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August 2, 2007
Climate Change
Technology Transfer
Opportunities in the Developing
World
Chris Deal
Iowa State University
2007 WISE Intern
ASME International
Overview
• Issue Definition &
Background
• Short History
• Oversight Bodies
• Why Should Government
Care?
• Why Should Private Industry
Care?
• Why Should We Care?
• Problems to Overcome
• Recommendations
• Summary
• Questions
Issue Definition & Background
• Global Climate Change is
occurring
– Intergovernmental Panel on
Climate Change (IPCC) 2007
Report
• 600+ authors, 113
governments
• “Warming of the climate
system is unequivocal”
• New debate: what can and
should be done to mitigate
global climate change?
• Focus on Sustainable
Development
Technology Transfer
• Traditional technology transfer:
moving “high” technology from
public to private sector financing
• Climate Change Technology
Transfer (CCTT):
“a broad set of processes covering the flows of
know-how, experience and equipment for
mitigating and adapting to climate change
amongst different stakeholders such as
governments, private sector entities, financial
institutions, non-governmental organizations
and research/education institutions”
• Layman’s Terms: transfer of technology from the developed world to
developing countries promoting sustainable development and allowing
them to leapfrog the pollution that accompanies rapid development
• Cooperation of public and private entities
Brief History
• United Nations Framework
Convention on Climate Chagne
(UNFCCC) – “Earth Summit” or
Framework Convention
– Rio, 1992
– Article 4.5: The developed country
Parties…shall take all practicable steps to
promote, facilitate and finance…the transfer
of…environmentally sound technologies and
know-how to…developing country Parties
• Kyoto Protocol – Kyoto, Japan,
1997
– Greenhouse gas emission cuts of
5.2% from 1990 base year (29% of
expected 2010 emissions)
– Never ratified by US or Australia
CCTT Initiatives
• Clean Development
Mechanism (CDM)
– Mechanism under Kyoto
presenting an alternative for
reducing domestic reductions
– Approved programs receive
Certified Emissions Reductions
(CERs) equivalent to one metric
ton of CO2 reduction
• Hundreds of CCTT initiatives
currently underway
– Most are bilateral agreements
– Many in the U.S. due to its unique
position (part of UNFCCC but
not Kyoto)
Oversight Bodies
• Examples of Initiatives &
Oversight Bodies
– Expert Group on Technology
Transfer (EGTT)
– Climate Technology Initiative
(CTI)
– Asia-Pacific Partnership for
Clean Development and
Climate (AP6)
– Clean Energy Technology
Exports Initiative (CETE)
Why Should Government Care?
• Entrance into foreign markets
allowing for increased exports,
lower trade deficit, and access
to new markets
• In the growing renewable
energy and energy efficiency
sector, increased American
competitiveness would be
beneficial
• Potential answer of how to
bring developing countries to
the table for post-Kyoto
negotiations
Figure: Annual Investment in
Renewable Energy (1995 – 2005)
Source: REN21, Renewables Global Status Report, 2006
ETHANOL
SOLAR PV
WIND
Why Should Private Industry Care?
•
•
•
•
•
Rapidly growing market
Technology is available now
More sources of financing
Increased global competitiveness
Positive Public Relations
Figures (Top to Bottom): Global Wind Power Growth (19902005), Global Solar PV Growth (1990-2005), Global Ethanol
Production (2000 & 2005).
Source: REN21, Renewables Global Status Report, 2006
Why Should We Care?
• Sustainable development and
potential for reduction of
poverty in developing world
• Unless changes are made soon,
our lifestyles could be
dramatically changed in the
future due to global climate
change
– Reports show China has just
surpassed the U.S. in total
greenhouse gas (GHG) emissions
Problems to Overcome
•
•
•
•
•
Concept of Additionality
Intellectual Property Rights
Tariffs and Trade Barriers
Avoidance of Responsibility
Market Transparency and
Enabling Environment for
Transfer
• Perverse Incentives
• Lack of International
Agreement
• Speed of Implementation
Recommendations
• Correct past mistakes when creating second
generation CCTT programs.
• Develop a post-Kyoto agreement that
incorporates all developed countries and all
major developing countries.
• This post-Kyoto agreement should be
quantifiable and long-term, preferably creating
a pathway for the next 50 years.
Recommendations (cont.)
• Tariffs placed on clean energy technologies should be
reduced or eliminated and the Harmonized
Commodity Description and Coding System should be
updated to combine all climate change technologies in
the same category.
• Create and properly fund an oversight body that will
increase communication between the several
established CCTT initiatives within the United States.
• The United States must step up as an international
leader in addressing the issue of global climate change.
Summary
1.
2.
3.
4.
5.
Global climate change is occurring
and something must be done
We have the technology to make
necessary cuts in GHG emissions
Countries must be allowed to
continue developing, but must do so
in a sustainable manner
This presents a great opportunity for
private industry
With the assistance of public
organizations and governments,
countries can develop in a
sustainable manner and private
business can benefit, simultaneously
Thank You
Questions???