1. Final Report Summary - ENTTRANS (The potential of transferring and implementing sustainable energy technologies through the Clean Development Mechanism of the Kyoto Protocol)
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Abstract: The Kyoto Protocol of 1997 contains quantified emission limitation or reduction commitments for greenhouse gases (GHG) for a group of industrialised countries. These commitments have been expressed as national GHG emission budgets (so-called assigned amounts); the budgets have been assigned for the period 2008-2012 and have been expressed as percentages of countries' emission levels in 1990 (or a different base year as for some countries with economies in transition). Developing countries have not been assigned with such budgets and, therefore, they do not have quantified commitments.
The objective of ENTTRANS was to analyse how transfer of sustainable energy technologies to developing countries could be supported through the clean development mechanism (CDM) of the Kyoto Protocol. The CDM has two objectives. On the one hand, CDM projects are meant to assist industrialised countries in achieving their Kyoto Protocol commitments in a cost-effective manner, while on the other hand, projects should assist developing countries in achieving sustainable development. A typical CDM project would thus involve both a transfer of a low-carbon technology to a developing country which is in accordance with its domestic needs and priorities, and a transfer of certified emission reductions to the industrialised country that invests in the CDM project. The starting point for the ENTTRANS study was the observation that in actual CDM practice most attention has thus far been paid to the transfer of low-cost emission reduction credits.
In order to analyse how the CDM could address both transfers, the ENTTRANS study assessed, for five potential CDM host countries, how the choice of a technology in a CDM project could be based on developing countries' energy service needs and priorities. Subsequently, a set of technologies could be identified which would both address these needs and priorities, and contribute to reduction of greenhouse gas emissions. After that, the implementation chains for these technologies were analysed in the countries concerned and how the CDM could help improve technology implementation aspects, e.g. by providing extra financial returns on investment, building additional (human) capital for technology operation and maintenance, and acting as a tool to demonstrate technologies that stakeholders in the countries have not yet been familiar with. This action was based on an extensive stakeholder consultation.
Next to an extensive set of deliverables and overall support to building awareness in the case-study countries of technology transfer aspects and the CDM contribution to sustainable development, ENTTRANS has delivered two specific tools to support international policy and decision-making. First, the ENTTRANS study developed an energy service needs assessment (ESNA) approach as a widely applicable tool for future energy technology decision-making in developing countries (and in developed countries). ESNA uses regular technology needs assessment insights but emphasises that technology transfers should be based on countries' energy service needs and priorities and that this assessment requires a participatory approach with energy and environment decision and policy-making stakeholders in the countries.
A second key output of ENTTRANS is the approach to systematically map technology implementation chains and markets in the case-study countries in terms of market actors, relevant legislation, and enabling business environment. With this approach it can become clear(er) where in a country technology transfer is hampered by blockages and / or supported by incentives.
ENTTRANS believes that both outputs could be important tools to support the work of, e.g. the Expert Group on Technology Transfer of the UNFCCC and individual countries when assessing their technology transfer and CDM policies both at the side of investor countries and developing countries.
The study has shown that the usually recommended approach for assessing technology needs in a (developing) country inadvertently anchors a TNA in existing technologies and will always look to the past and be limited by existing infrastructures and experiences. ENTTRANS has shown that the technology needs assessments interviews rated many low-carbon technologies on the low side or not at all so that they showed up as being not preferred. Therefore, it is recommended that an energy service needs assessment (ESNA) combined with a programme of technology familiarisation should be conducted with the developing country stakeholders. After that, the technologies to meet those needs could be assessed only after full discussion and awareness raising of all the possibilities for large-scale and small-scale low-carbon technologies.
It is important to point out that both the ENTTRANS process and the supporting activities on the enabling business environment and market support services are all required as far as possible to ensure successful adoption and transfer. This process is not a 'one-off-quick-fix' but should be seen as catalysing a new direction for a longer-term programme requiring a commitment to continuing support.
Subject Descriptors: Sustainable development ; Atmospheric science; Biological interactions; Ecology
Subject Index Codes: Environmental Protection; Life Sciences; Meteorology; Sustainable development