Promoting green technology development and transfer for inclusive green economy Expert Group Meeting on Enabling Measures for an Inclusive Green Economy in Africa 23 and 24 September 2014, Addis Ababa, Ethiopia

Outline  Introduction  Trends in technology development and transfer  The role of international agreements and arrangement in facilitating technology development and transfer  Challenges and opportunities  Conclusion and policy recommendations

Introduction  Technology: a key driver in any development paradigm, impacts on process and outcome  Transition to IGE necessitates a technology shift to green technologies.  What is green technology?  Also clean or mean environmentally sound technologies  In this chapter: “green technologies may be considered as those that facilitate or accelerate improvements in economic and social well- being while minimising negative impacts on the environment.”  Cover a huge range such as renewable energy, improved crop management, energy-efficient appliances, waste management, forestry-related technologies and more clean and efficient vehicles, improved irrigation systems, sustainable buildings, etc.  These may be domestically developed or transferred.

Introduction Cont’d.  The role of technology in facilitating inclusive green economy  Potential for a sustainable path to Africa’s structural transformation;  However, development and use may often entail relatively higher initial investment costs, recognition of benefits should inspire investment;  Renewable energy access with multiplier effect- (74% of total, 92% rural population - no access to electricity);  Boosting agricultural productivity -High-yielding variety seeds (NERICA), agro ecologically-based methods (SRI), dissemination (mobile Apps);  Sustainable industrial development – Cleaner production, etc;  Job creation – Managers, scientists, technicians, etc; investments needed but there is potential in addressing unemployment;  Savings from operational costs – e.g for up to 10times of the additional 0-12% costs for green buildings;  Avoid abatement and pollution costs – were estimated at 2- 7% of GDP in Middle East and North African.

Trends in technology development and transfer  Patent applications - increase in total patent applications by about 30.6% in 2012 compared to 2005 (from 14,425 to 20,805; by 28.3% for world);  Using climate change technologies as example, low inventive capacity (0.24% and 0.26% of global for mitigation and adaptation resp.)  But a growth rate of 9 %, 5% global,  59 % for mitigation technologies, 17% for adaptation technologies 1980 – 2009 periods (UNEP/EPO, 2013).  High-technology products - 60% compared to 67% global increase during the period, but low volume, less than 0.25% of Global,  Africa posted the fastest growth – a three- fold increase, in capital goods imports between 2001 and 2006, despite being the lowest over period (ECA, 2010).

Trends in TDT Cont’d.  Increasing desire to promote R&D;  Creation of institutions for R&D, Universities playing a key role,  R&D in public research institutions e.g CSIR in Ghana,  Increasing Partnerships, ASARECA, African Laser Centre (ALC), CGIAR  Share of international research collaborations in clean energy technologies - 23%, 12% worldwide  However, performance of institutions is still generally low, universities quality of research outputs impacted by poor facilities.  General increase in FDI over the last two decades - green FDI flow to developing countries between estimated as under USD 8 billion (1.9%) and close to USD 190 billion (46.1%) of total FDI per year.  Countries would have to facilitate transfer among firms and leverage resources and infrastructure, e.g Tunisia using innovation clusters to promote a shift to technology based economy, a concept successfully applied in the Silicon Valley, USA.

The role of international agreements and arrangement  UNFCCC - Protracted negotiations, e.g TM to enhance clean TDT took more than 1yrs from proposal date to start receiving applications for support in 2014,  The CDM could facilitate green TDT but is limited in Africa - 88% of projects go to 10 countries, none of which is African,  Steps taken under the CBD e.g adoption of the programme of work on tech transfer and scientific and technological cooperation in 2004 and strategy for its implementation in 2008,  The MP - relative success, > USD171 m US dollars (about 32% of the global financing) for enabling activities - institutional strengthening & training,  GEF – renewable energy and energy efficiency projects % (639) projects supported were in Africa,  Bali Strategic Plan for Technology Support and Capacity Building (BSP) initiatives –e.g UNEP SSC Exchange Mechanism  The UNFCCC, the CBD, and the MP - call for cooperation, put responsibility on developed countries to promote, facilitate and finance the transfer of, or access to environmentally sound technologies and know-how to developing countries,

International agreements Cont’d  Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)  Developed countries to incentivise tech transfer to LDCs and support cooperation (Article 66.2)  Mandated reporting of initiatives to put in place incentives for developed Members - limited compliance and little evidence of resultant significant additional beyond business-as-usual.  Other WTO Agreements: GATS, SPS, and TBT also include measures encourages support for developing countries to access technology,  WTO WGTTT - recommendations such as enhanced flexibility to implement activities designed to encourage technology flows etc,  The NEPAD framework, CPA, & AIDA; and Strategy for the Implementation of the AIDA, 2008; Technology and Innovation Strategy for Africa - STISA  However, role of arrangements has been limited: lack of synergy among existing funding mechanisms, insufficient national policies and frameworks, limited linkages between technology needs and capacities, inadequate progress tracking, unresolved intellectual property issues, and the homogenous approach for all developing countries despite differences.

Challenges and opportunities  Challenges:  Weak support systems for technology innovation value chain discourages innovation,  Limited financing to promote technology innovation, and nurturing of ideas,  There is slow progress or difficulty in the implementation of international commitments,  Many countries in Africa suffer from inadequacy of persons with the skills required,  The pressing need for rapid economic growth and poverty eradication

Challenges and opportunities  Opportunities:  Existing international arrangements,  Young and dynamic population,  Information and communication technology,  South-south cooperation,  The private sector,  The emergence of the national systems of innovations (NSIs)

Conclusion and recommendations Africa has in the past seven to ten years realised improvements in green technology development and transfer, however overall levels remain very low. Multinational environmental and trade agreements and arrangements are helping in mobilising and leveraging international support for green technology development and transfer (TDT) to Africa, however their role has faced limitations. Although several challenges impede green technology development and transfer in Africa, there are immense opportunities its promotion. African countries therefore need to accelerate implementing appropriate measures to address challenges and harness opportunities for promoting green TDT.

Recommendations Mix of policy, legal and regulatory framework that synergistically covers environmental, trade, industry and technology, including guidelines for infrastructure development such as for green buildings; Building of human capital cross for a wide range of required skills; Developing both “hard” and “soft” science, innovation and technology infrastructure; Innovative financing arrangements; Building academic-industry-public partnership (AIPP); Exploring opportunities provided by international cooperation/ partnership arrangements; However, a clear vision, a committed political and professional leadership, and a strong belief are necessary conditions for initiating and implementing measures

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