GATS, financial services and trade in renewable energy certificates (RECs) — just another market-based solution to cope with the tragedy of the commons?

doi:10.1017/CBO9780511757396.012

11 - GATS, financial services and trade in renewable energy certificates (RECs) — just another market-based solution to cope with the tragedy of the commons?

from PART IV - Climate change mitigation and trade in services

Published online by Cambridge University Press: 04 August 2010

Panagiotis Delimatsis and

Edited by

Olga Nartova and

Thomas Cottier: Affiliation:
World Trade Institute, Switzerland
Olga Nartova: Affiliation:
World Trade Institute, Switzerland
Sadeq Z. Bigdeli: Affiliation:
World Trade Institute, Switzerland

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Summary

Freedom in a commons brings ruin to all.

G. Hardin

Introductory remarks

Trade in the energy sector is one of the areas that clearly demonstrates the importance of the service sector. As is the case with other trade areas, trade in energy is made feasible through a series of supporting services, ranging from distribution and transportation services to engineering and financial services. Energy constitutes the biggest business in the world economy, with a turnover of approximately US$1.7–2 trillion per annum, with energy demand mounting. Energy has come to the forefront of the public debate in the last decade for two reasons: the first relates to the lack of a secure, continuous and, above all, unconditional energy supply in the demandeurs, mostly developed and transition economies, which are still dependent on non-renewable carbon-based fossil fuels such as coal, oil or gas; ‘pipeline diplomacy’ has become the catchphrase for foreign policy that is inextricably intertwined with sufficient energy supply stemming from developing countries and, a fortiori, economic sustainability and national security. The second reason relates to the deleterious effects that production, distribution, and use of conventional energy may have on the climate, leading to environmental degradation.

Because of the recognition that these effects are of a transboundary nature threatening global commons, several multilateral instruments have been used in the last two decades to tackle issues related to climate change mitigation.

Type: Chapter
Information: International Trade Regulation and the Mitigation of Climate Change
World Trade Forum
, pp. 231 - 258

DOI: https://doi.org/10.1017/CBO9780511757396.012 [Opens in a new window]

Publisher: Cambridge University Press

Print publication year: 2009

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