US-China Co-operation on Climate Change - the Role of Intellectual Property

1. US-China Co-operation on Climate Change - the Role of Intellectual Property Peter Drahos, ANU Impacts of Globalization The Australian Global Studies Research Centre (AGSRC) Perth 13-14 August 2009

2. The evidence for the warming of the climate system “unequivocal” • (IPCC - 2007 synthesis report).

5. International Energy Agency and the 450 Stabilisation Case • CCS is assumed to be “widely deployed” • CO2 emissions peak in 2012 • CCS accounts for 21% of the reduction by 2030 • (See World Energy Outlook 2007, 208)

6. China and the US are responsible for about 34% of all GHG emissions with each of them emitting about the same. • Coal dominates China’s energy mix being responsible for around 70% of its energy production. • The US depends on coal for about 25% of its energy needs (but 37% of its fossil fuel CO2 emission ).

8. Australia Brazil • Canada China • Colombia Denmark • European Commission • France Germany Greece • India Italy • Japan Korea • Mexico Netherlands • New Zealand Norway • Russia Saudi Arabia • South Africa • United Kingdom United States

9. In July 2005, the G-8 Summit endorsed the CSLF in its Gleneagles Plan of Action on Climate Change, Clean Energy and Sustainable Development, and identified it as a medium of cooperation and collaboration with key developing countries in dealing with greenhouse gases

10. CSLF Recognized Projects • Alberta Enhanced Coal-Bed Methane Recovery Project (Project Completed) • CANMET Energy Technology Centre (CETC) R&D Oxyfuel Combustion for CO2 Capture • CASTOR (Project Completed) • China Coalbed Methane Technology/CO2 Sequestration Project (Project Completed) • CO2 Capture Project • CO2CRC Otway Project • CO2 GeoNet • CO2 Separation from Pressurized Gas Stream • CO2 SINK • CO2STORE (Project Completed) • Dynamis (Project Completed) • ENCAP • Feasibility Study of Geologic Sequestration of CO2 in Basalt Formations of (Deccan Trap) in India • Frio Project • Geologic CO2 Storage Assurance at In Salah, Algeria • IEA GHG Weyburn-Midale CO2 Monitoring and Storage Project • ITC CO2 Capture with Chemical Solvents • Regional Carbon Sequestration Partnerships • Regional Opportunities for CO2 Capture and Storage in China (Project Completed) • Zama Acid Gas EOR, CO2 Sequestration, and Monitoring Project

12. U.S.-China Memorandum of Understanding to Enhance Cooperation on Climate Change, Energy and the Environment (July 2009) • Both countries resolve to pursue areas of cooperation where joint expertise, resources, research capacity and combined market size can accelerate progress towards mutual goals. These include, but are not limited to:1) Energy conservation and energy efficiency2) Renewable energy3) Cleaner uses of coal, and carbon capture and storage

13. Paying for CCS – China’s position • “there is evidence to suggest that China will only participate in significant CCS activities if the other party provides funding to cover all direct and indirect costs in China”. • (IEA, Cleaner Coal in China, 2009)

14. SEC. 766. UNITED STATES NEGOTIATING OBJECTIVES WITH RESPECT TO MULTILATERAL ENVIRONMENTAL NEGOTIATIONS. • `(a) In General- The negotiating objectives of the United States with respect to multilateral environmental negotiations described in this subpart are-- • `(1) to reach an internationally binding agreement in which all major greenhouse gas-emitting countries contribute equitably to the reduction of global greenhouse gas emissions; • `(2)(A) to include in such international agreement provisions that recognize and address the competitive imbalances that lead to carbon leakage and may be created between parties and non-parties to the agreement in domestic and export markets; and • `(B) not to prevent parties to such agreement from addressing the competitive imbalances that lead to carbon leakage and may be created by the agreement among parties to the agreement in domestic and export markets ; and • `(3) to include in such international agreement agreed remedies for any party to the agreement that fails to meet its greenhouse gas reduction obligations in the agreement.

15. SEC. 768. INTERNATIONAL RESERVE ALLOWANCE PROGRAM. • `(a) Establishment- • `(1) IN GENERAL- The Administrator, with the concurrence of Commissioner responsible for U.S. Customs and Border Protection, shall issue regulations-- • `(A) establishing an international reserve allowance program for the sale, exchange, purchase, transfer, and banking of international reserve allowances for covered goods with respect to the eligible industrial sector; • `(C) establishing a general methodology for calculating the quantity of international reserve allowances that a United States importer of any covered good must submit; • `(D) requiring the submission of appropriate amounts of such allowances for covered goods with respect to the eligible industrial sector that enter the customs territory of the United States;

16. SEC. 441. FINDINGS AND PURPOSES. • (10) Any weakening of intellectual property rights protection poses a substantial competitive risk to U.S. companies and the creation of high-quality U.S. jobs, inhibiting the creation of new `green' employment and the transformational shift to the `Green Economy' of the 21st Century. • (11) Any U.S. funding directed toward assisting developing countries with regard to exporting clean technology should promote the robust compliance with and enforcement of existing international legal requirements for the protection of intellectual property rights as formulated in the Agreement on Trade-Related Aspects of Intellectual Property Rights, referred to in section 101(d)(15) of the Uruguay Round Agreements Act (19 U.S.C.3511(d)(15) and in applicable intellectual property provisions of bilateral trade agreements.

17. Australia’s approach to IP in CCS • Cooperative Research Centre for Greenhouse Gas Technologies (CO2CRC) • CO2CRC has a commercial arm CO2TECH • CO2TECH is developing a patent portfolio in CCS.

19. Cooperation amongst world’s patent offices USPTO JPO EPO SIPO KIPO German Dutch UK