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Trade Law Implications of Procurement Practices in Sustainable Energy Goods and Services

Trade Law Implications of Procurement Practices in Sustainable Energy Goods and Services

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The government as an entity is quite often the largest, single consumer of goods and services in developed as well developing countries. Government procurement can be a powerful tool for positive environmental change by creating a market for environmental goods and services. At the same time, procurement policies will need to be designed and implemented in a manner that does not discriminate against trading partners. What sort of space is available in the context of existing trade-rules for governments to pursue proactive procurement policies for sustainable energy goods and services? Is there a need to review existing rules so as to enhance their effectiveness with regards to the objectives of strengthening markets for renewable energy? This paper, by Alan Herve and David Luff, sheds light on these questions and also explains how a possible Sustainable Energy Trade Agreement could spur reform while ensuring a level playing field in procurement markets for producers of sustainable energy goods and services worldwide.
The government as an entity is quite often the largest, single consumer of goods and services in developed as well developing countries. Government procurement can be a powerful tool for positive environmental change by creating a market for environmental goods and services. At the same time, procurement policies will need to be designed and implemented in a manner that does not discriminate against trading partners. What sort of space is available in the context of existing trade-rules for governments to pursue proactive procurement policies for sustainable energy goods and services? Is there a need to review existing rules so as to enhance their effectiveness with regards to the objectives of strengthening markets for renewable energy? This paper, by Alan Herve and David Luff, sheds light on these questions and also explains how a possible Sustainable Energy Trade Agreement could spur reform while ensuring a level playing field in procurement markets for producers of sustainable energy goods and services worldwide.

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01/23/2013

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Trade Law Implications of Procurement Practicesin Sustainable Energy Goods and Services
September 2012ICTSD Global Platform on Climate Change, Trade and Sustainable EnergyBy Alan Herve and David Luff
 A joint initiative with
 
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Trade Law Implications of Procurement Practicesin Sustainable Energy Goods and Services
September 2012ICTSD Global Platform on Climate Change, Trade and Sustainable EnergyBy Alan Herve and David Luff
 
Published by
International Centre for Trade and Sustainable Development (ICTSD)International Environment House 27 Chemin de Balexert, 1219 Geneva, SwitzerlandTel: +41 22 917 8492 Fax: +41 22 917 8093E-mail: ictsd@ictsd.org Internet: www.ictsd.orgPublisher and Director: Ricardo Meléndez-OrtizProgramme Manager: Ingrid JegouProgramme Officer: Mahesh Sugathan
Acknowledgments
This paper is produced by the Global Platform on Climate Change, Trade and Sustainable Energyof the International Centre for Trade and Sustainable Development (ICTSD). The concept of theresearch has been informed by ICTSD policy dialogues during the past year, in particular a dialogueorganised in Washington DC in November 2011 by the Peterson Institute for International Economics(PIIE) with support of the Global Green Growth Institute (GGGI) and ICTSD, as well as high-levelRoundtables- in Geneva in December 2011, on the occasion of the Eighth Ministerial Conference ofthe WTO, an ICTSD Panel Session on SETA at Global Green Growth Forum Stocktaking meeting,Copenhagen in March 2012 and an ICTSD Session at the Global Green Growth Summit in May 2012in Seoul, Korea. The author thanks Ricardo Meléndez-Ortiz, Ingrid Jegou, Mahesh Sugathan, MarieWilke and Joachim Monkelbaan from ICTSD for their guidance and inputs during the production ofthe paper. The author is also grateful for the valuable comments on an earlier draft received fromSusan Shafi-Brown (World Trade Institute) and Peter Kleen (Trade Policy Consultant).This project has benefited from the generous support of the Ministry of Foreign Affairs of Denmark(DANIDA) and the Global Green Growth Institute. In addition, ICTSD is grateful for the support ofits main donors including the UK Department for International Development (DFID); the SwedishInternational Development Cooperation Agency (SIDA); the Netherlands Directorate-General ofDevelopment Cooperation (DGIS); the Ministry of Foreign Affairs of Denmark (Danida); the Ministryfor Foreign Affairs of Finland; the Ministry of Foreign Affairs of Norway; Australia’s AusAID; the InterAmerican Development Bank (IADB); Oxfam Novib and the Deutsche Gesellschaftfür InternationaleZusammenarbeit (GIZ).ICTSD welcomes feedback on this document. These can be forwarded to Mahesh Sugathan,smahesh@ictsd.chFor more information about ICTSD’s work on trade and climate change, visit our website:www.ictsd.orgCitation: Herve, Alan and David Luff (2012);
Trade Law Implications of Procurement Practices in Sustainable Energy Goods and Services
; International Centre for Trade and SustainableDevelopment, Geneva, Switzerland, www.ictsd.org ©Copyright ICTSD, 2012. Readers are encouraged to quote and reproduce this material foreducational, non-profit purposes, provided the source is acknowledged.This work is licensed under the Creative Commons Attribution-Non-commercial-No-Derivative Works3.0 License. To view a copy of this license, visit http://creativecommons.org/licenses/by-nc-nd/3.0/ orsend a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105,USA.The views expressed in this publication are those of the author(s) and do not necessarily reflect theviews of ICTSD or the funding institutions.ISSN 2225-6679

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