The FAD Working Papers are intended to help advance the discussions on the design of the future international response to climate change. The concepts developed and opinions expressed in these papers are those of the Center for Clean Air Policy (CCAP), although these views have been informed by extensive interactions with participants in the "FAD." Since October 2002, CCAP has facilitated biannual meetings of the FAD, which brings together a group of high-level climate negotiators from developed and developing countries. The process gives participants a chance to informally discuss different approaches to the design of the future international climate regime in a relaxed, off-the-record, non-negotiating setting. Each FAD meeting consists of one day for participants from developing countries-"Developing Country-Only Dialoguefollowed by three days of discussions between developing and developed country participantsthe "Joint Dialogue". Financial contributions for these efforts were provided by the Australian International Greenhouse Partnerships Office, Environment Canada, The FAD Working Papers do not reflect consensus recommendations of the FAD participants; rather they are CCAP's ideas and papers influenced by the discussions in the FAD. Later in the process CCAP will publish a compendium which will include elements of the FAD Working Papers and other options discussed during the FAD meetings. For more information on the FAD, presentations, and other FAD Working Papers, see: www.ccap.org/international/future.htm About the Center for Clean Air PolicyAs a recognized world leader in air quality and climate policy since 1985, the Center for Clean Air Policy, an independent non-profit entity, seeks to promote and implement innovative solutions to major environmental and energy problems which balance both environmental and economic interests. The Center's work is guided by the belief that market-based approaches to environmental problems offer the greatest potential to reach common ground between these often conflicting interests. CCAP staffs have participated in the Framework Convention on Climate Change negotiations, helping to shape the Joint Implementation provisions of the Rio Treaty and the Kyoto Protocol Mechanisms. CCAP has also developed a series of papers, the Airlie Papers, on domestic carbon trading in the US, the Leiden Papers, on international emissions trading, and the Clean Development Mechanism Papers, on the design of the CDM. For more information on CCAP, see: www.ccap.org Executive SummaryThe primary objective of the United Nations Framework Convention on Climate Change (UNFCCC) is "stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system." The Kyoto Protocol was designed to be a first step toward achieving this objective. Negotiations on the structure of the next climate change policy framework are therefore exploring what approaches will be introduced in the post-2012 timeframe, which countries wi...

To what extent do the Kyoto Protocol's flexible mechanisms facilitate technology transfer to reduce greenhouse gas emissions? This analysis reviews the Clean Development Mechanism (CDM) and Joint Implementation (JI) project portfolios, sample sets of projects, and the technology transfer (TT) literature to address this question. Criteria were developed to assess whether TT occurred relating to the origin of technologies, whether they differ from business-asusual (BAU), and whether knowledge to implement the technology was imported. For CDM projects, lower-and non-emitting energy technologies account for a large share of total projects in the portfolio, but a relatively low share of total emission reductions. For JI projects, lower-and non-emitting energy technologies play a somewhat stronger role than in CDM. Based on sample projects, approximately 50% of the CDM projects and 62% of the JI projects involved transfer of technology hardware from outside of the host country. The European Union accounted for 83% (JI) and 92% (CDM) of the value of technology exported for these projects. While the flexible mechanisms are facilitating TT, they are insufficient in themselves to allow key lower-and non-emitting technologies to overcome cost and risk barriers and become attractive for widespread deployment. The analysis suggests approaches to leverage the ability of the mechanisms to stimulate TT in key technologies.

To what extent do the Kyoto Protocol's flexible mechanisms facilitate technology transfer to reduce greenhouse gas emissions? This analysis reviews the Clean Development Mechanism (CDM) and Joint Implementation (JI) project portfolios, sample sets of projects, and the technology transfer (TT) literature to address this question. Criteria were developed to assess whether TT occurred relating to the origin of technologies, whether they differ from business-asusual (BAU), and whether knowledge to implement the technology was imported. For CDM projects, lower-and non-emitting energy technologies account for a large share of total projects in the portfolio, but a relatively low share of total emission reductions. For JI projects, lower-and non-emitting energy technologies play a somewhat stronger role than in CDM. Based on sample projects, approximately 50% of the CDM projects and 62% of the JI projects involved transfer of technology hardware from outside of the host country. The European Union accounted for 83% (JI) and 92% (CDM) of the value of technology exported for these projects. While the flexible mechanisms are facilitating TT, they are insufficient in themselves to allow key lower-and non-emitting technologies to overcome cost and risk barriers and become attractive for widespread deployment. The analysis suggests approaches to leverage the ability of the mechanisms to stimulate TT in key technologies.