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Manufacturing and Services in the TPCC: Promoting the Competitiveness of the RE&EE Industry through Interagency Collaboration. Ryan Mulholland Renewable Energy Trade Specialist U.S. Department of Commerce. Working with the International Trade Administration. - PowerPoint PPT Presentation
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Manufacturing and Services in the TPCC:Promoting the Competitiveness of the RE&EE Industry through Interagency Collaboration
Ryan MulhollandRenewable Energy Trade Specialist
U.S. Department of Commerce
International Trade AdministrationU.S. Department of Commerce
Industry Expertise
Subsector analysisMarket researchAdvisory committeesUSG Coordination
Market Access
Country expertiseTrade agreementsBilateral dialoguesIPR protection
Trade Promotion
Export assistanceTrade missionsIn-country expertiseFirm–specific advocacy
AD/CVD
Anti-dumping dutiesCountervailing dutiesProtection against unfair trade practices
Working with the International Trade Administration
ITA is organized into four business units – each offering programs and services to U.S. companies involved in trade. The four business units include Manufacturing and Services; Market Access and Compliance, the U.S. Foreign and Commercial Service; and the Import Administration.
TPCC Officer Training, September 25, 2012Manufacturing and Services – International Trade Administration
International Trade AdministrationU.S. Department of CommerceNational Export Initiative (NEI)
ITA is focused on achieving the goals of the President’s National Export Initiative to double total U.S. exports by 2015. The NEI has redoubled efforts to promote high-growth industries like renewable energy and to focus on small-and-medium-sized enterprises. The NEI is continuing to make historic progress toward achieving President Obama’s goal of doubling exports by 2015.
The NEI is focused on five key principles:1.Improving trade advocacy2.Increasing access to credit3.Removing trade barriers4.Robustly enforcing trade rules5.Pursuing policies that promote sustainable, balanced growth
FACT #1:Most American businesses do NOT export their products or services.
FACT #2:95% of consumers live outside the United States.
FACT #3:87% of the world’s economic growth will occur outside the United States to 2015.
FACT #4:Exports supported 9.7 million jobs in 2011, an increase of 1.2 million jobs since 2009.
TPCC Officer Training, September 25, 2012Manufacturing and Services – International Trade Administration
International Trade AdministrationU.S. Department of Commerce
Targeting a Fast-Growing Sector with Strategic National Importance
International Trade AdministrationU.S. Department of Commerce
Renewable energy costs more than traditional fossil fuels, but prices continue to decline.
As a result, the industry is still reliant on government policy to be competitive.
President Obama has challenged the U.S. Government to position the country as a leading exporter of clean energy technologies and has called for ending subsidies to fossil fuels.
“The nation that leads the world in creating new
energy sources will be the nation that leads the
21st-century globaleconomy.”
-- President Obama
TPCC Officer Training, September 25, 2012Manufacturing and Services – International Trade Administration
International Trade AdministrationU.S. Department of CommerceGlobal Growth Remains Positive International Trade Administration
U.S. Department of Commerce
Bloomberg New Energy Finance predicts $7 trillion will be invested in renewable energy globally by 2030. Growth is expected in every subsector and offers the ability to support significant job creation in the United States.
Global Wind Capacity (GW)
Global Solar Capacity (GW)
Global Geothermal Capacity (GW)
Global Biofuels Capacity (Ktoe)
Source: BP Statistical Review of World Energy June 2011
Global Biomass Capacity (GW)
Global Hydropower Capacity (GW)
238 GW
70 GW
11.2GW
970 GW
56,000 Ktoe 72
GW
Global Capacity of Renewable Energy Technologies
TPCC Officer Training, September 25, 2012Manufacturing and Services – International Trade Administration
International Trade AdministrationU.S. Department of Commerce
The Global Renewable Energy Opportunity
$36 bn$43bn
$68bn
$97bn
$130bn$135bn
$188bn
$230 bn
Global Private Sector Investment in Renewable Energy
Source: Bloomberg New Energy Finance
Global renewable energy investment has grown 30% annually since 2004, even during a strong recession. As economic growth continues to expand globally, further investment is likely. Much of the industry’s growth will occur outside of the United States.
China to lead global investmentWhile the United States attracted the most global investment in renewable energy in 2011, China should attract the most investment to 2015 and beyond.
Most rapid growth to occur in developing worldThe Middle East, Africa and Latin America should see growth rates of 10-18% per year in the decade between 2010 and 2020.
Off-shore wind to lead other technologiesOn a percentage basis, off-shore wind is expected to grow faster than any other renewable energy technologies globally.
TPCC Officer Training, September 25, 2012Manufacturing and Services – International Trade Administration
International Trade AdministrationU.S. Department of Commerce
The Global Renewable Energy Opportunity
Source: Bloomberg New Energy Finance
$395bn
China to lead global investmentWhile the United States attracted the most global investment in renewable energy in 2011, China should attract the most investment to 2015 and beyond.
Most rapid growth to occur in developing worldThe Middle East, Africa and Latin America should see growth rates of 10-18% per year in the decade between 2010 and 2020.
Off-shore wind to lead other technologiesOn a percentage basis, off-shore wind is expected to grow faster than any other renewable energy technologies globally.
Global Private Sector Investment in Renewable Energy
Global renewable energy investment has grown 30% annually since 2004, even during a strong recession. As economic growth continues to expand globally, further investment is likely. Much of the industry’s growth will occur outside of the United States.
TPCC Officer Training, September 25, 2012Manufacturing and Services – International Trade Administration
International Trade AdministrationU.S. Department of Commerce
Renewable Energy and Energy Efficiency Export Initiative (RE4I)
The Renewable Energy and Energy Efficiency Export Initiative (RE4I) is a “principal component” of the larger National Export Initiative. Developed through the TPCC Working Group on Renewable Energy and Energy Efficiency, the initiative involves 8 separate agencies and includes 23 deliverables across four issues areas.
Increased Financing for RE&EE ExportersExIm Renewables ExpressOPIC energy efficiency debt productBudget support from USTDA
Improved Trade Promotion to Link Buyers and SellersAdditional RE&EE reverse trade missionsIncreased RE&EE trade missionsGreen Embassies Program
Strengthened Export Promotion Services
RE&EE Advisory CommitteeExport.gov/reee
RE&EE Exporters’ e-newsletter
Enhanced Market Access for U.S. RE&EE Products and Services
Trade Policy Staff CommitteeRE trade policy missionsUSTDA Capacity Building
RE4I
TPCC Officer Training, September 25, 2012Manufacturing and Services – International Trade Administration
International Trade AdministrationU.S. Department of Commerce
MAS’ Contribution to the RE4I – Leadership and Action
MAS leads the implementation of the interagency Renewable Energy and Energy Efficiency Export Initiative (RE4I) through the TPCC Working Group on RE&EE. In total, the RE4I includes 23 commitments from 8 separate U.S. Government agencies designed to significantly increase U.S. renewable energy and energy efficiency exports.
RE&EE Exporters Web Portal
News, information, market research from across the U.S. Government specific to RE&EE exporterswww.export.gov/reee
Monthly RE&EE Exporters’ Update
Provides links to registration for upcoming events, as well as reports and market research on export opportunities abroad
MAS’ Market Intelligence Briefs
Country-specific renewable energy market reports with detailed information on market structure, as well as opportunities and challenges for U.S. exporters.
TPCC Officer Training, September 25, 2012Manufacturing and Services – International Trade Administration
International Trade AdministrationU.S. Department of CommerceRenewable Energy Top Prospects Study
Goals:
•Target trade promotion activities at those markets most likely to result in exports
•Provide a tool that TPCC agencies can use for all renewable energy technologies, or by subsector
•Provide an assessment tool for identifying markets on which to focus market access work
Benefits:
•In a time of limited resources, allows U.S. Government to focus on most promising export markets
•Brings a methodological approach to export promotion
•Improves the effectiveness of U.S. Government efforts
In the RE4I, ITA committed to developing a top market prospects study to aid in the targeting of trade promotion activities. The first edition of the prioritization has been presented to the Principals of the TPCC Working Group on RE&EE. ITA has begun work on the second edition of the study to be released in Spring 2013.
TPCC Officer Training, September 25, 2012Manufacturing and Services – International Trade Administration
International Trade AdministrationU.S. Department of CommerceCombating Negative Short-Term Trends International Trade Administration
U.S. Department of Commerce
Persistent over-supply of renewable energy equipment globally and the reduction of policy support both in the United States and around the world has led to falling prices and increased competition between firms and between governments.
Key Global Trends:•Feed-in tariffs and fiscal issues in Europe causing incentives to be reduced•Growing interest in deploying renewable energy as a job-creating technology•Over 100 countries now have incentives, but many are tying incentives to domestic production requirements•Price declines in wind and solar are significant
Manufacturers are being squeezed by price declines,
causing many firms to turn to governments for support.
Many countries now act inconsistently with their trade
obligations.
Trade enforcement measures have therefore become an
important facet of the industry’s near-term calculations.
Key Domestic Trends:•Exhaustion of Section 1603 Treasury Cash Grant Program•Manufacturing Tax Credit (48c) no longer available•No national level energy policy in foreseeable future•Production Tax Credit set to expire (could severely limit wind industry)•Natural gas limiting investment in renewables
TPCC Officer Training, September 25, 2012Manufacturing and Services – International Trade Administration
International Trade AdministrationU.S. Department of Commerce
Positioning U.S. Exporters for Success Requires Coordinated Government Action
International Trade AdministrationU.S. Department of Commerce
The short-term challenges faced by U.S. RE&EE exporters requires tight coordination across agencies and the nuanced understanding of how policy and promotion fit together to create opportunities for U.S. firms.
Domestic Manufacturing Capacity
Must ensure that the United States produces the technologies being bought and sold worldwide.
Open and Growing Global Markets
Markets must be kept open to U.S. products and, when possible, future markets should be seeded for growth with policy development.
Competitive U.S-Based Exporters
When markets are open, U.S. exporters must have the tools necessarily to be competitive in foreign markets.
Three Pillars of a Globally Competitive U.S. RE&EE Industry
Tax Credits (ex: 48c; 1603; PTC; ITC)State level incentive programsRenewable portfolio standardsNet-metering/interconnectionManufacturing Extension PartnershipLoan guaranteesR&D programs
Free trade agreementsBilateral dialoguesEnergy policy dialoguesTrade policy missionsTechnical assistanceFeasibility studiesMarket Access ProgramMDCP Program
Export credit loansWorking capital loansPolitical risk insuranceInvestment supportTrade missionsReverse trade missionsWebsites/Trade leadsExporters’ guides
Congress, State Governments, DOE, Treasury, Commerce (NIST), SBA
USTR, Commerce (ITA), USTDA, USDA, State, DOE
ExIm, OPIC, Commerce (ITA), USTDA, State, DOE, SBA
What and Why?
Examples of Interagency
Tool Kit
Key Agencies
TPCC Officer Training, September 25, 2012Manufacturing and Services – International Trade Administration
International Trade AdministrationU.S. Department of CommerceCurrent RE Trade Promotion Process International Trade Administration
U.S. Department of Commerce
Unfortunately, when the competing goals of USG agencies collide, policy paralysis is too-often the result and U.S. exporters are not as empowered as they otherwise could be.
• Connect R&D to job creation in the United States
• Manage WTO challenges• Negotiate TPP, APEC EGSA
Energy USTR
• Stop LCR proliferation globally• Address IPR violations
• Maintain positive foreign relations with key markets
USTR State
• AD/CVD ruling against Chinese solar panels and wind towers
• Millions of dollars invested using Chinese panelsITA OPIC
• Desire to increase use of tied-aid war chest to aid RE&EE exports
• Maintain laissez-faire economic system globallyExIm Treasury
Policy Paralysis
Policy Paralysis
Policy Paralysis
Policy Paralysis
TPCC Officer Training, September 25, 2012Manufacturing and Services – International Trade Administration
International Trade AdministrationU.S. Department of Commerce
TPCC Role in Promoting RE Export Competitiveness through Collaboration
International Trade AdministrationU.S. Department of Commerce
TPCC leadership can create a cross-government strategy centered on U.S. competitiveness. TPCC collaboration can bring disputes to resolution and can facilitate high-level engagement when necessary.
• Anchors R&D programs with domestic competitiveness goals
• Articulates global need to arrest global LCR trends
• Works with TPCC on strategy
• When AD/CVD case is finalized, alerts other agencies so others can adjust accordingly
Energy USTR
USTR State
ITA OPIC
• Works with DOE to craft policy that is defensible within WTO
• Helps develop strategy and delivers messages to local government officials
• Maintains development bent, but not at expense of trade rules
TPCC Role: • Bring parties together and push interagency process.• Provide advice to both agencies, recognizing both
importance of competitiveness and trade rules.
TPCC Role: • Develops strategy, working with all sides to gain
approval for WTO action while being mindful of commercial consequences in other sectors.
TPCC Role: • Educate OPIC on AD/CVD ruling, informing future
transactions.
TPCC Officer Training, September 25, 2012Manufacturing and Services – International Trade Administration
International Trade AdministrationU.S. Department of CommerceThank You International Trade Administration
U.S. Department of Commerce
Ryan MulhollandRenewable Energy Trade Specialist
U.S. Department of Commerce(202) 482-4693
TPCC Officer Training, September 25, 2012Manufacturing and Services – International Trade Administration