Sussex Energy GroupSPRU - Science and Technology Policy Research

Sussex Energy GroupSPRU - Science and Technology Policy Research

Key policy considerations

for low carbon technology

transfer

Dr David Ockwell

14th June 2007

d.g.ockwell@sussex.ac.uk

Sussex Energy GroupSPRU - Science and Technology Policy Research

Overview

1. Background & rationale

2. Methods & approach

3. Key considerations for low carbon technology transfer

4. Future research

Sussex Energy GroupSPRU - Science and Technology Policy Research

Background & rationale

• Future emissions from rapid economic development

Emissions increases 1990-2001:

» India 61%

» China 111%

China to overtake US by 2010

India to equal China by 2030

(EIA 2004)

Sussex Energy GroupSPRU - Science and Technology Policy Research

Background & rationale

• Radical vs. incremental improvements

E.g. increase average efficiency of coal fired power

stations from 33% to 45% between now and 2030

= annual reductions of:

China: 872 million tonnes of CO2 per year

India: 238 million tonnes of CO2 per year

UK economy wide emissions in 2006: 561 million t CO2

Estimates based on IEA (2006) forecasts

Sussex Energy GroupSPRU - Science and Technology Policy Research

UK-India Collaborative Study

Background:

• G8 Gleneagles 2005: Developing countries pressed for new

approach to international cooperation on clean energy

technologies

• UK Government and the Government of India decide to

collaborate on study to assess barriers to transfer of low

carbon energy technology between developed and

developing countries

Sussex Energy GroupSPRU - Science and Technology Policy Research

UK-India Collaborative Study

Aim:

1. Identify barriers to successful technology transfer

2. Identify key policy considerations for overcoming

barriers

Sussex Energy GroupSPRU - Science and Technology Policy Research

Study approach

1. Literature review

2. Five technology case studies

i. Coal gasification including IGCC

ii. LED lighting

iii. Biomass

iv. Hybrid vehicles

v. Improving combustion efficiency

3. Analysis and recommendations

Sussex Energy GroupSPRU - Science and Technology Policy Research

Key considerations

1. No “one policy fits all” solution

2. Stage of technology development

Sussex Energy GroupSPRU - Science and Technology Policy Research

Stage of technology development

Stage of technology development

SectorsPre-

commercial Supported commercial

Commercial but slow diffusion

Low-carbon power generation technologies

Coal gasification

including IGCC Biomass including fuel supply chain

issues

Improving combustion efficiency

Network / infrastructure technologies

Low carbon end use technologies

LED lighting Hybrid vehicles

Sussex Energy GroupSPRU - Science and Technology Policy Research

Key considerations

1. No “one policy fits all” solution

2. Stage of technology development

3. Technological change and capacity building

4. Centrality of knowledge flows

Sussex Energy GroupSPRU - Science and Technology Policy Research

Essential knowledge flows

Technology

suppliers

Technology

importers

Technology

transferredSupplier

firms’ engineerin

g, managerial and other

technological

capabilities

Capital goods, services &

designs

Skills & know-how for

operation & maintenance

Knowledge & expertise

behind technology

Accumulation of

technological capacity

New production capacity

Flow A

Flow B

Flow C

Based on Bell (1990)

Sussex Energy GroupSPRU - Science and Technology Policy Research

Key considerations

1. No “one policy fits all” solution

2. Stage of technology development

3. Technological change and capacity building

4. Centrality of knowledge flows

5. Intellectual Property Rights (IPR)

“Necessary but not sufficient”

6. Absorptive capacity

Sussex Energy GroupSPRU - Science and Technology Policy Research

Key considerations

1. No “one policy fits all” solution

2. Stage of technology development

3. Technological change and capacity building

4. Centrality of knowledge flows

5. Intellectual Property Rights (IPR)

“Necessary but not sufficient”

6. Absorptive capacity

7. National policy environment

8. International policy environment

Sussex Energy GroupSPRU - Science and Technology Policy Research

Future research

1. Taxonomy of barriers to technology transfer

2. Intellectual Property Rights (IPRs)

3. Mechanisms to facilitate joint R&D

Sussex Energy GroupSPRU - Science and Technology Policy Research

Taxonomy of barriers to technology transfer

• Practical framework for policy makers

• Generalisations on likely barriers and policy implications

• Stage of technology development?

• Nature of technology?

Sussex Energy GroupSPRU - Science and Technology Policy Research

Stage of technology development

SectorsPre-

commercial Supported commercial

Commercial but slow diffusion

Low-carbon power generation technologies

Coal gasification

including IGCC Biomass including fuel supply chain

issues

Improving combustion efficiency

Network / infrastructure technologies

Low carbon end use technologies

LED lighting Hybrid vehicles

Sussex Energy GroupSPRU - Science and Technology Policy Research

Intellectual Property Rights (IPRs)

• Necessary but not sufficient?• Energy technologies, not necessarily low carbon• Technologies where IPRs prohibitive• Technologies where IPRs not an issue• Comparisons with other sectors e.g. pharmaceuticals• Possible contributing factors to IPR related barriers:

parties involved in negotiations how the issues were pitched domestic policy environments in host countries different commercial interests in industrialised countries

• Potential for joint R&D

Sussex Energy GroupSPRU - Science and Technology Policy Research

Mechanisms to facilitate joint R&D

• Specific mechanisms for facilitating joint RDD&D between developed & developing countries, including private sector involvement

• Assessment criteria for analysing likely success of different mechanisms

• Analyse existing initiatives e.g. IEA implementing agreements, Asia-Pacific Partnership

• Analyse existing technological capacities in low carbon technologies amongst Indian firms -> recommendations on which technologies have highest potential to benefit

Sussex Energy GroupSPRU - Science and Technology Policy Research

Summary

1. Background & rationale

2. Methods & approach

3. Key considerations for low carbon technology transfer

4. Future research

Sussex Energy GroupSPRU - Science and Technology Policy Research

Conclusion

• Key considerations need to guide policy development

• No “one policy fits all” solution

• Further empirical research required to inform effective policy

actions

• Tension between urgency and need for long term effectiveness

Sussex Energy GroupSPRU - Science and Technology Policy Research