Climate Change Investment and Technology Transfer in Southeast Asia

　

Tim Forsyth

　

Abstract

　

        In the final chapter, Tim Forsyth discusses the implications of climate change investment and technology transfer for countries in Southeast Asia. He argues that technology transfer is crucial to international environmental agreements, and that it is viewed by many developing countries as a prerequisite for their adherence to treaties. Yet many investing countries see technology transfer as a lengthy and costly process that threatens intellectual property rights. Forsyth argues that such views need to be rethought. Technology transfer should instead be perceived in terms of so-called "horizontal" transfers (including long-term sharing of technological expertise) and "vertical" transfers (in which technologies are relocated without this long-term sharing). Forsyth illustrates how vertical transfer may occur, using evidence from Thailand, Vietnam, Indonesia and the Philippines. His key argument is that integrating technology transfer with international investment offers a powerful way to overcome disagreements in the climate change negotiations. But, for this to happen, technology transfer must be seen as a function of international investment and national and regional technology policy. If technology development is still seen in conventional terms as a linear process, to be controlled by indigenous companies, the prospect for enhancing international climate technology transfer is reduced because the process will be perceived as too costly and a risk to competitiveness. However, if it is seen as a chance to invite new technology investment from international companies that do not expect to give up intellectual property rights, it is possible to have a win-win situation in which environmentally sound technology is increased, local development is assisted through the introduction of new investments, and investors are allowed into new markets. Technology transfer can therefore fully complement both international environmental agreements and international private-sector investment.

 

Redefining technology transfer away from the conventional view, which suggests that it can only assist potential economic competitors, has ensured that foreign policy objections have acted against moves to enhance technology transfer in the past. In contrast, viewing technology transfer in terms of "vertical transfer," or the relocation of economic activity without the sharing of intellectual property rights, can lead to an integration of foreign policy objectives with activities to mitigate climate change. Seeing the relationship between technology transfer and other important aspects of foreign and economic policy may lead to more optimistic and successful negotiations under the FCCC. However, Forsyth cautions that there is a need for careful monitoring of all international investments under the CDM to ensure that new investments in technology actually reduce GHG emissions.