INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC) IPCC Special Report on Methodological and Technological Issues in Technology Transfer: Key Messages related Decision 4/CP.4 OGUNLADE R DAVIDSON Co-chair IPCC Working Group III Workshop on Transfer of Technology Consultative Process Bonn, 7 June 2000, SBSTA 12 INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)

Contents of Presentation Purpose and Background of Report Definition of Technology Transfer Technology Transfer and Climate Change Trends and stakeholders of Technology Transfer The Consultative Process Key Messages Sectoral Actions INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)

Purpose and Background Primary purpose - request to IPCC by SBSTA on its first session a list of issues to assist Parties to the Convention to enable them to make decisions The Background to report : Chapter 34 of Agenda 21 UNFCCC, Articles 4.1 & 4.5 The Request from SBSTA Kyoto Protocol, Article l0 COP Decision (4/CP.4) INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)

Definition of technology transfer in the Report Broad set of processes, covering flow of knowledge, experience, equipment amongst stakeholders Includes both hardware and software Includes technology diffusion and technology co-operation Between developed and developing countries as well as within/amongst each of the groups Includes learning to understand, choose, utilise, adapt and replicate technology INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)

Technology transfer and Climate Change Achieving ultimate objective of UNFCCC (stabilisation of concentrations at “safe level”) requires rapid technological innovation and widespread transfer of environmentally sound mitigation and adaptation technologies These technologies should fit into the local needs and priorities and to find new sustainable paths for development INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)

Trends of Technology Transfer No measurements; financial flows only a proxy indicator. ODA declining, but primary source for countries and sectors with low private capital flows, and can be used as leverage for creating enabling conditions 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 INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)

Stakeholders and Pathways of Technology Transfer Technology transfer results from the combined actions, networks of and partnerships between many stakeholders Key players: private firms, financiers, government and state owned institutions, 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 INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)

4/CP.4 :Consultative Process 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? INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)

What are the main barriers for technology transfer? Lack of data, information, knowledge, awareness High transaction costs Poor access to capital, especially for smaller firms Risk aversion in financial institutions, incl. MDB’s Trade barriers such as tariffs Insufficient human and institutional capabilities Poor understanding of local needs Lack of adequate codes and standards for EST’s Low, subsidised conventional energy prices Absence of full-cost pricing INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)

How to overcome barriers? Depends on sector and technology pathway Identification, analysis and prioritisation of barriers are country specific Barrier removal requires consideration of different interests and influences of stakeholders Integrated approach is needed Increase the flow of technology to the needed Improve the quality: transfer only the right technology (ESTs) INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)

INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC) How can private sector play additional role in facilitating technology transfer and how can enabling environment for private investment be created? (1) All governments may wish to consider: Enact well-enforced regulations and reform of legal systems Protect intellectual property rights and licenses to promote innovation, while avoiding misapplication that impede diffusion Encourage financial reforms, competitive capital markets, FDI, and special financial lending for EST’s Simplify approval and procurement procedures Promotion of open trade policies and competitive markets Building national markets for ESTs Creating awareness on ESTs products, processes and services INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)

INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC) 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 incl. EIT may consider: 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 of lower environmental quality Reduce export controls and tied aid Encourage multinationals to apply uniform standards Develop modalities and/or policies to improve the transfer of ESTs in the public domain Increase flows of financial assistance for targeted ESTs including patent licensing INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)

INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC) 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 may wish to consider: Ensure assessment of local needs and social impacts Expand R&D programmes on the development of ESTs including adaptation to local needs Create awareness about ESTs Improve transfer of ESTs among developing countries incl. Joint R&D and D, and opening of markets Develop communication infrastructure to support investments in ESTs and the operation of intermediaries Improve macro-economic stability for transfer of ESTs INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)

INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC) 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 innovative ESTs Developed country governments incl. EIT: Increase national and multilateral development assistance for ESTs Increase ODA to facilitate the transfer of ESTs INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)

INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC) What areas should be the focus of capacity building and how should it be undertaken? (1) Human capacity Wide range of technical, business, management and regulatory skills Developed countries can include broad range of training in capacity building projects and ensure integration among local stakeholders Developing countries can build capacities for transfer of both technical and other associated services 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 INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)

INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC) 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 speciality 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 effectiveness INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)

INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC) 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) INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)

Are Existing Mechanisms Sufficient? Critical for GEF effectiveness: Sustainability of market development and policy impacts Duplication of successful technology transfer models Enhanced links with MDB’s and other technology transfer financing institutions of ESTs Co-ordination with activities that support national systems of innovation and international technology partnerships Attention to technology of ESTs among developing countries INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)

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 INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)

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 INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)

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 INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)

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 INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)

INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC) Sectoral Actions for Enhancing Mitigation & Adaptation Technology Transfer Actions vary across sectors. Extent and involvement of stakeholders differ within and across sectors. Common lessons among sectors are: Networking among stakeholders is essential for effective transfer Effective transfers occur when focus is on products and techniques with multiple benefits INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)

Specific Sectoral Actions for Enhancing Technology Transfer (1) Buildings: Incentives and DSM programmes for Energy efficient & ESTs homes Building Codes & guidelines, equipment standards and performance labels. Transport: Policies on co-operative technology agreements, joint R&D, information networks, and specialised management & technical training Adoption of standards and regulations Partnership among stakeholders and countries. INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)

Specific Sectoral Actions for Enhancing Technology Transfer (2) Industry: Legislation, regulations & voluntary agreements Information transfer on technology assessments, especially to SMEs Long-term support for capacity building, especially in modifying equipment & products to local conditions Energy Supply: Power sector reform programs for the promotion of ESTs, particularly RETs Mobilisation of capital for ESTs and RETs INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)

Specific Sectoral Actions for Enhancing Technology Transfer (3) Agriculture: Information transfer on crop varieties, and improved technical and management methods, incl..integration of local solutions. Promotion of R&D networks (CIGAR system) Forestry: Transfer of sustainable management practices and techniques, and technical options Strengthening government actions and programs including monitoring and evaluation INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)

Specific Sectoral Actions for Enhancing Technology Transfer (4) Waste Management & Human Health: Government facilitation of stakeholders initiatives. Increase support for local initiatives by community groups especially those that involve locally appropriate technologies. Coastal Adaptation: Emphasis on proven technologies and integrated coastal-management plans and programs Strong partnership between existing institutions and use of local expertise INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)