Outside the UNFCCC, our case studies also found examples of bilateral co-operation programmes that are helping to improve capabilities in developing countries. In China, there are several bilateral programmes on electric vehicles, including a US-China programme announced by their respective Presidents in 2009. Collaboration with Germany and Denmark played a significant role in the development of the Chinese wind power industry. Whilst the policy and research focus of these initiatives is welcome, it is also important to foster collaboration between firms.
As we concluded from our studies with Indian colleagues, international collaboration in R&D, demonstration and deployment can help to overcome some intellectual property barriers. For example, low carbon technologies that are specifically designed for developing country markets could be developed in this way.
Whilst they have not focused primarily on China and India, the World Bank’s Climate Investment Funds may hold useful lessons for future UNFCCC finance and technology mechanisms. A key feature of the largest of these funds – the Clean Technology Fund – is its ‘transformational’ ambitions[4]. The fund does not only help finance low carbon technology demonstration and deployment, but also encourages improvements in policy frameworks and capabilities to create additional demand for these technologies. Whilst they are time limited, these funds could in future provide an important source of learning about whether transformational change can be achieved – including technology deployment and improved innovation capabilities.
Implications for Climate Policy
First, contexts are important. There is no ‘one size fits all’ approach to low carbon technology transfer. There are key differences between countries (including between China and India), technologies and markets. Lessons drawn from China and India have limited applicability to less developed countries which have fewer resources and different needs.
Second, technology transfer is only part of the process of low carbon innovation in developing countries. It cannot be analyzed or supported in isolation from indigenous innovation. In many cases, technology transfer and indigenous innovation play complementary roles.
Third, intellectual property barriers to low carbon innovation do not apply equally to all low carbon technologies. Our research found that in many cases, IPR barriers have not prevented Indian and Chinese firms from producing these technologies. However, these barriers can slow the rate at which firms can commercially produce low carbon technologies, particularly if they wish to innovate at the cutting edge.
Fourth, there is a need for international climate policy to build innovation capabilities and deploy low carbon technologies in developing countries. Implementation projects (such as those co-financed by the CDM and the Clean Technology Fund) play a key role – but are not enough. Other activities are required to build innovation systems in developing countries, including underpinning investment in R&D, policies to create markets, and new institutions such as climate technology centres[5].
Fifth, international policy action and finance needs to be complemented by domestic policy incentives in developing countries. Many low carbon technologies are simply too expensive, and have significant incremental costs and risks when compared to higher carbon alternatives.
Notes:
[1] For more details, see: http://www.sussex.ac.uk/sussexenergygroup/1-2-22.html
[2] B Lee, I Iliev and F Preston (2009), Who Owns Our Low Carbon Future? Intellectual Property and Energy Technologies. London: Chatham House.
[3] M Levi et al (2010) Energy Innovation: Driving technology competition and cooperation among the U.S., China, India, and Brazil. Washington, DC: Council on Foreign Relations.
[5] UNEP (2010) An exploration of options and functions of climate technology centres and networks. UNEP Discussion Paper.
About Sussex Energy Group
The Sussex Energy Group (SEG) is one of the research centres of University of Sussex, UK and undertakes academically rigorous, inter-disciplinary research that engages with policy-makers and practitioners. The aim of our research is to identify ways of achieving the transition to sustainable, low carbon energy systems whilst addressing other important policy objectives such as energy security. The Group has funding from a diverse array of sources. They are core partner in the Tyndall Centre for Climate Change Research and part of the UK Energy Research Centre. For more information, visit www.sussex.ac.uk/sussexenergygroup.
