The United Nations Conference on Trade and Development (UNCTAD) has announced in its Technology and Innovation Report 2023 that developed countries are deriving greater benefits from green technologies than their developing counterparts, a situation that could potentially intensify global economic inequality. This article aims to dissect the report’s key findings and recommendations, as well as detail UNCTAD’s role and India’s initiatives in the realm of green technologies.
Key Findings of the UNCTAD Report
According to the report, the market for green technologies could be worth USD 9.5 trillion by 2030, exploding from a previous value of USD 1.5 trillion in 2020. Developed nations saw total exports of green technologies far outpace those of developing countries: figures jumped from USD 60 billion in 2018 to over USD 156 billion in 2021 for the former, while they only increased from USD 57 billion to around USD 75 billion for the latter.
The report also included a ‘frontier technology readiness index,’ designed to measure the ability of developing countries to harness innovative technologies such as blockchain, drones, and solar power. Green frontier technologies, including electric vehicles, solar and wind energy, and green hydrogen, are projected to reach a market value of USD 2.1 trillion by 2030.
Interestingly, this index ranks 166 countries and is primarily dominated by wealthier nations. High-income economies such as the US, Sweden, Singapore, Switzerland, and the Netherlands lead the pack. However, India profusely exceeded expectations by landing 67 spots higher than predicted.
Recommendations from the UNCTAD Report
UNCTAD urges developing nations to align their environmental, science, technology, innovation, and industrial policies. It recommends governments prioritize investments in greener sectors, stimulate consumer demand for green goods, and increase investment in research and development.
To help these countries protect emerging green industries, the report suggests international trade rules should allow for tariffs, subsidies, and public procurement. The aim is to strengthen local demand and scale up economies for more competitive exports.
In a call to developed countries, UNCTAD implores them to assist less affluent nations. Such support will help ensure that all countries can fully benefit from the green tech revolution.
Understanding UNCTAD: United Nations Conference on Trade and Development
UNCTAD is a permanent intergovernmental entity within the United Nations system. Founded in 1964 and headquartered in Geneva, Switzerland, its mandate is to promote sustainable development, particularly in developing countries. This is achieved via international trade, investment, finance, and technology transfer. UNCTAD’s work encompasses four main areas: trade and development, investment and enterprise, technology and innovation, and macroeconomics and development policies.
India’s Green Technology Initiatives
India has embarked on several initiatives aimed at promoting the adoption of green technologies. These include the Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA), the Green Energy Corridor (GEC), the National Smart Grid Mission (NSGM) and Smart Meter National Programme, the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) initiative, and the International Solar Alliance (ISA).
The UNCTAD report underscores the significant role that green technologies play in modern economic systems. Recognizing this, countries like India are making considerable strides in maximizing these technologies’ potential, despite the challenges outlined in the report.