The draft IPCC Special Report on Technology Transfer

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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

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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

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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

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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

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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 gt3/4 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

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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, NGOs, community
  groups, international institutions, information
  providers, RD organisations, business
  consultants
• Ways of interaction vary with sector, country and
  type of technology purchase, FDI, licensing,
  joint ventures, government assistance, RD
  co-operation

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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?

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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
  MDBs
• Trade barriers such as tariffs
• Human and institutional capabilities
• Understanding of local needs
• Missing codes and standards for ESTs
• Low, subsidised conventional energy prices
• Absence of full-cost pricing

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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)

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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 ESTs 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 ESTs

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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 ESTs and discourage exports
  that lower environmental quality
• reduce export controls and tied aid
• encourage multinationals to apply uniform
  standards

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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 ESTs
• Open markets for ESTs from other developing
  countries

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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 ESTs
• Developed country governments
• Increase national and multilateral development
  assistance for ESTs

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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

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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 ESTs to regional and
  global networks
• when using clearing houses a well defined focus
  is important for being effective

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

• Increase public RD funding for ESTs
• Publicly owned technology is small sub-set of
  publicly supported technology
• Encourage transfer of publicly supported (or
  owned) technology by stimulating RD partnerships
  with developing countries (developed countries)
• Provide funding for patent licensing where
  appropriate (developed countries)

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Are existing mechanisms sufficient?

• Critical for GEF effectiveness
• sustainability of market development
• replication of successful models
• enhanced links with MDBs and other technology
  transfer financing
• co-ordination with activities that support
  national systems of innovation and international
  technology partnerships
• attention to south- south transfer

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What can multilateral institutions do?

• Governments can use their leverage through Boards
  and Councils of MDBs
• 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

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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

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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, MDBs 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

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How can progress on technology transfer be
better monitored?

• Establish collectively a system of improved
  indicators and data collection on quality and
  flows of ESTs
• Technology performance benchmarks could be
  compiled to indicate the implementation of ESTs
  and the potential for technological improvements

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