Through technology, governments can increase the provision of clean energy and its efficient utilization. Through technology, governments can climate proof the development of infrastructure development, and can transform the agriculture sector. But realising the potential of technology is not always a straightforward task. Rather, successful innovation – the translation of knowledge or technology into commercial application – requires attention to a range of activities and often involves a variety of actors.
Specifically, in order to meet their climate challenges, developing countries may need to adapt technologies to local conditions (in the case of coal-power plants, this might involve accounting for the particularities of coal characteristics; in the case of wind turbine components, this might involve accounting for high temperatures) or modify products to make them more attractive to local consumers. Developing countries may also need to develop new products (such as solar lanterns or village-level biomass-based power systems) to expand energy access in a climate-friendly manner.
The development of technology depends upon investment, which in turn depends upon the creation of widespread demand. For this, developing countries will need to explore and implement a range of market-creation or demand-enhancing programs. This may mean requiring energy efficiency labels for appliances, or providing feed-in tariffs for renewables. It may also mean nurturing or supporting new or existing firms that can develop products appropriate to local needs, and upgrading them over time in response to consumer feedback or regulations. It may even require expanding the credit options available to consumers.
Thus, the development and deployment of climate change related technology is a complex process. For many developing countries, already struggling with the challenges of basic development, making progress on climate technologies is an additional burden, and one for which they often have limited capabilities.
Along with colleagues, I have suggested the establishment of Climate Innovation Centers (CICs) in developing countries. In my view, CICs would go a long way to advancing climate technology development and deployment in developing countries. CICs have two major advantages.
First, CICs would be protean in nature. The CICs could help to meet innovation gaps and barriers to climate technologies. This could include technical research, support enterprises by helping them procure finance and develop products or facilities, provide consultancy or consumer research services, design policies, business models, and financial instruments, and provide a platform for sharing experience locally and regionally. Since different technologies will have different innovation gaps, the activities necessary to advance any technology will need to be tailored accoirdingly.
Second, CICs would be located appropriately. CICs would be situated in developing countries. This would allow them to build linkages with local firms, universities and other institutions, further strengthening the economy and capacity of each developing country. By working with local organisations, CICs would enhance the capacity of developing countries. While each CIC would serve the needs of a country or region, having a network of CICs would mean that they could exchange ideas and technologies across developing countries.
The savings that result from enhancing climate-technology innovation in developing countries might be substantial, given the IEA estimate that reducing energy-related emissions by 5 per cent in 2050, compared to 2007 levels, would entail additional investments of USD 46 trillion, almost two-thirds of these in non-OECD countries.
As Barack Obama has rightly noted, the purpose of development is creating conditions where assistance is no longer needed. CICs could move countries away from their current dependency on ‘technical assistance’ and help developing countries build enough capacity to meet their climate challenges. Hopefully climate negotiators in the ongoing climate meeting in Cancun will see them in the same way.
Ambuj Sagar is the Vipula & Mahesh Chaturvedi Chair of Policy Studies at the Indian Institute of Technology Delhi, and a former Senior Research Associate, Energy Technology Innovation Policy research group in the Kennedy School of Government at Harvard University.