UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT

Trade and Development Board

Seventieth session

 (19 – 28 June 2023)

EU statement (check against delivery)

Agenda Item 5: Technology and Innovation Report 2023: Opening Green Windows – Technological opportunities for a low-carbon world

Mister President, dear Secretary General, Excellencies, distinguished Delegates,

I have the honour to speak on behalf of the European Union and its Member States.

We take note of the 2023 Technology and Innovation Report. In face of the triple planetary crisis — which disproportionately affects the most vulnerable developing countries — and in the age of rapid digitalisation, we simply must achieve the twin digital and green transition. We align with the Report’s call on the need to seize the green windows of opportunities through appropriate digital and green policies.

We would like to share our views on a few aspects highlighted by the Report, most notably on the importance of domestic policies and the relevance of international action.

As the Report notes, we have to ensure that the ongoing digitalisation does not widen the digital divide, be it between or within countries. On the positive side, the report finds that several developing countries were able to over-perform on frontier technologies, highlighting the essential role played by domestic policies.

On the other hand, limited preconditions in terms of capacities and fiscal space, which have been further exacerbated by the COVID-19 pandemic, inflationary pressures and debt burdens, hinder the capacity to catch up.

The EU and its Member States, as the largest ODA provider, remain highly committed to support our partner countries. As referred to by the Report, many EU Member States are among the top providers of green and STI enabling ODA, supporting a digital and green transformation that is coherent with the sustainable development objectives of our partner countries. By now familiar Global Gateway, is the most recent and most ambitious Team Europe’s push for digital and green transition, delivering up to EUR 300 bn worth of soft and hard investment. Such technical assistance is particularly crucial for overcoming the difficulties that less developed countries face in their twin transition.

In this sense, we would also like to highlight the challenges faced by women entrepreneurs in digitalisation and sustainability. In particular their lack of access to financing, which acts as a significant barrier to their greater engagement in the twin transition.

We take good note of the Report’s call on the alignment of international trade with the Paris Agreement. Indeed, the EU is taking our climate and environmental commitments very seriously, both at home and abroad. And we are integrating these across our extensive policy toolbox.

Accompanied by the right policies, trade can drive green innovation, create market access opportunities and facilitate green technologies. By providing 40% of global Aid for Trade, the EU supports our partner countries in developing their domestic capacities.

We also note the Report’s broad call for flexibilities, including on IPR and subsidies. We should not, however, forget that the key benefits of a rules-based multilateral trading system are stability and predictability for economic operators. Indeed, it is these aspects, combined with solid domestic policies and protection of intellectual property, that underpinned economic development, enhanced competitiveness, and fostered a culture of innovation and creativity in the over-performing developing countries mentioned in the Report.

We should also recognise that certain broad-based exceptions come at a cost, especially for the most vulnerable. Green technologies involve significant R&D investment. Without robust intellectual property protection, companies that own the technology and know-how will not be able nor willing to make the relevant investment abroad, thus further stifling innovation in developing countries. At the same time, we should not forget that LDCs currently enjoy a complete waiver from the TRIPs obligations.

Before concluding, we would also like to echo the Report’s message on the importance of innovations that develop locally relevant solutions.

Horizon Europe – EU’s main programme for research and innovation with almost EUR 100 bn firepower – includes an important international research cooperation component, supporting green and digital innovative solutions in our partner countries. For instance, a specific window is available for African partners to promote actions aimed at finding locally adapted solutions to global challenges. The selected topics reflect shared priorities that were agreed at the EU-AU Research & Innovation Ministerial meeting in July 2020.

In conclusion – it is key to ensure that all countries can seize the green windows of opportunities. While there are no easy solutions, domestic action and international support both have important roles to play in this process.

Thank you.