Climate Change Technology Transfer

1. August 2, 2007 Climate Change Technology Transfer Opportunities in the Developing World Chris Deal Iowa State University 2007 WISE Intern ASME International

2. 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

3. 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

4. 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

5. 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 technologiesand know-how to…developing countryParties • 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

6. 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)

7. 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)

8. 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

9. Why Should Private Industry Care? • Rapidly growing market • Technology is available now • More sources of financing • Increased global competitiveness • Positive Public Relations WIND SOLAR PV Figures (Top to Bottom): Global Wind Power Growth (1990-2005), Global Solar PV Growth (1990-2005), Global Ethanol Production (2000 & 2005). Source: REN21, Renewables Global Status Report, 2006 ETHANOL

10. 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

11. 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

12. 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.

13. 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.

14. Summary • 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

15. Thank You Questions???