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It is thus important to ensure a diversity of policy approaches in keeping with the circumstances of each country. However, as part of an effort to verify fairness and objectivity from various angles, the medium-term targets should be negotiated on the basis of the rate of reduction or improvement compared with multiple base years, including the latest year for which data is available.
Under the Kyoto Protocol, countries made international commitments to reduce emissions by a certain percentage from a specific base year, However, since there are discrepancies between countries in respect to changes in energy supply conditions, social conditions, previous reduction efforts, and so forth, international commitments in the form of reduction percentage from a specific base year should not be made from the view point of equity.
Deliberations should proceed on the premise that land use, land-use change, and forestry will be used to achieve medium-term targets in a manner that maintains continuity and consistency with the rules of the Kyoto Protocol.
Technology 1 Developing innovative technologies Since innovative technologies is essential if we are to solve the problem of climate change without sacrificing economic growth, it is necessary that global resources be channeled into the development of such technologies. In May this year the Japanese government"s Council for Science and Technology Policy adopted a Low Carbon Technology Plan that includes a roadmap for the development of 36 environmental and energy technologies. With this plan as a starting point, industrial countries and any willing developing countries should work to promote development of innovative technologies by sharing technological roadmaps, strengthening partnerships, and increasing investment in research and development.
Because such technical assistance leads to improved energy efficiency in developing countries, it will also help encourage participation by developing countries in a post international framework. It is important to encourage and remove impediments to such business-based technology transfer to ensure that technology transfer continues over the long term.
Tariff barriers to the import of equipment and materials necessary to technical cooperation Complex administrative procedures for concluding technology transfer agreements Lack of knowledge or capable personnel in recipient countries Disincentives to the provision of technology owing to insufficient protection of intellectual property rights in host countries It is necessary first of all to remove such barriers.
Where necessary, support through public funding should be considered to facilitate the removal of impediments to technology transfer. It has been suggested that compulsory licensing or purchase of intellectual property rights should be considered as a way to promote technology transfer. However, such measures have a high potential for causing major damage by undermining incentives for the development of innovative technologies, which are most needed to address climate change over the long term.
Nor are such compulsory measures truly effective in promoting technology transfer. In order for technologies for preventing climate change to be used in practice, people need to have know-how to manage the technologies, as well as the intellectual property rights of the technologies.
Even if a host country acquires the intellectual property rights through compulsory licensing or purchasing, it has little hope of putting the technology to good use unless it has the know-how to use it effectively thereafter. Another problem is that, because any given technology is an aggregate of intellectual property rights and various types of know-how for which there is no standard market price, it becomes difficult to define what is to be compulsorily licensed or purchased and what value should be assigned.
For this reason we are opposed to compulsory licensing or purchase of intellectual property rights. In this connection the Asia-Pacific Partnership on Clean Development and Climate APP has been successful as a framework in which the public and private sectors of industrial and developing countries participate in practical activities to promote technical assistance, including the dissemination of best practices.
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In the post international framework, it is important to utilize the experience of public-private cooperation in the APP. Based on the views of private experts of each sector, we must share information on best practices and the diffusion of technology, carry out analyses on the potential for emissions reduction resulting from the adoption of technologies or practices and improvements in their application, and study assistance measures using all this information.
In addition, it is important that there be due recognition of the private sector"s role in international technical assistance, including personnel contributions. Financial Mechanisms 1 Improving public financial mechanisms Mitigating climate change and adapting to its negative impact requires mechanisms for providing public funds to aid developing countries.
Such mechanisms already exist in the form of various funds, such as that established under the UN Framework Convention on Climate Change. The first step is to work to ensure that these are managed appropriately. Should it become necessary to respond to further demand for funding, each country"s current level of effort should be evaluated objectively and fairly using a variety of criteria, including contributions to such multilateral frameworks as the World Bank, ODA outlays, and technical assistance.
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However, this idea raises the following problems: If this occurred, not only could the emissions reduction effect anticipated in the developing countries be in question but the price of emissions credits would fall, permitting other countries to purchase them cheaply to fulfill their own reduction commitments and thus hinder global emissions reduction.
Going forward, it will be necessary to carefully deliberate the pros and cons of any such mechanism after fleshing out the concept, on the following premises: Adaptation A funding mechanism should be established to strengthen adaptation measures in countries that are particularly vulnerable to the adverse impact of climate change. Fundamentally, funding for adaptation should be provided by the public sector, since it is deemed to be often difficult for the private sector to provide such funds for reason of economic viability.
With regard to developing countries" adaptation to climate change, the private sector can contribute by providing technology both software and hardware for the prior assessment, management, and abatement of risks associated with climate change. Other Key Points 1. Liberalizing trade in environmentally sound goods and services Negotiations are currently under way in the WTO to eliminate or reduce tariff and non-tariff barriers to trade in environmentally sound goods and services.
It is to be hoped that these negotiations can be accelerated, as encouraging worldwide use of the best energy-efficient products and renewable-energy products by removing barriers to their trade is an effective way to help address climate change. The G8 Hokkaido Toyako Summit Leaders Declaration stated, similarly, that "efforts in the WTO negotiations to eliminate tariffs and non-tariff barriers to environmental goods and services should be enhanced with a view to disseminating clean technology and skills.
In the course of WTO negotiations, a number of countries, including Japan, have submitted proposals for trade in goods and services, an area where tariff and non-tariff barriers should be eliminated.
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