Distr.
GENERAL
FCCC/SBI/1996/5
2 February 1996
Original: ENGLISH
SUBSIDIARY BODY FOR IMPLEMENTATION
Second session
Geneva, 27 February - 4 March 1996
Item 5 of the provisional agenda
Paragraphs Page
I. INTRODUCTION 1 - 7 2
A. Mandate 1 - 2 2
B. Scope of the note 3 - 5 3
C. Possible action by the Subsidiary Body for
Implementation 6 - 7 4
II. GENERAL FINDINGS 8 - 12 4
III. POSSIBLE ISSUES FOR CONSIDERATION BY THE
SUBSIDIARY BODY FOR IMPLEMENTATION 13 - 19 5
Progress report on transfer of technology by Annex II Parties
8
Appendix
National communications of Annex II Parties reviewed
for this document 14
GE.96-
1. The Conference of the Parties (COP), at its first session, by
its decision 13/CP.1,(1) requested the
Convention secretariat:
(a) "To prepare an itemized progress report (according to the
types of activities specified in paragraphs 34.15 to 34.28,
inclusive, of chapter 34 of Agenda 21) on concrete measures taken by
the Parties listed in Annex II to the Convention, with respect to
their commitments related to the transfer of environmentally sound
technologies and the know-how necessary to mitigate and facilitate
adequate adaptation to climate change ...";
(b) "To submit the documents referred to ..., through the
Subsidiary Body for Scientific and Technological Advice, to the
Conference of the Parties at its second session, and to update them
at regular intervals ... for consideration by the Conference of the
Parties at each of its sessions"; and
(c) Urged:
(i) "The Parties listed in Annex II to the Convention to include
in their national communications the measures taken for the transfer
of technology in order to enable the Convention secretariat to
compile, analyse and then submit the above-mentioned documents to
each session of the Conference of the Parties";
(ii) "Other Parties to include in their communications, where
possible, information on measures taken for the transfer of
technology in order to enable the Convention secretariat to compile,
analyse and then submit the above-mentioned documents to each session
of the Conference of the Parties".
2. The division of labour between the subsidiary bodies
established by the Convention in implementing decision 13/CP.1 was
clarified through the adoption of the draft programmes of work
prepared for the first sessions of the Subsidiary Body for Scientific
and Technological Advice (SBSTA) and of the Subsidiary Body for
Implementation (SBI), respectively, (FCCC/SB/1995/INF.1). In the
light of decision 13/CP.1, and also of decision 6/CP.1 which requires
the SBI to advise the COP on transfer of technology and to consider
the implementation of Article 4.5, the SBI is "to focus on issues
relating to transfer of technology and implementation
of related commitments" and "consider the 'itemized progress
report' on implementation of transfer of technology commitments
and the elaboration on the terms of transfer." The SBSTA is
"to focus on issues relating to technology identification,
assessment and development" and "consider the technology
'inventory and assessment' document" (FCCC/SB/1995/INF.1,
para. 11). The initial consideration of the itemized progress report
by the SBI follows this division of labour. A discussion of
guidelines for the preparation of communications from Annex I
Parties, which is related to the issue under consideration in this
note, is to be conducted under item 5 (a) (iii) of the provisional
agenda of the SBSTA (FCCC/SBSTA/1996/1). Information on guidelines
for the preparation of these national communications may be found in
A/AC.237/55, annex I, while information on technology transfer is
given in a note of 18 January 1995 prepared by the interim
secretariat (A/AC.237/88).
3. An initial progress report is given in the annex to this note.
It provides a synthesis of information on activities to facilitate
the transfer of technology as reported by Annex II Parties in their
national communications and of information obtained in the course of
the in-depth reviews of those Parties. It also expands upon
information presented in the compilation and synthesis of national
communications from Annex I Parties (A/AC.237/81). The report is
organized around information on three types of cooperation, that is,
multilateral, bilateral and private sector cooperation, the common
elements found in most national communications, and the key topics in
chapter 34 of Agenda 21.
4. The national communications of 21 Annex II Parties listed in
the appendix to this note were reviewed in the preparation of the
progress report. Four Parties did not report on activities related to
the transfer of technology. Consequently, the itemized progress
report is based on the information contained in 17 national
communications. In this context, it should be noted that almost all
the 21 communications had been completed before decision 13/CP.1 was
agreed so the Parties concerned were not yet in a position to respond
to the request cited in paragraph 1 (c) above.
5. The term "transfer of technology", as used in this note,
encompasses practices and processes such as 'soft' technologies, for
example, capacity building, information networks, training and
research, as well as `hard' technologies, for example, equipment to
control, reduce or prevent anthropogenic emissions of greenhouse
gases in the energy, transport, forestry, agriculture, and industry
sectors, to enhance removals by sinks, and to facilitate adaptation.
Furthermore, it is recognized in this note that "transfer of
technology" may come about in several ways; in some cases, for
instance, it may be the direct result of a joint project among
Parties or in the private sector. In other cases, it may be the
indirect result of a financial transfer to a multilateral
institution, part of which may be used for a technology
project.
6. When considering this note, the SBI may wish to examine in
particular the issues identified in section III. It may seek to
clarify the information it needs on these issues and request the
SBSTA to prepare additional guidelines for consideration at the third
session of that body.
7. The SBI may also wish to request the secretariat to provide a
compilation of the views on this subject transmitted by the Parties
to the secretariat by 15 April 1996, in order to
assist the SBSTA, at its third session, in formulating and
considering revised guidelines.
8. The national communications of Annex II Parties were based on
the guidelines for the preparation of first communications by Annex I
Parties (A/AC.237/55, annex I, decision 9/2). However, the section of
the guidelines on technology transfer is very general in nature and
easily subject to different interpretations by the Parties. As a
result, the information contained in Annex II communications differs
considerably in format, comprehensiveness and level of detail.
Moreover, discussions held during the in-depth review visits have
revealed that much more information is available than has been
provided in the communications, but has not been compiled and
presented in an organized manner. Finally, most Annex II national
communications focus on government-supported activities rather than
those of the private sector. As a result, a comprehensive picture of
technology transfer activities is not available at the present
stage.
9. Multilateral cooperation is an important element in many of the
national communications. Several Parties indicated their support for
multilateral organizations engaged in work related to capacity
building, research, and information transfer. Contributions to the
Global Environment Facility were reported by virtually all Annex II
Parties, but contributions to other multilateral financial
institutions were not reported on a consistent basis. For example,
although most Annex II Parties make contributions to the World Bank
and various regional development banks, these were reported by a few
Parties only. A small number of Parties provided considerable data on
their official development assistance, but it was often difficult to
distinguish the portion that was related to climate change. The
relationship between such multilateral financing and transfer of
technology was not usually made explicit.
10. Bilateral activities related to the transfer of technology
were reported by most Annex II Parties, but the comprehensiveness and
level of detail of the information differ significantly. For example,
one Party gave detailed information on more than 30 bilateral
projects directed at greenhouse gas mitigation in developing
countries and countries with economies in transition. Most other
Parties, however, provided only a general overview of their bilateral
projects. Some Parties highlighted information on one or two examples
of such projects.
11. Bilateral activities related to the transfer of `hard'
technologies were reported more often than activities related to the
transfer of `soft' technologies through capacity building, training,
and research. The technologies most frequently identified were those
to reduce greenhouse gas emissions or enhance carbon sequestration in
forestry, energy supply, or energy demand in the residential,
commercial, or industrial sectors. Only four Annex II Parties
identified specific bilateral projects that would facilitate climate
change adaptation.
12. Six Annex II Parties reported on actions they had taken to
facilitate the transfer of technology through the private sector. For
the most part, these activities were directed at linking their own
private sector companies with private sector companies in developing
countries. Some Parties also indicated that they supported private
sector investments either directly (through joint ventures) or
indirectly (by feasibility studies). In fact, there are substantial
capital investments being made in developing countries by the private
sector of developed countries, which were reported as having been
between US$80 billion and US$100 billion in
1994.(2) However, these investment
flows, in particular the portion relevant to climate change, were
poorly represented in the national communications.
SUBSIDIARY BODY FOR
IMPLEMENTATION
13. In view of the wide range of approaches taken by Annex II
Parties in reporting on activities related to the transfer of
technology, it is important to clarify the levels of
comprehensiveness, comparability,
and detail required of the information to be
reported in the national communications due in 1997. The following
paragraphs are intended to assist the SBI in its consideration of the
matter.
14. Developing more comprehensive, comparable, and detailed
information may prove useful for a number of reasons. For example,
private investment flows in energy, industry, and other sectors may
be a leading indicator of future emissions, or information on
technology cooperation with international centres may help Parties
either to prevent duplication or reveal gaps. However, obtaining
better data may be resource intensive, so Parties should carefully
consider the purposes of collecting additional and higher quality
data. In considering this aspect, it may be useful to distinguish
between what is necessary versus what is desirable in future
communications and what may be required in the long
term.
15. In clarifying to the SBSTA the kind of information it needs,
the SBI may wish to indicate how comprehensive future national
communications should be. Comprehensiveness can be
defined along a number of different axes, including:
- Type of cooperation, for example, multilateral or bilateral, or
by private sectors
- Type of activity, for example, information exchange, research,
capacity building, training, feasibility studies, design work,
construction, operation and maintenance, monitoring
- Sector targeted, for example, energy, industry, transportation,
agriculture, forestry, waste management
16. Several options are presented below to illustrate different
levels of comprehensiveness. (Other options with varying combinations
of types of cooperation, types of activity, and sectors targeted are
also possible.)
Option 1: All types of activity supported by Governments
through multilateral cooperation in the energy sector
Option 2: All types of activity covered by option 1, but
also including all sectors and bilateral cooperation between
Governments
Option 3: All types of activity covered by options 1 and 2,
as well as those undertaken through the private sector
17. It should be noted that reporting all private sector
investments as suggested in option 3 would be an extremely complex
task. Parties should therefore carefully consider to what extent they
need this type of information. It will, however, remain difficult to
construct a complete picture of technology transfer without
information on private investment flows.
18. If Parties wish to improve comparability of
information they should carefully consider how this needs to be
provided. For example, the itemized progress report does not discuss
the financial resources allocated to transfer of technology by Annex
II Parties because the time-frames over which the related activities
are reported differ from one national communication to another,
making it impossible to aggregate and compare the information given.
This problem could be remedied if information is reported for
specific years. Similarly, activities involving developing countries
could be differentiated from those concerning countries with
economies in transition, and adaptation could be distinguished from
mitigation. Furthermore, supplementing the guidelines with a number
of specific tables to be completed by each Party in its communication
would improve the comparability of the communications.
19. Consistent and comparable information is not necessarily
transparent. In clarifying to the SBSTA the type of information it
needs, the SBI may wish to indicate the level of
detail required to ensure transparent reporting,
such as, for example:
(a) A narrative description of perhaps 10-20 major, individual
programmes
(b) A narrative description of perhaps 10-20 major, individual
projects;
(c) Funds available for each specific programme
(d) Expected changes in greenhouse gas emissions or expected enhancement of carbon sequestration as a result of these specific projects or programmes
1. This initial report has been prepared in response to decision
13/CP.1 (see FCCC/CP/1995/7/Add.1). It also represents an extension
of the information presented in the compilation and synthesis of
national communications from Annex I Parties (A/AC.237/81). Further
information on technology transfer may be found in a note of 18
January 1995 prepared by the interim secretariat
(A/AC.237/88).
2. Nine of the Parties indicated that they had made contributions
that either facilitated participation by developing country
representatives in the Intergovernmental Panel on Climate Change
(IPCC), the World Meteorological Organization (WMO), and the United
Nations Environment Programme (UNEP), or had supported work by these
bodies (for example, IPCC inventory methodologies or WMO regional
programmes) that improved the capacity of developing countries to
pursue climate change science or systematic
observations.
3. Several Parties described support for a wide range of
international bodies based in the Asia-Pacific region (for example,
Asia-Pacific Network for Global Change Research, South Pacific
Regional Environment Programme) that, as part of their mandate,
undertake projects that will increase the capacity of developing
countries to address the issue of climate change. Five countries
noted that two European Community programmes: Poland and Hungary,
Assistance for Reconstruction of the Economy (PHARE), and Technical
Assistance for the Commonwealth of Independent States (TACIS), would
contribute to capacity building. Others noted that work to protect
and manage forests, carried out through the International Tropical
Timber Organization or the Tropical Forestry Action Programme, would
also enhance the capacity of developing countries to address climate
change.
4. Five Parties described their support for international research groups that are studying 'hard' and 'soft' technologies and practices that would facilitate climate change mitigation and adaptation in developing countries. The bodies most frequently mentioned are: the International Rice Research Institute, the Centre for International Forestry Research, the International Centre for Research on Agroforestry, and the Consultative Group on International Agricultural Research.
5. Eight Parties indicated that they were supporting international
organizations that broadly disseminate information on technologies
that facilitate climate change mitigation or adaptation. The most
commonly mentioned programmes were GREENTIE (under the auspices of
the International Energy Agency and the Organisation for Economic
Co-operation and Development), and the International Cleaner
Production Information Clearing House managed by UNEP. Two Parties
noted that the programme 'Energy Efficiency 2000' of the United
Nations Economic Commission for Europe played a similar role in
countries with economies in transition.
(a) Global Environment Facility (GEF)
6. Twelve of the Parties reported on their support for the pilot
phase of the GEF through contributions to the core fund, or through
co-financing or parallel financing arrangements. Two Parties did not
mention their contributions although they were contributors. One
Party indicated that it had not contributed to the pilot phase. A
significant number of Parties (15) indicated that they had made, or
would make, contributions or pledges to the first replenishment of
the GEF (1994-1997). While the other Parties did not address this
matter in their national communications, the GEF secretariat has
confirmed that they either made a contribution to the first
replenishment or pledged to do so.
(b) Other multilateral financial institutions
7. Seven Parties mentioned their contributions to regional
development banks, six Parties highlighted their contributions to the
World Bank, and two Parties stated that they had contributed to the
Montreal Protocol fund for the protection of the ozone layer. It
should be noted that many of the Annex II Parties that did not report
on contributions to these multilateral lending institutions do in
fact make such contributions. With respect to countries with
economies in transition, five Parties indicated that their
contributions to the European Bank for Reconstruction and Development
would result in the transfer of technology. In addition, five
countries noted that two European Community programmes (PHARE and
TACIS) would also contribute to this objective.
8. Sixteen Parties provided information on bilateral programmes
that facilitate the transfer of technology from Annex II Parties to
other Parties under the Convention.
9. France and Denmark stated that they had established development
assistance funds targeted specifically at global environmental
issues, including climate change. In addition, France and Portugal
noted that they provided debt relief to developing countries and that
this would make it easier for these countries to abandon
environmentally unsustainable practices.
(a) Country studies
10. 'Country study' activities that assist countries with
economies in transition and developing countries to develop
greenhouse gas inventories, assess their vulnerability to climate
change, and design climate change mitigation and adaptation response
strategies were reported by eight Parties. A significant number of
developing countries and countries with economies in transition are
participating in these programmes, for example, 11 are participating
in the Netherlands programme and more than 50 are participating in
the United States programme. Many Annex II Parties stressed that the
training and technical support provided through these programmes
would assist developing countries and countries with economies in
transition in preparing information for their national communications
under the Convention.
(b) Scientific research
11. Eight Parties indicated that they were providing support for
scientific research in developing countries that would improve the
capacity of these countries to obtain data related to climate
indicators (through support for meteorological organizations),
pollution levels, or natural resource levels (for example, forests).
For example, both Australia and New Zealand stated that they provided
operational and training support to a number of national
meteorological organizations in the Asia-Pacific region.
(c) Support for training
12. Training of officials responsible for environmental protection
in developing countries or countries with economies in transition was
reported by eight countries. They indicated that some of this
training addressed climate change. For example, Japan had hosted
seminars for administrative officers in the Asia-Pacific region on
the science of climate change and related policies and measures. Some
Parties explicitly indicated that scholarship and exchange programmes
were an important component of their efforts.
13. Programmes that directly reduce greenhouse gas emissions or
enhance carbon sequestration in developing countries or countries
with economies in transition were reported by 14 Parties. Many of
these programmes comprise a number of components: training, research,
feasibility studies, construction, and monitoring.
(a) Energy supply
14. Thirteen Parties reported projects that would result in the
installation of renewable energy supply technologies (primarily
solar, wind, small hydro and biomass) in developing countries. New
Zealand also described a number of initiatives directed towards
assessing the viability of implementing geothermal power. Ten Parties
noted that they were supporting projects to increase the efficiency
of energy generation from existing fossil fuel sources or that would
result in switching to less carbon-intensive fossil fuels. For
example, Germany reported that it had supported the ecologically
oriented retrofits of electric power plants in countries with
economies in transition. Four Parties described projects to reduce
greenhouse gas emissions from the transmission and distribution of
energy produced from fossil fuels.
15. Five Parties indicated that they were supporting programmes to
improve the safety, management, and monitoring of nuclear power
facilities, particularly in countries with economies in transition.
Several also noted that they were providing assistance that would
facilitate structural changes in the energy sector through energy
market reforms or the promotion of least cost planning. For example,
the United States reported a number of initiatives in support of
energy sector privatization and market reforms in developing
countries and countries with economies in transition.
(b) Energy demand in the residential, commercial, and
industrial sectors
16. Various Parties also described projects that would introduce
more energy-efficient technologies and better energy management
practices in the residential, commercial, and industrial sectors.
While some of these activities were directed at specific facilities,
many activities covered a much broader range. For example, the
Programme on Cooperation with Eastern Europe (PSO Programme) in the
Netherlands supported the development of national energy efficiency
policy plans in Poland and Hungary.
(c) Transportation
17. A few Parties indicated that they were supporting projects in
developing countries that would result in new or improved
infrastructure for rail transport and urban public transit. Canada,
for example, stated that it had provided funding for the planning and
delivery of railway infrastructure in 22 developing
countries.
(d) Forestry
18. Twelve Parties described projects to enhance carbon
sequestration in forests in developing countries. These projects
focused on improving forest management practices, encouraging
agroforestry, supporting afforestation or assisting in the
designation and monitoring of protected areas. Finland reported that
it was supporting such projects in more than 20 developing
countries.
(e) Agriculture
19. Finland and France described projects that would enhance
carbon sequestration in agricultural soils in developing countries,
while Germany and the United States noted that they were supporting
projects that would help to reduce methane emissions from livestock.
Given the general assistance provided for agricultural development
activities through official development assistance, this category
appears to be significantly underrepresented in national
communications.
(f) Adaptation
20. The absence of clear definitions of adaptation technology
categories probably limited reporting by Annex II Parties. Four
Parties specifically identified projects targeted at facilitating
climate change adaptation in developing countries. The most common
objectives of these projects were to improve coastal zone management
and limit desertification. Adaptation-related initiatives were
described most extensively in the United States national
communication, where 11 specific projects were
described.
21. Six Parties indicated that they had established organizations
expressly designed to link private sector companies in their
respective countries with private sector companies in developing
countries or countries with economies in transition. Such networks
and clearing-houses provide companies with information on business
opportunities that will, if followed up, result in the transfer of
technology. Examples include the Technology Partnership Initiative
(United Kingdom), and the Committees on Renewable Energy, Commerce
and Trade, and on Energy Efficiency and Trade (United
States).
22. Two Parties provided funding for feasibility studies of
potential private sector projects that, if they are implemented,
could result in the transfer of technology to reduce greenhouse gas
emissions or enhance carbon sequestration.
23. Four Parties indicated that they had provided co-financing for
joint venture investments, involving private sector companies in
their own countries and in a developing country, to produce and
transfer environmental technologies that would reduce greenhouse gas
emissions or enhance carbon sequestration.
Australia
Austria*
Belgium* 1/
Canada
Denmark
Finland
France
Germany
Greece*
Ireland
Italy
Japan
Netherlands
New Zealand
Norway
Portugal
Spain*
Sweden
Switzerland
United Kingdom of Great Britain and Northern Ireland
United States of America
____________
* Technology transfer not addressed in national communication.
1/ Belgium ratified on 16 January 1996 and will become a
Party on 15 April 1996.
1. For decisions adopted by the Conference of the Parties at its first session, see document FCCC/CP/1995/7/Add.1.
2. * United Nations Conference on Trade and Development, World Investment Report, 1994, Transnational Corporations, Employment and the Workplace (United Nations publication, Sales No. E.94.II.A.14).