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

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

• KEMCO
• (Korea Energy Management Corporation)
• Dr. Suk-Hoon Woo
• January 2000, Cebu, Philippine

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Contents

• Introduction
• Bilateral Governmental Cooperation Program
• The Experience of Korea TCAPP-Korea
• Mechanism Analysis for the Technology Transfer
  under UNFCCC

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1. 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

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The concept of market 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)

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Key Issues

• Find the fields where the market potential exists
• Design the TT process with additional
  institutional efforts
• The formation of new market will helps the
  technology to be adapted in the local market and
  contribute to the sustainable development.

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Key Issues - continue

• 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.

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2. Bilateral Governmental Cooperation

• Why Governmental Cooperation?
• Why Bilateral Cooperation?

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Why Governmental Cooperation?

• helps to overcome the institutional barriers,
  common in developing and least developed
  countries
• helps to coordinate the divers economic actors
  implicated
• Local producer and consumers
• International technology providers
• Financial supporters and donor-investors

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• helps to identify the potential markets through
  local market study with the experts of developing
  countries
• Capacity building with government level
  cooperation

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Why Bilateral Cooperation?

• Gives more solid responsibility in the technology
  transfer process than multilateral framework (cf.
  link to the CDM)
• helps to identify the specific needs and
  characteristics of local market, as well as the
  technology that will be transferred.

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3. 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

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Lessons 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.

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4. Mechanism Analysis

• Official Listing-up of Bilateral Governmental
  Technology Transfer Programs
• Link to the CDM
• Additional Suggestion

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Official Listing-up by UNFCCC

• Information support
• Local market, various actors can participate when
  designing their own projects, as technology
  transfer reduces the RD cost, very high in the
  initial phase
• Promotion of new programs, into newer fields

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Link 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?

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Additional suggestion

• Hard technology
• Soft technology
• OM (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.