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Technology Transfer in the CDM

Linking Climate Mitigation Policy and Modeling in China Workshop February 18, 2006 Beijing. Technology Transfer in the CDM. DUAN Maosheng Tsinghua University. Outline. Concept of technology transfer (TT) TT and CDM in the History TT in the PDD Host country requirements

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Technology Transfer in the CDM

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  1. Linking Climate Mitigation Policy and Modeling in China Workshop February 18, 2006 Beijing Technology Transfer in the CDM DUAN Maosheng Tsinghua University

  2. Outline • Concept of technology transfer (TT) • TT and CDM in the History • TT in the PDD • Host country requirements • TT in real CDM projects • Conclusions

  3. Concept of TT • IPCC Special Report on TT • the broad set of processes covering the flows of knowledge, experience and equipment amongst different stakeholders such as governments, private sector entities, financial institutions, NGOs and research/educational institutions • In the context of CDM • from the North to the South • not pure commercial activity

  4. TT and CDM in the History • KP is silent on technology transfer issue in the CDM • Outcome of COP6: (FCCC/CP/2000/5/Add.3): • (CDM project activities shall:) Lead to the transfer of [state-of-the-art][appropriate,][the best available, and practicable for the circumstances of the host Party,] environmentally safe and sound technology in addition to that required under other provisions …; • PDD: Technical description of the project and a description of the transfer of technology, including viability of technological choices;

  5. TT and CDM in the History • In the preamble of the consolidated negotiating text proposed by the President for COP6bis: • Emphasizing that clean development mechanism project activities shall lead to the transfer of environmentally safe and sound technology in addition to… • In the preamble of the CDM M&P: • Further emphasizing that clean development mechanism project activities should lead to the transfer of environmentally safe and sound technology and know-how in addition to …

  6. TT in the PDD • Technology transfer in the PDD • Section A.4.3. Technology to be employed by the project activity: (This section should include a description of how environmentally safe and sound technology and know-how to be used is transferred to the host Party(ies)) • Section B.3. Description of how the anthropogenic emissions of GHG by sources are reduced below those that would have occurred in the absence of the registered CDM project activity:

  7. Host Country Requirements • Measures for Operation and Management of Clean Development Mechanism Projects in China • CDM project activities should promote the transfer of environmentally sound technology to China • Indian CDM Interim Approval Criteria • Following aspects should be considered while designing CDM project activity: … 4. Technological well being: The CDM project activity should lead to transfer of environmentally safe and sound technologies with a priority to the renewables sector or energy efficiency projects that are comparable to best practices in order to assist in upgradation of technological base. • Brazilian Manual for Submitting a CDM Project to the Interministerial Commission on Global Climate Change • Project Contribution for Sustainable Development: … d) contribution to technological development and capacity-building

  8. TT in Real CDM Projects • 200 CDM projects at validation stage reviewed • Hydropower • Wind power • Biomass power • Solar energy • Geothermal energy • Bio-diesel • LFG recovery and utilization • Methane capture and utilization • Energy efficiency • Waste gas recovery and utilization • Fuel switching • Gas leakage recovery and utilization • HFC23 decomposition • N2O decomposition

  9. TT in Real CDM Projects • TT claimed in 61(20) projects out of the total 200(100) • Hydropower (3/49) • Wind power (9/14) • Biomass power (7/56) • Solar energy (1/2) • Geothermal energy (1/1) • LFG recovery and utilization (18/29) • Methane capture and utilization (16/30) • Fuel switching (1/4) • HFC23 decomposition (3/3) • N2O decomposition (2/2) • No TT claimed in projects of following types • Bio-diesel • Energy efficiency • Gas leakage recovery and utilization • Waste gas recovery and utilization

  10. TT in Real CDM Projects • Elements considered as TT • Equipment import • Partnership with local organizations • Development of local equipment suppliers • Involvement of local organizations in project design and operation, thus enabling project replication • Training of local staff on project construction, operation and maintenance • Replicability of the project activity • Improvement of local manufacturing capacity through Joint ventures, establishment of local manufacturing plant, etc • Building of local know-how about the technology • Building of local know-how and knowledge about the technology in use, correct management, CDM, etc. • Feedback to the government regarding the operation of the project and relevant technologies

  11. Conclusions • CDM is not very successful in promoting TT • Small-scale projects account for a large percentage while usually do not involve TT element • TT in CDM depends heavily on project types Different people have different understanding of TT, so TT claimed in some projects while not claimed in some other similar projects • Competition among host countries also contribute to the poor performance of CDM in promoting TT

  12. Thanks!

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