Background

Within the context of enhancing the implementation of Article 4, paragraph 5, of the Convention, capacity building is a process which seeks to build, develop, strengthen, enhance and improve existing scientific and technical skills, capabilities and institutions in Parties other than developed country Parties, and other developed Parties not included in Annex II, particularly developing country Parties, to enable them to assess, adapt, manage and develop environmentally sound technologies.

Capacity building must be country-driven, addressing specific needs and conditions of developing countries and reflecting their national sustainable development strategies, priorities and initiatives. It is primarily to be undertaken by and in developing countries in accordance with the provisions of the Convention.

Purpose

The purpose of capacity building under this framework is to strengthen the capacities of Parties other than developed country Parties and other developed Parties not included in Annex II, particularly developing country Parties, to promote the widespread dissemination, application and development of environmentally sound technologies and know-how, to enable them to implement the provisions of the Convention. Capacity building under this framework should be guided by the principles established in the decisions related to capacity building (decisions 2/CP.7 and 3/CP.7).

Scope

The following sets out the initial scope of the needs and areas for capacity building of Parties, other than developed country Parties and other developed Parties not included in Annex II, particularly developing country Parties, for the transfer of, and access to, environmentally sound technologies and know-how:

(a)	Implementation of regional, subregional and/or national capacity-building activities related to the transfer and development of technologies;
(b)	Enhancement of the awareness of financial institutions, public, private and international, of the need to evaluate environmentally sound technologies on an equal footing with other technology options;
(c)	Provision of opportunities for training in the use of environmentally sound technologies through demonstration projects;
(d)	Enhancement of skills in the adoption, adaptation, installation, operation and maintenance of specific environmentally sound technologies and a broadening of understanding of methodologies for evaluating alternative technological options;
(e)	Strengthening of the capacities of existing national and regional institutions relevant to technology transfer, taking into account country- and sector-specific circumstances, including South-South cooperation and collaboration;
(f)	Training in project development and the management and operation of climate technologies;
(g)	Development and implementation of standards and regulations promoting the use, transfer of, and access to ESTs, taking cognizance of country-specific policies, programmes and circumstances;
(h)	Development of skills and know-how in conducting technology needs assessments;
(i)	Improvement of knowledge on energy efficiency and the utilization of renewable energy technologies.

Implementation

Developed country Parties and other Parties included in Annex II shall take all practicable steps:

(a)	To make available resources to assist developing countries in the implementation of capacity building to enhance the implementation of Article 4, paragraph 5, taking into account the provisions in the scope above. These resources should include adequate financial and technical resources to enable developing countries to undertake country-level needs assessments and to develop specific capacity-building activities consistent with enhancing the implementation of Article 4, paragraph 5;
(b)	To respond to the capacity-building needs and priorities of developing countries in a coordinated and timely manner, and support activities implemented at the national and, as appropriate, subregional and regional levels;
(c)	To give particular attention to the needs of least developed countries and small island developing States.

All Parties should improve the coordination and effectiveness of capacity-building activities relating to the development and transfer of technologies. All Parties should promote conditions conducive to the sustainability and effectiveness of these capacity-building activities.

Progress

Capacity-building is considered as a cross-cutting activity by the EGTT. Hence the implementation of activities identified in this key theme have been integrated and undertaken in other thematic areas as well. Activities undertaken that contribute to enhancing activities in this thematic area are highlighted below.

The expert meeting on methodologies for technology needs assessments held in 2002 in Seoul, Republic of Korea, provided a platform for experts from Parties to exchange views, experiences and lessons learned in conducting TNAs. The workshop on the enabling environments for technology transfer. held in 2003 in Ghent, Belgium, also offered an opportunity for representatives of Parties, relevant international organizations and the private sector to discuss and generate common understanding on actions required by all relevant stakeholders for promoting enabling environments for technology transfer.

The secretariat, in collaboration with the EGTT, organized two workshops on innovative options for financing the development and transfer of technology. The first workshop, held in September 2004 in Montreal, Canada, provided a forum for interactive dialogue between representatives of Parties and private sector financing experts and generated common understanding on financing concepts, information needs, the opportunities and the added value of engaging private sector investment in technology transfer projects. The follow-up workshop on this issue, held in October 2005 in Bonn, Germany, provided an opportunity for consultation and feedback to project developers in developing countries and countries with economies in transition on ways to prepare good project proposals that could attract investors.

On technologies for adaptation, the seminar held in June 2005 in Trinidad and Tobago provided opportunities for representatives of Parties, international organizations, and the private sector to create better understanding on concepts, needs and lessons learned on the application of specific technologies for adaptation to climate change through presentations of case studies from various countries.

To strengthen capacity for technology transfer, the CTI, in collaboration with the secretariat, organized regional workshops relating to technology needs assessments and technology information. The CTI/joint industry seminars organized on specific technologies and sectors also contributed to building capacity for technology transfer.

The secretariat, in collaboration with the EGTT, prepared a technical paper on capacity-building in the development and transfer of technologies. The paper provided information on case studies and key lessons learned on human, institutional and information capacity-building activities, and acknowledged the need to further analyse trends, gaps and overlaps in the implementation of different capacity-building activities.

Several training workshops have been organized under the Subsidiary Body for Implementation (SBI) as part of its activities for the implementation of the capacity-building framework also adopted as part of the Marrakesh Accords in 2001. In 2004 the SBI also completed its comprehensive review of the implementation of the capacity-building frameworks, and noted that the above-mentioned technical paper contributed to that review.