The GGKP's Seventh Annual Conference took place on 21-22 October 2019 in conjunction with the Global Green Growth Institute’s Global Green Growth Week 2019 (GGGW2019) on the theme of “Achieving Global Energy Transformation” in Seoul, Republic of Korea.
Shubham Sharma presented his paper “Climate Change and Technology Transfer - Barriers, Technologies and Mechanisms” in Session A.2: Technology Transfer and Scale-Up. Shubham Sharma is a PhD student at the Hong Kong University of Science and Technology (HKUST). His research interests include innovation systems for environmentally sound technologies, and sustainable development.
1) Please briefly describe the topic and conclusion of your research.
This study examines the barriers to technology transfer and suggests strategies to improve current technology transfer frameworks. While finance is the biggest barrier stated by countries worldwide, the ability to absorb technologies is an equally important factor as is evident from case studies from India. Apart from finance, barriers could arise due to the mode of transfer, the nature of technologies, the sectors (such as energy and transport) in which such technology is sought, intellectual property rights, etc. The study finds that the success of technology transfer depends heavily on the availability of funds, absorption capacity of the recipient country and the differential treatment of technologies in technology transfer frameworks.
2) What are the key policy implications?
Current frameworks to facilitate technology transfer have not been able to achieve desired results and overcome barriers. The independent review of CTCN shows the disappointing performance of the centre, notably in securing finances for technology transfer. The ad-hoc, project-based approach has resulted in the limited availability of resources and consequently, the CTCN has not been able to meet several of its targets as per the review. A different approach focusing on achieving greater financial synergies between different funding agencies and attention to the nature of technologies and sectors could help technology transfer frameworks in achieving their targets.
3) Please describe the policy framework and financing mechanism.
The success of a technology transfer framework will depend on its ability to address the peculiar nature of different technologies, build absorption capacities and the availability of financial resources. Different types of policies are required to support different types of technologies. These differences are related to the inherent characteristics of different technologies. Additionally, different technologies are at different stages of development at present and require different business models. A technology-sharing platform must treat every technology distinctly based on the differences mentioned above.
Matching sub-national needs across borders is also important. It will not only enable sharing of viable solutions that some developing countries might already possess but also help reap the benefits of technology from developed nations. Owners of relevant technologies will also benefit from such an effort, as they will cater to a larger collective demand from various countries.
Financial barriers are significant in the development, transfer and diffusion of environmentally sound technologies. CTCN has been unable to mobilise the expected level of financial resources. In case of private investment, risk mitigation (of investors) remains the biggest challenge. International forums such as the G20 can mobilise commercial funds coupled with GEF funds to implement projects. That will also reduce the cost of lending, which is another barrier to technology transfers. Initial support and adequate financing can deal with a majority of financial barriers and assist in scaling up the clean technology sector. It will also help boost investor confidence. The impact of various climate and green finance funds that have been set up at the international as well as national level testify to the positive effects that initial support and adequate funding can have on the adoption of clean technology.
4) Are there any challenges you would like to underline from this research?
Most of the innovations are taking place in transport and energy sector. There has also been growth in the number of patents for other technologies such as wastewater treatment, ICT for energy efficiency in buildings, carbon capture and storage, etc. Since most of these innovations have taken place in developed countries, these address the problems faced by these countries. For example, adaptation technologies, technologies in natural resource management, agriculture, etc., which are more relevant for developing countries, have not aroused much interest. Developing and underdeveloped countries must assess their technology needs and build domestic capacities to innovate in sectors that may be ignored by developed countries.
5) What are the opportunities for collaboration around this issue?
While there has been rapid technological advancement in the energy sector, adaptation technologies for enhancing resiliency in agriculture and natural resource management are yet to pick up. Climate change undoubtedly is going to have an adverse impact on agriculture. The negative impact on yields in Sub-Saharan countries and South Asian countries due to the frequent occurrence of floods and droughts, irregular precipitation, depleting water levels and poor soil management poses a threat to food security in the Sub-Saharan region and in South Asian countries. The involvement of large economies like India, China and Brazil is important to address the issue of improved varieties of seeds and the development and transfer of agricultural technologies for water management, efficient irrigation and drought/flood resistant variety of seeds. Developing countries need to match their sub-national contexts to scale up developments in these sectors.
6) Which session are you interested in attending at GGKP7 and why?
Sessions on Technology and Innovation, and Innovative business and market approaches at the conference interest me the most. Businesses will be playing an important role in commercialisation of technologies and are the owner of most of the environmentally sound technologies. Thus, it will be important to understand how governments and international organizations form policies that encourages businesses to transfer technologies for climate action. Another important factor is reducing the cost of certain technologies and that’s where market and business approaches could offer innovative business models that could result in widespread diffusion of these technologies at low cost.
The opinions expressed herein are solely those of the authors and do not necessarily reflect the official views of the GGKP or its Partners.