Challenges of Implementing New Technologies for Sustainable Energy: Opening address at the Sixth Grove Fuel Cell Symposium, London, 13–16 September 1999

Abstract

To meet the commitments made in Kyoto, energy-related CO 2 emissions would have to fall to almost 30% below the level projected for a "Business-As-Usual" scenario. Meeting this goal will require a large-scale shift toward climate-friendly technologies such as fuel cells, which have a large long-term potential for both stationary generation and transportation. The deployment of a technology is the last major stage in the process of technological shift. Climate-friendly technologies are not being deployed at a sufficient rate or in sufficient amount to allow IEA countries to meet their targets. Hence, if technology is to play an important roll in reducing emissions within the Kyoto time frame (2008–2012) and beyond, immediate and sustained action to accelerate technology deployment will be required. Obstacles in the way of the deployment of technologies that are ready or near-ready for normal use have come to be referred to as market barriers. The simplest yet most significant form of market barrier to a new technology is the out-of-pocket cost to the user relative to the cost of technologies currently in use. Some market barriers also involve market failure, where the market fails to take account of all the costs and benefits involved, such as omitting external environmental costs, and therefore retard the deployment of more environmentally sustainable technologies. Other barriers include poor information dissemination, excessive and costly regulations, slow capital turnover rates, and inadequate financing. Efforts by governments to alleviate market barriers play an important role to complement private-sector activities, and there are many policies and measures each government could take. In addition, international technology collaboration can help promote the best use of available R&D resources and can contribute to more effective deployment of the result of research and development by sharing costs, pooling information and avoiding duplication of efforts.