Some key barriers to technology transfer under the clean development mechanism

Abstract

Technology transfer is not an explicit objective of the clean development mechanism (CDM) of the Kyoto Protocol, but if well structured, it could be a vehicle for transferring environmentally sustainable technologies from Annex I countries to non-Annex I countries. In this paper, a few key barriers to technology transfer which concern the conflicts between CDM and international investment laws, protection of intellectual property rights (IPR) of the project developers and the capacity of developing countries to accept and benefit from technology transfer are examined. The paper makes suggestions on how to address these barriers in order to create an investment and project development environment that would encourage the developed countries to participate in sustainable development projects in developing countries without fear of their IPR being violated. Furthermore, the paper makes suggestions on how the developing countries could benefit from investment inflows and technology transfer that would boost sustainable development in their jurisdictions.