Technology transfer in the Clean Development Mechanism

Heleen de Coninck, Frauke Haake and Nico van der Linden

Climate Policy, 2007, vol. 7, issue 5, 444-456

Abstract: Technology transfer is often mentioned as an ancillary benefit of the Kyoto Protocol's Clean Development Mechanism (CDM), but this claim has hardly been researched or substantiated. The question of technology transfer is important, both for developing countries in need for new technology and knowledge and for industrialized countries, as it provides export potential for climate-friendly technologies. To determine what technology transfer means, whether it is occurring through the CDM, and what the value of the associated capital flows is, this article examines technology transfer in the 63 CDM projects that were registered up until 1 January 2006. Technology hardware originates from outside the host country in almost 50% of the evaluated projects, particularly in non-CO 2 greenhouse gas projects, wind energy projects, and a substantial share of the hydropower projects. Bioenergy and projects in the agricultural sector mainly use local technology. The investment value associated with the CDM projects that transferred technology is estimated to be around €470 million, with about €390 million coming from the EU. As the non-CO 2 greenhouse gas projects had very low capital costs, the investment value was highest in the more capital-intensive wind energy and hydropower projects. We also found substantial soft technology transfer, but uncertainties for this finding are greater.

Date: 2007
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DOI: 10.1080/14693062.2007.9685667

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