Climate Change, Trade Competitiveness, and Opportunity for Climate Friendly Goods in SAARC and Asia Pacific Regions

Climate Change, Trade Competitiveness, and Opportunity for Climate Friendly Goods in SAARC and Asia Pacific Regions

Soumyananda Dinda (Sidho Kanho Birsha University, India)
DOI: 10.4018/978-1-4666-9814-7.ch017
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This paper examines trade performance of climate friendly goods using some trade indices for South Asia and Asia Pacific countries during 2002 - 2008. Climate friendly goods (CFG) are those goods which are less harmful to environment. Paper identifies performance of Asia Pacific region in CFG trade with other nations. Most of the countries in Asia are importers of climate friendly goods and technologies. The Comparative advantage analyses indicate that Hong Kong, China, and Japan have comparative advantage in the production of CFG goods. Pakistan, Sri-Lanka, and India prefer to trade in CFG regionally and have shown interest in production and trade of clean coal technologies (CCT). East and South East Asia regions have comparative advantage in Solar Photovoltaic Systems (SPVS) and Energy Efficient Lighting (EEL). Japan, China, Malaysia and Macao show good in 2008 for SPVS.
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Climate friendly goods (CFG) are defined as components, products and technologies which tend to have relatively less adverse impact on the environment. The climate friendly goods (CFG) forms part of the broader group of environmental goods and services (EGS), which prevent, minimise or recover environmental damage, as well as problems related to waste, noise and ecological systems. It includes clean technologies, products that reduce environmental risk and minimise negative externalities and resource use. EGS can be classified as environmental goods comprising of pollution controlling equipments, environmentally preferable and resource management products. EGS has also environmental services that comprises of sewage services, reuse services, sanitation and similar services. CFG constitutes low carbon technologies such as solar photovoltaic systems, wind power generation, clean coal technologies and energy-efficient lighting. Some of the climate friendly goods/technologies are assisting in mitigation efforts by reducing GHG emissions and also improving adaptive capacity such as water conservation or improving access to energy.

Trade and Investment in CFGs and climate services have received attention as a triple win scenario where trade, climate and environment, and development all benefit (APTIR 2011). Countries prefer to concentrate on low energy consumption. Countries need to design sustainable and smart growth that entails sharply reduced GHG emissions which limits the global temperature. Various efforts (Rio meet in 1992, Kyoto protocol of 1997, Bali Action Plan of 2007, Copenhagen accord in 2009, Durban meeting in 2011, etc) have been made by international community to tackle the climate change.

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