Climate Ambition Needs Targeted Technology Collaboration

Key highlights

• Depending on which development path the world takes, the dynamics of technology cooperation would be very different.
• Economic growth is important for the purchasing power of mitigation technologies. It impacts technology innovation and the scale at which a mitigation technology penetrates in countries across the world.
• How societies respond to various trade-offs associated with a given technology in the medium and long run will have a bearing on the evolution of mitigation technologies.
• A better characterisation of uncertainties and attempting to reduce these through technology cooperation could help in informing government policy and avoiding lock-ins.
• The transport sector is considering electric vehicles (EVs), hybrid vehicles (HBVs) and hydrogen vehicles as alternative low-carbon vehicles. With the fast decline in battery costs, the cost of EVs has fallen more rapidly. Progress in the other two technologies is more uncertain.
• The industrial sector can turn to electrification, carbon capture and storage (CCS) or hydrogen-based applications as low-carbon options. The uncertainties related to CCS are far higher than those related to electrification of industrial energy use.
• Due to uncertainties in future storage technologies, large-scale investments in specific types of battery manufacturing plants may become risky.
• The biggest uncertainties in the building sector are institutional and regulatory, given that regulating the real estate sector has been a challenge in many countries, especially developing economies.
• There are a number of uncertainties surrounding the technical feasibility, economic viability and political motivation behind various solar radiation management (SRM) technologies.
• A better characterisation of uncertainties and attempting to reduce these through technology cooperation could help in informing government policies and avoiding lock-ins.

Technology cooperation can reduce uncertainties and avoid lock-ins and imperfect policy decisions to ensure speed and scale of low carbon technology penetration for 1.5-degree Celsius world

Key recommendations

• Collaborators should ensure clarity of objectives to reduce uncertainties related to development pathways or socio-political impacts.
• Ensure a degree of price certainty in technology cooperation to avoid frequent renegotiation of terms.
• Ensure clarity on risks and responsibilities in multi-country partnerships.
• Determine in advance rules governing voting rights, decision-making procedures, transparency and prior information for affected parties/communities. Revise or updated the same as the technology evolves or more countries get involved in field pilots and commercial testing.
• Consider alternative modalities such as enterprise-driven R&D for technology options, innovation fund for low-carbon technologies, and a G20 platform for horizon technologies to develop partnerships for low-carbon technologies.