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KEMCO (Korea Energy Management Corporation) Dr. Suk-Hoon Woo January 2000, Cebu, Philippine

Bilateral Governmental Cooperation to Promote the Technology Transfer Under UNFCCC Framework : From Market Potential to the Market Formation. KEMCO (Korea Energy Management Corporation) Dr. Suk-Hoon Woo January 2000, Cebu, Philippine. Contents. Introduction

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KEMCO (Korea Energy Management Corporation) Dr. Suk-Hoon Woo January 2000, Cebu, Philippine

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  1. Bilateral Governmental Cooperation to Promote the Technology Transfer Under UNFCCC Framework : From Market Potential to the Market Formation KEMCO (Korea Energy Management Corporation) Dr. Suk-Hoon Woo January 2000, Cebu, Philippine

  2. Contents • Introduction • Bilateral Governmental Cooperation Program • The Experience of Korea : TCAPP-Korea • Mechanism Analysis for the Technology Transfer under UNFCCC

  3. 1. Introduction • Technology transfer : a kind of “learning process” • i.e. the mutual efforts are needed both in provider country and receptor country • Qt : What is the basic motivation of technology transfer, that is firmly supported in the real world (including business world)? • economic motivation

  4. The concept of market potential • The formation of new market provides a good motivation to the implicated actors • When the market potential do not exists in the local market (even if not yet established properly), any technology provided cannot be settled successfully • The best technology is not fittest technology (path dependency and network effect)

  5. Key Issues • Find the fields where the market potential exists • Design the TT process with additional institutional efforts • The formation of new market will helps the technology to be adapted in the local market and contribute to the sustainable development.

  6. Key Issues - continue • This new market can give a additional economic opportunity or the expansion of global market to the technology provider, while the EST(Environmentally Sound Technology) market is still limited and restricted in size.

  7. 2. Bilateral Governmental Cooperation • Why Governmental Cooperation? • Why Bilateral Cooperation?

  8. Why Governmental Cooperation? • helps to overcome the institutional barriers, common in developing and least developed countries • helps to coordinate the divers economic actors implicated • Local producer and consumers • International technology providers • Financial supporters and donor-investors

  9. helps to identify the potential markets through local market study with the experts of developing countries • Capacity building with government level cooperation

  10. Why Bilateral Cooperation? • Gives more solid responsibility in the technology transfer process than multilateral framework (cf. link to the CDM) • helps to identify the specific needs and characteristics of local market, as well as the technology that will be transferred.

  11. 3. The Experience of Korea • TCAPP-Korea : Multiple programs of bilateral framework in technological cooperation initiated by US government • WG1 : ESCO(Energy Service Company) • WG2 : Methane reuse including LFG • WG3 : Heat recovery through heat pump

  12. Lessons learned from Korean cases • Market potential helps to promote the implication of local and institutional actors ex) ESCO in Hyundai-Motors (Ulsal) • The condition of local market is key factor in technology transfer process • Flexibility of program is more important the the concrete design, because each market has its own economic and technological mechanism.

  13. 4. Mechanism Analysis • Official Listing-up of Bilateral Governmental Technology Transfer Programs • Link to the CDM • Additional Suggestion

  14. Official Listing-up by UNFCCC • Information support • Local market, various actors can participate when designing their own projects, as technology transfer reduces the R&D cost, very high in the initial phase • Promotion of new programs, into newer fields

  15. Link to the CDM • Bilateral governmental cooperation has a same structure with the CDM • Provider of technology • Receiver of technology • Identification of GHG reduction effects • Additional rule or understanding is needed in order to promote the TT (directs and indirect effects) • New interpretation of technological additionality?

  16. Additional suggestion • Hard technology • Soft technology • O&M (Operation and Management) • Project design • And other know-how and tacit knowledge (uncodified knowledge) • The role of soft technology should be interpreted in more active manner.

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