Encouraging Technology Export through Public Financial Support

Abstract

This chapter supplies the second of the two case studies that test out Common Concern inspired trade measures in practice. This study zooms in to the issue of access to finance – one of the key obstacles for the private sector to acquire emission reducing technologies. Within that perimeter, the current chapter focuses on the relationship of potential support measures with the Subsidies Agreement of the wto – especially, the control it would exercise on potential enhancement of such measures. While the argument of boosting climate finance is considered as a virtuous one on the whole, the opaque issue is whether the cause would also justify unregulated public finance of private transactions in lowcarbon technologies (lct), particularly when involving developing country partners. This issue is explored in detail here. The chapter begins with an outline of the need for additional public finance for technology outflows and proposes the enhancement of export promotion support as a positive contributor. The approaches thereof, i.e. supply of financial credit in better terms, or sharing of destinationspecific risks are then examined in the backdrop of the trade regulation – the Agreement on Subsidies and Countervailing Measures (ascm, or the scm agreement), to be specific. Then the lens of Common Concern of Humankind is brought into play to identify areas of further development. The chapter explains that the promotion of clean technology exports and investments could be mutually beneficial for all parties involved. To that effect, the Common Concern doctrine can facilitate an accommodating understanding of the subsidies regulation, as well as indicate the pertinent areas of new rulemaking. This conclusion however remains subject to one important caveat. While markets often lack public support boosting trade or investment flows in the lct s, it may enjoy the same in the sectors that are harmful to the climate. A successful paradigm of financial assistance in the light of resolving the common concern of humankind should also include a parallel focus on the withdrawal of counterproductive supports existing on the market.