The 2013 Asia Pacific Economic Cooperation (APEC) Leaders Meeting is taking place today and tomorrow in Bali, Indonesia. This annual conference brings together the heads of state of 21 Pacific Rim economies to discuss approaches to support sustainable economic growth and prosperity across the region. This year, most Americans have likely heard about APEC primarily because President Obama canceled his attendance in order to deal with the federal government shutdown. (Admittedly, in previous years it was probably better known to many Americans for the “silly shirt” photo of APEC leaders wearing traditional attire of the summit’s host country.) This is unfortunate, for APEC has a long and successful track record as a venue for discussion and an incubator for ideas that has led to significant reductions in trade barriers, increases in trade facilitation, and expanded economic and technical cooperation across the Asia-Pacific region.
Renewable energy has been a topic of great interest within APEC in recent years. In an October 5 joint statement, APEC ministers instructed officials in member economies to implement a set of actions intended to facilitate the deployment of renewable and sustainable energy use, with an eye towards ensuring the energy security needed to promote equitable regional development. A list of these non-binding actions includes: developing and sharing best practices on policies, laws and regulations that support clean and renewable energy deployment and use; promoting greater energy efficiency in transportation, including a diversified fuel mix; recognizing sustainable energy as contributing to energy security and reducing greenhouse gas emissions; developing policies and regulations to promote private sector investment in the sector in an open, transparent manner; and reaffirming commitments to phase out inefficient fossil fuel subsidies. Additional suggested actions include promoting trade and investment in clean and renewable energy goods and services; strengthening technical capability in sustainable energy development; exploring opportunities to position APEC as a global leader in sustainable biofuel production; and increasing cooperation to advance clean energy technology development and employment.
Commitments made under APEC are voluntary and non-binding, but have often been ahead of the global curve and shape broader international economic and trade initiatives. Last year APEC achieved significant accomplishments related to sustainability, with member economies agreeing to voluntarily reduce applied tariffs on 53 designated environmental goods by 5 percent by 2013. Additionally, APEC members committed to expand deployment of green technologies through supporting capacity-building efforts and by not using green growth promotion to mask trade protectionism. As reported in a post on this website last October, these actions were important measures for ensuring that trade in these goods and services remains open, in order to bring down their costs and broaden their use. With this track record, it will be valuable to monitor the progress of APEC economies as they implement these actions, particularly as APEC enters into a high-profile year ahead as China prepares to host the summit in 2014.
