Enabling environments for technology transfer under the UNFCCC

1. Enabling environments for technology transfer under the UNFCCC Daniele Violetti Programme Officer, Technology Climate Change Secretariat (UNFCCC) UNFCCC workshop on enabling environments for technology transfer Centre for Sustainable Development, Ghent University, 9 April 2003

2. Outline of the Presentation • Enabling environments in the FCCC process • Enabling environments in decision 4/CP.7 • Past activities in the FCCC process • Enabling environments in the National Communications of Annex II Parties • The EGTT Programme of work

3. Enabling environments in the FCCC process • SBSTA 5 took note of a list of topics that could be addressed by the secretariat in a series of papers. These included activities undertaken by governments to facilitate the introduction and use of ESTs (FCCC/SB/1997/1); • Decision 9/CP.3 requested the secretariat “to consider specific case studies,…with the aim of evaluating barriers to the introduction and implementation of ESTs”. • Decision 4/CP.4 requested the Chairman of SBSTA to establish a consultative process…”to achieve agreement on a framework for meaningful and effective actions to enhance implementation of Article 4.5 of the Convention.”

4. Enabling environments in the FCCC process • Three regional workshops (Tanzania, Philippines, El Salvador), provided bottom-up contributions and set the basis for the Technology framework. • Decision 4/CP.7 included enabling environments among the key themes of the technology transfer framework. • SBSTA 16 approved the EGTT programme of work for the years 2002/2003 including activities on enabling environments. • SBSTA 17 requested the secretariat to prepare a technical paper on enabling environments for technology transfer.

5. Enabling environments in decision 4/CP.7 Definition The enabling environments component of the framework focuses on government actions, such as fair trade policies, removal of technical, legal and administrative barriers to technology transfer, to technology transfer, sound economic policy, regulatory frameworks and transparency all of which create an environment conducive to private and public sector technology transfer. Purpose To improve the effectiveness of the transfer of environmentally sound technologies by identifying and analyzing ways of facilitating the transfer of environmentally sound technologies, including the identification and removal of barriers at each stage of the process.

6. Results of the survey of experiences, needs and opportunities (FCCC/SBSTA/1998/INF.5) • In 1997 the secretariat with the cooperation of the UoA conducted a survey requesting non-Annex I and EITs Parties to provide details on measures adopted by their governments to facilitate the transfer and implementation of ESTs, a few categories were identified: • Creating awareness (31 Parties) • Disseminating information (19 Parties) • Providing technical assistance (10 Parties) • Creating a fiscal environment (7 Parties) • Removing trade barriers (5 Parties)

7. Results of the survey of experiences, needs and opportunities (FCCC/SBSTA/1998/INF.5) • In the same survey Parties were requested to list, based on past experiences, the barriers encountered in formulating and implementing technology transfer projects. A few categories were identified: • Financial (7 Parties) • Economic (4 Parties) • Technological (4 Parties) • Institutional (5 Parties) • Cultural (1 Party)

8. Barriers and opportunitiesrelated toTT (FCCC/TP/1998/1) • Barriers: • Institutional: lack of legal and regulatory frameworks • Political: interventions in domestic markets (i.e. subsidies) • Technological: lack of infrastructure and technical standards • Economic: instability, inflation, poor macroeconomic conditions • Information: lack of technical and financial information • Financial: lack of investment capital and financing instruments • Cultural: consumer preferences and social biases • General: intellectual property protection

9. Barriers and opportunities related to TT (FCCC/TP/1998/1) cont.d • Opportunities: • Developing legal instruments and tax regimes that reward technology upgrading • Public/private partnerships to support the import/export of ESTs • Tax refunds or subsidies for the import and implementation of ESTs • Dissemination of information on government programmes • Economic instruments and environmental standards • Case studies suggested that no single policy is sufficient, and a combination of instruments is likely to be needed

10. Enabling environments in Annex II Parties NC According to UNFCCC guidelines for the preparation of NC, Annex II Parties are to provide details of measures taken to give effect to their commitments under Article 4.3, 4.4, and 4.5 of the Convention. The compilation and synthesis of national communications provide for wide range of information and examples on activities undertaken by Annex II Parties. The forthcoming compilation and synthesis of the 3rd national communications of Annex I Parties can be found in document FCCC/SBI/2003/7 and Addendum. A significant improvement was recorded both in the quality and the quantity of information provided by Annex II Parties in NC3 comparing to NC1 and NC2.

11. Enabling environments in Annex II Parties NC • A few examples of relevant activities reported: • The establishment of climate change funds and programmes to help developing countries move towards less carbon intensive economic growth. • The concept of green certificates allowing tax exemptions for companies investing in a green project elsewhere; • The introduction of new technologies, by Annex II small and medium sized companies, in developing countries, via targeted loans; • Facilitation of information sharing and personal contacts between technology producers and potential users of these technologies such as web based database and information clearing houses;

12. The EGTT Programme of work • Two main activities are envisaged for the enabling environments area of the EGTT programme of work for the year 2003: • Prepare a technical paper on enabling environments drawing on FCCC/TP/1998/1, the IPCC Special Report on Methodological and Technological Issues in Technology Transfer, the Third Assessment Report and other relevant reports; • Organize a workshop on enabling environments in April 2003 to seek inputs for the technical paper and as a key part of the process to provide the SBSTA with recommendations on next steps on the issue.