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Identification of ESGs - The Key Issue Emerging Challenges for India

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Identification of ESGs - The Key Issue Emerging Challenges for India. S. K. Mohanty Senior Fellow, RIS. Trade and Climate Change in Emerging Economies The Competitiveness, Technology and IPR Dimensions RIS and ICTSD March 30-31, 2010 New Delhi. Scheme of the Presentation. - PowerPoint PPT Presentation

Text of Identification of ESGs - The Key Issue Emerging Challenges for India

  • Identification of ESGs - The Key Issue Emerging Challenges for IndiaS. K. MohantySenior Fellow, RISTrade and Climate Change in Emerging EconomiesThe Competitiveness, Technology and IPR DimensionsRIS and ICTSDMarch 30-31, 2010New Delhi

  • Trade policy consistent with the sustainable growthIdentification of Environmentally Sensitive Goods (ESG)APEC and OECD listsAlternative approach to identify ESGsRelevance of these products for the global and domestic trade sector

    Scheme of the Presentation

  • Trade policy supports growth oriented development policyIndia followed ELG and DDLG approaches simultaneouslyExternal sector a major contributor to domestic growth Indias concern for climate change issuesPollution haven hypothesis- World Bank in the 1990sWork on Environmentally Sensitive Goods late 1990sAlternative Approach to Identify ESGsRelevance of ESG trade for India Magnitude of Indian trade in ESGsCoverage of ESGsTrade Protection: TBs Vrs NTBs (Mohanty & Manoharan, 2002)Trade opportunities in the region (Mohanty & Chaturvedi, 2006)Background

  • How to identify ESGs?

    Growing consumer expectations for green products

    Volume of global trade in ESGs

    Size of the ESG market in India

    Technology intensity of ESGs

    Implications for the domestic employmentKey Issues in ESGs

  • ESG lists: APEC, OECD, India, etc.Emerging gaps between theory and PracticeEntire industry can not be attributed as environmentally Sensitive World Bank StudyClassification to be based on current practicesNegotiation Requirements: Production and trade classification (ISIC/HS)

    Alternative ApproachDeveloped countries: sensitive to environment- Environmentally Sensitive Measures base on scientific developments- Assumption: approach of developed countriesUNCTAD databaseComprehensive list based on ES NTBs in six DCs/RegDefinition of ESG: Alternative Approach

  • Number of ESG products

  • Technology Intensity of ESGs in different ListsTrade and technology concordance (Mohanty, 2003)

  • Structure of Trade in ESGs

    Agricultural sector live animals and vegetables Industrial sector: Main sectors - Chemicals & auto sectors Other sectors: Fats and oils, prepared food, wood products, machinery, etc Incidence of multiple NTMs Protection using other instruments: Specific tariff, peak tariff, etc.Structure of Globally Traded ESGs

  • Trends in Global ESG Exports

  • Composition of Global ESGs Exports: RIS List

  • ESG exports form large part of total Exports

    Constant market share but growing at 21.6% CAGR

    Certain sectors are affected more than others

    Significant impact on employment

    ESG Trade in India

  • Size of ESG Exports in India: RIS List(Mil US$)

    Section2004-52005-62006-72007-82008-9Others6804084904105061134550154304ESG1539018098211392835828708ESG in total%18.417.616.817.415.7

  • Sectoral Composition of ESGs in Indian Exports (US $ Mn.)

  • Employment Effects of ESGs in Manufacturing Sector: Distribution across Sectoral

  • Employment effects of ESGs in Manufacturing Sector: Share of Direct Employment in Total

  • Need for a comprehensive definition and identification of ESGsESGs lists prepared by APEC and OECD - not completeRIS list could be an alternative oneTrend in Global exports of ESGs Growing fast and sharing more than 20% of global exportsESGs covering large part of the agriculture and selected sub-sectors of the manufacturing sectorIndias exports of ESGs lower than global averageCritically affected sectors- Fruits & Vegetables, Chemicals & auto Employment will be affected in various tech-intensive sectorsSumming Up

  • *Thank you

    **