Technology cooperation : update on the technology mechanism and options for using carbon markets
(2014)
This policy brief provides a general overview on the setup of the UNFCCC's Technology Mechanism, exploring potential synergies between the mechanism and carbon market instruments such as the CDM.
There are two branches of the Technology Mechanism: the Technology Executive Committee (TEC), which is tasked to give political advice, and the Climate Technology Centre and Network (CTCN), providing support and fostering the operationalization of technology transfer. Both institutions strongly focus on capacity building.
The CDM, instead, has contributed to technology transfer in practice. However, the transfer has largely focused on equipment and basic operational knowledge. The transfer of knowledge to adapt, advance and innovate has been limited so far.
Therefore, the two mechanisms could well complement each other. In theory, Programmes of Activities and Standardized Baselines under the CDM could be a means for developing country governments to strategically address financial barriers to technology transfer.
Many have hoped that the CDM's Additionality, if applied to the wider climate finance domain, can contribute to standardizing the funding criteria. This JIKO Policy Brief therefore explore options of applying the CDM's to do just that. The authors highlight issues of environmental system integrity and efficient allocation of funding, and discuss potential limits of the CDM's Additionality concept in its current form, if applied to climate finance.
The prospects are limited, because a clear attribution of emission reductions is almost impossible in a system that does not have as well-defined borders as the zero-sum-game of tradable emission reductions under a capped environment.The authors propose some inroutes to adapting the current approach to Additionality in this context, and pose a number of questions that can help to further discuss and refine the CDM's Additionality concept to make it better applicable for a future, globally inclusive climate regime.