Methodological and Technological Issues in Technology Transfer

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12.3.3 Climate Mitigation Related Pathways

A number of new mechanisms have emerged in the forestry sector for technology transfer, including the concept of joint implementation and emissions trading. With the advent of the Kyoto Protocol, the Clean Development Mechanism has also emerged as a multilateral entity which will significantly influence forestry sector technology transfer and finance (Bolin, 1998). New brokerage, as well as monitoring and verification institutions are also emerging associated to climate change institutions and mechanisms.

GEF. The Global Environmental Facility (GEF) is a financial mechanism that promotes international cooperation and fosters actions to protect the global environment. The grants and concessional funds disbursed, complement traditional development assistance by covering the additional costs (also known as 'agreed incremental costs') incurred when a national, regional, or global development project also targets global environmental objectives. Forestry does not appear among the operational programmes in the current phase of GEF, though it appears under the short-term measures. However, fossil fuel substitution through bioenergy, fuelwood conservation and bioelectricity systems for decentralised application are included in the operational programmes. In addition, the majority of biodiversity conservation projects also contribute to C abatement. GEF operational programme-12 on carbon sequestration is being currently formulated. Under this programme, GEF can facilitate transfer of technology to near commercial forestry sector projects that face incremental risk, and hence justify funding the incremental cost of undertaking a forestry sector initiative over its relevant growth cycle. Furthermore, this GEF programme can address the barriers and impediments to widespread implementation of viable carbon sequestration opportunities, addressing risks and risk financing. GEF initiatives can prepare an environment for replication and sustainable continuation of activities. By breaking a first time barrier, it can pave the way for the flow of private sector resources that can be coupled with international initiatives.

AIJ/CDM/JI. At the first UN-FCCC Conference of the Parties, Berlin, 1995, the Parties established a pilot technology transfer programme, termed the 'Activities Implemented Jointly (AIJ)'. To date, over 70 countries have established government institutions to develop and monitor AIJ projects. Over 50 projects have been registered with the UN-FCCC Secretariat. The US Initiative on Joint Implementation (US-IJI) is the largest AIJ pilot programme, with 32 projects in 12 countries. US-IJI has attracted over US$160 million in private sector finance. Approximately one-half of the US projects are in the forestry sector. For example, private sector partners from the US and Bolivia are working under the AIJ pilot phase to establish the largest private sector national park in the world. However, there are uncertainties regarding the inclusion of land use change and forestry activities under CDM. Market-based trading of carbon credit could enhance the flow of resources to forestry projects worldwide. It is also not clear how this would affect other aspects like biodiversity and local needs, and there are many other uncertainties, like those associated with carbon-accounting and the life-time of the carbon-stock. To clarify these aspects and uncertainties the IPCC will issue its Special Report on Land-Use, Land-Use Change and Forestry in 2000 (Sections 3.4 and 3.6 in Chapter 3 provide more information on technology transfer in the Kyoto Protocol and other UNFCCC agreements).

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