Key policy considerations for low carbon technology transfer Dr David Ockwell 14 th June 2007

2. Key policy considerations for low carbon technology transfer • Dr David Ockwell • 14th June 2007 • d.g.ockwell@sussex.ac.uk

3. Overview • Background & rationale • Methods & approach • Key considerations for low carbon technology transfer • Future research

4. Background & rationale • Future emissions from rapid economic development • Emissions increases 1990-2001: • India 61% • China 111% • China to overtake US by 2010 • India to equal China by 2030 (EIA 2004)

5. Background & rationale • Radical vs. incremental improvements • E.g. increase average efficiency of coal fired power stations from 33% to 45% between now and 2030 = annual reductions of: China: 872 million tonnes of CO2 per year India: 238 million tonnes of CO2 per year UK economy wide emissions in 2006: 561 million t CO2 Estimates based on IEA (2006) forecasts

6. UK-India Collaborative Study • Background: • G8 Gleneagles 2005: Developing countries pressed for new approach to international cooperation on clean energy technologies • UK Government and the Government of India decide to collaborate on study to assess barriers to transfer of low carbon energy technology between developed and developing countries

7. UK-India Collaborative Study • Aim: • Identify barriers to successful technology transfer • Identify key policy considerations for overcoming barriers

8. Study approach • Literature review • Five technology case studies • Coal gasification including IGCC • LED lighting • Biomass • Hybrid vehicles • Improving combustion efficiency • Analysis and recommendations

9. Key considerations • No “one policy fits all” solution • Stage of technology development

10. Stage of technology development

11. Key considerations • No “one policy fits all” solution • Stage of technology development • Technological change and capacity building • Centrality of knowledge flows

12. Essential knowledge flows Technology suppliers Technology transferred Technology importers New production capacity Supplier firms’ engineering, managerial and other technological capabilities Flow A Capital goods, services & designs Skills & know-how for operation & maintenance Flow B Knowledge & expertise behind technology Accumulation of technological capacity Flow C Based on Bell (1990)

13. Key considerations • No “one policy fits all” solution • Stage of technology development • Technological change and capacity building • Centrality of knowledge flows • Intellectual Property Rights (IPR) • “Necessary but not sufficient” • Absorptive capacity

14. Key considerations • No “one policy fits all” solution • Stage of technology development • Technological change and capacity building • Centrality of knowledge flows • Intellectual Property Rights (IPR) • “Necessary but not sufficient” • Absorptive capacity • National policy environment • International policy environment

15. Future research • Taxonomy of barriers to technology transfer • Intellectual Property Rights (IPRs) • Mechanisms to facilitate joint R&D

16. Taxonomy of barriers to technology transfer • Practical framework for policy makers • Generalisations on likely barriers and policy implications • Stage of technology development? • Nature of technology?

18. Intellectual Property Rights (IPRs) • Necessary but not sufficient? • Energy technologies, not necessarily low carbon • Technologies where IPRs prohibitive • Technologies where IPRs not an issue • Comparisons with other sectors e.g. pharmaceuticals • Possible contributing factors to IPR related barriers: • parties involved in negotiations • how the issues were pitched • domestic policy environments in host countries • different commercial interests in industrialised countries • Potential for joint R&D

19. Mechanisms to facilitate joint R&D • Specific mechanisms for facilitating joint RDD&D between developed & developing countries, including private sector involvement • Assessment criteria for analysing likely success of different mechanisms • Analyse existing initiatives e.g. IEA implementing agreements, Asia-Pacific Partnership • Analyse existing technological capacities in low carbon technologies amongst Indian firms -> recommendations on which technologies have highest potential to benefit

20. Summary • Background & rationale • Methods & approach • Key considerations for low carbon technology transfer • Future research

21. Conclusion • Key considerations need to guide policy development • No “one policy fits all” solution • Further empirical research required to inform effective policy actions • Tension between urgency and need for long term effectiveness