Report on Renewable Energy Embodied in Global Trade and its Contribution to Sustainable Development Goals

1.0 Introduction and Background

The transition to renewable energy sources is fundamental to achieving global climate targets and the Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action). Increased utilization of renewable energy in the production of exported goods is a critical strategy for reducing carbon emissions associated with international trade. However, a significant data gap exists in current global trade databases, which lack precise information on the renewable energy content of traded products. This limitation hinders the ability of policymakers and researchers to monitor progress towards sustainable production and consumption patterns as outlined in SDG 12 (Responsible Consumption and Production).

2.0 Development of the Renewable Energy Featured Final Energy Account (RE-FEA)

To address the aforementioned data deficiency, a new dataset, the Renewable Energy Featured Final Energy Account (RE-FEA), has been developed. This account quantifies the final energy consumed directly by end-use sectors, distinguishing between renewable and non-renewable sources.

2.1 Dataset Specifications

• Coverage: 145 countries
• Sectoral Detail: 163 distinct economic sectors
• Time Period: Annual data from 2011 to 2022
• Energy Products: Differentiates between electricity and non-electric energy products

This comprehensive dataset fills critical gaps in existing Multi-Regional Input–Output (MRIO) data, providing a more granular tool for analyzing the intersection of global trade and sustainable development.

3.0 Key Findings and Analysis

Analysis of the RE-FEA dataset reveals significant trends in the energy composition of global exports, offering insights into progress towards several SDGs.

3.1 Growth in Embodied Renewable Energy

1. The share of renewable energy embodied in global exports, relative to the total embodied energy, increased substantially over the study period.
2. This share rose from approximately 8% in 2011 to 13% in 2022.

This upward trend indicates a positive, albeit modest, global shift towards cleaner production, directly supporting the objectives of SDG 7 and SDG 13.

3.2 Distribution of Cleaner Energy Exports

The adoption of renewable energy in export-oriented production is not evenly distributed globally, highlighting challenges related to SDG 10 (Reduced Inequalities) and SDG 17 (Partnerships for the Goals).

• By Income Group: Exports produced with a higher share of renewable energy are predominantly concentrated among high-income and upper-middle-income countries.
• By Sector: The transition is most prominent in the light industry and material manufacturing sectors, pointing to specific areas of progress in achieving SDG 9 (Industry, Innovation, and Infrastructure).

4.0 Implications for Sustainable Development Goals (SDGs)

The RE-FEA dataset and its initial findings have profound implications for understanding and advancing the global sustainability agenda.

• SDG 7 (Affordable and Clean Energy): The dataset provides a direct metric for tracking the integration of renewable energy into the global economy through trade, measuring progress on target 7.2 (increase global percentage of renewable energy).
• SDG 9 (Industry, Innovation, and Infrastructure): By identifying which industrial sectors are leading the transition, the data can inform policies aimed at promoting sustainable industrialization and upgrading infrastructure.
• SDG 12 (Responsible Consumption and Production): The RE-FEA enables a more accurate assessment of the environmental footprint of consumption, allowing for better tracking of sustainable production patterns across international supply chains.
• SDG 13 (Climate Action): The findings quantify how the greening of production for export contributes to mitigating climate change by reducing the carbon intensity of global trade.

5.0 Conclusion

The development of the RE-FEA dataset represents a significant advancement in the capacity to monitor the sustainability of global trade. The findings confirm a positive trend in the use of renewable energy for export production but also highlight significant geographic and sectoral disparities. This tool can improve the global community’s understanding of how international trade dynamics impact the achievement of the Sustainable Development Goals and can be used to formulate more effective policies that foster a just and sustainable global energy transition.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article addresses several interconnected Sustainable Development Goals (SDGs) by focusing on the intersection of renewable energy, global trade, and carbon emissions. The primary SDGs identified are:

• SDG 7: Affordable and Clean Energy: The core theme of the article is the use and tracking of renewable energy in the production of goods for export. It directly addresses the goal of increasing the share of clean energy.
• SDG 13: Climate Action: The article’s stated purpose is to help “reduce carbon emissions from global trade.” By quantifying the use of renewable energy, it provides a tool to monitor and manage the carbon footprint of international trade, which is a crucial aspect of climate action.
• SDG 9: Industry, Innovation, and Infrastructure: The analysis covers 163 industrial sectors, including “light industry and material manufacturing.” This connects to the goal of making industries more sustainable by adopting cleaner technologies and improving resource efficiency.
• SDG 12: Responsible Consumption and Production: The article examines the “embodied energy” in traded goods, which is a key concept in understanding sustainable production patterns. It analyzes the energy inputs required to produce goods that are consumed globally.
• SDG 10: Reduced Inequalities: The article explicitly notes that “Cleaner energy exports are concentrated among high-income and upper-middle income countries,” highlighting the disparities between nations in the transition to sustainable energy and production.
• SDG 17: Partnerships for the Goals: The development of the “renewable energy featured final energy account (RE-FEA)” dataset is a direct contribution to the goal of enhancing data, monitoring, and accountability for sustainable development. The article states this dataset “fills gaps in current Multi-Regional Input–Output data.”

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article’s focus, the following specific SDG targets can be identified:

1. SDG 7: Affordable and Clean Energy

   • Target 7.2: “By 2030, increase substantially the share of renewable energy in the global energy mix.” The article directly addresses this by creating a dataset to quantify and track the “share of renewable energy embodied in exports,” showing its rise from 8% to 13% between 2011 and 2022.

2. SDG 13: Climate Action

   • Target 13.2: “Integrate climate change measures into national policies, strategies and planning.” The dataset developed in the article provides the precise data needed for policymakers to create and evaluate policies aimed at reducing emissions from trade and production.

3. SDG 9: Industry, Innovation, and Infrastructure

   • Target 9.4: “By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes…” The article’s analysis of renewable energy use across 163 sectors, including manufacturing, directly relates to tracking the adoption of clean energy technologies in industry.

4. SDG 12: Responsible Consumption and Production

   • Target 12.2: “By 2030, achieve the sustainable management and efficient use of natural resources.” The article’s focus on “embodied energy” in traded goods is a measure of the energy resources used in production, contributing to the understanding of resource efficiency in global supply chains.

5. SDG 17: Partnerships for the Goals

   • Target 17.19: “By 2030, build on existing initiatives to develop measurements of progress on sustainable development that complement gross domestic product…” The creation and public availability of the RE-FEA dataset is a direct effort to develop better measurements for sustainability, specifically by filling “gaps in current Multi-Regional Input–Output data.”

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article mentions and implies several indicators that can be used to measure progress:

• For SDG Target 7.2:

  An explicit indicator is mentioned: The share of renewable energy embodied in exports over total embodied energy. The article quantifies this, stating it “rose from 8% to 13% over the period” from 2011 to 2022. This directly measures progress on Indicator 7.2.1 (Renewable energy share in the total final energy consumption) but applies it specifically to the context of global trade.

• For SDG Target 13.2:

  An implied indicator is the carbon emissions from traded goods. The article’s primary motivation is to “reduce carbon emissions from global trade.” By measuring the renewable energy share, the dataset allows for the inverse calculation of the fossil fuel-based energy share and its associated carbon footprint, which is a key metric for climate action policies.

• For SDG Target 9.4:

  An implied indicator is the renewable energy intensity of industrial sectors. The dataset provides data on renewable energy consumption for 163 sectors. This allows for the measurement of how much clean energy is used per unit of output in sectors like “light industry and material manufacturing,” which is a direct measure of the adoption of clean technologies and relates to Indicator 9.4.1 (CO2 emission per unit of value added).

• For SDG Target 17.19:

  The existence and application of the RE-FEA dataset itself serves as an indicator of progress. The article highlights that this new dataset “fills gaps” and “can improve the understanding of how global trade impacts sustainability.” Its development represents a tangible advancement in the capacity to measure and monitor sustainability, which is the essence of Target 17.19.

4. Summary Table of SDGs, Targets, and Indicators

Source: nature.com