GEF Global 37650 onClimate Change Action CATALYZING TECHNOLOGY TRANSFER Developing countries can bypass pollution-pro- South-South transfer of knowledge and technol- ducing energy technologies and leapfrog to clean ogy, and the regionwide build-up of technology energy solutions, such as renewable energy, when capacity, as well as regional access to technology climate-friendly technology is successfully trans- information and best practices. ferred. Through its climate change projects, the Global Environment Facility (GEF) seeks to catalyze In addition, the GEF supports activities to promote this technology transfer, particularly by providing innovation at the national level and market aggre- information, creating an enabling environment gation at the global level, even for those tech- that strengthens local capacity, and jump-starts nologies that are currently too costly but have the the local markets for these technologies. potential to become cost effective. The GEF has developed a conceptual framework for technol- Since its inception, the GEF has supported proj- ogy transfer based on different types of barriers, ects to develop and transform markets for more such as lack of consumer and supplier awareness, than two dozen technologies in over 130 coun- initially high up-front costs, policy barriers, lack of tries. GEF projects have not only helped identify business models, and limited delivery capacity. the barriers that prevent local markets from using The framework will help countries use future GEF- new climate-friendly technologies and prac- funded activities to develop local capacity for tices--they have also helped formulate and technology transfer and to disseminate climate- implement strategies to remove these barriers. friendly technologies in a manner consistent with the GEF principles of cost-effectiveness, sustain- GEF interventions are designed to have lasting ability, replicability, and country ownership. positive impacts on technology transfer and diffu- sion. For example, GEF financing helps introduce The GEF has some impressive successes in this area. climate-friendly technologies that are equally or more cost-effective than standard technologies, HIGH EFFICIENCY BOILERS even in cases where they are not yet known or IN CHINA commercially available in developing countries. To reduce greenhouse gas emissions, a GEF proj- ect, implemented by the World Bank, has pro- SCALING UP vided technology transfer and technical Many GEF projects aim to bring about large-scale assistance to nine competitively selected boiler technological changes in energy use. In some manufacturers. The technology will allow them cases, regional approaches have been adopted to to produce and sell high-efficiency boiler models, benefit from shared circumstances and economies replacing the technology from the 1930s that of scale. For example, the regional program for used to be standard before the GEF project. mini- and micro-hydropower in francophone Africa will help support a regional technology As part of the technology transfer, the project has center. The program is designed to strengthen the acquired advanced equipment from abroad to www.theGEF.org upgrade these firms' designs for new boiler WIND ENERGY IN MEXICO models. The project has also provided technical The GEF is working with the Government of Mexico assistance to the boiler manufacturers to develop, and two of its implementing agencies--UNDP and produce, market, and finance the new models the World Bank--to help lay the foundation for the and to strengthen customer service programs. In transfer of wind energy technology and the addition, the project provides technical assistance expanded use of wind and other renewable energy and training for industrial enterprises to under- sources in Mexico. This integrated effort is designed stand, purchase, and operate high-efficiency boil- to place Mexico in the forefront of renewable ers, along with support for research institutes and energy development worldwide. government agencies to disseminate the technol- ogy to other boiler manufacturers. Through support for the UNDP Action Plan for Removing Barriers to the Full-scale Implementa- SOLAR WATER HEATERS tion of Wind Power, the GEF is assisting the IN MOROCCO Mexican Government's efforts to increase capacity The number of solar water heaters in Morocco to work with and adopt wind energy technology. has dramatically increased from about 20,700 in The project enables the Instituto de 1998 to about 111,300 in 2004. The jump can Investigaciones Electricas to establish a wind- partially be attributed to a GEF project, imple- turbine research facility, which will increase mented by the United Nations Development the understanding of wind technology under Programme (UNDP), which is helping to install Mexican conditions. The institute will also train 80,000 square meters of solar water collectors. technicians to install, maintain, and eventually Because the analysis of the existing market manufacture wind generation equipment in showed that its growth was hindered by the low Mexico. Moreover, the Government has begun to quality and reliability of previous solar water establish a favorable business environment for heaters, the project has been designed to focus joint ventures with the major wind turbine manu- mainly on technical aspects of improving product facturers from other countries. quality and reliability in a number of ways. Working through the World Bank's Large-Scale The project is training governmental agencies and Renewable Energy Development Project, the GEF private firms to promote, evaluate, and install solar is supporting the Mexican Government's efforts hot water systems. It is helping the country to to change its electricity regulatory policy environ- develop norms, standards, and testing procedures ment to ensure that renewable electricity genera- to ensure that all solar water heaters sold and tion--from all sources--is given the opportunity installed in the country are built to meet the high- to sell electricity to the grid and to private elec- est international standards. Moreover, the project is tricity consumers. In addition, GEF resources are introducing assemblers and manufacturers to being used to finance some of the additional improved standards; training architects and engi- costs associated with renewable electricity gener- neers to apply the standards and procedures; and ation to jump start the market. developing codes of practices for constructors, installers, and plumbers. All of this is being under- GEF support for these projects is helping Mexico taken to ensure sustained growth in the market for to become a world leader in renewable energy this important renewable energy technology. generation and development. FOR MORE INFORMATION Global Environment Facility 1818 H Street NW Washington DC 20433 USA www.theGEF.org Tel: 202-473-0508 Fax: 202-522-3240 September 2007