Bilateral Governmental Cooperation to Bilateral Governmental Cooperation to Promote the Technology Transfer Promote the Technology Transfer Under UNFCCC Framework : Under UNFCCC Framework : From Market Potential to the Market From Market Potential to the Market

FormationFormation

KEMCO (Korea Energy Management Corporation)

Dr. Suk-Hoon Woo

January 2000, Cebu, Philippine

ContentsContents

1. Introduction2. Bilateral Governmental Cooperation

Program3. The Experience of Korea : TCAPP-

Korea4. Mechanism Analysis for the

Technology Transfer under UNFCCC

1. Introduction1. Introduction

Technology transfer : a kind of “learning process”– i.e. the mutual efforts are needed both in

provider country and receptor country

Qt : What is the basic motivation of technology transfer, that is firmly supported in the real world (including business world)? economic motivation

The concept of The concept of market potentialmarket potential

– The formation of new market provides a good motivation to the implicated actors

– When the market potential do not exists in the local market (even if not yet established properly), any technology provided cannot be settled successfully

The best technology is not fittest technology (path dependency and network effect)

Key Issues Key Issues

1. Find the fields where the market potential exists

2. Design the TT process with additional institutional efforts

3. The formation of new market will helps the technology to be adapted in the local market and contribute to the sustainable development.

Key Issues Key Issues - continue- continue

4. This new market can give a additional economic opportunity or the expansion of global market to the technology provider, while the EST(Environmentally Sound Technology) market is still limited and restricted in size.

2. Bilateral Governmental 2. Bilateral Governmental CooperationCooperation

Why Governmental Cooperation?

Why Bilateral Cooperation?

Why Why GovernmentalGovernmental Cooperation? Cooperation?

1) helps to overcome the institutional barriers, common in developing and least developed countries

2) helps to coordinate the divers economic actors implicated

a. Local producer and consumers

b. International technology providers

c. Financial supporters and donor-investors

3) helps to identify the potential markets through local market study with the experts of developing countries

Capacity building with government level cooperation

Why Why Bilateral Bilateral Cooperation?Cooperation?

1) Gives more solid responsibility in the technology transfer process than multilateral framework (cf. link to the CDM)

2) helps to identify the specific needs and characteristics of local market, as well as the technology that will be transferred.

3. The Experience of Korea3. The Experience of Korea

TCAPP-Korea : Multiple programs of bilateral framework in technological cooperation initiated by US government– WG1 : ESCO(Energy Service Company)– WG2 : Methane reuse including LFG– WG3 : Heat recovery through heat pump

Lessons learned from Korean casesLessons learned from Korean cases

– Market potential helps to promote the implication of local and institutional actors

ex) ESCO in Hyundai-Motors (Ulsal)– The condition of local market is key factor

in technology transfer process– Flexibility of program is more important the

the concrete design, because each market has its own economic and technological mechanism.

4. Mechanism Analysis 4. Mechanism Analysis

1. Official Listing-up of Bilateral Governmental Technology Transfer Programs

2. Link to the CDM

3. Additional Suggestion

Official Listing-up by UNFCCCOfficial Listing-up by UNFCCC

Information support– Local market, various actors can

participate when designing their own projects, as technology transfer reduces the R&D cost, very high in the initial phase

– Promotion of new programs, into newer fields

Link to the CDMLink to the CDM

Bilateral governmental cooperation has a same structure with the CDM– Provider of technology– Receiver of technology

Identification of GHG reduction effects– Additional rule or understanding is needed in

order to promote the TT (directs and indirect effects)

– New interpretation of technological additionality?

Additional suggestionAdditional suggestion

Hard technologySoft technology

– O&M (Operation and Management)– Project design– And other know-how and tacit knowledge

(uncodified knowledge)The role of soft technology should be

interpreted in more active manner.