Evaluating Technology Transfer in the Clean Development Mechanism and Joint Implementation

To what extent do the Kyoto Protocol's flexible mechanisms facilitate technology transfer to reduce greenhouse gas emissions? This analysis reviews the Clean Development Mechanism (CDM) and Joint Implementation (JI) project portfolios, sample sets of projects, and the technology transfer (TT) literature to address this question. Criteria were developed to assess whether TT occurred relating to the origin of technologies, whether they differ from business-as-usual (BAU), and whether knowledge to implement the technology was imported. For CDM projects, lower- and non-emitting energy technologies account for a large share of total projects in the portfolio, but a relatively low share of total emission reductions. For JI projects, lower- and non-emitting energy technologies play a somewhat stronger role than in CDM. Based on sample projects, approximately 50% of the CDM projects and 62% of the JI projects involved transfer of technology hardware from outside of the host country. The European Union accounted for 83% (JI) and 92% (CDM) of the value of technology exported for these projects. While the flexible mechanisms are facilitating TT, they are insufficient in themselves to allow key lower- and non-emitting technologies to overcome cost and risk barriers and become attractive for widespread deployment. The analysis suggests approaches to leverage the ability of the mechanisms to stimulate TT in key technologies.