Scaling up private investment in low-carbon energy systems through regional cooperation: Effective trade policy measures

Abstract

How to ensure energy supply and reduce environment pollution have turned into governments' top priorities and key factors to maintain sustainable development. In this context, two major trade and invest-ment agreements that could lead to profound influence on low-carbon energy systems development around theAsia-Pacific region are the Regional comprehensive economic partnership (RCEP) consisted of the Associationof Southeast Asian Nations (ASEAN) plus Australia, China, India, Japan, New Zealand, and Republic of Koreaand the Belt and road initiative (BRI) initiated by China. In order to have a smooth transition to low-carbonenergy systems in Asia, besides RCEP and BRI, it is imperative to boost private sector investment. Success ofencouraging private sector investment depends on appropriate government policies towards promoting innova-tions and reducing financial risks to private investors. The research questions that are examined in this study are:What type of policy measures affects trade in low-carbon transition, particularly renewable energy (RE) transi-tion? How can investment signals and incentives be reframed to scale up private finance in RE? The objectiveis to investigate and to provide several feasible trade policy and investment policy tools for both national andregional markets that governments could adopt to accelerate the speed of private financing of the low-carbonenergy industry, particularly the RE industry. Show more