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The draft IPCC Special Report on Technology Transfer What can it mean for decisions to be taken by the Parties to the UNFCCC? Bert Metz co-chair IPCC Working Group III INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)
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Background SR requested by SBSTA to assist Parties in implementing UNFCCC provisions (art 4.1, 4.5) Full title: methodological and technological issues in technology transfer Govt review: May- June 1999 Additional Govt review Technical Summary: October- November 1999 Final Draft distributed: January 5, 2000 IPCC Working Group III meeting for approval SPM / acceptance Report: March 8-10, Kathmandu, Nepal INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)
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What does IPCC mean with technology transfer? Broad set of processes, covering flow of knowledge, experience, equipment amongst stakeholders Includes technology diffusion and technology co- operation Within and across countries Between developed and developing countries as well as within/amongst each of the groups Includes learning to understand, choose, utilise, replicate and adapt technology INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)
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Why is technology transfer important? Achieving ultimate objective of UNFCCC (stabilisation of concentrations at “safe level”) requires rapid technological innovation and widespread transfer of environmentally sound mitigation technologies Adaptation to climate change is inevitable and that also requires the transfer of adaptation technologies Fits into the broader need for all countries to find new sustainable paths for development INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)
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Current trends of technology transfer No good measurements; financial flows only limited indicator for TT “across” countries ODA trend downward; primary source for countries and sectors with low private capital flows; important for creating enabling conditions Private finance supplies >3/4 of net flows to developing countries, but large differences between countries: –Africa: $27/cap aid vs $3/cap FDI (1997) –Latin America: $13/cap aid vs $62/cap FDI (1997) Private sector role more important, but definite role for governments directly and in creating enabling conditions INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)
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Stakeholders, sectors etc. Technology transfer results from the combined actions, networks of and partnerships between many stakeholders Key players: private firms, financiers, state owned enterprises, government, NGO’s, community groups, international institutions, information providers, R&D organisations, business consultants Ways of interaction vary with sector, country and type of technology: purchase, FDI, licensing, joint ventures, government assistance, R&D co-operation INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)
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4/CP.4 :Consultative process questions What are the main barriers for technology transfer and how to remove them? How can private sector play additional role in facilitating technology transfer and how can enabling environment for private investment be created? What additional activities need priority attention? What areas should be the focus of capacity building and how should it be undertaken? How to facilitate transfer and access to emerging technologies and publicly owned technologies? Are existing mechanisms sufficient? Are new mechanisms needed? What can multilateral institutions do? How can progress on technology transfer be better monitored? INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)
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What are the main barriers for technology transfer? Data, information, knowledge, awareness Transaction costs Access to capital, esp smaller firms Risk aversion in financial institutions, incl MDB’s Trade barriers such as tariffs Human and institutional capabilities Understanding of local needs Missing codes and standards for EST’s Low, subsidised conventional energy prices Absence of full-cost pricing INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)
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How to overcome barriers? No magic bullet Depends on sector, technology pathway, country Integrated approach: all relevant factors to be included (“the weakest chain ….”) Increase the flow: more technology to those who need it Improve the quality: the right technology (EST) INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)
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How can private sector play additional role in facilitating technology transfer and how can enabling environment for private investment be created? (1) All governments to consider: reform of legal systems protection of intellectual property rights and measures for active use of patents encouragement of financial reforms, competitive capital markets, FDI, provision of special financial lending for EST’s and Energy Service Companies, transparent foreign investment policies simplifying approval and procurement procedures promotion of open trade policies and competitive markets building national markets for EST’s INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)
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How can private sector play additional role in facilitating technology transfer and how can enabling environment for private investment be created? (2) Developed country governments: stimulate fair competition in EST markets by discouraging restrictive business practices reform export credit and risk insurance to encourage FDI in EST’s and discourage exports that lower environmental quality reduce export controls and tied aid encourage multinationals to apply uniform standards INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)
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How can private sector play additional role in facilitating technology transfer and how can enabling environment for private investment be created? (3) Developing country governments: Ensure assessment of local needs and social impacts Create awareness about EST’s Open markets for EST’s from other developing countries INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)
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What additional activities to facilitate technology transfer need priority attention? All governments: Internalise full environmental and social costs Reduce commercial risk and actively support replication of innovate EST’s Developed country governments: Increase national and multilateral development assistance for EST’s INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)
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What areas should be the focus of capacity building and how should it be undertaken? (1) Human capacity –technical, business, regulatory skills –include broad range of training in capacity building projects and ensure integration Organisational capacity –strengthen networks of organisations, particularly assessment, management, financial, legal services –provide adequate communication infrastructure –promote private firms covering essential organisational services –encourage associations of professionals, private firms and consumers –use participatory approaches in policy making and project formulation and decentralise decision making where appropriate INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)
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What areas should be the focus of capacity building and how should it be undertaken? (2) Information assessment and monitoring capacity: –do not focus too narrowly on information barriers; they are just one of many –private sector role in information exchange is growing: internet services, information specialty firms, trade publications –governments should emphasise linking national information systems on EST’s to regional and global networks –when using clearing houses a well defined focus is important for being effective INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)
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How to facilitate transfer and access to emerging technologies and publicly owned technologies? Increase public R&D funding for EST’s Publicly owned technology is small sub-set of publicly supported technology Encourage transfer of publicly supported (or owned) technology by stimulating R&D partnerships with developing countries (developed countries) Provide funding for patent licensing where appropriate (developed countries) INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)
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Are existing mechanisms sufficient? Critical for GEF effectiveness: –sustainability of market development –replication of successful models –enhanced links with MDB’s and other technology transfer financing –co-ordination with activities that support national systems of innovation and international technology partnerships –attention to south- south transfer INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)
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What can multilateral institutions do? Governments can use their leverage through Boards and Councils of MDB’s Environmental dimensions of lending to be strengthened Develop focussed programs to remove barriers for private sector technology transfer Encourage participation in building national systems of innovation INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)
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Are new mechanisms needed? (1) Kyoto Protocol mechanisms: –contingent on entry into force of Kyoto protocol –potential to add to art 4.5 activities –encourage co-operation between developed and developing countries and between government and private sector and community organisations –can complement other capacity building and enabling activities INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)
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Are new mechanisms needed? (2) National Systems of Innovation: –Integration of capacity building, access to information and creating enabling environment –stimulate partnerships between all relevant private and public stakeholders, both domestically as well as internationally –provide focus for activities of GEF, MDB’s and other international organisations –include wide variety of activities, such as training, strengthening educational institutions, assessment of information, identification of solutions for removing barriers, innovative financing mechanisms INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)
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How can progress on technology transfer be better monitored? Establish collectively a system of improved indicators and data collection on quality and flows of EST’s Technology performance benchmarks could be compiled to indicate the implementation of EST’s and the potential for technological improvements INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC)
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