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China-EU Networks of Low Carbon Innovation Prospects & Constraints Dr David Tyfield IAS, Lancaster University & Demos SPPM Tsinghua, Beijing 9th May 2008 Global Transition to Low Carbon Systems • Climate change as a global and social problem • Change in socio-economic systems needed • Massive reductions in GHG emissions needed • Not “reducing” but transforming human impact • Time limit (e.g. Stern Review) • How effect this shift? • Innovation • International collaboration Low Carbon Innovation Great interest from policy BUT what is it? “Systems” change – climate change as social issue Not just technology but also social innovation “Disruptive Innovation” – fundamental challenges to socio-economic systems (e.g. Barnsley biomass) • “Democratic Innovation” – dispersed, open, user • Innovation is always a socio-political process • What low carbon systems are envisaged and supported by policy, business and civil society? • • • • Bringing Coals to Shanxi? China’s Environmental Problems • Economic growth ≈10% since 1990 • >200 million out of poverty BUT • Massive pollution problems • “16 of 20” world’s most polluted cities (World Bank). • No. 1 absolute emitter of GHGs (BUT small per person) • Huge rate of growth of energy consumption • Vulnerability to climate change • Recognition that climate change is a problem for China now • China cannot choose and must not be forced to choose between development and environment International Collaboration • No socioeconomic bloc alone has the capacity to move to low carbon systems • Free rider problem • Effects of climate change not evenly distributed BUT global implications in any case • Low carbon innovation must have global roll-out to have requisite effect • China is a crucial part of this process – a large, industrialised but still-developing country • ESRC/AIM Project examining prospects and constraints for EU-China low carbon collaborations The Atlas of Ideas www.atlasofideas.org Low Carbon Innovation in China • Ambiguous current state - Can China “leapfrog”? • Serious environmental and social challenges • 70% of CDM market Energy • Renewable: Suntech, Rizhao, Wind power Urban Transport • Dalian Institute, Wuhan and USTC on fuel cells Agriculture • Reforestation of Loess Plateau Motivations for Collaboration EU/UK with China • Market opportunities • Large, industrious and increasingly skilled workforce • Sector specific opportunities e.g. drought, coal, cars… • Investment in future links/ funding opportunities China with EU/UK • Technological and research expertise • Improve indigenous innovation capacity • Access to international publications/ increase impact • Domestic political cachet Constraints on Collaboration 1 Business China • IPRs/ confidentiality/ job loyalty • Opaque political culture • Business culture/ language etc… • Lacking incentives for domestic low carbon focus? EU/UK • IPRs • Technology transfer - and demonstration • Personal contact not international reputation Constraints on Collaboration 2 Research China • Frank discussion of results, with all parties • Scientific initiative vs. micro-management • Differing career structures (e.g. links to business) EU/UK • Inadequate funding for long-term projects • Bureaucracy of setting up in the first place • Fees for visiting students and researchers Constraints on Collaboration Overall • Slowly learning to work together • E.g. crucial role of returnees and former PhD students as pivot and mediator • E.g. 2 collaboration producing reciprocal changes in understanding of research, innovation and partnership. BUT • TIMEFRAME?: We don’t have a generation for this process if the goal is global transition to low carbon systems to meet a target of (say) 450ppm CO2. High Level Constraints 1 • Danger of stand-off in global climate change talks • US not participating (though 2009?) • Europe – relatively small countries by population with high per person emissions “China excuse” • China & India understandably see climate change as primarily the developed world’s responsibility Total GHG Emissions 2006 (Billion tonnes CO2 Equivalent) Efficiency of GHG Emissions 1 (tonnes/ GDP US$ Million) Efficiency of GHG Emissions 2 (tonnes/ Industrial GDP US$ Million) GHG per capita (2006 tonnes/ person) Comparative Aggregated GHGs per capita (1960-2006 % Total emissions/person, India = 1) High-Level Constraints 2 • Geo-politics of global agreement: e.g. IPRs, tech transfer – no obvious solution but what is the debate really about? • Cycles of trust or suspicion? • China’s ongoing national project not widely understood in global North-“first priority to serve national economic development” after century of colonial plunder • Economic development = openness • Chinese emissions growth BUT what is North doing? • How are both North & China going to be convinced to prioritise CC, not just economic growth? And whose? High-Level Constraints 3 Transition in international political economy • Ongoing (but inchoate) shift from US to Asia • US Economy in crisis, Asia booming • US global power in question, Iraq and Afghanistan • Former transitions (Netherlands to UK, UK to US) have not been easy “Global” emergence • Global, not just international, social forces • World-Wide Web and travel • Global business, global migration, global crime Opportunities and Positive Signs • China’s central government undoubtedly committed to: • Tackling climate change (inc. SEPA MEP) • International collaboration • Continued openness to international economy • China is willing to pay for top technologies, but cautious – wants to know they are worth investing in • Great interest in Europe to work with and help China meet the challenge of low carbon systems transition • Europe and China (and US…) need to be partners in setting trajectories of low carbon transition • China/EU collaborations growing and changing: changing governance to match? Cosmopolitan Innovation (全球多元化创新) • Global ethic of concern taking diverse local forms - not exclusive of national priorities • Not question of “one world” but of creating the social reality of a global context for strategic calculation • But the political vision of global concern is crucial condition • Grassroots international partnerships are part of the context of the multi-layered politics of climate change treaty • Regime of international collaboration for “global public goods”, e.g. a CC Marshall Plan and/or a global research council? • Need to develop institutional and cultural capacity for global public oversight of socio-technical change. 谢谢 We gratefully note the funding of the ESRC and AIM Project Team: Dr David Tyfield [email protected] Dr James Wilsdon [email protected] Prof John Urry [email protected] Prof Brian Wynne [email protected] & the Demos “Atlas of Ideas” Team www.atlasofideas.org