Technology Transfer in the CDM

1. Linking Climate Mitigation Policy and Modeling in China Workshop February 18, 2006 Beijing Technology Transfer in the CDM DUAN Maosheng Tsinghua University

2. Outline • Concept of technology transfer (TT) • TT and CDM in the History • TT in the PDD • Host country requirements • TT in real CDM projects • Conclusions

3. Concept of TT • IPCC Special Report on TT • the broad set of processes covering the flows of knowledge, experience and equipment amongst different stakeholders such as governments, private sector entities, financial institutions, NGOs and research/educational institutions • In the context of CDM • from the North to the South • not pure commercial activity

4. TT and CDM in the History • KP is silent on technology transfer issue in the CDM • Outcome of COP6: (FCCC/CP/2000/5/Add.3): • (CDM project activities shall:) Lead to the transfer of [state-of-the-art][appropriate,][the best available, and practicable for the circumstances of the host Party,] environmentally safe and sound technology in addition to that required under other provisions …; • PDD: Technical description of the project and a description of the transfer of technology, including viability of technological choices;

5. TT and CDM in the History • In the preamble of the consolidated negotiating text proposed by the President for COP6bis: • Emphasizing that clean development mechanism project activities shall lead to the transfer of environmentally safe and sound technology in addition to… • In the preamble of the CDM M&P: • Further emphasizing that clean development mechanism project activities should lead to the transfer of environmentally safe and sound technology and know-how in addition to …

6. TT in the PDD • Technology transfer in the PDD • Section A.4.3. Technology to be employed by the project activity: (This section should include a description of how environmentally safe and sound technology and know-how to be used is transferred to the host Party(ies)) • Section B.3. Description of how the anthropogenic emissions of GHG by sources are reduced below those that would have occurred in the absence of the registered CDM project activity:

7. Host Country Requirements • Measures for Operation and Management of Clean Development Mechanism Projects in China • CDM project activities should promote the transfer of environmentally sound technology to China • Indian CDM Interim Approval Criteria • Following aspects should be considered while designing CDM project activity: … 4. Technological well being: The CDM project activity should lead to transfer of environmentally safe and sound technologies with a priority to the renewables sector or energy efficiency projects that are comparable to best practices in order to assist in upgradation of technological base. • Brazilian Manual for Submitting a CDM Project to the Interministerial Commission on Global Climate Change • Project Contribution for Sustainable Development: … d) contribution to technological development and capacity-building

8. TT in Real CDM Projects • 200 CDM projects at validation stage reviewed • Hydropower • Wind power • Biomass power • Solar energy • Geothermal energy • Bio-diesel • LFG recovery and utilization • Methane capture and utilization • Energy efficiency • Waste gas recovery and utilization • Fuel switching • Gas leakage recovery and utilization • HFC23 decomposition • N2O decomposition

9. TT in Real CDM Projects • TT claimed in 61(20) projects out of the total 200(100) • Hydropower (3/49) • Wind power (9/14) • Biomass power (7/56) • Solar energy (1/2) • Geothermal energy (1/1) • LFG recovery and utilization (18/29) • Methane capture and utilization (16/30) • Fuel switching (1/4) • HFC23 decomposition (3/3) • N2O decomposition (2/2) • No TT claimed in projects of following types • Bio-diesel • Energy efficiency • Gas leakage recovery and utilization • Waste gas recovery and utilization

10. TT in Real CDM Projects • Elements considered as TT • Equipment import • Partnership with local organizations • Development of local equipment suppliers • Involvement of local organizations in project design and operation, thus enabling project replication • Training of local staff on project construction, operation and maintenance • Replicability of the project activity • Improvement of local manufacturing capacity through Joint ventures, establishment of local manufacturing plant, etc • Building of local know-how about the technology • Building of local know-how and knowledge about the technology in use, correct management, CDM, etc. • Feedback to the government regarding the operation of the project and relevant technologies

11. Conclusions • CDM is not very successful in promoting TT • Small-scale projects account for a large percentage while usually do not involve TT element • TT in CDM depends heavily on project types Different people have different understanding of TT, so TT claimed in some projects while not claimed in some other similar projects • Competition among host countries also contribute to the poor performance of CDM in promoting TT

12. Thanks!