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Analysis of Technology Transfer in CDM Projects

2007

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Although the Clean Development Mechanism (CDM) does not have an explicit technology transfer mandate, it may contribute to technology transfer by financing emission reduction projects using technologies currently not available in the host countries. This report analyzes the claims of technology transfer made by CDM project participants in their project design documents. Roughly 39% of all CDM projects accounting for 64% of the annual emission reductions claim to involve technology transfer. Technology transfer is more common for larger projects and projects with foreign participants. Technology transfer is very heterogeneous across project types. Technology transfer usually involves both knowledge and equipment with equipment imports accounting for most of the remaining transfer. The technology originates mostly from Japan, Germany, the USA, France, and Great Britain. The rate of technology transfer is significantly higher than average for projects in Ecuador, Honduras, Mexico, Sri Lanka, Thailand and Vietnam and significantly lower than average for projects in India. Foreign participants have little impact on technology transfer. For most project types project developers appear to have a choice among a number of domestic and/or foreign technology suppliers. Based on data from six Technology Needs Assessments, countries that encourage technology transfer in CDM projects identify more technology needs and fewer barriers to technology transfer. [Abstract ]

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