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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
8/14/2019 Breaking Through on Technology: Overcoming the Barriers to the Development and Wide Deployment of Low-Car
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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
orc/oippr,30-32
SouthamptonStreet,
LondonWC2E7RA,
UnitedKingdom
www.glo
balclimatenetwork.info
8/14/2019 Breaking Through on Technology: Overcoming the Barriers to the Development and Wide Deployment of Low-Car
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GlobalClimateNetwork BreakingThroughonTechnology3
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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GlobalClimateNetwork BreakingThroughonTechnology4
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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GlobalClimateNetwork BreakingThroughonTechnology5
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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GlobalClimateNetwork BreakingThroughonTechnology6
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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GlobalClimateNetwork BreakingThroughonTechnology7
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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GlobalClimateNetwork BreakingThroughonTechnology8
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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GlobalClimateNetwork BreakingThroughonTechnology9
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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GlobalClimateNetwork BreakingThroughonTechnology10
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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GlobalClimateNetwork BreakingThroughonTechnology12
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
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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.
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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
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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