Breaking Through on Technology: Overcoming the Barriers to the Development and Wide Deployment of Low-Carbon Technology

8/14/2019 Breaking Through on Technology: Overcoming the Barriers to the Development and Wide Deployment of Low-Car

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BreakingThrough

onTechnology

Overcomingthebarrierstothedevelopmentandwidedeploymentoflow-carbontechnology

GlobalClimateNetworkdiscussionpaperno.2

July2009

GlobalClimateNetwork2009

www.globalclimatenetwork.info


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GlobalClimateNetwork BreakingThroughonTechnology2

TheGlobalClimateNetworkisacollaborationofindependent,influentialandprogressiveresearchandpolicyorganisationsincountrieskeytotacklingclimatechange.Together,membersoftheNetwork

arecommittedtoaddressingtheconstraintsfacedbysovereigngovernmentsinagreeinginternationalaction.

TheNetworkaimstohelpgovernmentsclearapathwaytowardsaneffectiveandfairinternationalagreementforavoidingdangerousclimatechangebyproposingboldlow-carbonpoliciesandusingdataandanalysistopersuadepolicymakersthatclimatechangemitigationisintheirinterest.

TheNetworkisworkingto:

Addressthepolitical(economic,socialandcultural)constraintsbarringthewaytoactionbybridgingthedividebetweendomesticandinternationalpolicy

Promoteequitablesolutionsthattakeintoaccountthehugedevelopment,financialandenergychallengescountriesface

Championideasandinnovationstohelpconstructanewpoliticalnarrativethatlinksactiononclimatechangewithenhancedeconomicandsocialwell-being.

Alone,eachGlobalClimateNetworkmemberhassignificantcredibilityandinfluence.Byproducing

jointresearch,stagingeventstogetherandseekingtoinfluencepolicy,theNetworkcanhelpbridge

thedangerousdividethatexistsandiscurrentlywideningbetweeninternationalnegotiationsand

nationalpolitics.

TheNetworksmembersare:

InstituteforPublicPolicyResearch(ippr), London,alsoactingasthesecretariatfortheNetwork:TheUKsleadingprogressivethinktankwithastrongtrackrecordonresearchandpolicy.

CenterforAmericanProgress, USA:FoundedbyJohnPodesta,formerChiefofStafftoPresidentClinton.

ResearchCentreforSustainableDevelopment, China:AninstituteoftheChineseAcademyofSocialSciences.DrJiahuaPan,itsdirector,isoneof12membersoftheChineseExpertsCommitteeforClimateChange.

TheEnergyandResourcesInstitute, India:Thecountry'sleadingclimateandenergyresearchinstitutewhosedirector,DrRajendraPachauri,chairstheUNsIntergovernmentalPanelonClimateChangeandisacloseadvisertotheIndiangovernment.

WuppertalInstituteforClimate,EnvironmentandEnergy,

Germany.WuppertalInstitutesground-breakingclimatechangeworkisledbyDrHermannOtt.

VitaeCivilis, Brazil.DrRubensBorn,VitaeCivilissdirector,hashadsignificantinputintotheBraziliangovernmentsrecentclimatechangeplan.

InternationalCentreforEnergy,EnvironmentandDevelopment,Nigeria.ICEEDhasexpertiseinclimatechangeandenergypolicy.

TheClimateInstitute,Australia.Setupin2005,theInstituteisaleadingAustralianvoiceinclimateresearchandadvocacy,pioneeringcleantechnologyandinvestmentsolutionswithgovernmentandbusiness.

IMBEWUSustainabilityLegalSpecialistsPtyLtd,SouthAfrica.AninfluentialJohannesburg-basedlegalconsultancyspecialisinginsustainabilitylawwithastrongclimatechangefocus.

DrRajendraPachauri(seeabove)andLordChrisPattenofBarnes,formerEuropeanCommissionerforExternalAffairs,aretheNetworksfirstpatrons.

TheGlobalClimateNetwork

Formore

information, please

contactAndrew

Pendleton,Global

ClimateNetwork

Secretariat,at

[email protected]

orc/oippr,30-32

SouthamptonStreet,

LondonWC2E7RA,

UnitedKingdom

www.glo

balclimatenetwork.info


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Executivesummary

Technologyiscriticalforhumandevelopmentandprogress.Thefightagainstclimatechangewill

notbewonwithoutarevolutionintheuseofexistinglow-carbontechnologyandatidalwaveof

newinventions.Yettheimportanceofdoingthat,especiallyinhealingtheriftsininternational

climatenegotiations,isnotyetbeingrecognised.

TheGlobalClimateNetworkaskedmorethan100expertsfromgovernment,privatesectorfirms,

academicinstitutesandnon-governmentalorganisationsineightcountries(Australia,Brazil,

China,Germany,India,Nigeria,SouthAfricaandtheUnitedStates)fortheirviewsonthebarriers

tothedevelopmentandtransferoflow-carbontechnology.Theirresponsesaredetailedand

complexbutbelowwedrawtogetherourkeyfindings,conclusionsandrecommendations.

SuccessattheUnitedNationsFrameworkConventiononClimateChangeConferenceoftheParties

meetinginCopenhageninDecemberdependsonagreementbeingreachedineachofthefiveareas

currentlyundernegotiation.Butwithoutafirmcommitmenttodevelopandtransfernew

technologies,withindustrialisedcountriestakingtheleadonfinancingtheseendeavours,consensuswillbedifficulttoreachand,inpracticalterms,emissionswillbehardtoreduce,atleastwithout

unacceptablepenaltiestohumandevelopment,socialcohesionandeconomicwellbeing.

Low-carbontechnologydevelopmentandtransfer

Technologies,ofalltypes,developedinonejurisdictionareregularlytransferredtoanotherbut

thereisalongandlargelyunhappyhistorytothedebateconcerningtechnologytransferfrom

developedtodevelopingcountries.Thishasbeenevidentinclimatenegotiations.Thechallenge

foraninternationalnegotiationinwhichtechnologytransferisanexistinglegalobligationonthe

partofdevelopedcountriesishowsuchaprocesscanbestfacilitate,supportandenablestrong

domesticpolicies.Formanydevelopingcountriesbuildingindigenouscapacitytoinnovate,

manufactureandexportisasimportantasbuyinginequipmentandskills.

Financehasacrucialrole.Itisperhapsthroughthefinancingagendathatthenegotiationscan

makethemostdifferencetothedevelopmentandtransferoflow-carbontechnologybyhelping

tosupportdevelopingcountriestomeetthecostoflow-carbontechnologypoliciesandminimise

thepotentialtrade-offs,suchasincreasedtaxation,changesinenergytariffsandregulation,allof

whichwillincreasecostsultimatelyleviedonthetaxpayerorconsumer.

Intellectualproperty(IP)lawcanalsoactasabarrierandmeasurestoencouragecompaniesto

useorrelinquishIP(andinsomecircumstancestousetheflexibilityalreadyavailablethroughthe

WorldTradeOrganisationsTRIPsagreement)maybenecessary.YetIPiscentraltoinnovationand

importanttoverticaltransferasitprovidescompetitiveadvantagetotechnologydevelopers.

Keyfindings1.Theimportanceoftechnology

Theemphasisinthetechnologydebateshouldbeplacednotonlyonmitigatingandadaptingto

climatechangebutalsoonsustainablehumandevelopmentand,inparticular,onpoverty

alleviation.Low-carbontechnologyshouldthereforebecelebratedasameansbywhichcountries

canaddresshumanneedsandreducepoverty,developneweconomicopportunitiesandmarkets

andcreategoodqualityjobs.

2.Financegoeshandinhandwithtechnologydevelopmentandtransfer

Participantsinthestudyfrombothdevelopedanddevelopingcountriesidentifiedlackofaccess

tofinance,bothprivateandpublic,asabarriertotechnologydevelopmentanddeployment.Most

low-carbontechnologiesrequirehighup-frontinvestmentandmaybemorecostlytodeploythancarbon-intensivealternatives.Thereforewhilethefocusonfinanceinthenegotiationshasbeen

oneitherestablishingcarbonmarketsoronnewfundingmechanisms,other,oftengovernment-

led,financinginitiativesmaybenecessary.Althoughinthelongertermtheprivatesectorwillbe


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themajorsourceoflow-carbonfinance,governmentmoneyisneededearlyontomakenew

technologiescheaperandlessrisky.

3.Domesticlow-carbonpoliciesarewoefullyinadequate

Whilenogovernmentisbuildingfromscratch,inalleightcountries,theabsenceofalong-term

low-carbonpolicyframeworkorcoherentsetofpoliciesappearstobeamajorimpedimenttothedevelopmentanddeploymentoflow-carbontechnology.Intervieweesinallcountrieswerein

favourofgovernmentinterventiontoaddresstechnologybarriersandmostfeltthatdomesticlow-

carbonstrategywithstrongpoliticalsupport,oftenlackinginsomequarters,wasessential.

Consequently,morekeenlyfocusedgovernmentpoliciesaredesperatelyneeded,including

regulatingoncarbonstandardsandprovidingclear,targetedincentivesandtaxbreaks.

4.Knowledgeandcapacityareasimportantasequipment

Technologytransferisnotwhollyorperhapsevenmostlyaboutthemovementorlicensingof

equipmentfromjurisdictiontojurisdiction(althoughclearlysomeearlyclimateandpolitical

victoriesmightemergefromensuringthishappens).Italsoconcernsthedevelopmentofskillsand

know-howinordertouseequipmentandtoinnovateinthefuture.Indevelopingcountriesin

particular,intervieweesidentifiedalackofskillsandknow-howtodeploylow-carbontechnology.

5.Intellectualpropertyrightsneedcarefulattention

InsomecasesstrongerobservanceandenforcementofIPrightsmightencouragetechnology

developerstorolloutnewtechnologyinmorejurisdictionsmorequickly.Inothers,thecostsof

licensing(asdistinctfromwholesalepurchaseofIPbygovernments)couldbeanotherfocusof

financialsupportbydevelopedcountrygovernments,adefactosubsidytodevelopersoflow-

carbontechnology.

Recommendations

1.Puttechnologyattheheartofclimatenegotiations

MoreemphasisshouldbeplacedontechnologyintheclimatechangedebateespeciallyintheongoingUNFCCCnegotiations:recognisingitsroleinenablingcountriesatallstagesof

developmenttoreachenvironmentalandsustainabledevelopmentgoalssimultaneouslyiscritical.

2.Createfocusedincentivesfortechnologydeployment

Thekeytechnologiesidentifiedinthisstudyrequirefocusedincentives.Thesemightincludenew

tariffstructures,theremovalofestablishedenergysubsidiesandgovernment-ledfinanceto

reducethehigherrisksassociatedwithlargescalelow-carbontechnologydeployment.

3.Linktechnologyandfinanceininternationaltalks

Internationalprocesses,suchastheUNFCCC,shouldfocusonhowdevelopedcountry

governmentsandprivatesectorfinancierscansupportthedevelopmentofincentivesin

developingcountries,suchasmeetingthecostoffeed-intariffsandhelpingtoreducethenegativesocialimpactsofremovingfossilfuelsubsidies.

4.Developnationallow-carbontechnologystrategies

BeyondtheUNFCCCnegotiations,leadershipcountriesatdifferentlevelsofdevelopmentshould

establishlow-carbontechnologystrategies.Suchinitiativescouldattractformalrecognitionand

financewithinafutureinternationalframework.

5.GiveanurgentboosttoR&Dinitiatives

Callsforanincreaseinlow-carbonR&Dspendingmustbetakenseriously.Governmentsshould

increasetheirsupportforR&Datthenationallevelaspartoftheirnationallow-carbon

technologystrategiesandincreasedR&Dfinance.Amajor,InternationalTechnologiesInitiativeto

accelerateR&Dshouldbeakeypartofanynewinternationalframeworkforaction.

6.Pilotjointlearningandcapacity-building

Oneclearareathatcouldbenefitfrominternationalagreementisinthesharingoftechnical

knowledge,throughcapacity-buildingandmutuallearningprogrammes.


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7.Establishjointinnovationforfuturetechnologies

TheGCNbelievesanewInternationalTechnologiesInitiativeisnecessary,inwhichregionalandglobal

innovationhubswouldprovideafocalpointforcollaborationonthedevelopmentofbreakthrough

low-carbontechnology.Aninternationalnetworkoflow-carbonresearch,developmentand

demonstrationinitiativescouldalsohelpinfuturetoovercomethebarrierposedbyIP.8.Rewardtechnologyrisk-takerswithstrongIP

Thedevelopersofexistingtechnology,someofwhichissubjecttopatentsrestrictingitsgeneric

manufactureanduse,shouldbeassuredofstrongenforcementoftheirIPiftheylicenseanddosoat

reasonablecost.Conversely,patentscouldbewithdrawnifdeveloperswhoareguaranteedprotection

donotseektodeploytechnology.

9.Developnewtechnologycollaboratively

Infuture,low-carboninnovationcouldbedrivenbycollaborativeinitiatives,suchastheInternational

TechnologyInitiativeabove.Technologymightthereforebeopenaccess,withanemphasisona

sharingofequipment,butalsoonthedevelopmentoflocallyappropriateversions.


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1.Introduction

Technologyiscentraltohumanprogressandeconomicdevelopment(Stiglitz1994).Facinguptothe

climateanddevelopmentcrisessimultaneouslyrequirestechnologicalinnovationtobedrivenrapidly

inthedirectionoflow-carbonandhighefficiency(Stern2006)andforaccesstothebenefitsofthis

processtobewidespread.Governments,actingatthenationallevelandthroughinternational

collaborationhaveasignificantroletoplayinthisprocess.

Marketfailure(HuttonandSchneider2008,inertiainpublicpolicyandarelianceoncarbon-based

energyareconstrainingtechnologicalinnovationanditswidespreaduse,especiallyatthegloballevel

(Perez2002).Attemptsovertwodecadestostimulatethedevelopmentandtransferoflow-carbon

technology(todevelopingcountriesinparticular)throughtheUNFrameworkConventiononClimate

Change(UNFCCC)processhavebeenlargelyunsuccessful.Thisisperhapsnotthefaultoftheclimate

talkspersebutofpublicpolicyingeneral,oftenatthedomesticlevel,andofmarkets.

ThefalteringnatureoftechnologyprocessesintheUNFCCCisalsotheresultofalong-standing

politicaldividebetweendevelopedanddevelopingcountriesovertheveryprocessofdevelopment(Ockwelletal2008).DevelopedcountriesJapan,theUnitedStatesandGermanyinparticular1 are

themaininventorsandlargely,therefore,ownersofclimate-friendlytechnologies2.Thesecountries,

listedinAnnexIIoftheUNFCCC,haveanobligationunderitsArticle4totransfertechnologiesto

developingcountries.

Thelegalobligationofdevelopedcountriestotransfertechnologyisbeyonddispute.However,many

ofthoseexposedtothisobligationarguethatitisbestfulfilledthroughthecreationofrobust

marketsinwhichgoodscanmovefreely,intellectualpropertyrightsareupheldineachjurisdiction

andcarbon-intensiveproductioniscrowdedoutbypricingemissions.However,thereisastrong

correlationbetweenthecountriesinAnnex1thathavethislegalobligationandthejurisdictionsin

whichlow-carbontechnologiesareowned(Sangeeta2009),suggestingthattheyarewellplacedto

gainfromthedevelopmentoffreemarkets.

Developingcountries,ontheotherhand,arguethatsubstantial,globalinterventionisnecessaryto

ensuredevelopedcountriesfulfiltheirobligations,forinstancethroughintellectualpropertybuy-outs

andtheestablishmentofaglobaltechnologyfundundertheConferenceofthePartiestothe

UNFCCC.ParallelWorldTradeOrganisationnegotiationsandthefailureofotherglobalprocesseshave

erodedtrust.Thus,developingcountrieswanttangibleproofofthewillingnessofdevelopedcountry

governmentstoenabletechnologytransferand,perhapsmostimportantly,thedevelopmentand

productionofnewtechnologiesindevelopingcountries.

Thisstudy,drawingonprimaryresearchandreviewsofnationalpoliciesineightcountriesand

additional,internationalanalysiswherenecessary,suggeststhateffectivedevelopmentandtransfer3

oflow-carbontechnologyrequiresacomplexcombinationoffactorsthatliebothinsideandoutside

oftheaegisoftheUNFCCC.Itsfindingsemphasisetheimportanceoftechnologytoallcountries,

underlininganurgentneedtoplacetechnologyfrontandcentreofthenegotiationsandtofindthe

meansandmechanismstosupportandenablestrongnationalpolicymakingthroughaninternational

framework.

Findingsfromtheeightnationalstudiesalsoemphasisetheimportanceoffinance.Withoutfinance,

innovationandtechnologydeployment,especiallythroughtheinfamousvalleyofdeathbetween

researchanddevelopmentandcommercialuse,willbeconstrained.Thisintrinsicallylinksthe

technologyandfinancepillarsofthecurrentUNFCCCnegotiations;financewillbeneededtoensure

keytechnologiesarepushedthroughthesephasesanddeployedglobally.Indeed,financingthrougha

post-2012climateagreementandthroughmuch-neededreformsinglobalinstitutions,appears

fundamentallylinkedtothesustainableandprogressivedeploymentofnewtechnology(Perez2002).

Throughthelensoftheclimatechangenegotiations,thebarrierstothedevelopmentandtransferof

low-carbontechnologyarealsosomewhatdistorted.Theresearchunderlinestheobviousbut

1.Thesethree

countrieshostedmore

thantwo-thirdsofclimatefriendlyinventionsbetween

1998and2003.See

Dechezleprtreetal

2008.

2.Inthisstudy,specificclimate-friendly

technologiesare

identifiedineach

countrybyintervieweesand

nationalstrategiesand

policiesbutingeneralarethosethatleadto

themitigationofgreenhousegas

emissions,particularlylow-carbon

technologies.

3.Ininterviewsin

manyofthecasestudy

countries,thetermtransferwas

challengedmanytimes

asbeinginadequate

andsometimesinaccurateasameans

ofdescribingthe

complex,dynamic

processoflow-carboninnovation,oratleast

howsuchaprocess

mightbemadetowork.


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importantpointthatlow-carbontechnologyfacessimilartransferanddeploymentbarriersasother

formsofneworemergingtechnology.

2.TheGlobalClimateNetworksmethodologyOneofthekeystrengthsoftheGlobalClimateNetworkisitsaccesstoarangeofpolicy-and

decision-makersincountriesinwhichitsmembersarebased.Thus,itsmethodologicalapproachto

collaborativeworkisfocusedoninterpretingandsummarisingatthegloballevelabodyofqualitative

datafromauthoritativedomesticsources.

TheresearchunderpinningthispapertookplaceineightcountriesAustralia,Brazil,China,Germany,

India,Nigeria,SouthAfricaandtheUSsupplementedbyareviewoftheliteratureandpolicyatthe

internationallevel.

Thisprojectwasapproachedinthreestages:

1.TheGCNssecretariat,basedatipprinLondon,reviewedtheliteratureonlow-carbontechnologytransferandinnovation(seeSection3belowforasummaryofthisreview).

2.GCNmembersineachparticipatingcountryreviewedsimilarliteratureatthenationalleveland

alsoreviewedexistingrelevantgovernmentpolicyframeworks.

3.BetweenJanuaryandMarch2009,morethan100peopleineightcountrieswereinterviewed

abouttheirviewsonbarrierstoandpoliciesthatwouldencouragelow-carbontechnology

developmentandtransfer.Representativesfromgovernmentdepartments(includingindustry,

finance,businessandplanningministries),stateandprivatesectorenterprises,academic

institutionsandnon-governmentalorganisationstookpartininterviews.Viewsandspecific

responsesarenotattributedineitherthispaperornationalsummariesofit,butalistofall

intervieweesisavailable.Throughout,theteamofresearchersoneineachoftheparticipatingGCNmemberorganisations

andoneinthesecretariattookpartinregularteleconferencesatwhichinterviewquestionsand

commonapproacheswereagreedandprogressandinterimfindingswerediscussed.Theagreed

questionareascanbefoundinSection4below.

Therearelimitationstothescopeofthisstudy.Whilemorethan100individualswereinterviewed

acrosstheeightdifferentcountriesinwhichresearchtookplace,thepopulationofthesurveyineach

countryissmallat10to15people.Itistheknowledgeofthepeopleinterviewedandthequalityof

theirresponsethattheGCNsoughttogainratherthananexhaustivequantitativeapproach.

Nevertheless,thefindingsrepresenttheviewsofthoseinterviewedandareindicativeofthe

challengesfacingthedevelopmentandtransferoflow-carbontechnology.

Participatingmembersareindividuallypublishinganddisseminatingasummaryofnationalfindings,a

prcisofwhichiscompiledinSection4ofthispaper.

3.Low-carbontechnologydevelopmentandtransfer

Thereisawide-rangingdebateparticularlypertinentinthecurrentglobaleconomicclimate

surroundingtheimportanceofinnovationandtechnologytoeconomicdevelopmentand

governmentsroleinfacilitatingtechnologicalprogressversustheroleofthefreemarket.Classical

economictheoryassumesthataccesstonecessarytechnologyisunrestricted,butinpractice,asmany

haveobserved,theinnovationprocessresearchanddevelopment,demonstrationanddeploymentrequiresintervention(Stiglitz1994,Stern2006,HuttonandSchneider2008).

Thispaperisconcernedwithlow-carbontechnologiesandtheirwidespreadtransfertohelpmitigate

greenhousegasemissionsatthesametimeasenablingeconomicandhumandevelopmentto


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continue,especiallyindevelopingcountries.However,asmanyofthoseinterviewedduringthe

courseoftheGCNsresearchhaveargued(seeSection4below),thereislittleeffectivedifference

betweenthedevelopmentandtransferoflow-carbonandothernewtechnologies.Thebarriers

facedaresimilar(seeGCNnationalsummariesatwww.globalclimatenetwork.info).

Thereare,therefore,arguablythreelayerstoconsiderinassessingbarrierstothedevelopmentandtransferoflow-carbontechnology:

1.Inpractice. Awholerangeoftechnologieslow-carbonorotherwisedevelopedinone

jurisdictionareregularlytransferredtoanotherthroughtrade,inwardinvestment,licensing,

mergersandacquisitions,piratingandbyothermeans.Manylessonsregardingthefasterand

widerdeploymentoflow-carbontechnologiesandthepoliciesrequiredtodirecttechnology

maybelearntfromexamplesbeyondthelow-carbongroupoftechnologies.

2.Inprinciple. Thereisalongandlargelyunhappyhistoryofdebatesininternationalprocesses

concerningtechnologytransferingeneral,whichtendtobesplitalongdeveloped-developing

countrylines.Forinstance,theDohaRoundofWorldTradeOrganisationnegotiations

establishedaWorkingGrouponTradeandTransferofTechnologyattherequestofdeveloping

countries.LiketheExpertGrouponTechnologyTransfer,itsequivalentintheUNFCCCprocess,

ithasfacedquestionsastoitseffectiveness(SouthCentre2005).

3.Ininternationalclimatelaw. UnderArticle4.5oftheUNFCCC,developedcountrieshavean

internationallegalobligationtotakeallpracticablestepstopromote,facilitateandfinance,

asappropriate,thetransferof,oraccessto,environmentallysoundtechnologiesandknow-how

todevelopingcountries.Thisplacesthedebateaboutlow-carbontechnologytransferfirmly

withinthepoliticalcontextoftheUNFCCCprocess.

Whilemuchattentioninthelow-carbontechnologydebatehasbeenfocusedonthethirdofthese

layers,thelessonsofthefirstandsecondalongwiththewiderdebateaboutinnovationand

technologyareofhighimportance.ThisisunderlinedinSection4belowandparticularlyinthe

interviewsGCNmemberconductedwithprivatesectorrepresentatives.Theargumentissupportedbythedataonthetransferoflow-carbontechnologiestodate,whichsuggeststhatitsrateof

transfer,measuredasapercentageoflow-carboninventionsthatarepatentedinmorethanone

country(25percent),isnotsignificantlydifferentfromtherateoftransferofothertechnologies

(Dechezleprtreetal2008).

Itisalsoimportanttoclarifytheconceptoftransfer.Technologytransfertakesplacebothvertically

throughtheinnovationchainandhorizontallyfromoneusertoanother(seeOckwell2008b),often

crossingjurisdictionsforthepurposesofeconomicgain(Schneppetal1990,Ockwell2008b).

Bothtypesinvolvenotonlyequipment,butalsothemeanstousetheequipment,know-howand

skills(UNCTAD2007).Formanydevelopingcountriesandcompanies,thereisalsoanimportant

distinctionbetweenimportingequipmentandknow-howanddevelopinghomegrowncapacityto

innovate,manufactureandexport.Inessence,then,thedebatesurroundingtechnologytransferisasmuchaboutpureeconomiccompetitivenessoffirmsandofwholeeconomiesasitisabouta

desiretodeploytechnologyinthepublicinterest(Tomlinsonetal2008).Itisalsoasmuchabout

know-howandskillsasitisaboutequipment.

AheadofitsThirdAssessmentReport,theIntergovernmentalPanelonClimateChange(IPCC)

producedacomprehensivereviewoflow-carbontechnologyliterature.Itdefinestechnology

transferas:

abroadsetofprocessescoveringtheflowsofknow-how,experienceand

equipmentformitigatingandadaptingtoclimatechangeamongdifferent

stakeholderssuchasgovernments,privatesectorentities,financial

institutions,NGOs[non-governmentalorganisations]and

research/educationinstitutions(IPCC2000).

Thereports SummaryforPolicymakers illustrateshowmoribundtheUNFCCCtechnologytransfer

debatehasbeensince.Thematically,itcoversalltheareascapacity-building,enabling


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environments,differentindustrialsectors,governancethatarecurrentlyloominglargeinthe

negotiationsandbeingdebatedbytheExpertGrouponTechnologyTransfer(EGTT).TheEGTTwas

firstconstitutedin2001atCOP7inMarrakech.Itisnowoneyearintoanew,five-yearmandate,

whichincludeshelpingtoimplementtechnologyneedsassessments(UNFCCC2007a).Morethan50

non-Annex1countries(developingcountriesandeconomiesintransition)haveeithercompleted

technologyneedsassessments(TNAs)orhavepublishedinterimorpartialstudies.4 Typically,these

assessmentslistthetechnologiesseenasimportantbygovernmentsformitigation,adaptationand

developmentalneedsandestimatetheirpotentialandcost.Thepurposeofthisprocessistoassistin

identifyingandanalysingprioritytechnologyneedssothatArticle4.5oftheUNFCCCcanbe

implemented.

However,asThirdWorldNetwork(2008)observes:Despitethecentralroleoftechnologytransfer[in

negotiations],therehasbeeninfactverylittle,ifany,practicaltransferofclimate-friendlytechnology

undertheUNFCCC.Theoperationoftheprinciples,theestablishmentofmechanisms,andtheactual

transferoftechnologieshaveyettobeputintoeffect.Thesearenowurgenttasks.Whileperhaps

overpessimistic,astheCleanDevelopmentMechanism(CDM)hasledtowideruseofsome

technologies,technologyisneverthelessoneoftheissuesinthenegotiationsthathaserodedtrust

betweendevelopedanddevelopingcountries.

SomehaveattemptedtoarticulatehowtheUNFCCCtechnologydeadlockmightbebroken(E3G

2008)andtoidentifytheneedtolinkmeasurestakeninsidethenegotiationsandoutside(Egenhofer

etal2007).However,thereisstillanevidentdisconnectionbetweenthetransferoftechnologyin

practiceandofgovernmentsroleinthisprocessontheonehandandthepoliticsoftechnology

transferbetweendevelopedanddevelopingcountries,particularlywithintheUNFCCC,ontheother.

Asidefromthedeveloped-developingcountrypolitics,thesignificanceofwhichcannotbe

underestimated,oneofthekeyreasonsforthisisthatthereisnoonepolicyfitsallsolutionto

facilitatinglowcarbontechnologytransfer(Ockwelletal2008).TheGCNresearchsummarisedin

Section4belowsupportsthisviewandunderlinestheimportanceofdomesticpolicyandpolitical

supportforlow-carbontechnologyindevelopedanddevelopingcountriesaswellasthe

implementationoftheUNFCCCthroughenablingmeasuresontechnology.

Theimportanceofdomesticpolicyintheinnovationprocess,includingindeploymentoftechnologies,

isunderlinedbyanincreasingnumberofrealworldexperiences.ThatofCaliforniain,forinstance,

imposingtailpipe(exhaustpipe)standardstoencouragethedevelopmentoflow-carbon(zero

emissions)vehiclesisonesuchexample(Bird2008).InEurope,Germany,SpainandDenmarkhave

builtoffshorewindindustriesoffthebackofstrong,clearlydirecteddomesticregulationand

economy-widepolicy(Bird2009).

Thusanabsenceofastrongdomesticpolicyframeworks(eithersectorspecific,suchasfeed-intariffs,

oracrosssectors,suchascarbonpricing)andaccompanyingregulationsandincentivestoencourage

thedevelopmentandwidespreaduseoflow-carbontechnologyinanyoneeconomyisoneofthe

mostprofoundbarriersofall(GCNnationalsummaries,2009).Thechallengeforaninternationalnegotiationinwhichtechnologytransferisanexistinglegalobligationonthepartofdeveloped

countriesishowsuchaprocesscanbestfacilitate,supportandenablestrongdomesticpoliciesinkey

countries.

Onekeyareaisfinance.Bothcross-economypolicies,suchastaxationorchangesinenergytariffs,

andregulationswillincreasecosts,whichwillultimatelybeleviedonthetaxpayerorconsumer.This

makeslow-carbontechnologypolicypotentiallyunpopularandthereforepoliticallyunattractive

(LockwoodandPendleton2009).Thisislikelytobethecaseindevelopingcountrieswherepublic

expenditureishighlyconstrainedandconsumersareprofoundlysensitivetopriceincreases.

TheGCNresearchstronglysupportsthisviewandlinksthefinancingpillarofthenegotiationsvery

stronglywithlow-carbontechnology.Itisperhapsthroughthefinancingagendathatthenegotiations

canmakethemostdifferencetothedevelopmentandtransferoflow-carbontechnologybyhelping

tosupportdevelopingcountriestomeetthecostoflow-carbontechnologypoliciesandother

measures,suchassupportforresearchanddevelopment(R&D).

4.Seehttp://unfccc.

int/ttclear/jsp/CountryReports.jspforalistof

countriesandtoread

theTNAsorinterim

studiesandUNFCCC

2006forasynthesisofTNAs.


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Intellectualproperty

Afurtherbarriertotechnologytransferthatmeritsmentionisintellectualproperty(IP)law.Thereis

littledoubtintheliteraturethatIPisabarrierconstraininghorizontaltransferoftechnology.YetIPis

centraltoinnovationandimportanttoverticaltransferasitprovidescompetitiveadvantageto

technologydevelopers;itis,ineffect,agovernment-ledinterventiontosupportdevelopersoftechnologytoobtainareturnontheirinvestment(Stiglitz1994).

SomearguethatIPplaysalimitedroleinsomelow-carbontechnologiesbecauseitisalowproportion

ofthecostsofproductionrelativetoothertechnologies,suchaspharmaceuticals.Theyarguetoothat

keysectorswind,solarPV,biofuelsarereasonablycompetitiveandsoroyaltiesareunlikelytobe

high(Barton2007).Otherspointtothefactthatlimitedtransferoflow-carbontechnologyhastaken

placeandthatIPmaybeabarrierbecausemanyofthetechnologiesconcernedarepatented,and

thatIPownersmayfindwaystolimitorincreasethecostoflicensing(ThirdWorldNetwork2008).

Infact,itislikelythatthereisnohardandfastrule,asthebehaviourofpatentholdersandthe

proportionatecostofIPwillvaryfromtechnologytotechnologyandfrommarkettomarket.Thefew

studiesfocusingonIPasabarriertothetransferofEnvironmentallySoundTechnologies(ESTs)

publishedhithertodonotprovidethedatarequiredtodrawadefinitiveconclusion(Ockwell2008a).

TheissueofcompetitivenessisthekeytotheIPconundrum(E3G2008).SowhileBarton(2007)may

becorrectinobservingthatR&Disasmallproportionofeventualcostsinsomekeytechnologiesand

thatcompetitionbetweenfirmsinthesetechnologiesissufficienttokeepthecostoflicensinglow,IP

remainsameansbywhichfirmscanmaintainacompetitiveedgeandpreventnewentrantstotheir

markets.Andaslongasthemajorityofnewpatentsinlow-carbontechnologiesareregisteredin

developedcountries,inparticulartheEUandJapan(Sangeeta2009),IPislikelytoremainanissueof

politicalsignificanceininternationalclimatenegotiationsandprocesses.

TheGCNsresearchunderlinessomeoftheseconclusions,illustratingthatIPisimportantinsome

casesandsomecountriesandthatmeasurestoencouragecompaniestouseorrelinquishIP(andin

somecircumstancestousetheflexibilityalreadyavailableonIPthroughtheWorldTradeOrganisationsTrade-RelatedAspectsofIntellectualPropertyRights[TRIPs]agreement)maybe

necessary.However,inothercases,itappearseitherthatIPisrelativelyunimportantincomparison

withothermaterialfactorsdiscussedabove(whichincludetheavailabilityoflocalskills,know-how

andongoingcapacitytomaintainandupgradetechnologyalongwithassociatedsofttechnologies)or

morerobustIPprotectionisrequiredatthenationallevelbeforepatentownerswillinvestthemselves

orlicense(GCNnationalsummaries2009).

FortheUNFCCCtohaveinfluencetheissueofIPneedstobetakenintoconsideration,bothinthe

caseofexistingtechnologieswhosewidespreadusewillreducegreenhousegasemissions

immediately,andinthecaseofinnovation,whichcouldhavefargreatermitigationpotentialinthe

future.Alongsideprovidingfinancetoincreaselow-carbonR&Dbybetweentwoandfivetimes

globally(Stern2006),technologynegotiationsshouldexaminehowbesttoensureIPisnotobstructiveonceitsfruitsarebroughttomarket.Collaborationamonggovernmentsappearsthebest

waytoachievethis(Ockwell2008a,E3G2008).TheGCNsresearchalsosuggeststhatthereis

disagreementonIPbetweenpublicandprivatesectorinterviewees.

4.Low-carbontechnology:findingsfromGlobal

ClimateNetworkinterviews

Morethan100keyfiguresfromrelevantgovernmentdepartments(trade,industrial,planning,

developmentandenvironment),privatesectorfirms,academicinstitutesandnon-governmentalorganisationswereinterviewedbytheGCNineightcountries(Germany,China,India,Australia,United

States,Brazil,SouthAfricaandNigeria).ResearchersfromeachoftheeightGCNmember


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organisationsfollowedaninterviewformatandareasofinquirythatwereagreedcollectively

beforehand.Thebriefsummaryoffindingsbelowisgroupedintotheareasofinquiry.

Question1:Keysectors

Inwhatkeysectorsareclean/low-carboninnovationandtechnologydevelopmentanddeployment

envisaged?

Responses

Notsurprisingly,the energysector(primaryenergyandelectricityproduction)wasidentifiedinalleightcountriesasatoppriorityfordevelopmentanddeploymentoflow-carbontechnology.

Withintheenergysector,manyofthenationalstudiesidentifiedcarboncaptureandstorageandcleancoal toenablethecontinueduseoffossilfuelsasbeingkeyandaprimarycandidate

forrapiddevelopmentandearlydeployment.

IntervieweesfromNigeria,outoftheeightthecountrythemostdependentonrevenuesfromoilandgas,alsounsurprisinglyidentifiedthissectorashavingimportantpotentialforreducing

emissions. Asacorollaryoftheabove,renewableenergy wasseeninallthecountriesasbeingofkey

interestalthoughwithsomereservations(fromIndia5).Thisbroadcategoryincludedtheusual

suspectsinparticularwindandsolarPV(photovoltaic)inmostcases.Inadditiontherewas

interestinhydropowersmallhydropower(Brazil)andhydropoweringeneral(India,Nigeria).

Othersectorsmentionedbyintervieweesincludedthemanufacturing,transportandautomotiveindustry,wastemanagement,mining,chemical,metalandcementindustries,andagriculture.

Energyefficiency wasalmostuniversallyhighlightedasakeypriorityinthebuildingandtransportsectors(byGermany,China,India,Brazilinparticular),andinindustry,agricultureand

forestry.Greaterenergyefficiencywasseenasalowhangingfruitwhichcouldbeachievedwith

comparativeeaseintheshortterm(US). InBrazil,indirecttechnologiesfortheprocessingandindustrialisationoftropicalforestry

products,directseedingintheAmazonandnewdietsforcattleherdstoreducemethane

emissionswerealsoraisedasoptions.

Supportivesectorsincludingthemechanical,electronicandITsectorswerehighlightedasalsobeingworthofattention(SouthAfrica).

Question2:Governmentpolicy

Isthereaguidingindustrialoreconomicpolicyinwhichthesekeysectorsareidentifiedand,ifso,

whatareitsobjectives?

Responses:

Oneoftheoverridingfindingsofthisstudyisthatadequatedomesticpolicytosteerandprovide

certaintytocapitalinvestmentsinlow-carbontechnologiesislackinginallcountries.However,each

hasavarietyofpoliciesandlegislationeithertosetdirectstrategyforactiononlow-carbon

technologyortoinfluencetechnologydevelopmentandtransferindirectlythroughmeasuresto

increaseenergyefficiencyandrenewableenergyortoreduceemissions.Thesearesetoutbycountry

below.

Germany:TheEcologicalIndustrialPolicyseesGermanyasaforerunnerinclimatepolicymakingandaglobalproviderofenvironmentaltechnologyandservices.Todate,policiesfortransferof

technologytoothercountriesarelessdeveloped.

China:Policiesareinplacesettingoutplansforenergymix,emissionsreduction,energyconservationandrenewableenergytargets/measures.Inaddition,technologydevelopmentpolicieswereoutlinedintheNationalClimateChangeProgrammeincludingtoincreasespending

onR&DfromUS$2.5billionfor20012005to$7billionfor20062007.

5.Eventhoughallthe

Indianintervieweesnotedthesignificance

ofrenewableenergy,it

wasstressedthatfor

thenext20to30years

theircontributiontotheenergysupply

mightnotbeadequate.


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India: ThecountrysVision2020hasastrategicgoaloftransformingIndiaintoadevelopednationandaknowledgeeconomy,andincludespoliciestopromoteindustrialR&Dinvestmentin

renewableenergyandenergyefficiencysectors.

Australia: Policyinitiativesatthelocalandstatelevelhavebeenconstrainedbyinactionatthefederallevel.Recentgovernmentcommitmentsincludeshort-andlong-termemissionsreductiontargets,arenewableenergytarget,emissionstradingscheme,energyefficiencystrategyand

fiscalsupportforlow-carbontechnologies.However,significantlegislativeuncertaintyexists

aroundmanyofthesemeasures.

UnitedStates:Despitetheperceivedimportanceamongintervieweesofacomprehensivenationalenergypolicy,suchideasremainatanascentstage.Industrialpolicyisbeingdeveloped

atstatelevel,withCaliforniaparticularlyactiveinpushingnewenergytechnologiessuchassolar.

Acapandtradebill(theWaxman-Markeybill),whichcontainsmanyothermeasures,is

beginningitsjourneythroughCongress.

Brazil: Brazilhasonlyrecentlystartedtothinkonceagainintermsofshort-,medium-andlong-

termplanningpolicies(thesugarcaneethanolprogramme,whichbeganinthe1970s,isagoodexampleofthistypeofplanninginthepast).Intervieweesindentifiedalackofgovernment

policytoguideprivatesectorinvestmentinmostrenewablesectors(exceptbiofuelsandhydro),

andalackofpolicyontechnologicaldevelopmentfortheforestsector.Newgovernmentplans

(ProgrammeforAcceleratingGrowth,ProductiveDevelopmentPolicyandTechnologyand

Innovation)prioritiseR&D.Thecountryhasplansofactionthatpresentlinesofthoughtbutdo

notidentifyspecificneeds,policiesandpriorities.

SouthAfrica: Itisthegovernmentsstatedgoaltodevelopaplanofactionwhichiseconomicallyrisk-averseandinternationallyalignedtotheworldeffortonclimatechange(Long

TermMitigationScenario:StrategicOptionsforSouthAfrica,2007).Thepolicymixistoinclude

command-and-control,market-basedandvoluntaryinstrumentsby2012,witharelatedfiscal,

legislativeandregulatorypackage.6

Nigeria:TheAfricancountrysuffersfromaverticallyintegratedandcentralisedenergymarketthatisdependentoncentralisedfuels;andfromweakmarketdevelopmentpoliciesand

regulatoryframeworks.

Question3.Objectivesoflow-carbontechnologydevelopmentandtransfer

Inkeysectors,whataretheobjectivesofinnovatinganddemonstratingnewtechnologiesand

deployingexistingtechnology?

Responses

Manyinterviewees(especiallythosefromChina,SouthAfricaandNigeria)identifiedeconomicgrowthasthekeyobjectiveindevelopinganddeployinglow-carbontechnology,particularlyto

decouplegrowthfromemissionsandarelianceonfossilfuels(inthecaseofNigeria,thiswasto

addressover-relianceoncrudeoilexports).

Many(especiallyChina,India,SouthAfricaandNigeria)thereforefeltthatcleantechnologydevelopmentandtransferhadtobealignedwithmacro-economic(andsocial)objectives,

including:sustainabledevelopment,economiccompetitiveness,jobcreation,povertyalleviation,

energyaccessandsecurity,povertyalleviation,modernenergyaccessandfoodsecurity.

IntheUSthefocusforcleantechnologydevelopmentismoreonmaintainingeconomiccompetitivenessandspurringjobcreationinthecleanenergysector.

Indianintervieweesidentifiedenergysecurityasaprimarydriver:acleanerenvironmentisseenasaco-benefitinsteadofthemainobjective.

ForGermany,theobjectiveisachievingazerocarbonenergyeconomyathomeby2050,andpromotingthemodelabroad,aswellaseconomicdevelopmentandcompetitiveness.

6.Cf.FinalNationalClimateChange

ResponsePolicy

Discussiondocument

(2009).TheSouthAfricangovernmentis

committedtoensuring

on-goingandincreased

supportfornewandambitiousresearchand

developmentinitiatives

inthefieldofcarbon-

friendlytechnologies

withthefocusontherenewableenergyand

transportsectors

(p19).


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Australianintervieweessawdevelopingnew,low-emissionsexportindustriesasbeingequallyasimportantasdomesticcarbonabatementobjectives.

Someprivatesectorinterviewees(fromSouthAfrica)sawtechnologyastheprinciplemeansforfirmsandsectorstocomplywithenvironmentallegalrequirements,andtoimproveperformance,

efficiencyandcosteffectiveness.

ExploitingopportunitiesthroughtheCleanDevelopmentMechanismandothermarket-basedinitiativeswashighlightedbySouthAfricaandNigeria.

Nationalenvironmentalconcerns(forNigeriansthepollutionoftheNigerDeltaanddesertificationintheNorth,forinstance),domesticadaptationtoclimatechangeand

considerationoftheneedtoreduceemissionstoremaincompetitiveeconomically(SouthAfrica)

werealsoimportant.

Importanttechnologiesforearlydeployment:Whichnewandalreadydevelopedtechnologies

aremostimportantbetweennowand2020?

SolarPVandthermal(SouthAfrica,India,China,Australia,US,NigeriaandBrazil)wasthemostcitedtechnology;seenasrelevant,cost-effectiveandwithmostenergy/emissionsabatementpotential;oneofthemostimportantsourcesofcleanpowergenerationinthecountry(Indian

interviewee).Somegovernments(SouthAfrica,AustraliaandChina)haveadesiretobuilda

newcompetitiveadvantageinsolartechnologyinordertobecomeamarketleader,with

governmentprovidingsupportingmeasures(SouthAfrica).7 MostintervieweesintheUScited

thepotentialofsolartechnologiesandacknowledgedthattheywereattractingasignificant

amountofventurecapital.Brazilisconsideringthebestwaytoimplementfeed-intariffsandhas

oneoftheworldslargestsiliconreserves.Purifyingsilicontosolargradecouldbeawaytoput

Brazilintotheglobalsolarmarket.

Wind (China,India,Brazil,US,Australia,GermanyandwithmixedviewsSouthAfrica)was

alsooftencitedasimportantintheshortterm,withdevelopingcountriesusingitwidely(Indiaisfastbecomingoneofthepioneersinmanufactureof[wind]technologyandChinaislooking

for[L]ow-costandscaleexploitationandutilization).Windpoweristhefastestgrowingenergy

sectorintheUSandnowemploysmorepeoplethanthecoalsector.

Cleancoal,carboncaptureandstorageandIGCC (integratedgasificationcombinedcycle)(China,India,Australia,US,SouthAfrica,Germany,Nigeria)isanotherindispensibletechnology,

whichisseenasnecessary(China)andasanareaforAustralianleadership8,andisalreadythe

focusofR&D(SouthAfrica).Theimportanceofrelatedinfrastructurewasalsomentioned,

includingpipelinestotransportCO2awayfromcoal-reliantareasthatcannotsequestercarbon

duetolocalgeologicalcharacteristics(US).InadditionUSintervieweesstressedtheneedto

solveliabilityquestionsaroundthestorageofCO2asanecessarypreconditionforsuccessful

implementationofthetechnology.InIndia,cleancoalandIGCCtechnologywasseenasahighprioritybyallinterviewees,whilesomeexpressedsecurityandcostconcernswithCCSandone

participantquestionedwhetheritwouldevenserveasabarriertothedevelopmentofmore

efficienttechnologies.

Energyefficiency ismentionedbymanyintervieweesinmostnationalsummaries,butcoversaverywiderangeoftechnologies,frombuildingsdesignandcomponents(India)toco-generation

inagriculturalprocessing(SouthAfrica)andinothersectors(Brazil)anduseofgeothermal

devices(ChinaandAustralia).

Biofuels (India,SouthAfricaandBrazil)areseenasofferingconsiderablepotential,eithertomeetdomesticenergydemand(India)orforexport.Brazilhasdevelopedastrongbio-ethanol

industryasaresultofgovernmentindustrialpolicyintheoilcrisesofthe1970s,whichothers

seektoemulateandinnovationintheproductionofalgaeforbiofuelisalsomentioned(Australia).AdvancesinbiofuelsintheUSarecurrentlyensnaredindisputesaboutfederal

subsidiesforsomefuels(especiallycornethanol)overothers.Secondgenerationbiofuelshave

7.SouthAfricas

NationalClimate

ChangeResponsePolicy,Discussion

Document,2009.

8.OneAustralian

intervieweenoted:if

Australiawantstokeepexpandingcoalexports,

thenithasamoral

obligationtomakeCCS[carboncaptureandstorage]aviable

technology.


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potentialtoachievesignificantgreenhousegasemissionsreductions,increasethevolumeof

biofuelstointernalandexternalmarketsandfacilitatetheproductionofbiofuelsinmoreareas.

Electricvehicles,batterytechnology(India,ChinaandSouthAfrica)andhydrogenfuelcellinnovation(IndiaandSouthAfrica)arealreadybeingpursued,whilebatterystoragetechnology

isreceivingincreasingstateandfederalfunding(US).

Inaddition,intervieweesmentionedwavepowertechnology(US,SouthAfrica),small-scalehydro-power (India,SouthAfricaandBrazil),specifictechnologiesforenergy-intensive

industries(China)andnuclearpower (China,IndiaandSouthAfrica).

Question4:Barrierstoinnovation

Whatarethebarrierstothedevelopmentofnewtechnology(includingexistingexamplesofnew

technologiesindevelopmentandthepoliciesthatsupporttheseorproblemsandchallengesfacedin

development)?

Responses:

Overwhelmingly,intervieweesinallcountriesespeciallythosefromtheprivatesectorfeltthatthelack,describedasappallingbyNigeria,ofstrong,wellcoordinatedandwellfinanced(Australia)governmentR&Dstrategywastheprinciplebarriertolow-carboninnovation(thatis,

inventionandverticaltransferoftechnology).

Alackofdomesticcapacity andofaninnovationculture(Brazil),ofskilledtechniciansandengineersinlow-carbonsectors(China),inadequatetechnologicalcapabilityandpoorR&D

facilities(India)andasignificantdeclineinR&D(SouthAfrica)wereallidentifiedasresulting

fromtheabsenceofgovernmentpolicyandstrategyoninnovation.

R&Dappearsnowlargelythepreserveoflarge,privatesectorcompaniesortobeundertakenonadhocbasisbyprivateandpublicentities,withalackofintegrationbetweendifferentplayers

(asreportedbySouthAfrica).IntervieweesintheUSandIndiafeltthattherewaslimitedfederal

assistanceandinadequateincentivesforR&D.

Intheworstcase, poorpoliticalcommitment andaviewoftechnologyasbeingonlyequipmentratherthanskills,knowledgeandprocesseshasledtoabraindraininsomelocationsfor

example,NigeriaasspecialisedresearchershavemovedtotheUSorEurope.

Inaddition,Australia,BrazilandSouthAfricapointedtoalackofgovernmentinnovationstrategy andpolicyhavingledtoalackofcertaintyforinvestors,whichisperceivedasa

significantbarrierto,interalia,thefinancingoftheinnovationprocess,frominventionto

commercialisation.

InAustralia,theproposedCarbonPollutionReductionScheme(CPRS)seekstoestablishacarbonprice,butintheshorttermwillprovidelittleimpetusfortechnologiesstillintheearlier

stagesofdevelopment,accordingtointerviewees.Alsointheshortterm,therenewableenergytargetwilldrivesubstantiallevelsofrenewableenergydeployment.

IntheUSpotentialimplementationofanationalrenewableenergystandardwassuggestedbyseveralpeopleasonewaytobuildonthefragmentedattemptstosolvethisproblembythe

individualstates.

InBrazil,thereisaperceivedlackofpoliciestosupporttheestablishmentofarenewableenergymarketandindustryandalackofgovernmentinterest.

Acrossalleightcountries,financingisseenasamajorobstacle tocommercialisationoflow-carbontechnologicalinnovations.Thereisperceivedtobealackofavailablefinancinganda

needfornew,customisedfundingmechanisms,suchaslow-carbonventurecapital(South

Africa,ChinaandIndia).Financiersarehighlyriskaverseespeciallysincetherecentfinancecrisisandthereisverylittleventurecapitalorspeculativefinanceavailable(Australia).

Highcosts ofR&D(highlightedbySouthAfrica),capacity-buildingandcapital(Brazil)andtherelativelylowcostofconventionaltechnologieswerealsohighlightedasabarrier.


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Anotherconstraintisthelackofinformationexchange betweendevelopers,leadingtohighercostsforall(forChinaandIndia)andalackofinnovationhubsthroughwhichtechnologycould

beco-developed(mentionedbySouthAfrica).

Opinionsvariedonintellectualpropertyrights beingabarrier.Someintervieweesespeciallythosefromtheprivatesector,arguedthatmorecertaintyaroundIPisnecessarytoprovideinvestmentsecurity(SouthAfrica)andthatpoorenforcement/lackofobservanceofIPrightsin

developingcountrieswasaproblem(ChinaandGermany).

Somementionedthedistinctionbetweentechnologytransferatthenon-commerciallevel(thatis,inthepublicinterestandbygovernments)andatthecommerciallevelwhereitisperceived

onlyasacostcomponent(Indianinterviewee).SomeforesawtheneedforIP-relatedcoststobe

metbygovernmentorthroughintergovernmentalagreement(India).Thecreationof

internationalresearchcentressupportedbypublicfundsandthatcoulddeveloptechnologyfree

ofIPrestrictionswasconsideredbyBrazil.However,afewmultinationalcompanieshavecreated

amonopolisticmarketinthesetechnologiesaccordingtoanIndianinterviewee.

Formany,competitivenessisthecoreissueintheIPdebate,withcompaniesfearingnewcompetitorsemergingfromdevelopingcountries,spurredbyeasyaccesstonewtechnologiesandpoorIP(GermanyandAustralia).

ChinasMultilateralTechnologyAcquisitionFundproposalwassuggestedasameansbywhichsomeofthecostsofIPinkeytechnologies,interalia,couldbemet.

Question5.Barrierstodeployment

Whatarethebarrierstothedeploymentofexistingorbreakthroughtechnologies(includingexisting

examplesofnewtechnologiesindevelopmentandthepoliciesthatsupporttheseorproblemsand

challengesfacedindevelopment)?

Responses

Financialconstraints wereseenbymostcountriesastheprinciplebarriertodeployment.Issuesincludehighupfrontcapitalcostsascomparedwithfossilfuel-basedalternatives(India9,Brazil

andAustralia),returnoninvestmentsnotalwaysbeingsufficient(Australia),lowlevelsofforeign

investmentinlow-carbonsectors(SouthAfrica),greaterlevelsofriskassociatedwithclean

technologies(China,US,Australia)andrelativelyhighoperationalandmaintenancecosts

(China).

Therewereperceivedtobehugeuncertaintiessurroundingthefutureeffectsofclimatechangeandthemagnitudeofthepolicyresponsesrequired(China).

Alackofawareness withinindustryoflow-carbontechnologiesandtheiravailabilityandcostswasseenasabarrier(bySouthAfrica,Australia,IndiaandBrazil).

Thereisalsostillalackofconfidenceinrenewableenergyatacommerciallevel(India,USandSouthAfrica)andaconcernaboutthevisualimpactsofwindfarms,includingitsimpacton

tourism(Brazil).

Aswithbarrierstotechnologydevelopment,alackofdomesticpolicy wasseenasasignificantbarriertodeploymentinmostcountries,withalackofefficiency-drivenincentivesandaneed

forgovernmentsupportintheformofprocurementtocreateamarket(India).Weakregulatory

frameworksandinstitutionalcapacity(NigeriaandIndia),anabsenceorinadequacyoflonger-

termpolicyframeworksorpolicyenvironmentstosupportscale-up(Australia,US,SouthAfrica,

IndiaandBrazil),bureaucratichurdlesforrenewableenergyprojects,liabilityissues(US)anda

lackofsupportiveinfrastructure(India)wereallmentionedbyinterviewees.

Alliedtothis,politicalsupportforlow-carbontechnologyandpolicywasseenaslacking(byBrazilandIndia):theissueofcleantechnologies...isnotyetkeyedintothedecisionmakingcircle(Indianinterviewee).

9.SomeIndian

intervieweespointed

outthatinsomecaseshighinitialcostsare

notrealbarriersbut

themanifestationsoftheirrationalpricesofinefficient

technologies.


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Incountriesalreadypositionedtoexporttechnology,therewasalsoalackofawareness andknow-howinlow-carbonindustriestodealwithsomeofthebarrierstotransferandalackof

awareness,orscepticism,concerningthecomparativeadvantageofsomelow-carbonindustries

(Germany,US).

InternationalcooperationmechanismswithintheUNFCCC,especiallytheExpertGrouponTechnologyTransferandtheGlobalEnvironmentFacility,functioninadequately(China).

Tensionsbetweenclimatechangelawandpolicyandinternationalinvestmentlawmaybecomeabarrierissue,asmaypotentialtensionsbetweeninternationaltradelawandeffortstosupport

domesticcleantechnologyindustries(Australia).

Manyintervieweesalsospokeofalackofmarket-basedincentives (seeQuestion7below)intheformofcarbonpricingpolicies,subsidiesorpreferentialtariffs,toemploycleaner

technologies(SouthAfrica,US,BrazilandIndia).InAustralia,whileprovidinglong-termsignals,

theforthcomingCarbonPollutionReductionSchemewasperceivedbysomeintervieweesas

unlikelytoprovideastrongenoughpriceincentivetodrivesignificantdeploymentintheshort

term,especiallyformoreexpensivetechnologiesthatstillneedtobeprovencommercially. SomeintervieweesmentionedtherelativeineffectivenessoftheCleanDevelopmentMechanism,

suggestingtherehasbeenaslowtake-upofCDMopportunities(SouthAfrica),inefficiencies

anddelaysintheprocess(Australia)andthatitrequiresreform(Brazil,India).

Insomecountries,subsidiesincarbon-intensivesectorswereperceivedasbeingasignificantbarriertolow-carbontechnologies(SouthAfrica,Brazil,US,India),withlarge,oftenstate-owned

companiesdominatingdecision-makingandthemarket(SouthAfrica).

Anothersignificantbarrier,especiallyindevelopingcountries,isashortageofdomesticskillsandknow-how,withsignificantdependenceonforeignexpertise(SouthAfrica,Nigeria,

GermanyandBrazil)andsubsequentdifficultiesinintegratingnewknowledgeareasand

technologies(Brazil).

Question6:Marketbarriers

Whataretheparticulardemand-side/marketbarrierstodevelopment,demonstrationanddeployment

oftechnologiesandwhatdomesticandinternationalpoliciesandpolicyframeworksareneededto

overcomethese?

Responses

Onceagain,manyintervieweesfeltthatdomesticpolicyisthemajorconstraint.Insomecases,widereconomicandotherfactors(suchasconflictinNigeria),highlevelsofbureaucracyand

lackoflong-termpoliticalstabilitywereabarrier(Nigeria,andGermanyasanexporter).More

generally,politicalprioritiesinmanycountriesarenotalignedwithclimatechange(orlow-

carbontechnologydevelopmentanddeployment),whichinhibitsinvestmentopportunitiesandincreasesrisk(Germany).IntheUSuncompromisingdomesticpoliticswascitedasaparticular

barriertotechnologydevelopmentanddeployment.Intervieweesnotedcongressional

attachmentstostateindustriesandtheformerBushAdministrationsoverallpolicybiastoward

fossilfuelsasseriousimpediments.OneUSintervieweewentsofarastopronounceafailureof

domesticpoliticsinthisarena.

Inparticular,thereisalackofgovernmentpolicysupport fiscal,industrial,tradeandtaxationpoliciestoovercomemarketbarrierstolow-carbontechnologydevelopment(China,

US).Anunsupportivecommercialandeconomicenvironmentforlow-carbontechnologies

demandsinvestmentincentivestoscaleupthemarketandprovideclearsignalsforindustry

(SouthAfrica,Nigeria,BrazilandIndia),butpublicprojectfinancingforcleantechnologiesis

highlylimited(India).

Theglobaleconomiccrisis isalsoconstrainingdemandhugelyandthereforeinvestment(Australia)andlimitingtheeconomicgrowthrequiredfortechnologicalrenewal/innovationto


17/28


occur(Nigeria).Nowmorethaneverdevelopingcountrieslackeconomicpullforinvestors

(Germany).

Manyintervieweesindevelopedcountriesfocusedontheneedtoputapriceoncarbon toimprovemarketcompetitivenessofcleantechnologies(Australia,Germany,US).

Meanwhileindevelopingcountries,subsidiesforcarbon-intensivesectors ornegativesubsidiesforlow-carbontechnologywereseenasahugeconstraint(SouthAfrica,Brazil,

ChinaandIndia).Thiscamealongsidetheperceptionthattheup-front,incrementaland

transactioncostsoflow-carbontechnologyarerelativelyhigh(India,China,SouthAfrica,Brazil).

Highinterestratesreducetheaveragepersonscapacitytoinvestindecentralisedenergygeneration,forexample,insolarphotovoltaicsources(Brazil).

Intervieweesincountrieswithsmallerdomesticmarkets(Australia,SouthAfrica,Nigeria)inevitablysawlimitedpotentialbasedondemandonlyatthedomesticlevelandtherefore

limitedattractionforcompaniesasmanufacturingbases.

Directdeploymentofimportedtechnologyisnotalwayspossible,accordingtosomeinterviewees.Technologiesneedtobeadaptedtobettersuitdomesticneedsandconditions

(SouthAfrica,India).Thereisalsoalackofsupportinginfrastructureindevelopingcountries

(accordingtoGermany,IndiaandAustralia).

Marketsmightdevelopfasterthroughdeployment/transferviapublic-privatepartnerships(SouthAfrica,ChinaandIndia).WhileR&Drequiresfederalfunding,deploymentshouldbe

drivenbythemarket(US).

Question7:Requireddomesticpolicychanges

Whatdomesticpolicychangesarerequiredfordevelopingandexistingtechnologiestoaccelerate

theirdevelopment,demonstrationandwiderusageandwhatarethelimitsofdomestic

policymakingtothisend?

Responses

Clearandpoliticallysupporteddomesticlow-carbonstrategyandpolicy wasthetoppriorityformostinterviewees.Identifyingprioritytechnologies(SouthAfrica),acleararticulationofthe

needtolinkgrowthtolow-carbontechnology(Nigeria),arenewableenergypolicywithashift

inpolicymakingandgoodenablingenvironments(India)andanationalportfolioofkeylow-

carbonproducts(Brazil)wereallseenasessential.

IntheUS,despiteacknowledginganAmericanideologicalaversiontocentralisedeconomicorenergypolicies,intervieweescitedtheneedforpolicytosetstandardsandtoinstigatebroader

behaviouralchangesamongproducersandconsumers.Settingtimeframeswasalsodeemed

necessaryforstrategisingthedevelopmentandimplementationofnewenergytechnologies

(US).Particularemphasiswasplacedontheneedforlong-termpolicyinnovationsinordertomitigateuncertaintyandassureinvestorsanddevelopersofacontinuous,relativelystable

investmentenvironment.

Capacity-building wasalsoseenasimportant:forexample,proactivecapacity-buildingtosustainscaling-upofthemarket,andimplementationofeducationalprogrammes(SouthAfrica)

andinvestmentincapacity-buildingtocreateandmaintainscientificteamsworkingonspecific

technologies(Brazil).

TostimulateR&Danddemonstration thereisaneedtodevelopnationalandregionalcentresofexcellenceandinformationhubs(SouthAfricaandChina),toshareandtransferknowledge

(India),tobringR&Dfromuniversityresearchbunkerstothemainstreamofeconomicpolicy

making(Nigeria),toincreasefunding(SouthAfrica,Germany)throughgrants,taxincentives

andrisk-sharingarrangements(China,India,Australia,US),toprovideincentivestoprivate

companiesthatinvestinR&D(Brazil,US)andtoprovidefinanceandinfrastructureforthe

commercialtestinganddemonstrationoftechnology(India).


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Financingingeneraliskey:allcountriesinterviewsreflectedtheneedtoscaleupfinancingforlow-carbontechnology,especiallyusingstate-fundedprogrammestotriggerprivatesector

interest(China).Specificfinancingpolicieswerecalledforbysomeinterviewees,suchasfeed-in

tariffs(Australia,US),investmentinasmartgrid(US)andascaling-upoftheCDMandthe

internationalcarbonmarket(SouthAfrica),anenlargementofexistingincentivesandanintroductionoftradablerenewableenergycertificates(India).

Intervieweesalsoemphasisedthe importanceofclearerpricesignalling,throughemissionstradingorbyofferingtaxincentivesintheformofsubsidies,taxholidaysandsoon(India),

bringingdownthecostoflow-carbontechnologiesandregulations(India,US),thereviewof

subsidiesforcarbon-intensivesectors(SouthAfrica,Brazil),importandexportpoliciestoreduce

tariffbarriersonhigh-prioritylow-carbontechnologies(China),directexportsubsidiesand

guarantees(Germany)andmandatorystandards,guidelinesandtargetstostimulatemarket

scale-up(SouthAfrica).

StrongerIPregimes indevelopingcountrieswerealsoseenasbeingimportantbymanyprivatesectorintervieweesbothindevelopedanddevelopingcountries(Germany,India,China,South

Africa).However,governmentintervieweesinsomecountrieswereconcernedthatIPmightrestrictthebuildingoftechnologicalcapability.

Question8:Requiredinternationalpolicychanges

WhatpoliciesarerequiredattheinternationallevelespeciallywithregardtotheUNclimate

negotiations,butreferringtootherinternationalprocesseswhereappropriatetofosterthewider

usageofdevelopingandexistingtechnology?

Responses:

ManyintervieweesarguedforanewapproachtotheUNFCCCnegotiations,inwhichtechnologyisplacedfrontandcentre(Australia),withafocusonfacilitatingandincentivisingthe

commercialdeploymentofcleantechnology(Australia,India).

Financingattheinternationallevel isaskeyasitisatthenationallevel:developedcountriesshouldcommitlarge-scalepublicsectorfinancingforcleantechnologyRD&D(research,

developmentanddemonstration)indevelopingcountries(Australia)orgivenationaltax

incentivestocompaniesthattaketheirbesttechnologiestodevelopingcountries(Brazil).A

globalfinancingmechanismisneededforR&D(India).

Someidentifiedaneedtosetupcarbonmarketdevelopmentprogrammes tohelpcountriesbreakexistingbarrierstoaccessingthecarbonmarket(Nigeria)andsawafurtherneedto

expandtheinternationalcarbonmarket,strikingabalancebetweenefficiencyandrigour

(Australia).

Itwassuggestedthatnegotiationsshouldseekto incentiviseinternationalresearch,fundingandcoordination oflow-carbontechnologydevelopmentandtransferthroughaUNFCCC

MultilateralTechnologyAcquisitionFund(MTAF)andrelatednationaltechnologyactionplans,

roadmapsandactionprogrammes(SouthAfrica,China,Nigeria,Australia,US).

Therewasastrongviewexpressedbyintervieweesfordevelopingcountriestobenefitfromprojectstodemonstratenewtechnologies(SouthAfrica)andtoincreaseknowledgethrough

internationalstrategicpartnershipsandexchangeprogrammes(SouthAfrica).

Relatedtothis,intervieweesinmanycountriesemphasisedtheneedforfutureinternational(globalandregional)collaborationthroughtechnologyresearchandapplicationnetworks to

enableknowledgeandskillstransferandbestpracticedevelopment(SouthAfrica,Nigeria,

Germany,India).

ManysawpotentialintheInternationalRenewableEnergyAgencyasthemaininternationalhubforcleantechnologyinformation(SouthAfrica,Germany)orthecreationofasecretariatunder

theUNFCCC,responsibleforthecentralisationofinformationregardingavailabletechnology

aroundtheworldandforthedevelopmentofIP-freetechnologies(Brazil).


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ExistinginstitutionsshouldbeusedUnitedNationsEnergyProgramme(UNEP),GlobalEnvironmentFacility(GEF),theWorldBankandquotasoffinancededicatedtoinvestmentin

low-carbontechnologies(Brazil),althoughintervieweesfromGermanyandtheUSexpressed

scepticismastotheseinstitutionsabilitytoimplementanoverarchingtechnologyregime.

Otherthanorinadditiontoemissionsreductiontargets,countriesshouldadoptdifferentiatedrenewableenergytargets(Brazil)orrenewableenergyproductiontargets(India).Developed

countriesshouldintroducecompulsorycarbonemissionsreductionpolicies;developing

countriesshouldintroduceclimatefriendlypoliciesandmeasuresforpromotionofclimate

friendlytechnologies(China).

Officialdevelopmentassistanceneedstobalanceshort-termaidwithlong-termR&Dpriorities(Nigeria),butcommitmentstoassistdevelopingcountriesincleantechnologydevelopment

mustbenewandadditionalandfundsshouldnotbedivertedfromotherdevelopment

assistance(Australia).

OnIP,someintervieweesemphasisedtheimportanceofflexibilityintheWTOtraderegimeto

ensurethatIPdoesnothinderthedisseminationofknowledgeanddiffusionoftechnologies(India).Some,though,feltthatseeminglyintractabledebatesaboutIPattheinternationallevel

wereblockingtheimmediateuseofmanytechnologiesthatwerealreadyoffpatent(Nigeria).10

Bilateralagreements betweendevelopedanddevelopingcountrieswerealsomentionedbyintervieweesasameanstoacceleratethediffusionoflow-carbontechnology(SouthAfrica,

China,US,Germany),includingthroughdualimplementationdemonstrationprojectswithjointly

heldIP(US).

Conclusionsandrecommendations

Despitethediversityoftheintervieweesinvolvedinthisstudy,acommonsetofbarrierstothe

developmentandapplicationoflow-carbontechnologycanbeidentifiedfromtheirresponses.There

wasalsosomeconsensusonthepoliciesrequiredtoaddressthem.Wearethereforeabletomakea

numberofrecommendationsunderthefivethemesof:

1.Theimportanceoftechnology

2.Finance,technologydevelopmentandtransfer

3.Theinadequacyofdomesticlow-carbonpolicies

4.Theimportanceofknowledgeandcapacity

5.Intellectualpropertyrights.

1.Technologyshouldbeattheheartofclimatenegotiations

Intheclimatechangedebate,technologyhasoftenbeenrenderedapoorrelationofthegrand

concernsofsettingtargetsandestablishingeconomy-widepricesignals.Yetnocountry,industrialised

ordeveloping,canachieveitstargetsandmaintainorimprovepeoplesqualityoflifewithout

deployinglow-carbontechnologiesatanearlystageinthedevelopmentofclimatechangepolicy.

Thus,technologyisanessentialbuildingblocktothepracticalachievementofmitigation(and

adaptation)andisthereforeanindispensibleelementoftheinternationalnegotiations.Itisalso

criticaltothepoliticsofclimatechange:aclimatepolicynarrativethatdoesnothaveastrong

technologystoryatitsheartislikelytoprovepoliticallyunsustainable.

TechnologyisalsosalienttothecurrentUNnegotiations.Itstransfertodevelopingcountriesisan

overhangingandlargelyunfulfilledobligationofdevelopedcountrypartiestotheUNFCCCanditfallsdirectlyunderthecriticalParagraph1b(ii)oftheBaliActionPlan(UNFCCC2007b).Notonlyis

technologycriticalbutmeasurestoaccelerateitsdevelopmentandtransfercannotbeavoidedifthere

istobeasuccessfuloutcometothecurrentprocess.

10.Accordingtoone

interviewee,over95

percentofthe

technologiesrequiredtomakemajorprogress

indevelopingcountries

areinthepublic

domainunencumberedbypatents(Nigeria).


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Theemphasisinthetechnologydebateshouldbeplacednotonlyonmitigatingandadaptingto

climatechangebutalsoonsustainablehumandevelopmentand,inparticular,onpovertyalleviation.

Thefocusofpolicymakersmustthereforebeondevelopinganddeployinglow-carbontechnologies

thatarealignedwithcountriesbroaderdevelopmentgoals.Inthisrespect,technologyshouldbe

celebratedasofferingthewin-winopportunityofenablingdevelopmentgoalstobeachievedthrough

environmentallysustainablemeans.

Low-carbontechnologyshouldalsobecelebratedasameansbywhichcountriescandevelopnew

economicopportunitiesandmarketsandcreategoodqualityjobs.Thedevelopmentinrecentyearsof

informationtechnologyperhapsprovidesaninsightintohowlow-carbontechnologydevelopment

shouldbeviewed.TheITsectorhasbeenofbenefittomostcountries,withdevelopedanddeveloping

countriesaliketakingadvantageofitsmanyopportunities.

2.Financegoeshandinhandwithtechnologydevelopmentandtransfer

Almostuniversally,participantsinthisstudyraisedaccesstofinanceasbeingaprimarybarriertoboth

thetransferanddeploymentofexistingtechnologiesandtolow-carbontechnologyresearchand

development.Again,thereisanobligationinthetextoftheBaliActionPlan(alsoinparagraph1b

[ii])fordevelopedcountriestotransferfinancetodevelopingcountries.Thisstudyemphasisesthe

importanceoflinkingtechnologyandfinanceinthenegotiations.

However,participantsinthisstudyfrombothdevelopedanddevelopingcountriesidentifiedlackof

accesstofinanceasabarriertotechnologydevelopmentanddeployment.Mostlow-carbon

technologiesrequiresubstantialup-frontinvestmentandmaybemorecostlytodeploythancarbon-intensivealternatives.Thereforewhilethefocusonfinanceinthenegotiationshasbeenoneither

establishingcarbonmarketsornewfundingmechanisms,otherfinancinginitiativesmaybenecessary.

Itislikelythatthesewillneedtobegovernment-leduntilincentivesforprivatesectorinvestorsare

muchclearerandbetterestablished.Nevertheless,theobjectiveofgovernment-ledfinanceforlow-

carbontechnologyshouldbeprovidingincentivestoleverageprivatesectorfinanceandhelpcrowd

outinvestmentincarbon-intensivealternatives.

GCNrecommendation1.1:Puttechnologyattheheartofclimatenegotiations

Moreemphasisshouldbeplacedontechnologyintheclimatechangedebate,especiallyinthe

ongoingUNFCCCnegotiations.Itsroleinenablingcountriesatallstagesofdevelopmenttoreach

environmentalandsustainabledevelopmentgoalssimultaneouslyiscritical.

GCNrecommendation2.1:Createfocusedincentivesfortechnologydeployment

Whileeconomy-wideincentivesmayhelpinthelongertermandwiththewinningofcommercial

heartsandminds,thekeytechnologiesidentifiedinthisstudyrequiremarkettransformation

throughmorefocusedincentives.Thesemightincludetariffstructuresthatfavourlow-carbon

powergeneration,theremovalofestablishedenergysubsidies,government-ledfinancetosteerkey

technologiessafelythroughthevalleyofdeathandinstrumentstoreducethehigherrisks

associatedwithlarge-scalelow-carbontechnologydeployment.

GCNrecommendation2.2:IncreasefinanceforR&D

Allgovernments,individuallyandincollaborationpreferablythelattermustdramaticallyincrease

thesupplyoffinancetosupportanewInternationalTechnologiesInitiative(seeRecommendation

4.2below),usingpublicmoney(inhighlyconstrainedquantities)todrawinprivateinvestors.

Proposalsalreadytabledinthenegotiationsforagovernment-led,collaborativeventurecapitalfund

andthedevelopmentoflow-carbonR&Dhubsshouldbepursuedasvigorouslyasotherkey

aspectsofthetalks.


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3.Domesticlow-carbonpoliciesarewoefullyinadequate

Inalleightcountries,theabsenceofalong-termlow-carbonpolicyframeworkorsetsofpolicieswas

identifiedespeciallybyprivatesectorintervieweesasamajorimpedimenttothedevelopmentand

deploymentoflow-carbontechnology.ThisisclearlycloselylinkedtoRecommendations1and2

aboveandisleadingtoachroniclackofconfidenceinthetechnologiesthatwilldeliverclimate

changemitigation,especiallyrenewableenergy.

However,nogovernmentisstartingfromscratch.Eachcountryinthestudyhasexcitingexamplesof

successinlow-carbontechnologydevelopmentanddeploymentandthepoliciesthathavehelpedsupportthesesuccessesneedtobeanalysedand,whereappropriate,scaledupandreplicated.

However,thelessonofthisstudyisthatdomesticpolicyreinforcedbyastronginternationalregime

isofabsolutelycriticalimportancetothedevelopmentanddeploymentoflow-carbontechnology.

Onthedeploymentside,andlinkedtoRecommendation2,countriesmustfocusonputtingfinancial

incentivesinplacethroughpolicyinitiativesandbyremovingexistingpositiveincentivesforfossil

fuels(whilepayingcarefulattentiontothenegativesocialimpactsthatthismaybring).Similarly,the

developmentofnewlow-carbontechnology,accordingtothefindingsofthisstudy,requiresurgent

governmentattention.Newinitiativestopromoteandsupportinnovationandsignificantnew

collaborationbetweengovernmentsareneeded.

4.Knowledgeandcapacityareasimportantasequipment

Technologytransferisnotwhollyorperhapsevenmostlyaboutthemovementorlicensingof

equipmentfromjurisdictiontojurisdiction(althoughclearlysomeearlyclimateandpoliticalvictories

mightemergefromensuringthishappens).Italsoconcernsthedevelopmentofskillsandknow-how

inordertouseequipmentandtoinnovateinthefuture,todevelopandmanufactureindigenouslow-

carbontechnologies,andtogroweconomicopportunityoutofthelow-carbonseedbed.

Inaddition,knowledgeofgoodpolicymakingtopromotelow-carbontechnologydevelopmentand

transferisimportant.Thepaucityofdomesticlow-carbonstrategieshighlightedinthisstudypointstoaverysignificantneedforlearningamonggovernmentsandpublicservantsintheareaofdeveloping

andintroducingpolicytoacceleratelow-carbontechnology.Enhancingcountriescapacityand

knowledgeoflow-carbontechnologiesandlow-carbontechnologypolicyisthereforeofhigh

importance.

GCNrecommendation2.3:Linktechnologyandfinanceininternationaltalks

Inallcountriesinthisstudythereisalackofup-frontfinanceandfinancialincentivestospur

greaterdeploymentoflow-carbontechnologies.Whatisneededismarkettransformationthrough

governmentactivism,whichattheinternationallevelmeansfinancingtosupportpolicyreforms,

promotionalactivities,capacity-building,and,inparticular,thediffusionoftechnologythatisimportantandofdirectmaterialbenefittopoorpeopleindevelopingcountries.

GCNrecommendation3.1:Developnationallow-carbontechnologystrategies

BeyondtheUNFCCCnegotiations,leadershipcountriesatdifferentlevelsofdevelopmentshould

establishlow-carbontechnologystrategiesthatinterlockwiththeirindustrialdevelopmentand

energysecuritypoliciesandaimtoacceleratethedeploymentofkeytechnologies.Suchinitiatives

shouldattractformalrecognitionandfinanceinafutureinternationalframework.National

strategiesshouldbethebuildingblocksofagreementwiththeirprobableimpactonemissions

registeredinternationallyandthenmeasuredandverified.

GCNrecommendation3.2:GiveanurgentboosttoR&Dinitiatives

Callsforanincreaseinspendingonlow-carbonR&Dmustbetakenseriously.Governmentsshould

increasetheirsupportforR&Datthenationallevelaspartoftheirnationallow-carbontechnology

strategiesandincreasedR&Dfinance.AmajorInternationalTechnologiesInitiativetoaccelerateR&Dshouldbeakeypartofanynewinternationalframeworkforaction(see4.2below).


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5.Intellectualpropertyrightsneedcarefulattention

Privatesectorintervieweesinthisstudy,inbothdevelopedanddevelopingcountries,tendedtounderlinetheimportanceofobservingintellectualpropertyrightsasaspurtoinnovation.However,

governmentintervieweesindevelopingcountriessawIPasobstructiveinthedeploymentoflow-

carbontechnology;theliteraturesupportsbothpointsofview,becausewithoutstrongIP,technology

developerswillbereluctanttodeploybutalsobecausedeploymentmayremainslowasaresultofthe

costsoflicensing.

TheGCNthereforeconcludesthatthereisnoeasyansweronIPbutthatitshouldnotbecome

obstructive.Therefore,insomecasesstrongerobservanceandenforcementofIPrightsmight

encouragetechnologydeveloperstorolloutnewtechnologyinmorejurisdictionsmorequickly.In

others,thecostsoflicensing(asdistinctfromwholesalepurchaseofIPbygovernments)couldbe

anotherfocusoffinancialsupportbydevelopedcountrygovernments,adefactosubsidyto

developersoflow-carbontechnology.

GCNrecommendation4.1:Pilotjointlearningandcapacity-building

Oneclearareathatcouldbenefitfrominternationalagreementisinthesharingoftechnical

knowledge,throughcapacity-buildingandmutuallearningprogrammes.Internationalcooperation

willbemorerobustifgovernmentsagreetocollaborateeitherinsideoroutsideaformal

agreementontechnologydeployment,focusingonashortlistofkeytechnologies,includingmeasurestoincreaseenergyefficiency.

GCNrecommendation4.2:Establishjointinnovationforfuturetechnologies

TheGCNbelievesanewInternationalTechnologiesInitiativeisnecessary,inwhichregionaland

globalinnovationhubsprovideafocalpointforcollaborationonthedevelopmentofbreakthrough

low-carbontechnology.Thisinitiativecoulddeliveropenaccesstechnologiesandknowledge,

borrowingideasfromtheemergingopeninnovationmovement,therebyreducingthefuturecostof

deployment.

GCNrecommendation5.1:Rewardtechnologyrisk-takerswithIPrights

Thedevelopersofexistingtechnology,someofwhichissubjecttopatentsrestrictingitsgeneric

manufactureanduse,shouldbeassuredofstrongenforcementoftheirIPiftheylicenseanddoso

atreasonablecost.Conversely,patentscouldbewithdrawnifdevelopersseekinappropriatelyhigh

rentsfromtheirIPprotectionoruseIPtorestrictatechnologysuse.

GCNrecommendation5.2:Developnewtechnologycollaboratively

Infuture,low-carboninnovationcouldbedrivenbycollaborativeinitiatives,suchasthe

InternationalTechnologyInitiativeproposedin4.2above.Technologymightthereforebeopen

access,withanemphasisonasharingofequipment,butalsoonthedevelopmentoflocallyappropriateversions.


23/28


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Appendix:Listofinterviewees

DrY.P.Abbi,DistinguishedFellow,TheEnergyandResourcesInstitute(TERI)andFormerExecutive

DirectorofBharatHeavyElectricalsLimited(BHEL),India

DanAdler,President,CaliforniaCleanEnergyFundInnovations,USA

ObiomaAduku-Brown,NationalOfficeforTechnologyAcquisitionandPromotion,Nigeria

DrRamgopalAggrawal,SeniorAdviser,ResearchandInformationSystemforDevelopingCountries

(RIS),India

DrA.Ajakaye,DirectorGeneral,NationalOilSpillDetectionandResponseAgency,Nigeria

DrEmmaArcher,SeniorResearcher,CouncilforScientificandIndustrialResearch(CSIR),SouthAfrica

DrGuilhermeAryPlonsky,ScientificCoordinator,CenterforPolicyandTechnologicalManagement,

UniversityofSaoPaulo(PGT/USP),Brazil

WangBaiyu,SeniorManager,ClimateChangeCapital,China

DrAyoBalogun,GroupGeneralManager,NigeriaNationalPetroleumCorporation

RuthBrand,HeadofBerlinOffice,Enercon,Germany

ChandraBrown,VicePresident,RenewableEnergyProgramManager,OregonIronWorks,USA

LiuCaifeng,NationalInstituteofStandardization,China

EduardoCanepa,AmazonFundManagementDepartment,EnvironmentalDepartment,Brazilian

DevelopmentBank(BNDES)

DrKoshyCherail,President,AllianceforanEnergyEfficientEconomy,India

ChristopherClarke,ExecutiveDirectorandPrincipal,InspiredEvolutionInvestmentManagement,SouthAfrica

HuangDai,SeniorManager,GuangdongDevelopmentBankCo.Ltd,China

QiuDonggang,ViceManagerGeneral,BeijingJingnengEnergyTechnologyInvestmentCO,China

MaoshengDuan,AssociateProfessor,InstituteofGlobalClimateChange,TsinghuaUniversity,China

PeterEkweozoh,AssistantDirectorandHeadofClimateChangeDesk,FederalMinistryofScience&

Technology,Nigeria

DrA.A.Esan,UNIDORegionalCentreforSmallHydropower,Nigeria

DrRosemaryFalcon,DirectoroftheFossilFuelFoundationofAfricaandProfessorattheUniversityof

theWitwatersrand,SouthAfrica

Min.LuizAlbertoFigueiredoMachado,Vice-chairoftheAWG-LCAandDirectoroftheDepartmentof

EnvironmentandSpecialIssues,MinistryofExternalRelations(MRE),Brazil.

DrVictorFodeke,HeadoftheSpecialClimateChangeUnit,FederalMinistryofEnvironment,Nigeria

PaulFrankel,ManagingDirector,CaliforniaCleanEnergyFundInnovations,USA

IanFry,EnvironmentDepartment,GovernmentofTuvalu,Australia

DrCollinsGardner,ChairmanofthePresidentialImplementationCommitteefortheClean

DevelopmentMechanism,Nigeria

MarkCraft,DirectorofExecutiveandFinancialCommunication,DukeEnergy,USA

RajivGarg,EnergyEconomist,BureauofEnergyEfficiency,MinistryofPower,GovernmentofIndia

ProfessorRossGarnaut,UniversityofMelbourne,Australia


26/28


ValerieGeen,Director,NationalBusinessInitiative(NBI),SouthAfrica

DavidGibson,RenewableEnergyProgramManager,OregonIronWorks,USA

DrProdiptoGhosh,NegotiatorfortheIndianDelegationtotheUNFCCC

DrJoseGoldemberg,Professor,UniversityofSaoPaulo(USP),Brazil

DrJosDomingosGonzalesMiguez,GeneralCoordinatoronGlobalClimateChange,Ministryof

ScienceandTechnology(MCT),Brazil

DrDanGwary,SeniorLecturer,UniversityofMaiduguriandChairofIPCCWG,Nigeria

QinHaiyan,SecretaryGeneral,ChineseWindEnergyAssociation

EmmaHerd,WestpacBankingCorporation,Australia

RainerHinrichs-Rahlwes,BoardMemberoftheGermanRenewableEnergyFederation(BEE)and

Vice-PresidentoftheEuropeanRenewableEnergyFoundation(EREF),Germany

StephenHowes,Professor,CrawfordSchoolofEconomicsandGovernment,TheAustralianNational

University

Dr.MartinJnicke,FoundingDirectorandProf.Emeritus,EnvironmentalPolicyResearchCentre,Freie

UniversittBerlin,Germany

YuJie,SeniorManager,ClimateChangeCapital,China

KejunJiang,SeniorResearchFellow,EnergyResearchInstitute(ERI),NationalDevelopmentand

ReformCommission(NDRC),China

MuyiKazim,ExecutiveDirector,UnitedBankforAfrica,Nigeria

KevinKnobloch,President,TheUnionofConcernedScientists,USA

SangeetKumarDave,NationalThermalPowerCorporationLimited,India

DrThelmaKrugg,HeadoftheInternationalAffairsOffice,INPE,Brazil

KevinLeahy,ManagingDirectorofClimatePolicy,DukeEnergy,USA

AngLi,ClimateandEnergyProgramme,WorldWideFundforNature(WWF)China

GaoLi,Director,ClimateChangeDepartmentoftheNationalDevelopmentandReformCommission

(NDRC)andActingHeadoftheChineseDelegationtotheUNFCCC

LiyanLi,DeputyHead,ClimateChangeDepartmentofNationalDevelopmentandReform

Commission(NDRC),China

HolgerLiptow,HeadofEnergyandTransport,GTZ,Germany

XueduLu,DeputyHead,OfficeofGlobalEnvironmentalAffairs,ChineseMinistryofScienceand

TechnologyandMemberoftheChineseDelegationtotheUNFCCC

DrThembakaziMali,SeniorManager,CleanEnergySolutions,So

Documents

Breaking Through on Technology: Overcoming the Barriers to the Development and Wide Deployment of Low-Carbon Technology