Methodological and Technological issues in Technology Transfer

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2.3.5 Kyoto Protocol mechanisms and the UNFCCC

The analysis of the literature on the Kyoto Protocol Mechanisms, based on the preliminary stage of development of the rules for these, suggests that if they are implemented, the Mechanisms may have potential to affect the transfer of ESTs. The extent to which Article 4.5 of the UNFCCC has been implemented is being reviewed by the UNFCCC. Given this evolving process, the IPCC has not been able to assess this matter.
The Clean Development Mechanism (CDM) and Joint Implementation (JI) can provide financial incentives for ESTs and influence technology choice. As voluntary mechanisms they require co-operation among developed and between developed and developing country Parties as well as between governments, private sector entities and community organisations.

Although much about the design and governance of the CDM remains to be resolved, some notions on the CDM are starting to emerge from a variety of new literature that has been published since Kyoto:

One important distinction is between "bilateral" or "portfolio" approaches. The bilateral approach is closest to joint implementation programmes where the host country negotiates directly with the investor about the terms of the contract. The portfolio approach would allow host (developing) countries to advance bundles of possible projects that fit with their own sustainable development objectives. Some authors argue that both models will be needed, depending on the type of project involved.

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