the draft ipcc special report on technology transfer what can it mean for decisions to be taken by...

The draft IPCC Special Report on Technology Transfer

What can it mean for decisions to be taken by the Parties to the UNFCCC?

Bert Metz

co-chair IPCC Working Group III

INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)

Background• SR requested by SBSTA to assist Parties in implementing

UNFCCC provisions (art 4.1, 4.5)• Full title: methodological and technological issues in

technology transfer• Govt review: May- June 1999• Additional Govt review Technical Summary: October-

November 1999• Final Draft distributed: January 5, 2000• IPCC Working Group III meeting for approval SPM /

acceptance Report: March 8-10, Kathmandu, Nepal


What does IPCC mean with technology transfer?

• Broad set of processes, covering flow of knowledge, experience, equipment amongst stakeholders

• Includes technology diffusion and technology co-operation

• Within and across countries• Between developed and developing countries as well

as within/amongst each of the groups• Includes learning to understand, choose, utilise,

replicate and adapt technology


Why is technology transfer important?

• Achieving ultimate objective of UNFCCC (stabilisation of concentrations at “safe level”) requires rapid technological innovation and widespread transfer of environmentally sound mitigation technologies

• Adaptation to climate change is inevitable and that also requires the transfer of adaptation technologies

• Fits into the broader need for all countries to find new sustainable paths for development


Current trends of technology transfer

• No good measurements; financial flows only limited indicator for TT “across” countries

• ODA trend downward; primary source for countries and sectors with low private capital flows; important for creating enabling conditions

• Private finance supplies >3/4 of net flows to developing countries, but large differences between countries:

– Africa: $27/cap aid vs $3/cap FDI (1997)

– Latin America: $13/cap aid vs $62/cap FDI (1997)

• Private sector role more important, but definite role for governments directly and in creating enabling conditions


Stakeholders, sectors etc.• Technology transfer results from the combined actions,

networks of and partnerships between many stakeholders• Key players: private firms, financiers, state owned

enterprises, government, NGO’s, community groups, international institutions, information providers, R&D organisations, business consultants

• Ways of interaction vary with sector, country and type of technology: purchase, FDI, licensing, joint ventures, government assistance, R&D co-operation


4/CP.4 :Consultative process questions• What are the main barriers for technology transfer and how to remove them? • How can private sector play additional role in facilitating technology transfer

and how can enabling environment for private investment be created?• What additional activities need priority attention?• What areas should be the focus of capacity building and how should it be

undertaken?• How to facilitate transfer and access to emerging technologies and publicly

owned technologies?• Are existing mechanisms sufficient? Are new mechanisms needed? What can

multilateral institutions do?• How can progress on technology transfer be better monitored?


What are the main barriers for technology transfer?

• Data, information, knowledge, awareness

• Transaction costs

• Access to capital, esp smaller firms

• Risk aversion in financial institutions, incl MDB’s

• Trade barriers such as tariffs

• Human and institutional capabilities

• Understanding of local needs

• Missing codes and standards for EST’s

• Low, subsidised conventional energy prices

• Absence of full-cost pricing


How to overcome barriers?

• No magic bullet• Depends on sector, technology pathway, country• Integrated approach: all relevant factors to be

included (“the weakest chain ….”)• Increase the flow: more technology to those who

need it• Improve the quality: the right technology (EST)


How can private sector play additional role in facilitating technology transfer and how can enabling environment for

private investment be created? (1)

All governments to consider:

• reform of legal systems

• protection of intellectual property rights and measures for active use of patents

• encouragement of financial reforms, competitive capital markets, FDI, provision of special financial lending for EST’s and Energy Service Companies, transparent foreign investment policies

• simplifying approval and procurement procedures

• promotion of open trade policies and competitive markets

• building national markets for EST’s


How can private sector play additional role in facilitating technology transfer and how can enabling

environment for private investment be created? (2)

Developed country governments:

• stimulate fair competition in EST markets by discouraging restrictive business practices

• reform export credit and risk insurance to encourage FDI in EST’s and discourage exports that lower environmental quality

• reduce export controls and tied aid

• encourage multinationals to apply uniform standards


How can private sector play additional role in facilitating technology transfer and how can enabling

environment for private investment be created? (3)

Developing country governments:

• Ensure assessment of local needs and social impacts

• Create awareness about EST’s

• Open markets for EST’s from other developing countries


What additional activities to facilitate technology transfer need priority attention?

All governments:

• Internalise full environmental and social costs

• Reduce commercial risk and actively support replication of innovate EST’s

Developed country governments:

• Increase national and multilateral development assistance for EST’s


What areas should be the focus of capacity building and how should it be undertaken? (1)

• Human capacity– technical, business, regulatory skills

– include broad range of training in capacity building projects and ensure integration

• Organisational capacity– strengthen networks of organisations, particularly assessment, management,

financial, legal services

– provide adequate communication infrastructure

– promote private firms covering essential organisational services

– encourage associations of professionals, private firms and consumers

– use participatory approaches in policy making and project formulation and decentralise decision making where appropriate


What areas should be the focus of capacity building and how should it be undertaken? (2)Information assessment and monitoring capacity:

– do not focus too narrowly on information barriers; they are just one of many

– private sector role in information exchange is growing: internet services, information specialty firms, trade publications

– governments should emphasise linking national information systems on EST’s to regional and global networks

– when using clearing houses a well defined focus is important for being effective


How to facilitate transfer and access to emerging technologies and publicly owned technologies?

• Increase public R&D funding for EST’s• Publicly owned technology is small sub-set of

publicly supported technology• Encourage transfer of publicly supported (or

owned) technology by stimulating R&D partnerships with developing countries (developed countries)

• Provide funding for patent licensing where appropriate (developed countries)


Are existing mechanisms sufficient?

Critical for GEF effectiveness: – sustainability of market development

– replication of successful models

– enhanced links with MDB’s and other technology transfer financing

– co-ordination with activities that support national systems of innovation and international technology partnerships

– attention to south- south transfer


What can multilateral institutions do?

• Governments can use their leverage through Boards and Councils of MDB’s

• Environmental dimensions of lending to be strengthened

• Develop focussed programs to remove barriers for private sector technology transfer

• Encourage participation in building national systems of innovation


Are new mechanisms needed? (1)

Kyoto Protocol mechanisms:– contingent on entry into force of Kyoto protocol– potential to add to art 4.5 activities– encourage co-operation between developed and

developing countries and between government and private sector and community organisations

– can complement other capacity building and enabling activities


Are new mechanisms needed? (2)

National Systems of Innovation:– Integration of capacity building, access to information and

creating enabling environment– stimulate partnerships between all relevant private and public

stakeholders, both domestically as well as internationally– provide focus for activities of GEF, MDB’s and other

international organisations– include wide variety of activities, such as training,

strengthening educational institutions, assessment of information, identification of solutions for removing barriers, innovative financing mechanisms


How can progress on technology transfer be better monitored?

• Establish collectively a system of improved indicators and data collection on quality and flows of EST’s

• Technology performance benchmarks could be compiled to indicate the implementation of EST’s and the potential for technological improvements


the draft ipcc special report on technology transfer what can it mean for decisions to be taken by...

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