6.3.3.2 Technology Transfer
The transfer of environmentally sound technologies from developed to developing
countries has come to be seen as a major element of the global strategies to
achieve sustainable development and climate change mitigation. Article 4.5 and
other relevant provisions of the UNFCCC (UNFCCC, 1992) clearly define the nature
and scope of the technology transfer, which includes environmentally sound and
economically viable technologies and know-how conducive to mitigating and adapting
to climate change. Technology transfer implemented through the financial mechanism
of the UNFCCC is to be “on a grant or concessional basis”, on non-commercial
terms. The Parties included in Annex II “shall take all practicable steps
to promote, facilitate and finance, as appropriate, the transfer of, or access
to, environmentally sound technologies and know-how to other Parties, particularly
developing country Parties, to enable them to implement the provisions of the
Convention.” Article 10, paragraph (c) of the Kyoto Protocol (UNFCCC, 1997)
reiterated that all Parties shall: “co-operate in the promotion of effective
modalities for the development, application and diffusion of, and take all practicable
steps to promote, facilitate and finance, as appropriate, the transfer of, or
access to, environmentally sound technologies, know-how, practices and processes
pertinent to climate change, in particular to developing countries, including
the formulation of polices and programmes for the effective transfer of environmentally
sound technologies that are publicly owned or in the public domain and the creation
of an enabling environment for the private sector, to promote and enhance the
transfer of, and access to, environmentally sound technologies.”
Three conditions have to be fulfilled for an effective transfer of technologies.
First, the technology holder country must be willing to transfer the technology.
Second, the technology must fit into the demand of the recipient country. Third,
the transfer must be made at reasonable cost to the recipient. The IPCC Special
Report on Technology Transfer (IPCC, 2000) identifies various important barriers
that could impede environmental technology transfer, such as:
- lack of data, information, and knowledge, especially on “emerging”
technologies;
- inadequate vision about and understanding of local needs and demands; and
- high transaction costs.
Some analysts argue with respect to the third item that the technology should
be provided on favourable terms and therefore on non-commercial conditions,
strictly separated from traditional technology transfers, and supported by government
funding.
In fact, Agenda 21 (UN, 1992) states that “governments and international
organizations should promote effective modalities for the access and transfer
of environmentally sustainable technologies (ESTs) by means of activities, including
the formulation of policies and programmes for the effective transfer of ESTs
that are publicly owned or in the public domain.” The major role of the
government could be to supply EST research and develop funds to transfer publicly
owned technology to developing countries. In this regard, the Commission on
Sustainable Development, at its fifth session, concluded that: “a proportion
of technology is held or owned by Governments and public institutions or results
from publicly-funded research and development activities. The Government’s
control and influence over the technological knowledge produced in publicly-funded
research and development institutions opens up a potential for the generation
of publicly-owned technologies that could be made accessible to developing countries,
and could be an important means for Governments to catalyze private sector technology
transfer.” In all countries the role of publicly funded R&D in the
development of ESTs is significant. Through both policy and public funding,
the public sector continues to be an important driver in the development of
ESTs.
An additional role of the government is to make the legal provisions for the
transfer of ESTs (including checking on abuse of restrictive business practices
(Raekwon, 1997)). Good governance creates an enabling environment for private
sector technology transfer within and across national boundaries. Although many
ESTs are in common use and could be diffused through commercial channels, their
spread is hampered by risks such as those arising from weak legal protection
and inadequate regulation in developed and developing countries. However, many
technologies that can mitigate emissions or contribute to adaptation to climate
change have not yet been commercialized. Beyond an enabling environment, it
will take extra efforts to enhance the transfer of those ESTs (IPCC, 2000).
It should also be recognized that the effective transfer of ESTs requires substantial
upgrading of the technological capacities in the developing countries (TERI,
1997) (see also Chapters 5 and 10).
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