XX.XX.2009 Patents and Clean Energy: Bridging the gap between evidence and policy Seite 1 Patents and Clean Energy Bridging the gap between evidence and policy through ground breaking empirical evidence Ahmed Abdel Latif, ICTSD Dialogue on Trade and Climate Change, Emerging Economies 30 th March Delhi

Discussions on IPRs and climate change are controversial Disagreements on whether IPRs are a barrier to the transfer of clean technologies or an essential pre- requisite to promote innovation, technology development and transfer. Much of the discussions have been confined to generalisations and lacked an informed policy perspective and a solid empirical basis. Discussions on this issue are likely continue until Mexico.

What is needed? Deconstructing the Role of IPRs in Technology Transfer Technology Transfer (TT) is a complex and multidimensional process. Its success is contingent on many factors (finance, local absorptive capacity, enabling environment). TT involves knowledge which is embodied not only in IPRs such as patents but also in blueprints, designs, know-how and trade secrets. IPRs are important to promote innovation. By offering protection against a loss of control of information in technology-related transactions, IPRs can be an instrument facilitating the transfer of technology. IPRs have also an impact on cost of technology acquisition and rate of technology diffusion. Licensing conditions play a key role. Role of IPRs varies according to technology and sector. IP issues raised in the context of mitigation technologies are different from those in the context of adaptation.

Groundbreaking Empirical Evidence : the UNEP-EPO-ICTSD Project on Patents and Clean Energy The scale of the challenge is such that only a broadly based partnership can succeed. UNEP-EPO-ICTSD Project on Patents and Clean Energy announced in April 2009 on the occasion of world IP day. → Unique Partnership → Robust Methodology → Some Preliminary Findings

The UNEP-EPO-ICTSD Project on Patents and Clean Energy: a unique and innovative partnership Each organization brings its perspective, skills and expertise to the project : → UNEP (UN Agency/Green Economy Initiative) → European Patent Office ( Specialized Expertise in Patents) → ICTSD (NGO/Work on IPRs and Sust. Development) The project components: → Technology Mapping → Patent Landscape of energy generation technologies → Survey of Licensing practices in clean energies

Broad dissemination of results Licensing survey for selected companies and institutions per sector Synthesis report to better inform UNFCCC negotiations on transfer of technology and financing Research and Analytical Steps Identification and specification of technologies for mitigation Technology Mapping studies in 4 key mitigation sectors identified by the IPCC Patent landscaping: What patents exist on these technologies? EnergyBuildingsTransportIndustry PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5 Current projectFurther possible projects

The UNEP-EPO-ICTSD Project on Patents and Clean Energy: A Robust Methodology Simultaneous combination in the same study of technology mapping, patent landscape and survey of licensing practices. Technology Mapping validated by IPCC experts. Patent landscape carried out by EPO patent examiners. Survey of Licensing Practices carried out in cooperation with business associations. EPO has developed new and more specific classification codes for tracking clean energy technologies. Data include worldwide patent documents. → Continuous flow of patent information on clean energy technologies accessible to researchers and the general public.

Patent landscaping and statistical analysis for Clean Energy Technologies Problem: No classes in international patent classification (IPC) to group and analyse patent data for CCMT Phase 2.1: Identification ('tagging') of worldwide patents in the field of clean energy by EPO experts Phase 2.2: Statistical analysis of the retrieved data by the OECD's Environment Directorate

Energy generation through renewable sources Geothermal energy Hydro energy Energy from sea Solar thermal energy Photovoltaic (PV) energy Thermal-PV hybrids Wind energy

Solar energy- Solar Thermal (1/2) Solar thermal energy Tower concentrators Dish collectors Fresnel lenses Heat exchange systems Trough concentrators For electricity generation, e.g. Stirling solar- thermal generators Mountings or tracking Mechanical power

Example: Solar energy - Photovoltaic (PV) & hybrids (2/2) PV systems with concentrators Material technologies CuInSe2 material PV cells Dye sensitized solar cells Solar cells from Group II- VI materials Solar cells from Group III- V materials Microcrystalline silicon PV cells Polycrystalline silicon PV cells Amorphous silicon PV cells Electrical aspects Power interface Power management M.P.P.T. systems Thermal-PV hybrids

The UNEP-EPO-ICTSD Project on Patents and Clean Energy: The Patent Landscape: Some Findings The areas of technology targeted in the searches were: wind energy; hydro/marine energy; solar energy; geothermal energy; biofuels; carbon capture and storage, and energy storage. Landscape shows increase in patenting in clean energy technologies as against fossil fuel energy. In particular, wind- power, solar photovoltaic and CO  capture have been exhibiting a rapid growth in recent years. The patenting activity across all clean energy technology appears to be dominated by Japan, US, Germany, Korea, Great Britain and France. Significantly, 87% of solar photovoltaic patents are invented by Japan, US, Germany, Korea and France.

Growth rate of clean energy patenting ( )

The UNEP-EPO-ICTSD Project on Patents and Clean Energy: The Survey of Licensing Practices Part A: General questions – Proportion of CCMT-related patents – Importance and tendency of CCMT In-Out-Licensing activities – collaborative IP mechanisms, importance for overall business strategy Part B: Developing countries (DC) –Licensing activities in developing countries, which? –Factors affecting licensing agreements in DC? –Flexibility of licensing terms in DC? Part C: General statistics –Type of organization, country of head quarter, size, CCMT fields, R&D

Survey Sample structure Some 150 questionnaires received (50% via on-line survey) Wide range of responding organizations (multinationals, universities, government agencies) Size Character

The UNEP-EPO-ICTSD Project on Patents and Clean Energy: Survey of Licensing Practices: Some Findings IP laws and protection in the developing country where the technology is to be licensed was an important factor for technology holders. However, of equal importance to licensors was the scientific capabilities, infrastructure, human-capital of the licensee. The main recipients of licensing or other commercialization activities of IPRs were the BRICS countries, with China topping the list. 70% of patent owners indicated that they are willing to provide more flexible licensing for entities that are based in developing countries.

Relationship with developing countries 'To what extent has your organization entered licensing agreements that involve licensees (which are not majority- controlled subsidiaries) based in developing countries in the last three years?'

Providing inputs to climate change negotiations Preliminary findings of UNEP-EPO-ICTSD project were presented at side event at COP-15, in Copenhagen, on 18 th December Consultations in Geneva on February 15 th with the private sector, IGOs and NGOs to seek substantive feedback and comments on preliminary findings. Final Report is expected to be released in June Next phase of the project is looking into technology demand side country case studies. During 2010, active engagement with negotiators and different stakeholders to use emerging evidence and policy oriented research and take it into consideration in the final negotiations

Thank you ICTSD initiative on Climate Technology and Trade