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Technical Session 4

Tech Transfer; RED and CDMDavid Lesolle

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History of the TT

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TT is very old![TT] 13/CP1

R [Dev. & TT] NAI report (by 31/12/96) on Initial Tech. Needs 7/CP2

R SBI funding for Tech. Info. Centers & support national/regional centers

9/CP3

A/E Strengthen capacities, AI to provide financial resources needed by NAI for EE, Adaptation

4/CP4

Status of consultative process 9/CP5

D EGTT established, GEF nominated operational entity 4/CP7

D Cross blend TT and Capacity Building 10/CP8

N [in GEF report] “Reducing the long term costs of low GHG emitting techs

3/CP9

D/E Joint research and development programme/projects between AII & NAI; TT Clear to carryout “Cost implications of strengthening of Tech Centers

6/CP10

Future role of the EGTT 6/CP11

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Important tech. assessment considerations under UNFCCC

Why Technology Transfer?

• Opportunities for Sustainable Development• GHG Emission Reduction• Environmental Benefit• Socio-economic benefits

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Elements of Technological Change Linear and Realistic Model of Technological “Skills” Transfer

• Invention

- discovery; creation of knowledge; new prototypes• Innovation

- creation of a commercial product or process• Adoption

- deployment and use of the new technology• Diffusion

- increasing adoption and use of the technology

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The Linear Model of Technological Transfer

Invention Adoption Diffusion Innovation

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A More Realistic Model

InventionAdoption

(initialdesign)

Diffusion(improved

technology)

Innovation (new or better

product)

LearningBy Doing

LearningBy Using

R&D

SD

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Issues to guide Policies

Policy frameworks under TT

Transport Per capita emissions increase

Energy Energy Efficiency and DSM

Buildings Energy Efficiency standards

Industry Standards, tax holidays and DSM

Kyoto Sinks

Role of sinks in development

Renewable Solar, Wind, Biogas, Biomass, Geothermal

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Should we give up? NO!

As proposed by AI project sponsor

As they write it As designed

As produced As installed What we need – what we want!

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The way forward

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WORK ON HAND: SBSTA Agenda 5. Development and

transfer of technologies aka Technology Transfer

• SBSTA requested by decision 5/CP.12, to recommend a draft decision for adoption by the COP at its thirteenth session.

• SBSTA, in collaboration with the Expert Group on Technology Transfer (EGTT), organized a workshop (Bangkok, Thailand, from 27 to 29 June 2007) to share best practices with Parties not included in Annex I to the Convention working on technology needs assessments (TNAs) and to prepare a paper on good practices in conducting TNAs.

• The EGTT will convene its twelfth meeting from 29 to 30 November 2007 in Bali, Indonesia. The report on the implementation of the programme of work of the EGTT for 2007 is contained in document FCCC/SBSTA/2007/13.

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STRATEGY: SBSTA Agenda 5. Development and

transfer of technologies aka Technology Transfer

• Elevate EGTT to “Tech Dev & Transfer Board”– Makeup; Term of Reference; Funding

• Funding for the ‘new’ Programme and activities– Look at Bali-Pozna-Copenhagen…Post 2012!– How do we ensure funds are available

• Go for legally binding instruments on TT and include Adaptation Technology (China is on your side!)…– Parameters, principles (fairness, objectivity, inclusiveness…– Key elements (Tech & Adaptation, financing, response measures

(PAMs may be Deal Brokers!)– The process (forum, timeframes, merge the two tracks (KP/UNFCCC)

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Thank you

Questions ??

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History of the RED

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RED has been changing !

D Refinement of methodological Issues – Inventories of removals of GHGs 4/CP1

N IPCC Special Report on LULUCF. Adjustment of AAU; [AAU= ‘Change’ in carbon stocks for 2008-2012]

9/CP4

R Under LULUCF COP and COP/MOP may be required to recommend further relevant decisions’

16/CP5

N New words from IPCC: Leakage; Non-permanence; Additionality; Uncertainties; Socio-econ. Impacts; Biodiv; natural Ecosystems: New Terms: Degradation; devegetation; CO2 fertilization; Harvested Wood products

11/CP7

N Common Reporting Format (CRF) as a measure for Good practice guidance for NCs

13/CP9

D [last decision] Introduction by Croatia of Forest management activities under Art 3 para 4 of KP

22/CP9

Incorporation of Modalities and Procedures for Afforestation and Reforestation under CDM (22/CP8)

13/CP10

Good practice guidance for LULUCF. Voluntary reporting using CRF. ‘subject to availability of funding’

15/CP10

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What’s been happening to RED ! (last 18 months – growing!?)

• (SBSTA): FCCC/SBSTA/2006/10 workshop on RED held in Rome, Italy, from 30 August to 1 September 2006.

• SBSTA: a second workshop before (May 2007), • (SBSTA): invited Parties to submit to the

secretariat their views on ongoing and potential policy approaches and positive incentives, and technical and methodological requirements related to their implementation; assessment of results and their reliability; and improving the understanding of reducing emissions from deforestation in developing countries,

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What happened in the meantime

• The secretariat organized a second workshop on reducing emissions from deforestation in developing countries in Cairns, Australia, from 7 to 9 March 2007.

• Workshop focus: – Ongoing and potential policy approaches and positive incentives, and

technical and methodological requirements related to their implementation;

• baselines, permanence, leakage, definitions, and emissions from degradation. They also discussed various financing options to support positive incentives, including market-based mechanisms and non-market financial resources.

– The assessment of results and their reliability; and improving the understanding of reducing emissions from deforestation in developing countries and the need for capacity-building and pilot activities.

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WORK ON HAND: SBSTA Agenda 5. Reducing

emissions from deforestation in developing countries: approaches

to stimulate action

• Approaches to stimulate action to reduce emissions from deforestation in developing countries:

• SBSTA will report to the COP at its thirteenth session on this matter, including any recommendations.

• The SBSTA is invited to finalize its work on the draft decision on reducing emissions from deforestation in developing countries, with a view to forwarding this draft decision for adoption by the COP at its thirteenth session.

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LULUCF is Essential to Climate Action

• LULUCF accounts for 20%+ of total global carbon emissions (IPCC)

• In low-income countries, land use & land use change account for most carbon emissions:

• CDM one of many instruments needed to reverse these trends

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Task: LULUCF to achieve the MDGs

• Cash income for consumption or investment• Resources for community social investment • Improve agricultural & forestry technologies • Conserve wild plants/animals critical for local • consumption or farm inputs • Rehabilitate critical ecosystem services• Mechanism to create partnerships

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Draft text for a decision on RED

[-/CP.13]

• [Option 1:• Recognizing the need for specific policy approaches to address different national

circumstances and multiple drivers of deforestation in order to increase effectiveness of efforts to reduce emissions from deforestation in developing countries,

• Option 2:• 1. Invites Parties to further strengthen and support ongoing efforts to reduce emissions from• deforestation on a voluntary basis;• 4. Invites Parties in particular Parties included in AII to the Convention to mobilize resources to

support Capacity Building and efforts to RED• 6. Requests the secretariat to organize, subject to availability of supplementary funding, a• workshop on potential solutions to outstanding methodological issues and experiences• 7. [Invites relevant organizations and stakeholders, without prejudice to any future decision of

the COP on RED in developing countries, to participate in and/or support, the implementation of activities

• 8. [Decides to address, at a future session, as soon as possible, the range of policy approaches and positive incentives as proposed by Parties 3 on issues relating to reducing emissions from deforestation in developing countries and to also include consideration of this matter in the context of any discussions on future international cooperation on climate change, taking into account any other relevant work under the Convention.]

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What is the latest gossip on RED

• Policy– Deepen Annex B Targets– Credit for early action– Ensure sustainable financial resources

• Incentives– Note: CDM is only for AR– Introduce RED Mechanism; Stabilization fund; Enabling

fund…– Forest Retention Certificates (TV)– Forest Retention fund (TV)

• Programme of work; Ecosystems approach; National Forest Programmes… (CBD, FAO…)

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Making LULUCF work for RED – the

future

• Expand the scale of LULUCF in the CDM, for global climate impact – Provide for opportunities to explore synergies between the MEAs and the

MDGs– Identify global climate impact

• Expand the scope of activities allowed under the CDM– Support a CDM expanded agenda– Use the new ideas on bundling, programmatic CDM

• Make LULUCF carbon strategies an integral part of national development plans – Engage the rural development community when structuring internal trading

schemes.– Provide legal safeguards for communities and the environment; land tenure

…

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Thank you

Questions ??

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Possible Post 2012 CDMKey Challenges

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CDM – a good buy in• Experience now exists• Opportunities are attractive• Methods are in place and continue to be

developed• Lessons:

– SD issues under CDM provide opportunities to level the playing field

– Provide an opportunity to move forward and improve the CDM post 2012.

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Main Issues

• How to improve CDM• How to address the lack of a fair Geographical

Distribution of CDM• How to bring in the Most Vulnerable – no-CDM

areas

• Lessons: How to use the post 2012 CDM to address these issues:

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Beyond Project based CDM

• Different types of options:– Programmatic (growing number of

projects over time)– Bundling (a number of projects – one

time) – Policy (Using Policy approaches to

addressing/implementing CDM)– Benchmarking (additionality,

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about CDM

• Separate the Objectives – SD and ERCDM

• Establish a common approach• Consider a future CDM as part of a post 2012

regime/way of doing business

• As AI Governments go for NAI bilateral programme – incorporate CDM and also SD at same time – SD must drive.

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about CDM• Strong/Weak SD indicators do not mean

disinvestment • Consider SD lessons and SD Criteria to be

considered INTRA G77 – CSD as basis• Additionality: Financial and Environmental –

are they working/useful. Impacts on baseline, efficiency of Mechanism …

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Other Issues• Do we only stabilise or reduce – CDM is not

helping us achieve reduction maybe Tech Transfer

• CDM only +ve impact on environment when CERs are cheaper

• CDM MUST help achieve SD • Art 12 – emphasises on SD under CDM – this

is not practised – we have drifted away

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Other Issues (II)• Develop a 2nd (new Stream) of projects

through POLICY CDM• Important to emphasise on SD and not

Equitable Distribution of CDM… SD to enhance CDM project activity… POLICY CDM, Aggregate CDM …

• CDM must be transparent – public comment, NGO comment, balance BGO (S&N)

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Thank you

Questions ??