How IP could be part of the solution

How IP could be part of the solution to address climate change Xiaohua Zhang UN Climate Change Secretariat

United Nations Framework Convention on Climate Change Contents Ø Role of technologies to address climate change Ø Where are we now: Technology transfer framework Ø What’s next: Recommendation by the EGTT Ø Ongoing discussion: Negotiation on technology under the AWG-LCA Ø IP protection or not? 2

United Nations Framework Convention on Climate Change Role of technologies: mitigation Ø There is high agreement and much evidence that all stabilisation levels assessed can be achieved by deployment of a portfolio of technologies that are either currently available or expected to be commercialised in coming decades, . . . {IPCC WGIII SPM} 3

United Nations Framework Convention on Climate Change Role of technologies: adaptation Ø A range of technologies are also crucial for adaptation: Ø Traditional technologies consist of the many approaches that have been developed and applied to adapt to weather hazards in traditional societies. Ø Modern technologies are those that have been newly created since the industrial revolution including many new, synthetic materials, new chemicals, new varieties of crops (e. g. hybrid corn) and new water use technology (e. g. drip irrigation). Ø High technologies are some of the more recently developed technologies that derive from scientific advances in recent decades including information and communication technology, earth observation systems and geographic information systems (GIS), genetically modified organisms, and the like. Ø Future technologies are those that are yet to be invented or developed. They might include a malaria vaccine, or various forms of geo-engineering to reduce climate impacts, or crops that need little or no water. 4

United Nations Framework Convention on Climate Change Where are we: relevant provisions of the UNFCCC Article 4. 5 Ø “The developed countries and other developed countries in Annex II shall take all practicable steps to promote, facilitate and finance, as appropriate, the transfer of or access to environmentally sound technologies and know how to other Parties, particularly developing country Parties, to enable them to implement the provisions of the Convention. ”… Article 4. 7 Ø “The extent to which developing country Parties will effectively implement their commitments under the Convention will depend on the effective implementation by developed country Parties of their commitments related to financial resources and transfer of technology…” 5

United Nations Framework Convention on Climate Change Where are we: the Technology Transfer Framework Ø COP 4 broke the deadlock on how to operationalize Article 4. 5 of the convention, a “consultative process on the transfer of technology” was set up by decision 4/CP. 4 Ø The framework for meaningful and effective actions to enhance the implementation of Art. 4. 5 of the Convention was adopted by COP 7. Ø Five key themes and areas are: Ø Technology needs and needs assessments Ø Technology information Ø Enabling environments Ø Capacity Building Ø Mechanisms for technology transfer 6

United Nations Framework Convention on Climate Change Where are we: Technology Needs Assessments Ø Over 90 countries conducted technology needs assessments Ø 70 Technology Needs Assessments (TNA) reports were completed as well as in 39 national communications submitted by non. Annex I Parties. Ø The second synthesis report on technology needs made available at SB 30 in June 2009. Ø Report focuses on technology needs identified in The report highlights prioritized technology needs identified by sector and region to mitigate and adapt to climate change. 7

United Nations Framework Convention on Climate Change Where are we: technologies identified in TNAs For mitigation: Energy sector 42% Agriculture and forestry Sector 25. 5% Transport sector 12. 7% Industry sector 11. 5% Waste management sector 7. 9% For adaptation: Agriculture and forestry Sector 43. 3% Coastal zone sector 15. 8% Water sector 14. 8% Systematic observation and monitoring sector-11. 3% of technologies Health sector 9. 1% Natural disasters sector 4. 3% 8

United Nations Framework Convention on Climate Change Where are we: typical barriers identified 9

United Nations Framework Convention on Climate Change What’s next: technology under BAP Ø Enhanced action on technology development and transfer to support action on mitigation and adaptation, including, inter alia, consideration of: Ø Effective mechanisms and enhanced means for the removal of obstacles to, and provision of financial and other incentives for, scaling up of the development and transfer of technology to developing country Parties in order to promote access to affordable environmentally sound technologies; Ø Ways to accelerate deployment, diffusion and transfer of affordable environmentally sound technologies; Ø Cooperation on research and development of current, new and innovative technology, including win-win solutions; Ø The effectiveness of mechanisms and tools for technology cooperation in specific sectors; 10

United Nations Framework Convention on Climate Change What’s next: recommendations by the EGTT 11

United Nations Framework Convention on Climate Change What’s next: recommendations by the EGTT 12

United Nations Framework Convention on Climate Change Ongoing discussion: issues under the AWG-LCA Ø RD&D: Ø Joint RD, full cost Ø Deployment and diffusion: Ø Incremental cost, Incentive mechanism, enabling environment Ø Transfer Ø Capacity building, IPR, technology information Ø Means of implementation: Ø Institutional arrangement Ø Centralized body and decentralized network of centres Ø Financial mechanism Ø Fund and incentive mechanisms 13

United Nations Framework Convention on Climate Change IPR or not: Options proposed Ø Buy down the cost of license Ø Create global patents pool of ESTs Ø Reduce/limit during of patents Ø Share IP for joint RD Ø Establish a process to review and consider the IP issue in the context of climate change Ø Compulsory licensing Ø Exclude patent protection of certain technologies for certain countries 14

United Nations Framework Convention on Climate Change IPR or not: relation between TT and IP Ø The term "technology transfer" refers to a broad set of processes covering the flows of know-how, experience and equipment for mitigating and adapting to climate change … It comprises the process of learning to understand, utilise and replicate the technology, … (IPCC) Ø The term intellectual property refers broadly to the creations of the human mind. Intellectual property rights protect the interests of creators by giving them property rights over their creations. (WIPO) 15

United Nations Framework Convention on Climate Change IPR or not: underlying concerns Ø Innovation v. s. imitation Ø Transfer v. s. diffusion Ø Enabling environment and market incentives lead to technology transfer Ø Transfer of technologies to local producer could decrease the cost Ø Technological capacity v. s. technological outcome 16

United Nations Framework Convention on Climate Change IPR or not: where is the way out Ø Tactically, it would be helpful to focus on identify good practices on this matter from relevant area. Ø Strategically, this issue should and could only be solved in a broader context Ø Process based solution: Establish a regular process on this matter under the UNFCCC might be the point of departure 17

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