1

Using Green Product Space to identify green export opportunities foridentify green export opportunities for

Arab countries

Robert HamweyUNCTAD

Environmental technologies – an emerging market

Exports by developing countries of selected green technologies

70

30

40

50

60

re o

f wor

ld e

xpor

ts

Bio-Fuels ethanol

Bio-Deisel*

Solar WaterHeaters*

Wind Turbines

0

10

20

2002 2003 2004 2005 2006 2007 2008 2009

shar

CFLs

PV panels

Source: Comtrade, 2011. * denotes inaccuracies due to wide HS heading

2

Environmental technologies – an emerging market

Annual growth in developing country exports of selected green technologies (2002-2009)

19Total Trade

22

13

32

50

Solar Air Heaters*

Solar Water Heaters*

Wind Turbines

CFLs

PV panels

38

30

22

0 20 40 60 80 100

Bio-Fuels ethanol

Bio-Deisel*

Solar Air Heaters*

%

Source: Comtrade, 2011. * denotes inaccuracies due to wide HS heading

And importantly, Green economy includes much more than environmental technologies...

• Rural electrificationWaste management and Recycling• Waste management and Recycling

• Water purification• Green construction• Biofuels• Organic agriculture g g• Ecotourism• Biotrade products• etc.

3

Opportunities for developing countries

• Can countries identify their potential strengths in producing and exporting green technologies?and exporting green technologies?

– It would be nice to know which green technologies a country is best positioned to produce and export competitively?

– The product space methodology can helpgy

Product Space Maps*

• A map of all ‘products’ that a country exports (circular

nodes – ).)

• Products the country produces/exports competetively are

readily identified (square nodes – ).

• Products in close proximity are related – if one is competitively produced the other can be also.

* Hidalgo and Hausmann, 2009.

4

Uses concept of Revealed Comparative Advantage…

Product Space Maps*

1≥∑

=Wi

j Aj

Ai

XX

X

RCA

* Hidalgo and Hausmann, 2009.

∑ j Wj

Wi

XX

Product Space Map (of a country)

Each country has a unique set of

We can highlight Environmental

comparative advantages

o e tatechnologies

5

Product Space Map: Details

EB

AD

FC

Promising prospect

Why ?

Same inputsSame producer servicesSame skills/workersSame distribution networkSame markets

EB

AD

FC

Promising prospectAlso supported by:Similar policy frameworkSimilar institutional support

6

Green GoodsWhich green goods ???

We consider the SAMPLE CORE LIST OF ENVIRONMENTAL GOODS d i

g g

We can choose any green goods we want

ENVIRONMENTAL GOODS proposed in Annex II of the CTESS Chairperson’s Report (WTO doc. TN/TE/20 of 21 April 2011)

Selected Green Goods

SITC4 HS2002 SITC4 Category

6975 7324Sanitary ware, and parts thereof, … of iron, steel copper or aluminum Waste management6975 7324 steel, copper or aluminum Waste management

7148 8410/11 Turbines Energy efficiency

7414 8418 Refrigerating equipment (electric or other), other than household-type… Renewable energy

7162 8502 Electric generating sets Renewable energy

7763 8541 Diodes… and semiconductor devices (including photovoltaic cells… Renewable energy

8841 9001Optical fibres... prisms, mirrors and other optical elements Renewable energy8841 9001 elements… Renewable energy

8744 9027 Instruments and apparatus for physical or chemical analysis …

Environmental analysis

7782 8539 Electric filament lamps and discharge lamps Energy efficiency Selected green product groups from TN/TE/20

7

Supply Chains (not analysed)

Eg: Wind power

• Env. tech. supply chains are elaborate.

• Offer wide range of entry points for

li fsuppliers from developing countries.

Supply Chains (not analysed)

Eg: Wind power

8

Product Space Map

Product Space Map

9

Main point

Green Product Space Maps canGreen Product Space Maps can serve as a powerful scoping tool to assess national potential to diversify

production and export into environmental technologies and other

green products.g p

UNCTAD’s National Green Economy Reviews (NGERs)

The green product space methodology isThe green product space methodology is a key element of UNCTAD’s capacity

building projects.

10

National Green Economy Reviews (NGERs)

Economic Setting

Regulatory & Institutional

Input from National Stakeholders

atio

nal T

eam

Overview of the

National Stakeholder Workshops, Interviews,

Questionnaires

NGER

Institutional Framework

Trade Policy Regime

Res

earc

h by

N

Guidance for National

Policy Analysis

Overview of the NGER Process

data

Set of Recommendations adopted by stakeholders An Action Plan Country Report

National Policymakers and Trade Negotiators

International Exchange of Results and Lessons Learned

Technical, Administrative and Workshop Facilitation Support

from UNCTAD

National Green Economy Reviews (NGERs)

hop

II

dyhop

I

Stud

y

eque

st

r ons

Nat

iona

l Wor

ksh

Nat

iona

l Stu

d

Nat

iona

l Wor

ksh

UN

CTA

D D

esk

S

Cou

ntry

NG

ER R

e

Stak

ehol

der

Rec

omm

enda

ti

Action Plan

Time

11

Thank you for your attention

Trade, Environment, Climate Change and Sustainable Development Branch