Page 104 - Low Carbon Development in China and India
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sustainable development exchange platform1 that benefit all Southern 2.1
countries and contributes to achieving the Sustainable Development
Goals. To date, it has facilitated the transaction of several technology
transfer projects between developing countries.
The previous paragraphs provide a spectrum of policy options that
can help develop a low carbon future for China and India. However, it
is recommended to consider the following principles when designing
related strategies and policies on low carbon technologies in China
and India:
1. Strategies and policies need to be incentive compatible, so that
they create incentives for people to self-regulate themselves. They
should promote technological and institutional innovation so that
efficiency continuously improves over time. The development and
introduction of low carbon technology is an essential element of a
low carbon future. There is an urgent need to scale up and expand
investment in the research and development of such technologies.
This will not only require supportive policy framework for research
and development, but also interventions that facilitate adoption
and absorption of new technology. Venture capital funds that
take equity risk could contribute to successful commercialization
of innovations.
2. Policies and implementation strategies should recognize that
actions will have to come from multiple levels in government, as
well as industry, institutions, and individuals. Since many actions
take place at the national and local government levels, not only
the analysis and formulation of action plans, but also capacity
building will have to be tailored to these levels. Implementation
should also harness the creative potential of non-governmental
actors, particularly business, professional associations, and the civil
society at large;
3. Policies should facilitate coordination so as to reduce transaction
costs in the implementation of low carbon strategies. While setting
priorities, both ‘co-benefits’ and ‘consequential losses’ need to
be considered, as also cross-cutting effects across sectors of the
economy; and
4. Policies should take into consideration uncertainties as well. In the
context of climate change, such uncertainties could be uncertainty
about current and cumulative greenhouse gas emissions, the
1 South-South Global Assets and Technology Exchange (SS-Gate), January, 2014.
Available at http://www.ss-gate.org
Chapter 1 Low Carbon Technology and Innovation Policy 69
countries and contributes to achieving the Sustainable Development
Goals. To date, it has facilitated the transaction of several technology
transfer projects between developing countries.
The previous paragraphs provide a spectrum of policy options that
can help develop a low carbon future for China and India. However, it
is recommended to consider the following principles when designing
related strategies and policies on low carbon technologies in China
and India:
1. Strategies and policies need to be incentive compatible, so that
they create incentives for people to self-regulate themselves. They
should promote technological and institutional innovation so that
efficiency continuously improves over time. The development and
introduction of low carbon technology is an essential element of a
low carbon future. There is an urgent need to scale up and expand
investment in the research and development of such technologies.
This will not only require supportive policy framework for research
and development, but also interventions that facilitate adoption
and absorption of new technology. Venture capital funds that
take equity risk could contribute to successful commercialization
of innovations.
2. Policies and implementation strategies should recognize that
actions will have to come from multiple levels in government, as
well as industry, institutions, and individuals. Since many actions
take place at the national and local government levels, not only
the analysis and formulation of action plans, but also capacity
building will have to be tailored to these levels. Implementation
should also harness the creative potential of non-governmental
actors, particularly business, professional associations, and the civil
society at large;
3. Policies should facilitate coordination so as to reduce transaction
costs in the implementation of low carbon strategies. While setting
priorities, both ‘co-benefits’ and ‘consequential losses’ need to
be considered, as also cross-cutting effects across sectors of the
economy; and
4. Policies should take into consideration uncertainties as well. In the
context of climate change, such uncertainties could be uncertainty
about current and cumulative greenhouse gas emissions, the
1 South-South Global Assets and Technology Exchange (SS-Gate), January, 2014.
Available at http://www.ss-gate.org
Chapter 1 Low Carbon Technology and Innovation Policy 69
