Intellectual Property and Sustainable Development

Counting beans for bioenergy

The October 23rd issue of Science has an interesting study, "Fixing a Critical Climate Accounting Error," in which the authors contend that across-the-board exemption of carbon dioxide (CO2) emissions from bioenergy -- the use of plant materials known as biomass for the production of renewable fuels -- is improper in greenhouse gas regulations, if emissions due to land-use changes also are not included. According to a summary by the Woodrow Wilson School of Public and International Studies at Princeton University:

"[The prior method of calculation] treats all uses of bioenergy as carbon-neutral, renewable energy regardless of the source of the biomass, and could create strong economic incentives for large-scale land conversion as countries around the world tighten carbon caps.

According to the researchers, the greenhouse gas consequences of using bioenergy vary greatly depending on the source of the biomass. For example, if plant growth increases to produce bioenergy, as when fast-growing trees or grasses are grown on degraded land, bioenergy reduces global warming because the plants absorb more carbon from the atmosphere, which offsets the CO2 emitted by burning the bioenergy.

However, if bioenergy use results from burning wood chips from existing forests for electricity, or clearing rain forests to grow palm oil and other crops for biofuels, bioenergy does not reduce greenhouse gas emissions, and instead may increase them. Thus, the accounting rules in these legal measures mistakenly exempt the CO2 emitted by bioenergy regardless of the source, according to the authors.

Neither the Kyoto Protocol, nor the existing or proposed climate legislation in Europe and the United States, currently applies limits to emissions from land use such as deforestation. Because of that, the exemption of the CO2 actually emitted from the burning of biofuels and wood for electricity means all forms of bioenergy are treated as carbon neutral, which creates incentives to clear land."

According to a number of studies, applying this incentive globally could lead to the loss of most of the world's natural forests as carbon caps tighten. The Intergovernmental Panel on Climate Change (IPCC) estimates that the cutting down of forests is now contributing close to 20% of the overall greenhouse gases entering the atmosphere. Forest degradation also makes a significant contribution to emissions from forest ecosystems. Co-author Philip Robertson states: "The promise of cellulosic biofuels is huge for our climate and economy. We don't want to find out later that we've built a new industry on a house of cards."

Labels: Climate Change, ESTs, Green Innovation

WIPO's Committee on Development Begins Work on Technology Transfer

Formed in 2007 to address Development concerns associated with IP, WIPO's Committee on Development and IP (CDIP) is - finally - starting to address Technology Transfer. By way of background, the Development Agenda is comprised of 45 Recommendations, ranging from Capacity Building, to Norm-Setting, to the Governance of WIPO . Recommendations 24-26, and 28-31 (cluster C) are directed to Technology Transfer. At the most recent CDIP, the Member States agreed to take a thematic approach" to implementing Recommendations - realizing that there was some overlap between individual recommendations. However, one key pre-condition to the thematic approach was that the individual recommendations would be discussed before projects were decided upon. In making progress towards the implementation of Recommendations 19, 25, 26 and 28, WIPO presented its "Project on Intellectual Property and Technology Transfer: Common Challenges - Building Solutions" at the Open-ended Forum on Proposed Development Agenda Projects. As far as we can tell, none of these Recommendations have been discussed in the Plenary of the CDIP, as required under the thematic approach. The proposed project consists of five "Key Activities:"

1. Organize a high-level forum to facilitate Access to Knowledge/Technology and to form the "New Platform" on Technology Transfer and IP collaboration
2. Perform a series of studies
3. Hold a WIPO forum on transfer and collaboration
4. Hold regional consultations
5. Strengthen existing activities within WIPO

The project is projected to cost about 1.5 million CHF, and take 27 months. How these figures were arrived at, without having concrete plans for which studies would be carried out and how existing activities would be strengthened, is uncertain. Thankfully, WIPO is holding its anticipated "Conference on Building Partnerships for Mobilizing Resources for IP and Development" in a few weeks, just in case additional resources are needed. Moreover, the function of this new platform is quite vague, which is perhaps an appropriate precaution, given the fact that WIPO's Member States have not discussed these recommendations in the plenary. Briefly, CIEL, while welcoming this activity, would recommend that:

1. Individual Recommendations be discussed first in the CDIP so as to not provide for definitions of individual Recommendations through their associated projects for implementation;
2. WIPO view holistically the issue of Technology Transfer and include WIPO's Copyright Section in the relevant divisions implementing Technology Transfer recommendations. The proposal included Patent and Information Communication Technology sections, but not Copyright;
3. WIPO create a mechanism to gather empirical evidence regarding the International Transfer of Technology to help generate evidence based policies for issues of global concern; and
4. WIPO create distinct points of contact and input with relevant Intergovernmental Organizations, as required under Recommendations 30 and 40, in order to capitalize on previous efforts on Technology Transfer by the WTO, WHO, UNEP, UNCTAD and other IGOs.

Labels: Development, ESTs, Green Innovation, IP, Technology Transfer

"Green Tech" Venture Capital Continues its Rebound

According to a survey by Deloitte and The Cleantech Group, venture capital investment has continued its recent resurgence, rebounding from abysmal levels late last year and the beginning of this year. The survey credits government stimulus efforts for restoring the confidence of private investors in green tech ventures. Investments in North America, Europe, India and China totaled 1.3 Billion USD for the third quarter of 2009, a 10% increase from the previous quarter, but still 40% lower than the third quarter of 2008. Kohsla Ventures succeeded in launching two new green-tech funds, totaling 1.1 Billion USD. Indeed, the role of non-IPR incentives, i.e. government policies, appear to be playing a critical role in stimulating investment: “The extension of tax credits for renewable-based power generation along with government stimulus and regulatory requirements to meet renewable portfolio standards are helping to drive continued investment on the part of VCs and utilities into the cleantech sector,” said Scott Smith, U.S. leader of Deloitte’s Clean Tech practice. “Utilities are increasingly bringing their access to capital to the sector through direct investment and power purchase agreements, driving new projects and increased capacity. We continue to see utilities investing in wind and solar and expect this trend to continue as cleantech projects become more economically viable and desirable for utilities.” However, the investment is being made in companies well beyond the R&D phase. Solyndra and Tesla Motors, two of the largest recipients of VC funding, attracted funding for proven technologies - thin-film solar tubes and electric vehicles, respectively. Solyndra is using its funds for increased manufacturing, while Tesla is using its share for increased global marketing and retail efforts. The solar sector received the lion's share of the funds, followed by transportation and green buildings. China and India received only 3% and 1.5% of the total VC investment. The US, Europe and Israel accounted for the remaining 96%. The Cleantech Group's report can be accessed here: http://cleantech.com/about/pressreleases/20090930.cfm

Dissent in the Ranks: Apple joins PG&E, Nike, and others in parting ways with US Chamber

The US Chamber of Commerce, the largest trade organization in the US, is facing increasing dissent and desertion from its former members over the US Chamber's position on Climate Change policy. In parting ways, Apple's VP of Government Affairs wrote, “we strongly object to the Chamber’s recent comments opposing the E.P.A.’s effort to limit greenhouse gases." Apple joins another high-profile brand, Nike, in parting ways with the Chamber. Even more shocking, however, was the resignation of large utility corporations - PG&E, Excelon, and PNM Resources - from the ranks of the US Chamber. Apple has recently been promoting it computers as being more environmentally friendly than the competition. Its website now includes a "life-cycle impact" section. The US Chamber of Commerce has been strongly critical of both the EPA's use of existing legislation to limit greenhouse gas emissions, as well as proposed Climate Change legislation such as the Waxman-Markey bill. Internationally, the US Chamber has supplemented its existing Global Intellectual Property Center with The Coalition for Innovation, Employment and Development (http://www.thecied.org/). All three entities are pushing for a solution to the climate change problem that relies on innovation and technology development, complemented by a stronger global IPR regime. In particular, the US Chamber and its associated programs are arguing against compulsory licensing and other flexibilities of the TRIPS Agreement, which they contend presents a significant disincentive for current and future innovation in technology. Whether any members of the US Chamber disagree with this position is not yet clear, but perhaps the dialogue over domestic climate change policy will help to flush-out private disagreement(s) over innovation policy as well.

Labels: Climate Change, Compulsory Licensing, Green Innovation, Industry, IP, US Chamber of Commerce, Waxman-Markey