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Begin New Search Topic Development Content Type Policy Brief Publication Year within 10 Years Publication Year within 5 Years

181. Integrating community development in public procurement of renewable energy generation: Lessons from South Africa

Author:
Mikkel Funder, Holle Wlokas, and Karen Holm Olsen
Publication Date:
03-2021
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Renewable energy is key to combatting climate change, but it is critical to ensure a just energy transition that benefits all. Denmark’s development cooperation supports the growth of large-scale renewable energy schemes in several countries, but what is good for recipient governments and Danish exports is not automatically good for the poor. In recent years large-scale wind- and solar schemes in developing countries have increasingly met with local resistance from communities who do not feel they benefit from such projects. How can Denmark help ensure that renewable energy projects contribute to community development in the areas where projects are situated? This policy brief provides lessons learnt and associated recommendations from one particular attempt to address this issue, namely South Africa’s efforts to incorporate community development as a criteria in the auction schemes through which renewable energy is procured. This policy is implemented through the nationwide REIPPP programme, which is among the few of its kind globally. While South Africa’s REIPPPP is not perfect and still developing, the programme does exemplify the basic principle that governments can build requirements for privately owned wind- and solar projects into procurement schemes. Requirements to finance community development, support Community Trusts, and allocate shares to communities are thus examples of approaches that could be developed and adapted elsewhere. In addition, the South African programme includes scoring and - performance criteria in the tendering and monitoring process that align with South Africa’s Black Economic Empowerment policy. The South African experience also, however, illustrates how public, private and community interests may differ in terms of what community development is and how it should be supported. This highlights the importance of developing democratic and inclusive structures for debating and decision-making on the use and allocation of benefits from large-scale renewable energy projects. Drawing on the lessons from South Africa and other similar schemes, the policy brief recommends that Danish development cooperation should: Support the incorporation of community benefits in regulatory frameworks for public procurement of private renewable energy generation Support development of practice frameworks for community engagement in the renewable energy sector Support community co-ownership of renewable energy generation and democratic governance of benefit sharing arrangements The policy brief is the result of collaborative research between DIIS, Stellenbosch University and the UNEP DTU Partnership. It forms part of the wider TENTRANS project, funded by the Ministry of Foreign Affairs of Denmark and administered by Danida Fellowship Centre.
Topic:
Climate Change, Development, Environment, Poverty, Natural Resources, Inequality, and Emerging States
Political Geography:
Africa and South Africa

182. Renewable energy in Africa is about more than climate change: Aid needed for both clean energy and local capacity

Author:
Rasmus Hundsbæk Pedersen and Ole Winckler Andersen
Publication Date:
03-2021
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Development assistance for new renewable energy in Sub-Saharan Africa is increasingly being used to mobilise additional private capital. Recipient countries do not always share the priorities of donors. Realism and long-term support are key. RECOMMENDATIONS: Continue funding, but also acknowledge different interests and objectives, in order to move new renewable energy to scale. Balance the support for market development with support to government entities. Support longer-term capacity-building to ensure energy sector sustainability in recipient countries. Adopt flexible approaches and ensure independent advice to governments and institutions.
Topic:
Climate Change, Development, Foreign Aid, and Renewable Energy
Political Geography:
Africa, Europe, Denmark, and Sub-Saharan Africa

183. A lack of evidence-based approaches will weaken the implementation of the EU Action Plan against migrant smuggling 2021-2025

Author:
Gabriella Sanchez
Publication Date:
03-2021
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
The upcoming EU Action Plan against migrant smuggling 2021-2025, like its predecessor, suggests that the prevention of and the fight against migrant smuggling will continue to be at the centre of a strong and comprehensive European approach to migration management. However, to be effective, the Action Plan must rely on the growing evidence-base concerning the structure and organization of migrant smuggling, as well as rethink the way smuggling research and analysis is produced. Doing otherwise may seriously impact the Action Plan’s implementation and outcomes. Recommendations: Demand that gender, race and class perspectives are present in smuggling and counter-smuggling research and analyses in ways that identify the wider impact of EU actions on communities in countries of origin, transit and destination and within the EU. Include the perspectives of third-country, junior and female researchers, scholars and policy analysts, and involve stakeholders and informants beyond those typically reached out to during research, policy making or knowledge generating processes. Create an open access database that includes examples of smuggling caselaw and legislation that showcase the impact of EU law enforcement agencies’ counter-smuggling efforts in transit, destination and origin countries and within the EU to demonstrate clear efforts towards transparency and accountability.
Topic:
International Relations, Foreign Policy, Development, Migration, Borders, and Risk
Political Geography:
Europe

184. Enlivening Transitional Justice within the African Union's Agenda of Silencing the Guns: Looking Beyond 2020

Author:
Andrew Songa
Publication Date:
07-2021
Content Type:
Policy Brief
Institution:
Centre for the Study of Violence and Reconciliation (CSVR)
Abstract:
The African Union (AU) declared 2020 the year of "Silencing the Guns: Creating Conducive Conditions for Africa's Development." The motivation for this theme was to provide impetus for activities to advance the 2013 Solemn Declaration to realise a conflict-free Africa by 2020. This policy paper argues that the AU and its member states must maintain fidelity to the noble objectives of the Solemn Declaration and utilise the extended 10-year period for the AU Master Roadmap on Practical Steps to Silence the Guns by the Year 2020 to ensure that actionable programmes which further peace, security and justice are achieved. A lot of normative progress has been achieved in the last decade, as the 2019 adoption of the AU Transitional Justice Policy indicates, yet the persistent challenge lies in the effective implementation of these instruments at the regional, national and local levels.
Topic:
Development, International Cooperation, Peace, Reconciliation, and African Union
Political Geography:
Africa

185. Who gets Involved? Insights on Civic Engagement in Africa and Implications for Fostering Volunteerism

Author:
Carolyn Logan, Josephine Appiah-Nyamekye Sanny, and Kangwook Han
Publication Date:
03-2021
Content Type:
Policy Brief
Institution:
Afrobarometer
Abstract:
The Sustainable Development Goals (SDGs) set ambitious targets for countries and societies to improve lives and livelihoods around the world. While the expectations of meeting these goals largely fall on governments, it is widely recognized that joint efforts by citizens and their governments will be needed to achieve the best outcomes. Citizen action takes place in many forms and forums, including organizing and working together on shared goals, providing mutual support and assistance, campaigning or advocating for shared needs, and engaging with governments, making demands on them, and holding them to account. While some citizens may become involved in a formal capacity, such as through paid employment in nongovernmental advocacy or service organizations and through employment with governments or other service providers, large numbers will – and must – be engaged in a voluntary capacity. Understanding the nature of this voluntary engagement is a key goal of this analysis. Advocates of volunteerism in Africa have been plagued by a lack of data on who engages in voluntary service, how much they contribute, in what formats, and what the outcomes are. Only a handful of governments have collected data on this topic. Yet our ability to foster and build support for volunteerism is partly dependent on how well we understand the ways people are already engaging every day in these critical but uncompensated contributions in pursuit of the public good. Afrobarometer data can help to fill this void. Although Afrobarometer has not collected data with the explicit aim of studying volunteerism, for more than 20 years it has captured extensive, nationally representative data on respondents’ levels of political and civic participation (much of which can be classed as volunteerism) across seven rounds of surveys in 38 countries. This includes membership in religious and civic organizations and participation in individual and collective efforts to engage with leaders and to voice community needs. In particular, in addition to membership in associations, Afrobarometer tracks the contact of respondents with political and community leaders, their attendance at community meetings, and their efforts to join with others to address issues or express their views. These kinds of civic engagement are the cornerstone of volunteerism to solve problems and improve lives. Understanding who engages, under what circumstances, and why provides a foundation on which to more effectively promote civic engagement and volunteerism in pursuit of the SDGs and other development objectives. This paper explores Afrobarometer data on civic engagement with four main goals: specify how Afrobarometer indicators of civic engagement link to core understandings of volunteerism and its various typologies; map profiles and patterns of the people who engage in volunteerism, especially at the country level; model voluntary civic engagement to identify the key factors and contexts that facilitate or inhibit it at both the individual and country levels; and use these profiles and models to identify entry points for activists who want to foster or support voluntary civic engagement. Our analysis identifies several factors that shape voluntary civic engagement, from socio- demographic ones such as education and wealth to citizens’ socio-political engagement, their personal sense of efficacy, and their overall trust in their governments. Country contexts are important, as we see wide cross-country differences in levels of volunteerism. Among other aspects, wealthier countries, on average, report less volunteerism, while democracies report more. We have found evidence that confronting unmet needs – whether one’s own or those of others – is a major motivating factor of voluntary engagement. These findings suggest a number of opportunities and entry points for increasing citizen engagement. The paper is organized in four parts. Part A begins with a discussion of knowledge on volunteerism and participation, highlighting the lack of evidence and data sources on Africa and how civic engagement intersects with volunteerism. Part B develops descriptive profiles of the participants in voluntary civic engagement. Part C explores key driving factors at the individual and country levels. The final section presents recommendations for acting on these findings.
Topic:
Development, Sustainable Development Goals, Sustainability, and Civic Engagement
Political Geography:
Africa

186. Transforming the Systems that Contribute to Fragility and Humanitarian Crises: Programming across the triple nexus

Author:
Vittorio Infante
Publication Date:
07-2021
Content Type:
Policy Brief
Institution:
Oxfam Publishing
Abstract:
Conflicts and shocks linked to climate change are more frequent and intense, leading to poverty and inequality, exacerbating these phenomena and people’s vulnerability. In this context, humanitarian relief, development programmes and peacebuilding are not serial processes; they are all needed at the same time to tackle the systemic inequalities that trap people in poverty and expose them to risk. The triple nexus, or programming across humanitarian-development-peace pillars, thus means creating synergies and common goals across short-term emergency response programmes and longer-term social change processes in development, as well as enhancing opportunities for peace so that individuals can enjoy the full spectrum of human rights. This briefing paper aims to identify the tensions and dilemmas that Oxfam faces when programming across the nexus and sets out new policy to address these dilemmas, building upon Oxfam’s 2019 discussion paper on the triple nexus.
Topic:
Development, Inequality, Humanitarian Intervention, Conflict, and Peace
Political Geography:
Global Focus

187. Still Treading Water: Reviewing six years of the Gaza Reconstruction Mechanism and the dire water situation in the Gaza Strip

Author:
Laila Barhoum
Publication Date:
03-2021
Content Type:
Policy Brief
Institution:
Oxfam Publishing
Abstract:
Six years after the establishment of the Gaza Reconstruction Mechanism (GRM), people in Gaza continue to live on the brink of disaster as a result of 13 years of the Israeli blockade. The water, sanitation and health (WASH) sector remains significantly damaged, with Gaza facing the complete collapse of its wastewater treatment system. The reconstruction process is ongoing, but it is slow, costly, and hampers the humanitarian response. Six years after the establishment of the Gaza Reconstruction Mechanism (GRM), people in Gaza continue to live on the brink of disaster as a result of a 13 year blockade imposed by Israel. The water, sanitation and hygiene (WASH) sector remains significantly damaged, with Gaza facing a stark deterioration of available WASH services at the community and household level. The reconstruction process is ongoing, but it is slow, costly, and hampers the humanitarian response. The COVID-19 pandemic has severely aggravated existing vulnerabilities, including access to water and sanitation. This strongly impacts the daily lives of over 2 million people living in the coastal enclave, of whom 1.5 million – or 75% – have been identified as being in need of humanitarian assistance. Oxfam has recently reviewed the challenges associated with the GRM and its impact on the WASH sector in Gaza. Its findings reveal that these challenges are an obstacle to the reconstruction of WASH infrastructure (including operation and maintenance), hindering efforts to address the increased needs of people in Gaza. Donors and UN agencies should consider the needs of people in Gaza today. Rather than continuing with the GRM, they should explore how they can improve their engagement to be able to challenge the Israeli access restrictions, work towards economic development, ensure accountability within access mechanisms, and facilitate inclusive Palestinian participation to access mechanisms and the reconstruction of Gaza.
Topic:
Development, Infrastructure, Conflict, COVID-19, and Humanitarian Response
Political Geography:
Middle East, Israel, and Palestine

188. In Our Own Words: Perspectives from local actors in the Horn, East, and Central Africa

Author:
Elizabeth Deng
Publication Date:
02-2021
Content Type:
Policy Brief
Institution:
Oxfam Publishing
Abstract:
Oxfam is committed to supporting the participation of local actors in humanitarian and development responses. This includes ensuring their opinions and perspectives about priorities, needs, and appropriate ways of addressing issues are part of public debate. Oxfam advocates for their presence and participation in coordination meetings and other spaces for decision-making. We also provide support to local actors to write and publish their opinions and perspectives. This paper is a compilation of eight opinion pieces written by local actors in the Horn, East, and Central Africa region, with editing and publishing support from Oxfam. The pieces were originally published by Devex, Citizen Digital, Media Congo, IPS News, African Arguments, Nile Post, and WeInformers.
Topic:
Development, Local, Humanitarian Crisis, and Participation
Political Geography:
Africa

189. Impact of Colonial Institutions on Economic Growth and Development in India: Evidence from Night Lights Data

Author:
Priyaranjan Jha and Karan Talathi
Publication Date:
09-2021
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
Many cross‐​country studies find that quality of historical institutions is a major cause of disparity in present‐​day economic development as measured by income per capita. Due to the unavailability of data on a comprehensive measure of development such as per capita income, studies examining the role of historical institutions on development at the subnational levels use alternate proxies of economic well‐​being in their analysis. We examine the long‐​term effects of British colonial institutions on overall economic development within India using satellite night lights data.
Topic:
Development, Economic Growth, Colonialism, Economic Policy, and Institutions
Political Geography:
South Asia and India

190. National Development Bank – BNDES and New Development Bank – NDB: a strategic partnership for development and sustainability?

Author:
Maria Elena Rodriguez Ortiz and Paz Andrés Sáenz De Santa María
Publication Date:
11-2021
Content Type:
Policy Brief
Institution:
BRICS Policy Center
Abstract:
The precedence afforded in recent decades to environmental issues and to the centrality of a sustainable development agenda has led financial institutions to redefine and redirect their funding as well as their institutional and market arrangements to contribute towards balanced and inclusive development, such as strategies to support national environmental targets that will secure the sustainable development goals. This research will therefore explore some elements that underline the relation between the NDB and the BNDES, the Brazilian Development Bank, which can be considered one of the main agencies implementing funding geared for Brazil, with various joint projects approved.
Topic:
Development, Environment, Partnerships, Banks, Sustainability, and BRICS
Political Geography:
Brazil and South America

191. Public development aid should refocus on agriculture and education in Africa

Author:
Louis Caudron
Publication Date:
03-2021
Content Type:
Policy Brief
Institution:
Robert Schuman Foundation (RSF)
Abstract:
On 18 December 2020, the European Commission welcomed the political agreement reached between the European Parliament and the Member States allocating €79.5 billion to a new Neighbourhood, Development Cooperation and International Cooperation Instrument (NDCI) for the period 2021- 2027. Since its creation, the European Union has been a major player in public aid granted by rich countries to developing countries. The European Development Fund (EDF) was launched by the Treaty of Rome in 1957 and for decades provided aid to the former colonies in Africa, the Caribbean and the Pacific (ACP). The eleventh EDF, covering the period 2014- 2020 with a budget of €30.5 billion, will be replaced by the NDICI (Neighbourhood, Development and International Cooperation Instrument). The Union and its Member States are the world's largest donor of official development assistance. Their contribution of €74.4 billion in 2018 represents more than half of the OECD countries’ Official Development Assistance ($150 billion in 2018).
Topic:
Agriculture, Development, Education, and Foreign Aid
Political Geography:
Africa and Europe

192. Policy Brief 1: Building Capacity for Development of Factoring in Africa to accelerate trade development and support AfCFTA

Author:
The African Capacity Building Foundation
Publication Date:
03-2021
Content Type:
Policy Brief
Institution:
The African Capacity Building Foundation (ACBF)
Abstract:
This Policy Brief developed by the African Capacity Building Foundation (ACBF) and the African Export–Import Bank (Afreximbank) explores the opportunities offered by factoring which provides a solution to address the financing gap for Small and Medium enterprises (SMEs) to support Africa’s structural transformation particularly in trade development as part of the African Continental Free trade Agreement (AfCFTA). The aim of the Policy Brief is to examine the capacity imperatives for the development and use of factoring as an innovative trade financing tool to advance the AfCFTA. The Policy Brief notes that Africa performance in the factoring market needs to improve significantly based on a number of key indicators – such as share in global factoring, including international factoring, innovation such as reverse factoring, number of factoring companies, turn-over per factoring companies and factoring GDP penetration. The Policy Brief also highlights that Africa’s factoring volume of about US$27 billion representing a share representing a share of 0.84% in the global factoring market of approximately US$3,300 billion a year in 2019 is extremely low. It therefore argues that Africa needs a coordinated approach to capacity development to successfully develop and use factoring.
Topic:
Development, Economic Growth, Trade, and Banking
Political Geography:
Africa

193. Diving Deeper: Under the surface of LBQTI Funding

Author:
Global Philanthropy Project (GPP)
Publication Date:
06-2021
Content Type:
Policy Brief
Institution:
Global Philanthropy Project (GPP)
Abstract:
Diving Deeper: Under the surface of LBQTI funding data explores gaps and improvements over time and identifies opportunities to increase funding for LBQ, trans, and intersex communities and movements. The brief also identifies top LBTQI funders and shares good practice examples of government and multilateral funders integrating LBQTI issues into their gender equality development programming.
Topic:
Development, LGBT+, Equality, Philanthropy, Funding, and Gender
Political Geography:
Global Focus

194. Diving Deeper: Under the surface of Intermediary Funding

Author:
Global Philanthropy Project (GPP)
Publication Date:
06-2021
Content Type:
Policy Brief
Institution:
Global Philanthropy Project (GPP)
Abstract:
Diving Deeper: Under the surface of Intermediary funding data compares data on different types of intermediaries in order to provide greater understanding to the field about how, where, and to whom intermediaries are distributing resources. The brief also examines how government, multilateral, and private foundation funders partner with intermediaries to support global LGBTI rights and development.
Topic:
Development, Human Rights, LGBT+, Data, Philanthropy, and Funding
Political Geography:
Global Focus

195. Diving Deeper: Under the Surface of Embassy Funding

Author:
Global Philanthropy Project (GPP)
Publication Date:
06-2021
Content Type:
Policy Brief
Institution:
Global Philanthropy Project (GPP)
Abstract:
Diving Deeper: Under the surface of LGBTI embassy funding data examines the extent to which embassies are providing resources for local LGBTI movements, the types of organizations and issues that are supported, as well as best practice examples. At a time when major development assistance streams supporting LGBTI issues are being stretched and in some instances reduced, and when LGBTI organizations face funding shortages, this brief provides government donors and other advocates with evidence about how embassy funding can be used to support and strengthen local movements.
Topic:
Development, LGBT+, Data, Funding, and Embassies
Political Geography:
Global Focus

196. Addressing the Challenges of Digital Lending for Credit Markets and Financial Systems in Low- and Middle-Income Countries

Author:
Christoph Sommer
Publication Date:
01-2021
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The demand for digital financial services has risen significantly over recent years. The COVID-19 pandemic has accelerated this trend and since the focus has shifted towards economic recovery, digital lending has become central. Digital credit products exploit traditional and alternative financial and non-financial data to provide access to finance for households and micro, small and medium enterprises (MSMEs). While it makes lending more inclusive for underserved or unserved households and firms, its increasing influence also brings forth challenges that need to be addressed by policy-makers and regulators in order to guarantee well-functioning credit markets and broader financial systems that foster sustainable economic development. A central concern is the adverse effect of digital lending on the stability and integrity of credit markets (and potentially the wider financial systems). The rise in non-performing loans, even before the COVID-19 crisis, has been associated with an increase in digital credits. New players with little experience enter the market and exploit regulatory arbitrage, but often these players have no (or only a partial) obligation to report to respective systems for sharing credit information or to supervisory bodies, which introduces severe vulnerabilities. In addition, the low entry threshold of digital financial products, due to their convenience and simplicity for customers, provides fertile ground for exploitative financialisation. Underserved households and MSMEs with limited financial literacy may be lured into taking up unsuitable and unaffordable digital credits, leading to over-indebtedness and bankruptcy. The last challenge arises from significantly shorter loan maturities in MSME lending if current forms of digital lending are scaled up. This is problematic, as firms need loans with longer maturities to realise productivity-enhancing medium- and long-term investments, many of which include complementary investments in labour, thereby contributing to an improvement in job quality.
Topic:
Development, Finance, COVID-19, Lending, Digital Finance, and Loans
Political Geography:
Global Focus

197. Towards Sustainable Ocean Governance: A Call for Blue Climate Action in International Development

Author:
Ina Lehmann, Michael Siebert, Nicola Hanke, Maximilian Högl, and Anna-Katharina Hornidge
Publication Date:
01-2021
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The ocean is vital for life on earth and yet it is under serious threat from climate change and resource overexploitation. Environmental change in the ocean significantly undermines human livelihoods, especially in the developing and least developed countries where people are particularly vulnerable to climate change-related losses and damages. This Briefing Paper outlines challenges that people, development cooperation and policy face and suggests ways forward for sustainable ocean governance through sustainable resource use, comprehensive risk management and enhanced climate action. Life in the ocean is threatened in various ways by human activities. Climate change, as one severe consequence, leads to ocean warming and ocean acidification putting complex ecosystems and their sensitive species in danger. Such climatic impacts are exacerbated by pollution, especially plastic, and the overharvesting of many marine species. As a result of the confluence of these developments, many local coastal communities lose their livelihoods. At the same time, climate change increasingly threatens coasts through sea level rise, salinisation and growing frequencies of extreme weather events, such as floods and storms. This puts the 2.6 billion people living at or near the coasts at high risk; low-altitude small islands are expected to become uninhabitable within the next decades if current global warming trajectories continue. Furthermore, the ocean contributes to climate change mitigation because marine ecosystems absorb CO2. In response to these challenges, there is a need for sustained awareness raising on the importance of the ocean for development as well as for the need of enhanced international cooperation for joint action. Conscious politics, substantial action and financial resources are needed at multiple levels of governance, from empowering local stakeholders to developing locally sound solutions to political guidance through national and international policy-making processes. From a development policy angle, this Briefing Paper specifically suggests that current climate and biodiversity policy processes pay enhanced attention to the ocean under climate change, pollution and overexploitation stress.
Topic:
Climate Change, Development, Governance, and Oceans and Seas
Political Geography:
Global Focus

198. Protecting Democracy: The Relevance of International Democracy Promotion for Term Limits

Author:
Julia Leininger and Daniel Nowack
Publication Date:
01-2021
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The question of whether and how democracy can be promoted and protected through international support has recently gained relevance. On the one hand, the withdrawal of NATO troops from Afghanistan has reignited a public debate on the limits of democracy promotion. On the other hand, the need for international democracy protection is growing due to an increase in autocratisation trends worldwide. DIE research shows that it is possible to effectively support and protect democracy. In this context, both the protection of central democratic institutions, such as term limits for rulers, and the promotion of democratic forces that pro-actively resist attempts at auto¬cratisation are central. Since 2010, autocratisation trends have been characterised by the fact that they often slowly erode achieved democratisation successes and consolidate autocracies. The circumvention and abolition of presidential term limits by incumbent presidents are part of the typical “autocratisation toolbox”. Term extensions limit democratic control and expand presidential powers. Democracy promotion and protection play a relevant role in preserving presidential term limits, and thus in protecting democracy. They contribute towards improving the “duration” and “survival chances” of presidential term limits. The more international democracy promotion is provided, the lower the risk that term limits will be circumvented. For example, a DIE analysis found that a moderately high democracy promotion mean of $2.50 per capita over four years on average halves the risk of presidential term limits being circumvented.
Topic:
NATO, Development, Diplomacy, Democracy, and Autocracy
Political Geography:
Global Focus

199. Priorities for a Development-Friendly EU Carbon Border Adjustment Mechanism (CBAM)

Author:
Clara Brandi
Publication Date:
01-2021
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The European Commission unveiled the Carbon Border Adjustment Mechanism (CBAM) in July 2021 as part of its “Fit for 55” climate-policy package. The European Commission had announced this trade-policy instrument under the Green Deal in 2019 as a means of implementing more ambitious climate-policy goals without energy-intensive sectors transferring their emissions abroad (carbon leakage). The CBAM proposal envisages imposing a levy on imports in certain energy-intensive European sectors that is proportional to the carbon content of the goods concerned. The proposal complements the EU’s existing Emissions Trading System by requiring importers of goods purchased from especially energy-intensive sectors (steel, cement, electricity, fertiliser and aluminium) abroad to purchase carbon certificates based on emissions data from abroad. CBAM is primarily designed to promote an ambitious climate policy for the EU. However, the EU’s current proposal creates the impression that it is mainly about improving domestic competitiveness at the expense of climate-policy effectiveness and development prospects. The draft legislation must now be fleshed out in detail by the EU member states and the European Parliament. In addition to addressing climate-policy effectiveness and compatibility with WTO legislation, account must also be taken of the impact on European trading partners, and, in particular, poor developing countries. Many developing countries are expected to face additional export costs as a result of the CBAM. The EU should carefully evaluate the associated disadvantages for developing countries and work towards achieving a development-friendly design of the mechanism. Corresponding improvements should be made to the CBAM in the EU’s legislative process going forward: • The EU must ensure that the border adjustments do not have a detrimental impact on poor countries. Least developed countries (LDCs) should be exempted from the CBAM. • The EU should provide targeted support to the developing countries affected by the mechanism, for instance, by building their capacity for implementing the CBAM and for reducing carbon emissions in the sectors concerned. • The EU should assist low- and middle-income partner countries with the decarbonisation of their manu¬facturing industries. • The EU should also recycle revenue from the CBAM by deploying it primarily for climate-policy purposes abroad. • The affected countries should be involved to a greater extent in future through consultations and diplomatic dialogue in the process for further develop¬ing the mechanism.
Topic:
Climate Change, Development, Treaties and Agreements, European Union, and Carbon Emissions
Political Geography:
Europe

200. Export Curbs on Essential Goods in the Wake of COVID-19 and the Least Developed Countries: Permanent Scarring from a Temporary Outburst

Author:
Simon Evenett
Publication Date:
01-2021
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Anything that jeopardises progress towards the Sustainable Development Goals – such as a global pandemic and how governments react to it – is thus a major source of concern, in particular for least developed countries (LDCs). The first half of 2020 witnessed governments imposing dozens of export curbs on essential medical goods and foods that the LDCs, among other nations, depend upon. Although some of those curbs have subsequently been removed, there is a substantial risk of a permanent reduction in essential goods supplied to LDC markets, as current multilateral trade disciplines on export controls do not specifically require a return to the pre-pandemic status quo. Let us not forget that the G20 trade and investment ministers declared on 3 November 2020 that “any emergency trade measures designed to tackle COVID-19, including export restrictions on vital medical supplies and equipment and other essential goods and services, if deemed necessary, are targeted, proportionate, transparent, temporary, reflect our interest in protecting the most vulnerable, do not create unnecessary barriers to trade or disruption to global supply chains, and are consistent with WTO rules” (G20, 2020). Evidence on resort to export restrictions suggests, however, that G20 fealty to this pledge was uneven. The purpose of this Briefing Paper is to outline the key policy developments implicating the trade in essential goods during the first nine months of the COVID-19 pandemic before drawing out the implications for development policy and trade policy cooperation. These lessons need to be taken on board quickly if the mistakes made in 2020 are not to be repeated in 2021, when policymakers and the private sector around the world face the imperative of the equitable and efficient global distribution of COVID-19 vaccines. Recent export controls on such vaccines suggest important lessons from last year have not been taken on board universally. The key findings and policy recommendations are: • Permanent disruption to trade routes in medical goods and medicines cannot be ruled out as a result of temporary export curbs. • Revisit the World Trade Organization (WTO) rules that allow export curbs during emergencies. • LDCs should increase their buying power by joining together to buy medical goods and medicines from a diversified set of production locations. • Such buying power would be multiplied if LDCs joined forces with leading development agencies and the multilateral development banks. Stockpiling in advance of any future pandemic offers no cast-iron guarantee, as no-one can know for sure what medical goods will be in high demand.
Topic:
Development, International Cooperation, Sustainable Development Goals, Trade, and COVID-19
Political Geography:
Global Focus