Flexible Mechanisms of Climate Technology Transfer

Abstract

Despite the recent adoption of “flexible” mechanisms for climate change mitigation, such as emissions trading and joint implementation, there has been little attention to the use of flexibility specifically for international climate technology transfer. This article proposes new flexible mechanisms of technology transfer that allow Annex I countries (or those with quantified targets to reduce greenhouse gas emissions) to achieve greenhouse gas abatement targets, and supply industrial environmental technology to developing countries. The article also discusses how such mechanisms may be used in conjunction with the Clean Development Mechanism (CDM), which was created under the Kyoto Protocol to promote climate-related investment in non–Annex I countries. It is argued that current approaches to technology transfer repel private investors by focusing too closely on long-term technology sharing rather than the potential benefits of the globalization of technology investment and ownership. However, simply subsidizing technology exports from Annex I countries may result only in damaging non–Annex I industries. It is, therefore, necessary to balance flexible mechanisms with strong national technological policies or governance by the CDM executive body.