How Can Trade Policy Maximize Benefits From Clean Energy Investment?

This report by the International Institute for Sustainable Development (IISD) examines how trade policy, specifically tariffs, can be used by developing countries to balance the goal of maximizing local economic benefits from clean energy investments with the need to minimize project costs. It analyzes the bill of materials for wind and solar projects to identify which components are suited for local production and evaluates the trade profiles of several countries to provide a framework for aligning trade and energy policies.

• Renewable energy projects consist of a mix of highly specialized components that require global sourcing and components that can be produced locally. For wind projects, generators, nacelles, and rotors are typically sourced globally, while blades, foundations, cabling, and civil work can be local. For solar projects, modules and inverters are usually global, whereas structures, electrical components, and civil work are suited for local procurement.
• The most significant opportunities for developing countries to increase local production are found in less centralized components and services rather than high-technology 'big-ticket' items. Specifically, promoting the local production of towers, structures, and electrical subsystems, as well as design and civil works, offers the most viable path to localization because barriers to skills transfer are lower than those for technology transfer.

APA

Bridle, R., & Bellmann, C. (2021). How Can Trade Policy Maximize Benefits From Clean Energy Investment? International Institute for Sustainable Development. https://www.iisd.org/system/files/2021-07/trade-policy-clean-energy-investment.pdf

Chicago

Bridle, Richard, and Christophe Bellmann. How Can Trade Policy Maximize Benefits From Clean Energy Investment? International Institute for Sustainable Development, 2021. https://www.iisd.org/system/files/2021-07/trade-policy-clean-energy-investment.pdf.

Wikipedia

{{cite report |last1=Bridle |first1=Richard |last2=Bellmann |first2=Christophe |title=How Can Trade Policy Maximize Benefits From Clean Energy Investment? |publisher=International Institute for Sustainable Development |date=July 2021 |url=https://www.iisd.org/system/files/2021-07/trade-policy-clean-energy-investment.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bridle2021how, author = {Bridle, Richard and Bellmann, Christophe}, title = {{How Can Trade Policy Maximize Benefits From Clean Energy Investment?}}, institution = {International Institute for Sustainable Development}, year = {2021}, month = jul, url = {https://www.iisd.org/system/files/2021-07/trade-policy-clean-energy-investment.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }