INTERNATIONAL MECHANISMS FOR CLEAN TECHNOLOGIES TRANSFER ACCESS AND LIMITATIONS.

THE CUBAN EXPERIENCE.

THE TRANSFER OF THE CLEAN TECHNOLOGIES PROBLEMS ARE

ANALIZED WHEN:

The Northern and Southern The Northern and Southern countries discuss about the countries discuss about the issues of sustainable issues of sustainable developmentdevelopment

The debate on trade and The debate on trade and environment face up the environment face up the TRIPs issuesTRIPs issues

This analysis is related to the flow of financial resources

The flow of new and additional resources to our economies will determine the real possibilities to the access of clean technologies and is one of the requirements to reach sustainable development targets.

INITIAL ISSUESINITIAL ISSUES

Agenda 21 mandates on chapters 33 y 34.

The MEAs mandates about clean technology transfer.

The financial possibilities to reach a real TT

TARGETS TARGETS

Hightlight methodologically and practically the relations between the financial mechanisms and TT.

From the scope of 21 AgendaFrom the scope of MEAs

TARGETSTARGETS

Assess the Cuban access and limitations to the TT.

Present the Cuban measures adopted to stimulate the introduction of clean technologies

In our research work we found two well defined areas of influence:

COLABORATION PROJECTS

INVESTMENT PROJECTS

Limitations of the present study

Lack of international statistic information about clean technologies transfer.

Lack of national information about:

Foreign Investments Clean Technologies

AGENDA 21Chapter 34 ABOUT THE TRANSFER OF CLEAN TECNOLOGIES

Less polluting. Sustainability and optimisation in

the use of the resources More reuse and recycling of waste

and products. More friendly and acceptable

waste disposal technologies in comparison with the old ones.

CLEAN TECHNOLGIES ARE

Total Systems, that include technical knowledge, procedures, goods and services and equipment, as well as, organising and management systems.

AGENDA 21Chapter 33. Financial sources and

mechanisms

Hightlight the linkages between these mechanisms and the TT:

Review different financial mechanism, including the voluntary ones.

Bring the possibility of the establishment of an special international fund.

Bring other innovative options

But the real situation is:

The ODA decrease . The main financial flows are directed to

the countries of the North. The 95 % of the new technologies,

generated in the North are shared internally between TNC and not through directed investments.

The gap between N-S continues increasing

¿What we know up to this moment?

ABOUT INTERNATIONAL COLLABORATION PROJECTS

The analysis of a Data Base that contains 700 collaboration projects shows these figures about : multilateral and bilateral ones.

Number of collaboration projects

MULTILATERAL BILATERAL concluded in process TOTAL % concluded in process TOTAL %

TOTAL 327 42 59 101 30.9 71 155 226 69.1: FOR ENVIRONMENT 21 32 53 16.2 18 38 56 17.1PROPORTIONS:

CLEAN TECHNOLOGIES 1 5 6 1.83 2 2 4 1.22CAPACITY BUILDING 15 19 34 10.4 10 28 38 11.6 INSTITUTIONAL STRENGTHENING 5 8 13 3.98 3 8 11 3.36OTHERS 0 0 0 0 3 0 3 0.92

STRUCTURE OF COLLABORATION PROJECTS

02

468

10

1214

% multilateral

bilaateral

The figures showThe figures show

In the period 95-99In the period 95-99, from , from 700 analysed projects, 700 analysed projects, 327327 are finished or in process.are finished or in process.

From these onlyFrom these only 59 59 projects projects are directed to are directed to environmental issues environmental issues ((33%.of the total)33%.of the total)

ABOUT THE NUMBER OF PROJECTSABOUT THE NUMBER OF PROJECTS

MultilateralMultilateral collaboration collaboration projects for the environment projects for the environment were onlywere only 53 53

( 16.2 % of the total).( 16.2 % of the total).

BilateralBilateral collaboration collaboration projects were projects were 56 (56 ( 17.2 %).17.2 %).

Financial support of the projects

MULTILATERAL BILATERAL concluded in process TOTAL % concluded in process TOTAL %

TOTAL 28137.1 6971.1 12626.3 19597.4 69.6 980.6 7559.1 8539.7 30.4 for environment 3717.9 9048.0 12765.9 45.4 377.5 1546.0 1923.5 6.84PROPORTIONS:

CLEAN TECHNOLOGIES 141.0 2662.9 2803.9 10.0 154.0 534.0 688.0 2.45CAPACITY BUILDING 3303.4 5795.0 9098.4 32.3 22.9 504.9 527.8 1.88 INSTITUCIONAL STRENGTHENING 273.2 590.0 863.2 3.07 188.9 506.0 694.9 2.47OTHERS 0 0.0 0 0 11.3 0.0 11.3 0.59

FINANACIAL SUPPORT FOR THE PROJECTS

0.05.0

10.015.0

20.025.030.035.0

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MULTILATERAL

BILATERAL

ABOUT THE FINANCIAL RESOURCES IN ABOUT THE FINANCIAL RESOURCES IN THE PROJECTSTHE PROJECTS

Multilateral collaboration represents Multilateral collaboration represents 45,4%45,4% for the environment, reaching for the environment, reaching the amount of 12,7 MMUSDthe amount of 12,7 MMUSD

Bilateral collaboration represents only Bilateral collaboration represents only

6,8 %6,8 % reaching the amount of reaching the amount of 1,9 1,9 MMUSDMMUSD

CLEAN TECHNOLGIESCLEAN TECHNOLGIES

PROJECTS: Number %PROJECTS: Number %MULTILRERAL ----- 5 1,8MULTILRERAL ----- 5 1,8BILATERAL --------- 4 1,2BILATERAL --------- 4 1,2

MUSD MUSD MULTILATERAL ---2803,9 10,0MULTILATERAL ---2803,9 10,0BILATERAL--------- 688,0 2,4BILATERAL--------- 688,0 2,4

First conclusionFirst conclusion

There is an insufficient number of There is an insufficient number of collaboration projects directed to collaboration projects directed to clean technologies , and a very clean technologies , and a very small financial support for them.small financial support for them.

ABOUT FINANCIAL ABOUT FINANCIAL MECHANISM TO PROVIDE MECHANISM TO PROVIDE TT.TT.

AGENDA 21 CONTEXT.AGENDA 21 CONTEXT. OPERATIONAL PRINCIPLES .OPERATIONAL PRINCIPLES . ACCES OPORTUNITIES FOR CUBAACCES OPORTUNITIES FOR CUBA LIMITATIONSLIMITATIONS

SOME OF THE SOME OF THE MECHANISMESMECHANISMES

GLOBAL ENVIRONMENTAL FUND GLOBAL ENVIRONMENTAL FUND (GEF)(GEF)

MULTILATERAL FUND FOR THE MULTILATERAL FUND FOR THE MONTREAL PROTOCOL MONTREAL PROTOCOL IMPLEMENTATION IMPLEMENTATION

Agenda 21Agenda 21 Chapter 33 : Means of Chapter 33 : Means of

implementationimplementation Country´s Country´s own publicown public and and privateprivate sector. sector. For the developing countries theFor the developing countries the ODA ODA.. New and additional fundingNew and additional funding for sustainable for sustainable

development.development. FForeign oreign DDirect irect IInvestments and nvestments and TTTT through through

the national implementation to stimulate the the national implementation to stimulate the investments.investments.

NNew innovative financial mechanisms to ew innovative financial mechanisms to generate generate newnew public and private funding. public and private funding.

Agenda 21 considerAgenda 21 considerss that: that:

The average annual The average annual costcost (1993-2000) of (1993-2000) of implementig the Agenda in developing implementig the Agenda in developing countries must be over countries must be over $ 600 billions$ 600 billions, , including about including about $ 125 billions on grants or $ 125 billions on grants or concessional termsconcessional terms from the international from the international communitycommunity..

Funding sources and Funding sources and mechanismsmechanisms

Multilateral banks and FundsMultilateral banks and FundsInternational Development Association (IDA),International Development Association (IDA),Regional and sub regional development BanksRegional and sub regional development BanksSpecialised United Nations agenciesSpecialised United Nations agenciesMultilateral Institutions for Capacity buildingMultilateral Institutions for Capacity buildingBilateral Assistance ProgramsBilateral Assistance ProgramsDebt reliefDebt reliefPrivate fundingPrivate funding

GEFGEF is one of the funding is one of the funding institutionsinstitutions

- Administered jointly by UNEP, UNDP and Administered jointly by UNEP, UNDP and the the World BankWorld Bank

- Provides Grants and Concessional Loans Provides Grants and Concessional Loans designed to face up the global environmental designed to face up the global environmental targetstargets

- Only for the coverage of the Only for the coverage of the incremental incremental costscosts of the projects of the projects

GEF FUNDING:GEF FUNDING:

National priorities projects, addressing National priorities projects, addressing climate change, biological diversity, climate change, biological diversity, international seas and depletion of the international seas and depletion of the ozone layer. ozone layer.

Activities to combat soil degradation, Activities to combat soil degradation, specially desertification and deforestation, specially desertification and deforestation, as far as these activities are related with as far as these activities are related with the 4th firsts spheres.the 4th firsts spheres.

FUND RESOURCESFUND RESOURCES

PILOT PHASE (91-94) 860 PILOT PHASE (91-94) 860 MMUSDMMUSD

1st REPOSITION (95-98) 2OOO 1st REPOSITION (95-98) 2OOO MMUSDMMUSD

2nd REPOSITION (99-02) 2750 2nd REPOSITION (99-02) 2750 MMUSDMMUSD

Cuban access to GEF fundingCuban access to GEF funding

PROJECTSPROJECTS FINSHED 2.9 FINSHED 2.9

MMUSDMMUSD

IN PROCESS 5.6 “IN PROCESS 5.6 “

APROOVED 4.4 “APROOVED 4.4 “

IN NEGOTIATION 14.5 “IN NEGOTIATION 14.5 “

MONTREAL PROTOCOL MONTREAL PROTOCOL MULTILATERAL FUNDMULTILATERAL FUND

Designed to funding the Designed to funding the Protocol Program, in order to Protocol Program, in order to support the activities related support the activities related to the protection of the Ozone to the protection of the Ozone LayerLayer

FUND RESOURCESFUND RESOURCES

1st Repositión (91-93)1st Repositión (91-93) 240 MM 240 MM

2nd Repositión (94-96)2nd Repositión (94-96) 455 MM 455 MM

3rd Repositión (97-99)3rd Repositión (97-99) 466 MM 466 MM

4th Repositión (2000-02)4th Repositión (2000-02) 440 440 MMMM

Cuban access to the fundingCuban access to the funding

PROJECTSPROJECTS FINSHED 476 MUSDFINSHED 476 MUSD

IN PROCESS 1858 “IN PROCESS 1858 “

APROOVED 155 “APROOVED 155 “

IN NEGOTIATION 2665 “IN NEGOTIATION 2665 “

Other conclusion Other conclusion

CUBAN STEPS TO ATRACT CUBAN STEPS TO ATRACT AND PROMOTE AND PROMOTE ENVIRONMENTAL SOUND ENVIRONMENTAL SOUND TECHNOLOGIESTECHNOLOGIES

SOME REFLEXIONS:SOME REFLEXIONS:

Clean Technologies are not only Clean Technologies are not only the most novel, sophisticated , the most novel, sophisticated , remarkable new ones. remarkable new ones.

We may consider less pollutant, We may consider less pollutant, more efficient, and sound more efficient, and sound technologies in relationship with technologies in relationship with the precedent ones.the precedent ones.

Strategy at the national level:Strategy at the national level:

Promote and use scientific Promote and use scientific research capacity of the country to research capacity of the country to solve the national technological solve the national technological problems.problems.

Develop innovative technological Develop innovative technological systems and reengineering systems and reengineering processes.processes.

The development of The development of national capacities is national capacities is complemented with.complemented with.

The attraction of foreign clean The attraction of foreign clean technologiestechnologies

Positive measures implementedPositive measures implemented

Reduction 50 % border tariff for the Reduction 50 % border tariff for the import of technologies and import of technologies and equipment used on waste treatment equipment used on waste treatment and reduction of contaminants. and reduction of contaminants.

Accelerate depreciation on the Accelerate depreciation on the investments directed to develop , investments directed to develop , import, or install environmentally import, or install environmentally sound technologies.sound technologies.

Positive measures implementedPositive measures implemented

National Economic Plan assigned National Economic Plan assigned 138,4 138,4 MMPMMP, in year 2000, for the investments , in year 2000, for the investments directed to solve environmental directed to solve environmental problems. It means around problems. It means around 7,9%7,9% of the of the national total investment amount..national total investment amount..

Implementation of the Implementation of the National National Environmental FundEnvironmental Fund as a new financial as a new financial mechanism for the environment. mechanism for the environment.

Command & control implemented Command & control implemented measuresmeasures

Environmental Impact Assessment Environmental Impact Assessment (EIA),(EIA), and environmental licensing and environmental licensing are some of the keys control are some of the keys control measures for the investorsmeasures for the investors

These measures are These measures are mandatory mandatory and and leadersleaders in all in all investment investment processesprocesses of the country of the country

Other implemented economic Other implemented economic measuresmeasures

Law No.73/1994. ”Taxation Law No.73/1994. ”Taxation System”, introduce the System”, introduce the environmental tax over the use environmental tax over the use and exploitation of natural and exploitation of natural resources and to protect the resources and to protect the environmentenvironment

Other implemented economic Other implemented economic measuresmeasures

Law No.77 “Foreign Investment Law” Law No.77 “Foreign Investment Law” recognise that the F I could be recognise that the F I could be conduced on the basis of the conduced on the basis of the protection of natural resources and protection of natural resources and the environment".the environment".

On Article 39 the Law establishes a On Article 39 the Law establishes a charge over the income tax when the charge over the income tax when the use of natural resources takes place.use of natural resources takes place.

PROPOSALS PROPOSALS

At national levelAt national level

1- Establish a statistical and 1- Establish a statistical and informative control systeminformative control system in in order to quantify the behavior of order to quantify the behavior of the development of clean the development of clean technologies in the national technologies in the national context as well as those that are context as well as those that are introduced.introduced.

PROPOSALSPROPOSALS

2- Intensify2- Intensify the process of the process of national capacity buildingnational capacity building in in the process of elaboration of the process of elaboration of projects to be funded by projects to be funded by international institutions.international institutions.

PROPOSALSPROPOSALS

InternationallyInternationally

1- Ask international institutions the 1- Ask international institutions the

design of methodologies that design of methodologies that

facilitate the country control of facilitate the country control of clean clean

technologies.technologies.

PROPOSALSPROPOSALS

2-Request the international 2-Request the international institutions to consider the institutions to consider the inclusion in the statistical basis inclusion in the statistical basis of international trade of of international trade of specific information that can specific information that can help to know the tendencies of help to know the tendencies of clean technology transfer.clean technology transfer.

PROPOSALSPROPOSALS

3- Request the international 3- Request the international institutions to support the institutions to support the organization and organization and development of assistance development of assistance programs aimed to increase programs aimed to increase capacities in the elaboration capacities in the elaboration of projects for these of projects for these purposes.purposes.