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Deploying climate-friendly technologies through collaboration with developing countries

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N. Lefevre
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Many, if not all, OECD countries are implementing long-term domestic programmes to develop future climate-friendly technologies.In most cases, however, technology deployment efforts are only carried out at the national level. While this has fostered the creation of new industrial activities and networks within OECD countries, there may be opportunities for more effective deployment outside the OECD.This paper investigates whether extending the geographic scope of OECD deployment investments to more promising locations in developing countries could: increase the level of technology deployment enhance learningaccelerate technology cost reductionsincrease developing country participation in climate-friendly technology development effortslower the risk of locking-in more CO2 intensive energy technologiesThe analysis undertaken shows that developing countries can offer opportunities to deploy climate-friendly technologies more cheaply than in OECD countries. OECD technology deployment investments could therefore be enhanced if undertaken in these countries.Investing countries, and the global community, would benefit from faster cost reductions for technologies that will be called for on a large scale to lead to a low-carbon energy path. The long term objective of developing viable climate-friendly alternatives to fossil fuel based technologies is, however, not the only policy driver of technology deployment efforts. Issues related to energy security, industrial development, employment, as well as other environmental objectives may also be affected. These need to be fully recognised by both OECD and developing countries wishing to implement this scheme. [adapted from author]