India is committed to the UN Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol, which represent the international consensus on the way to deal with climate change. Even though the international community has made promises for technology transfer and additional financing since Rio, this has not resulted in any effective transfer on the ground. Critical technologies, which can have significant impact on decarbonization, have been out of reach of developing countries because of both prohibitive costs and the existing IPR regime.

To enhance international cooperation within this framework, a new paradigm based on the internationally accepted principle of common but differentiated responsibilities is proposed. The focus is on practical action and partnership between developed and developing countries. The new paradigm would enable countries to decarbonize their future, while also preserving for developing countries their respective policy space to address their energy needs in the light of their individual circumstances. The three main components of the paradigm are:

Access to clean technologies by developing countries.

Provision of additional financial resources for access to critical technologies by developing countries.

A network of R&D institutions from both developed and developing countries to engage in research in new technologies.

Need for a New Approach

Decarbonization, which in the context of developing countries should mean lower carbon intensity of the economy and not reduction in the absolute level of GHG emitted over time, is not feasible without R&D in, and dissemination of new relevant technologies. R&D will not happen without innovators reaping reasonable financial rewards for their effort. Similarly, dissemination will not happen unless the new technologies are cheaper than the old. The Global Environment Facility (GEF) and the Clean Development Mechanism (CDM) are presently the primary multilateral arrangements to promote dissemination of decarbonization technologies to developing countries. These have, however, not succeeded in actively promoting R&D in technologies, which would be of actual interest to developing countries. A clear need thus exists for promoting R&D in such technologies. There is also need to ensure that uptake of these technologies is not limited by the perceptions of risk and high transaction costs involved in the GEF and the CDM.

Placing some IPRs in the public domain for developing countries

The IPR issue was successfully addressed with regard to HIV/AIDS. There is a similar need for it to be addressed with regard to technologies for energy efficiency and for clean energy.

One option would be to redefine the extent of patent protection for such technologies. The protection could exclude the use of such technologies in developing countries. Another option would be to establish a mechanism for the purchase of patent rights of certain technologies for their use in developing countries. Users in developing countries would then not be required to pay any license fees for these technologies. The patent holder could, however, continue to receive license fees for the use of the technology in industrialised countries.

New Financial Window

While dealing with the issue of transfer of technology to developing countries, the question of provision of additional financial resources would have to be dealt with. The financing of technology transfer to developing countries needs to be in addition to the existing flows of financing for development. The international community should explore the possibility of the establishment of a Clean Technology Acquisition Fund to enable developing countries to access critical technologies. This would encourage the adoption of clean technologies, and have a significant impact on decarbonization.

Network of R&D Institutions

A network of R&D institutes from developed and developing countries could be established to engage in research in new technologies, particularly those that would be of interest to developing countries. The model, which could be followed, is that of the Consultative Group of International Agricultural Research (CGIAR) that brings together 15 international agricultural centers for mobilizing science for the promotion of agricultural growth. A similar network of institutes from developed and developing countries engaged in R&D in energy efficiency and clean technologies could be established. We may call such a network CLEANET, which can be announced at the Gleneagles Summit. All collaborative R&D work done through the network would be made available to developing countries free of charge.

The network could be set up with voluntary funding from International Financial Institutions, other international organizations and from both developed and developing countries. An announcement of voluntary funding for the setting up of such an R&D network at the Gleneagles Summit would go a long way in demonstrating commitment to addressing climate change.

Additionally, a Global Technology Venture Capital Fund could be established for the financing of R&D, in particular collaborative R&D projects in industrialized and developing countries. The Fund may be able to cover some, if not all, of the costs of the network, through licensing fee from consumers in industrialized countries for use of the technologies that are developed. Equity contribution in the Fund and matters relating to its structure and governance could be considered by a core group of countries.