes clean energy technologies can also create economic opportunities around the world. The gang discuss how new rules could help developing countries.