ROLE OF EGA IN IMPLEMENTING CLIMATE ACCORDS V A LUE O F EG A IN HELP IN G C HIN A M EET ITS EN V IRO N M EN TA L G O A LS
EGA • I n July 2014, the U.S. Unite d Sta te s a nd 13 o the r c o untrie s la unc he d ne g o tia tio ns a t the Wo rld T ra de Org a niza tio n (WT O) to e limina te ta riffs o n e nviro nme nta l g o o ds • T he se na tio ns ma ke up 85 pe rc e nt o f the g lo b a l ma rke t in e nviro nme nta l g o o ds. • Sinc e July, I sra e l a nd T urke y jo ine d the ne g o tia tio ns. • T he ne g o tia tio ns b uild o ff the Asia Pa c ific E c o no mic Co o pe ra tio n F o rum (APE C) e nviro nme nta l initia tive , whic h liste d 54 g o o ds fo r ta riff re duc tio ns 2
EGA (CONT ) • Ne g o tia ting 10 c a te g o rie s o f e nviro nme nta l g o o ds • Air po llutio n (APC); Cle a ne r a nd re ne wa b le e ne rg y(CRE ); E ne rg y e ffic ie nc y (E E ); E nviro nme nta l mo nito ring a na lysis a nd a sse ssme nt(E MAA); E nviro nme nta l re me dia tio n a nd c le a n-up (E RC); E nviro nme nta lly pre fe ra b le pro duc ts (E PP); No ise a nd vib ra tio n a b a te me nt (NVA); Re so urc e e ffic ie nc y (RE ); So lid a nd ha za rdo us wa ste ma na g e me nt (SHWM); a nd Wa ste wa te r ma na g e me nt a nd wa te r tre a tme nt (WMWT ) • F o c use d o n g o o ds in e a c h c a te g o ry tha t: • ha ve a n e nviro nme nta l use ; • c o ntrib ute to a ddre ssing e nviro nme nta l c ha lle ng e s, a nd • a re c o mple me nta ry to the APE C list 3
EGA HELPS DOMESTIC POLICY GOALS • L i K e q ia ng de c la re a “Wa r o n Po llutio n” during Na tio na l “We will re solute ly de c la re wa r Pe o ple ’ s Co ng re ss in 2014 a g a inst pollution a s we de c la re d wa r a g a inst pove rty” • Re ne we d fo c us o n re duc ing e missio ns due to pub lic de ma nd L i Ke q iang , Pre mie r • Pa ris a g re e me nt to c urb Marc h 5, 2014 c lima te -wa rming e missio ns ra tifie d b y China a t the G20 4
ENVIRONMENTAL GOODS AND CLIMATE CHANGE • T he E GA will b e instrume nta l in imple me nting c lima te c o mmitme nts • L o we r the c o st o f ke y te c hno lo g ie s to re duc e b la c k c a rb o n, inc re a se e ne rg y e ffic ie nc y a nd tra nsitio n to re ne wa b le s • E GA will: • L o we r c o st o f c o mplia nc e • I nc re a se a do ptio n o f e ne rg y e ffic ie nt te c hno lo g ie s 5
TRADE IN ENVIRONMENTAL GOODS • Glo b a l tra de in E Gs a lre a dy to ta ls ne a rly US$1 trillio n a nnua lly, with a n inc re a sing ly la rg e pe rc e nta g e in So uth-So uth tra de flo ws, le d b y China (UNE P). • I n fa c t, the g lo b a l ma rke t fo r lo w-c a rb o n a nd e ne rg y-e ffic ie nt te c hno lo g ie s is pro je c te d to ne a rly do ub le b y 2020. T his “o ffe rs de ve lo ping c o untrie s a n unpre c e de nte d o ppo rtunity to drive the g re e n e c o no my tra nsitio n,” a c c o rding to Unite d Na tio ns Unde r-Se c re ta ry Ge ne ra l a nd UNE P E xe c utive Dire c to r Ac him Ste ine r. 6
STUDY METHODOLOGY • Utilize s e xisting Ge ne ra l Sta tistic a l I nfo rma tio n Mo de l (GSI M) • Co mpute d using pa rtia l e q uilib rium • Mo de l re vie we d re duc ing ta riffs to 0 pe rc e nt in 14 c o untrie s invo lve d in ne g o tia tio ns. No sta g ing pe rio ds • T ra de da ta a nd ta riffs a re fro m Wo rld Ba nk Wo rld I nte g ra te d T ra de So lutio n (WI T S) 7
EGA STUDY KEY TAKEAWAYS I nc re a se s China ’ s GDP a nd na tio na l inc o me b y b illio ns o f do lla rs; I nc re a se s e xpo rts b y ne a rly $27 b illio n, up b y 9.8 pe rc e nt; I nc re a se s re a l spe nding o f ro ug hly $22 b illio n a nnua lly o n e nviro nme nta l g o o ds; a nd Re sults in g ains o f appro ximate ly $659 b illio n annually in e c o no mic b e ne fits linke d to impro ve d e nviro nme ntal q uality.
ESTIMATED IMPACTS OF ENVIRONMENTAL GOODS TARIFF ELIMINATION ON CHINA, 2014 Change in Chine se e xpor ts, % +9.80% +$26.6 b illio n Change in Chine se e xpor ts, value +$9.0 b illio n Change in Chine se GDP, value +0.01% Change in Chine se GDP, % -0.47% Change in pr ic e s paid by Chine se pur c hase r s of e nvir onme ntal goods Change in quantity of Chine se inve stme nt in +$21.97 b illio n e nvir onme ntal goods, value at c ur r e nt pr ic e s +$2.5 b illio n Ne t impac t on Chine se e c onomy (national inc ome ) +0.004% Ne t impac t on Chine se e c onomy (national inc ome ) 9
VALUE OF ECONOMIC BENEFITS OF IMPROVED ENVIRONMENTAL QUALITY Cate gor y Value (Billions of Dollar s T OT AL $659.1 Air Po llutio n Co ntro l 74.8 Cle a ne r a nd Re ne wa b le E ne rg y 304.0 E ne rg y E ffic ie nc y a nd Re so urc e E ffic ie nc y 103.2 E nviro nme nta l Mo nito ring , Ana lysis a nd 45.6 Asse ssme nt E nviro nme nta lly Pre fe ra b le Pro duc ts 10.2 E nviro nme nta l Re me dia tio n a nd Cle a nup 4.4 No ise a nd Vib ra tio n Ab a te me nt 14.5 So lid a nd Ha za rdo us Wa ste Ma na g e me nt 41.9 Wa ste wa te r Ma na g e me nt a nd Wa te r 17.9 T re a tme nt 10
CONCLUSION • E GA o ffe rs a re a l o ppo rtunity fo r China to le ve ra g e its inve stme nt in e nviro nme nta l te c hno lo g y a nd e xpe dite the diffusio n thro ug ho ut its e c o no my. • While the e stima te d sa ving s o n inve stme nt o f $22 b illio n do lla rs is sig nific a nt, a n e ve n g re a te r pa yo ff is the b e ne fits, whic h c o uld e a sily b e hundre ds o f b illio ns o f do lla rs tha t will a c c rue to China a s a ir a nd wa te r po llutio n a re re duc e d, e ne rg y e ffic ie nc y is impro ve d, a nd re ne wa b le e ne rg y so urc e s a re ma ximize d 11
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