Technology Transfer

Barriers to successful technology transfer

Despite more than ten years of climate negotiations, developing countries continue to face a number of problems and barriers which hinder the successful transfer of climate technologies. Some problems which developing countries face include: a) intellectual property rights; b) poor infrastructure in their countries; c) poorly implemented laws and regulations; d) weak local supporting industry; e) political and macroeconomic instability; and f) trade barriers. 

One of the more contentious issues is that of intellectual property rights (IPRs). In the view of many developing nations, patents for environmentally sound technologies remain in the hands of developed country corporations, making it difficult for developing country enterprises to gain access to knowledge related to the development and deployment of climate friendly technologies. For example, developed country holders of knowledge patents on green technologies can refuse to grant permission to enterprises in the developing world. As a result, developing country enterprises cannot gain access to clean energy technologies nor can they afford to buy innovative, climate friendly technologies.  

At the recent UN climate talks in Poznan, Poland (December 2008), developing countries stressed the need to depart from a commercial approach to IPRs in environmentally sound technologies. In addition, developing countries claimed that the amount of financial resources for technology transfer is inadequate and should be significantly increased. China proposed a mechanism called the Multilateral Climate Fund, which would operate within the UNFCCC and would finance activities in developing countries specifically related to clean energy research, diffusion and transfer. And India noted that at present financing is limited and urged for a speedier and longer term focus on technology transfer.

However, in Poznan, there were also positive developments in relation to technology transfer. For instance, governments decided upon the Global Environment Facility’s “Poznan Strategic Programme on Technology Transfer,” which would increase investment in technology transfer. The programme would be funded by 50 million euros of existing resources from the Global Environmental Facility (The GEF is a global partnership among 178 countries, international institutions, non-governmental organizations (NGOs) and the private sector to address global environmental issues). 

Recommendations for a technology transfer mechanism

Negotiations are now underway to create a post-Kyoto climate agreement. Climate change technology will play a key role in these negotiations. Recommendations for ensuring that a mechanism is put in place, facilitating the successful transfer of climate change technologies to include the following:

• Networks for knowledge sharing: Developed and developing countries could join networks that promote exchange of knowledge and experience and mutual assistance to achieve goals.

• Relaxation of Intellectual Property Rights Rules.

• Establishment of appropriate regulations and policies: Governments could induce technology change through regulation of energy markets, environmental regulations, energy efficiency standards, and energy and emission taxes. Many GHG reduction policies also help reduce air pollution, provide energy independence and have many other collateral benefits.

• A single-window facility: At present the donor money for climate change flows through many agencies like the GEF, Bilateral Aid Agencies, UN organizations, etc. The activities are dispersed, uncoordinated and with no long term goals. A single technology transfer mechanism could be the focal organization through which all the programs of all the agencies pass through.

• Activities eligible for Assistance: A technology transfer mechanism would only assist those countries that agree to specific short and long term voluntary goals (that can be reviewed periodically). These goals would be part of a country program that would be prepared by countries and approved by the technology transfer mechanism.

• Trade Tariffs placed on clean energy technologies should be reduced or eliminated.

• Independent Technical Advice.: The UNFCCC needs an independent body, modeled after the Technology and Economic Assessment Panel (TEAP) of the Montreal Protocol. The Panel of experts chosen by the Parties can be assisted by technical options committees of experts for as many sectors as necessary.

• Administration of a Technology Transfer Mechanism: The Mechanism should be administered through an Executive Committee consisting of equal number of representatives of donors as well as recipients. The decisions are through a consensus or though a double majority of both the groups. ³.

Footnotes

¹ Durwood Zaelke and Madhava Sarma. "Technology Transfer Mechanism for Climate Protection" in Worldwatch Institute, State of the World 2009: Into a Warming World.

² Farhana Yamin and Joanna Depledge. The International Climate Change Regime: A Guide to Rules, Institutions and Procedures. Cambridge University Press, 2004.

³ Durwood Zaelke and Madhava Sarma. 'Technology Transfer Mechanism for Climate Protection" in Worldwatch Institute, State of the World 2009: Into a Warming World.

Resources

United Nations Framework Convention on Climate Change. "Development and Transfer of Technologies."