[A2k] Climate Change: G77/China proposes road map for advancing technology issue

[Sangeeta]

 Title : TWN Bonn News Update No.6

10 June 2008
Published by Third World Network
www.twnside.org.sg

G77/China proposes road map for advancing technology issue

Bonn, 8 June (Meena Raman) -- The G77 and China has put forward a
=B3three-step road=B2 to move forward concrete action on technology in the =
Bali
Action Plan. The plan was announced in a contact group on technology at the
meeting of the ad hoc group on long-term cooperative action (AWG-LCA) of th=
e
UN Framework Convention on Climate Change being held here.

At the contact group meeting on Friday 6 June, the G77 and China,
represented by Bernaditas Muller of the Philippines, proposed a =B3three-st=
ep
road=B2 for concrete action on the deployment and transfer of technology un=
der
the Bali Action Plan involving:

1. Establishing common understanding of development and transfer of
technology (DTT). Soft and hard components necessarily go together and
discussions should cover together both adaptation and mitigation
technologies; and how to address questions of ownership and adaptability;

2. An understanding of where we are (stocktaking) and the need for a quick
review of the work under the Convention, including achievements and progres=
s
to date; identification of gaps in implementation, major barriers to DTT;
building upon existing mechanisms and processes under the Convention.

3. How to enhance DTT for mitigation and adaptation: Putting in place new
mechanisms to create and/or allow for management incentives, sustained
financing, public-private partnership, options to overcome barriers, suppor=
t
for and promotion of North-South, South-South, and trilateral cooperation
for transfer.

The G77 and China added that financing is crucial for technology, and a key
for achieving a clean development pathway. It proposed following up
proposals made at the technology workshop earlier in the week, on a
multilateral technology acquisition/cooperation fund established under the
Convention.

It also proposed a mechanism and funding for technology to consider the
three stages of technology maturity. This would involve public and private
investment in long-term R & D for new technology, collaborative R& D, with
sharing of IPRs; A Venture Capital Fund to commercialise emerging
technology: demonstration and pilots; and scaling-up of financing for the
transfer of mature technologies and funding for deployment of existing
technologies.

The G77 and China also proposed moving ahead to implement Article 4.5 of th=
e
Convention through establishment of a Technology Transfer mechanism under
the Convention. This would involve capacity-building for actual transfer,
and take into account developing endogenous technologies.

It would also involve the development of an Action Plan that would include
the identification of technologies available in the public domain; and
conditions of access for technologies available and for sale, including
funding to facilitate acquisition of these technologies.

The group also suggested the measurable, reportable and verifiable (MRV)
transfer of technology as an enabling means, with specific guidelines to be
developed for the full implementation of Article 12.3 of the Convention.

In response, the Chair of the AWG-LCA, Luiz Machado of Brazil, said the G77
and China=B9s ideas could be developed more; for example, what kind of
mechanism and how would it operate under the Convention . Questions include
what are the institutional aspects of the mechanism, would it have a Board?

Slovenia for the EU said there is a clear need for a coordinating and
enabling management function for technology transfer. A wide range of
solutions exist, which should be defined. One way is to create a new
coordinating body under the UNFCCC. There is a need for details on how best
to support an enabling environment. It supported having national contact
points, for education, training and regulation.

There is a role for technology oriented arrangements within and outside
UNFCCC, said the EU. In exploring details of existing and new technology
financing mechanisms, the EU suggested the following: tools focusing on
capital and risk; leveraging private sector resources; financing of researc=
h
and development and demonstration; financial networking; risk insurance. Th=
e
EU said the issue has suffered for many years from lack of progress, and it
would like to see substantial progress money wise and institution wise.

Japan said that to promote technology diffusion and transfer, we should
start with a long term goal for emission stabilisation, mentioning a 50%
emission reduction by 2050. All countries must have a shared vision of a lo=
w
carbon society. Japan reiterated the role of a =B3sectoral approach=B2 for
quantified national emission targets and technology diffusion.

Ghana said it was important to establish proper institutional arrangements
and management at international level. It is key to have a work plan on
technology transfer and on how to measure, report, verify technology
transfer (MRV). It proposed a workshop to discuss how MRVs would operate,
for example whether through national communications of Annex 1 countries, o=
r
the current review mechanism under Convention.

The Chair agreed that MRVs is a very important issue. Those who favour a
technology transfer mechanism and some other institutions may consider if
MRVs would be done by a board, which would have all the information on the
transfer and destination. The MRV activity would be simplified through the
possible mechanism.

South Africa, speaking for Africa, said adaptation technology is critical,
as well as technologies for low carbon development. There should be a look
at barriers to technology for the different stages and financial support an=
d
options. It is also important to distinguish between the requirements for
mitigation and adaptation technology as ikt is hard to get private sector
finance for adaptation technology which has to be upscaled through public
sector investment. IPRs are a major cost barrier and must be addressed, for
example through a fund to buy out patents.

Brazil said a technology revolution is required. The responsibility for thi=
s
is specific to governments, in financing (in which developed countries have
to meet their commitments) and in attracting the private sector to construc=
t
this technology revolution. Technology diffusion is in the interest of the
world. There must be funds and a structure to transfer mature technologies,
to get new ones on the market, and to undertake innovation for innovative
technologies. We should work out the specific ways of doing this and the
institutional arrangements for a positive way forward for a technology
initiative, and to create oversight for international action within the
Convention. It is essential to develop and mechanisms by which MRV actions
can operate for technology transfer, and to ensure we have in! formation on
what countries are doing on technology.

The US said that in recent years, there was a move away from a donor-based
technology transfer paradigm to a more self sustaining one with private
markets playing an important role. Referring to the calls for new mechanism=
s
to scale up technology transfer, the US cautioned that the practicability o=
f
this approach must be looked at. We should look instead at improved access
to existing resources and finance through capacity building and technology
assistance as needed.

Malaysia strongly supported the G77 proposal on creating a mechanism for
technology diffusion and transfer. This mechanism must be accountable to th=
e
Convention and financing must be through the Convention. It proposed two
principles of such a mechanism -- to make technologies accessible to
developing countries and to help developing countries develop their own
technologies.

Barbados for the small island states associated with the G77 and China and
supported the establishment of a new international mechanism for transfer o=
f
technology. We need something new and abandon business as usual models and
practices as it relates to technology transfer and diffusion. It wanted
early warning systems and technologies to be considered as adaptation
technology, which should be transferred to vulnerable developing countries
on grant or highly concessional basis. In the WTO, a decision was taken on
behalf of access to medicines for developing countries. In climate change,
the challenge is even greater and business as usual is untenable.

The Chair responded that it is important to consider the IPR issue, how to
respect IPRs but at the same time look at possibilities of licensing those
rights. He agreed that some technologies are specific to adaptation or
mitigation also technologies and this should be looked at in dealing with
future work.

Antigua and Barbuda said there is a lot of rate of technology in the public
domain. There are many institutions in the public sector like UNIDO, FAO,
UNESCO, CGIAR etc. However since 1992, there has been a shift to the role o=
f
the private sector, for example the new 1994 IPR regime (in WTO). There is
thus a need to organise public economic arrangements, and there is need for
public sector action and collaboration, at the international level.

China, referring to the US statement that the world has changed, said some
things have not changed, such as the lack of progress in implementing
technology transfer commitments by developed countries. We need an approach
to technology in an integrated and coordinated manner. We do need a very
solid and efficient mechanism, starting with institutional arrangements. Fo=
r
global public goods, the intergovernmental mechanism should be the driving
force to move things forward. . A subsidiary body (for technology) under th=
e
Convention is necessary.

Argentina supported an international technology mechanism under the
Convention. It could support endogenous capacity building, adequate and
predictable funds and to avoid the proliferation of competing funds. It
should cover different categories of technology. It can have a climate
technology assessment panel and also report on state of the art of
environmentally sound technologies.

Pakistan said an element has been missing in the discussions is compulsory
licensing. No element should be omitted which is important in an enabling
environment. This issue should be highlighted. Another important element is
joint cooperation in research.

A technology mechanism must have two aims =AD to make technology available =
at
affordable cost and assist developing countries to develop their own
technology. Barriers to affordable cost should be looked at in two cases =
=AD
technologies where there are no patents or where patents have expired, and
those technologies that are patented. The Secretariat provide an informatio=
n
note on which technologies are in the public domain and those which are in
hands of private sector.

India stressed the need for supporting science and technology collaboration
through an open platform such as open source approaches. . There should be
research consortia involving the sharing of IPRs. On technology transfer,
there is need to bring new technologies into the public domain and address
the IPRs issue. Finance is also a crucial issue. There is an economic basis
for giving a significant role to public funds especially in the context of
climate change. There is also a need for capacity building in developing
countries.