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COP28 Trade House Event: Boosting South-South Trade in Low Carbon Tech for Development - Tanzania National Carbon Monitoring Centre (NCMC) | Carbon Tanzania | Sokoine University of Agriculture |

COP28 Trade House Event: Boosting South-South Trade in Low Carbon Tech for Development

Bold and immediate actions are imperative to address the pressing climate crisis, with a particular focus on a successful transition to sustainable energy. The majority of this transition must be grounded in renewable sources, as underscored by a remarkable milestone of $1.3 trillion in global investments in energy transition technologies achieved in 2022.

To align with the Paris Agreement’s goal of limiting global warming to 1.5°C, the annual global spending on these technologies needs to more than double, reaching $5 trillion. By 2030, an estimated $5.5 trillion in global energy transition investments per year for the next eight years is crucial, as highlighted by the International Renewable Energy Agency (IRENA) in 2023.

UNCTAD emphasizes that developing countries must achieve investment levels of $1.7 trillion annually. However, in 2022, these nations only attracted $544 billion in Foreign Direct Investment (FDI) for clean energy.

The substantial investment requirements reveal a burgeoning commercial market for low-carbon energy technologies, presenting developing countries with a unique opportunity to emerge as producers and exporters of renewable energy goods and services. The costs of not engaging in this expanding market and the risks of leaving developing countries behind are considerable.

This upcoming event will scrutinize the potential of South-South Trade, specifically through the Global System of Trade Preferences among Developing countries (GSTP), to unlock commercial and developmental advantages within the energy transition for low and zero-carbon technologies. It aims to explore how preferential South-South trade can bolster the implementation of National Determined Contributions (NDCs) by developing countries. Furthermore, it will investigate how such trade initiatives can create new opportunities for investment, production, trade, and technology transfer in the realm of sustainable energy.

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