1. 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
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2. 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
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3. 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)
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4. 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
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5. 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
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6. 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
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7. 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
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8. 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?
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9. 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
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10. 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)
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11. 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
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12. 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
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13. 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
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14. 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
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15. 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
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16. 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
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17. 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)
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18. 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
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19. 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
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20. 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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21. 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
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22. 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
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23. 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
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24. 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.
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25. 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
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26. 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
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27. 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
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