Transcript Presentation on the IPCC Special Report on Methodological

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
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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: OctoberNovember 1999
• Final Draft distributed: January 5, 2000
• IPCC Working Group III meeting for approval SPM /
acceptance Report: March 8-10, Kathmandu, Nepal
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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 cooperation
• 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
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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
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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
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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
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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?
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What are the main barriers for
technology transfer?
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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
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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)
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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
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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
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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
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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
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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
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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
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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)
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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
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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
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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
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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
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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
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