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Denmark's Fourth National Communication on Climate Change

7. Financial resources and transfer of technology

• 7.1 Danish development policy
• 7.2 Development cooperation
• 7.3 New and additional assistance funds
  • 7.3.1 Multilateral efforts
• 7.4 Assistance through the private sector
• 7.5 Assistance to developing countries that are particularly vulnerable to climate change
• 7.6 Activities in connection with technology transfer

7.1 DANISH DEVELOPMENT POLICY

Denmark's vision for regional and global sustainable development is a world with economic development, social welfare, and greater protection of the environment. It includes a world market with free trade based on economic responsibility and environmental standards, and it includes respect for human rights, democratisation, transparency, and responsibility in administrations.

The overall goal of Danish development cooperation is to promote sustainable development through poverty-oriented economic growth. Denmark emphasises that development cooperation should contribute to meeting the 2015 goals adopted at the UN Summit (Millennium Development Goals).

With a view to combating poverty and meeting the 2015 targets, development cooperation is organised taking account of government priorities to focus on good governance, assistance to refugees in local areas, the environment including climate change mitigation and adaptation, industrial development, women, and trade and development. On the basis of this, development assistance is also organised in close cohesion with other foreign and security policies.

The effort to promote national sustainable development is closely linked to the global challenges for sustainable development - and vice versa. Growing trade and international capital flows, conflicts and refugee flows, together with the increasing pressure on natural resources, have made individual countries ever more dependent on the outside world. Denmark therefore has a great interest in contributing to sustainable development through national efforts and through the EU, the UN, the WTO, the OECD, and the international financial institutions, including the World Bank and the International Monetary Fund.

The world is facing many regional and global challenges. Of the 6 bn. people in the world, more than 1 bn. live on less than USD 1 per day, and a further 1.5 bn. on less than USD 2 per day. The challenge therefore consists primarily in creating growth and jobs, eradicating poverty and creating better conditions of life for the poor people of the world. For example, one fifth of the world's people do not have access to clean water and sanitation, and this particularly affects women, children, indigenous peoples, and other particularly exposed population groups.

Competition for scarce natural resources has in a number of cases led to violent conflicts, which especially in the developing countries have created huge refugee problems. Analyses from the Intergovernmental Panel on Climate Change (IPCC) show that climate change is very probably already a reality, and the greatest adverse effects of climate changes are expected in the developing countries. Biodiversity is under increasing pressure, and nature's resources are often used on an unsustainable basis. The use of dangerous chemicals is a growing problem, both for human health and for fauna and flora.

There is often a close correlation between poverty and environmental problems. Thus, the poorest are the hardest hit by environmental deterioration. At the same time, poverty limits the possibilities for sustainable utilisation of natural resources because limited resources are available for investment in protection of the environment. For example, poverty is contributing to soil exhaustion and desertification in Africa. Conversely, uncontrolled economic growth in developing countries and the slightly more developed countries in the East and South often leads to increased use of natural resources and burdens the environment.

In its entire international work for global sustainable development, Denmark attaches importance to the need to integrate and balance the economic dimension (poverty-oriented growth), the social dimension (promotion of such social sectors as education and health) and the environmental dimension (protection of the environment).

Denmark wants a strong global structure to promote all elements of global sustainable development, including a stronger structure for promotion of international environmental cooperation and environmental regulation.

Denmark will continue working for global sustainable development by:

• Integrating environmental considerations into policies and decisions.
   
• Ensuring continued progress in the global environmental agenda. The goal is to gather responsibility for international environment cooperation in one single environment organisation.
   
• Promoting economic cooperation and partnership for development, including combating global poverty and regulating trade and investments.
   
• Contributing to international peace and stability and working to promote democracy and human rights.
   
• Working for continued development and democratisation of the international cooperation with the emphasis on openness and participation, including participation by weaker groups.
   
• Reducing emissions of greenhouse gases globally and in a cost-effective manner.
   
• Promoting mutually committing partnerships with the private sector.

7.2 DEVELOPMENT COOPERATION

In 2004, Danish development assistance amounted to about DKK 12 bn., corresponding to 0.84% of GNI. Assistance is primarily funded through section 06(3) of the Danish Finance Act. Denmark will continue to be amongst those countries granting the most development assistance and will also grant at least 0.8% of GNI in development assistance in the years to come. In this way Danish assistance will continue significantly above the UN target of 0.7% of GNI.

Since the change of government in Denmark in November 2001, the government in 2002 reviewed Denmark's development assistance and environmental assistance to developing countries with the objective of prioritising it, focusing it, and making it more effective. In the strategy for Danish assistance to developing countries, A World of Difference, the government set out its new priorities for Danish development assistance for 2004-2008.

The Strategy confirms that focus will continue on long-term development work aiming at combating poverty, and that the main priority is work within the social sectors, i.e. education, health, water and sanitation.

It also confirms that Denmark will continue at the leading edge of development assistance, both with regard to quality and scope. The government priorities for global environment issues and issues regarding free trade and market-based economic growth are confirmed and enhanced in the Strategy. Moreover there are efforts to create a better interplay between environmental assistance and other Danish efforts to protect the global environment, including climate efforts under the Kyoto Protocol.

International climate cooperation, including the issue on the adaptation of developing countries to climate change is also a high priority in Danish international development cooperation. In the energy area, the basis is the adoption by the Johannesburg Summit of the need to improve access for the poorest people to energy as a contribution to meeting the 2015 Goals (especially the poverty goal) and improving the proportion of renewable energy in the global energy supply

The government Strategy for development cooperation also involves stricter requirements for the governments in the cooperation countries with regard to respect for human rights and democracy. Systematic and lasting violations of human rights and democratic rules of play are irreconcilable with qualifying for Danish assistance. This has meant that development cooperation has ceased with some cooperation countries. At mid-2005, Danish programme cooperation countries were Bangladesh, Benin, Bhutan, Bolivia, Burkina Faso, Egypt, Ghana, Kenya, Mozambique, Nepal, Nicaragua, Tanzania, Uganda, Vietnam, and Zambia.

Denmark seeks actively to encourage the many countries whose development assistance is below the UN objective of 0.7% of GNI to increase their assistance. At the UN 2005 Summit Meeting on the 2015 Goals, Denmark will work to encourage countries, including EU Member States, with a lower assistance percentage that 0.7% of GNI to increase their assistance.

In international evaluations of Danish work for developing countries, Denmark receives good results. In the regular OECD review of Danish assistance in both 1999 and 2003, Denmark was awarded top marks, and Denmark is at the top of the Commitment-to-development index in the US journal Foreign Policy.

Since 2001, the government has afforded environmental efforts in development cooperation ever greater priority, partly on the basis of the follow-up necessary to realise the agreements and commitments from the Johannesburg Summit. One step was the preparation of a Strategy for Danish environmental work in developing countries 2004-2008, which was launched in 2004. This Strategy is the first to gather all environment work under one common goal – combating poverty – and the first to integrate environment efforts with the overall development assistance. The Strategy emphasises that environmental efforts include climate efforts, for example one of the elements in the Strategy is to support climate efforts through capacity building. The Strategy covers the possibilities of countries to administer work within the international environment conventions and to create opportunities to contribute to the development of CDM projects, which could later lead to Danish purchases of CO₂ credits (see sections 7.2 and 4.2.2). The Strategy also aims at promoting environmental concerns as inter-disciplinary concerns in all assistance, both bilateral and multilateral.

With our EU partners, in 2004 Denmark adopted an action plan to integrate the climate into development cooperation. The Action Plan contains four elements:

1. greater priority to climate change in the dialogue with cooperation countries,
    
2. support to climate adaptation within relevant sector programmes,
    
3. support to combating the causes of climate change by reducing greenhouse gas emissions, and
    
4. support for capacity development to promote developing countries' efforts on climate change.

In 2004, the Ministry of Foreign Affairs set up a project group to prepare a Danish follow-up plan to the EU Action Plan. The Danish follow-up plan should be completed by the end of 2005.

7.3 NEW AND ADDITIONAL ASSISTANCE FUNDS

Bilateral efforts

Danish environment efforts are to contribute to meeting the overall target for Danish development assistance – combating poverty. In addition to this, within the framework of international development cooperation it is increasingly being recognised that the negative effects of climate change could present an obstacle to combating poverty and meeting the 2015 Goals. This means that environment efforts, including climate efforts, are an integrated element of the total Danish development work, and thus also part of work to realise the 2015 Goals.

Bilateral environment activities comprise a large proportion of Danish International Development Assistance (Danida) sector programme support in Bhutan, Bolivia, Egypt, Nepal and Nicaragua. Moreover, the environment aspect is incorporated in a number of other sector programmes, not least for the sectors water, energy, agriculture, forestry, and fisheries, just as the environment has been integrated into Danish efforts in other sector programmes supported by Denmark. A number of independent projects are also supported by Denmark through Danida's authority to make decentral grants. In addition there is environment work funded by the special environment assistance. This includes environment activities in Cambodia, Malaysia, Mozambique, South Africa, Tanzania, Thailand, Vietnam and Zambia.

Danish environmental efforts in developing countries are organised in close, binding cooperation with cooperation countries. Efforts aim at promoting sustainable development, including adaptation by developing countries to climate change, and relieving poverty-related pressure on the environment and nature. Within the water area for example, action is helping to ensure millions of poor people access to clean water and to protect sources of water - e.g. by tree planting and by building up capacity for sustainable management. In the energy area, Denmark provides support for sustainable energy supply - e.g. supporting poor women in planting trees for fuel, which provides the women with an income and at the same time protects the environment. Within nature resources, Denmark is working to strengthen sustainable management and production with a view to preventing soil exhaustion and desertification. In the richer developing countries with increasing economic activity, assistance is aimed at helping countries to protect nature and the environment, primarily by strengthening the capacity of the countries themselves to solve the problems and by raising environmental awareness.

Environmental analyses continue to play an essential role in the regular revision of the country strategies for Denmark's programme cooperation countries. Another important task is to seek better integration of the objectives of international environmental agreements in the bilateral assistance cooperation.

Until 2003, Denmark made funds available for environmental action from both section 06(3) of the Finance Act and from a special Environment, Peace and Stability Fund (MIFRESTA). In 2004 the government decided to integrate environment assistance into the overall assistance and replace MIFRESTA with a separate budget item for special environment assistance under section 06(3) of the Finance Act. In addition to the figures for total bilateral assistance, up to 2003, Table 7.1 includes special environment assistance under MIFRESTA and for 2004 the special budget item under section 06(3).

The background to the government decision not to continue MIFRESTA was a desire to improve coordination of environment activities with other Danish international development efforts. Irrespective of whether financing of environment and environment-related assistance is through separate budgets within or outside section 06(3) of the Finance Act, it is difficult to assess whether there are new and/or additional assistance funds. The difficulties are primarily methodological problems in determining additionality. Nevertheless, the total scope of Danish assistance for the environment in developing countries will continue to be extensive.

Danish bilateral and regional assistance to support implementation of the Climate Convention

Tables 7.2 – 7.6 provide an overview of how Danish bilateral and regional assistance to developing countries to implement the Climate Convention is distributed over the main categories of mitigation and adaptation and by sector category.

7.3.1 Multilateral efforts

Endeavours to create global stability and development require that the international community cooperate to provide action that promotes environmental sustainable development. This perspective must be secured in the implementation of multilateral initiatives. Denmark therefore considers that special environmental initiatives that contribute to global environmentally sustainable solutions to global development problems are vital.

TABLE 7.1 DANISH TOTAL BILATERAL DEVELOPMENT ASSISTANCE AND ENVIRONMENTAL ASSISTANCE 2000-2004 (DKK MILL.)

Source: The Ministry of Foreign Affairs

1 Annual payments as reported to the OECD/DAC.

TABLE 7.2 DANISH BILATERAL AND REGIONAL ASSISTANCE IN 2000 FOR IMPLEMENTATION OF THE CLIMATE CONVENTION (DKK MILL.)

Source: Danish Ministry of Foreign Affairs

TABLE 7.3 DANISH BILATERAL AND REGIONAL ASSISTANCE IN 2001 FOR IMPLEMENTATION OF THE CLIMATE CONVENTION (DKK MILL.)

Source: Danish Ministry of Foreign Affairs

Denmark afforded very high priority to the World Summit on Sustainable Development in Johannesburg in September 2002 under the Danish EU Presidency. The Summit emphasised the close connection between environmental problems and development problems.

At the same time, the special effort to protect the global environment focus on areas and countries where the greatest environmental improvements can be achieved. This is not least relevant to efforts under the UN Climate Convention and the Kyoto Protocol, which make up the framework for meeting the climate threat.

TABLE 7.4 DANISH BILATERAL AND REGIONAL ASSISTANCE IN 2002 FOR IMPLEMENTATION OF THE CLIMATE CONVENTION (DKK MILL.).

Source: The Ministry of Foreign Affairs

1 In 2002 DKK 465.0 mill. were granted in support of an energy sector programme in Mozambique for the period 2002-2008. One of the examples in Annex F.

TABLE 7.5 DANISH BILATERAL AND REGIONAL ASSISTANCE IN 2003 FOR IMPLEMENTATION OF THE CLIMATE CONVENTION (DKK MILL.)

Source: The Ministry of Foreign Affairs

Through the EU, Denmark has worked for binding and effective regulation of international environmental problems through the regional and global environment conventions. This applies, for example, to the conventions on biodiversity, climate change, combating desertification, the Montreal Protocol, the Basel Convention on cross-border transportation of hazardous waste and the conventions regulating chemicals, the Stockholm Convention on Persistent Organic Pollutants, and the IMO Convention on toxic primers. Denmark has worked to get the conventions coordinated and enforced effectively and for the precautionary principle to have a central role in the rules.

Danish international environmental assistance includes global environmental programmes funded through facilities for assistance to developing countries such as contributions to the Global Environment Facility, GEF and the UN Environment Programme, as well as to a number of other efforts to promote international cooperation on sustainable development.

TABLE 7.6 DANISH BILATERAL AND REGIONAL ASSISTANCE IN 2004 FOR IMPLEMENTATION OF THE CLIMATE CONVENTION (DKK MILL.)

Source: Danish Ministry of Foreign Affairs

After adoption of the Kyoto Protocol and the third Conference of the Parties under the Climate Convention in 1997, the Conferences of the Parties in Bonn and in Marrakech in 2001 made a number of decisions on the implementation of the Kyoto Protocol on limiting greenhouse gases. This provided the foundation for ratification of the Protocol. Up to November 2004 adequate support had been achieved so that the Protocol could enter into force on 16 February 2005.

In accordance with the Climate Strategy from 2003, Denmark is preparing for the application of the Protocol's project mechanism, the Clean Development Mechanism, whereby climate projects can be completed in developing countries and Denmark will be credited with the emissions credits achieved. Denmark's CDM activities are further described in section 4.2.2.

Under the Conferences of the Parties under the Climate Convention in Bonn and Marrakech it was decided to establish three new funds to support initiatives by developing countries against climate change. EU Member States and others were politically committed from 2005-2008 to granting USD 410 mill. per year to ?nance these funds and for other forms of support to implement the Climate Convention. Denmark's share of this ?gure is USD 22.32 mill., and it has been included in the budgets under the facilities for assistance to developing countries, to be implemented within the four-year period.

Denmark is working to strengthen the Global Environment Facility (GEF) ?nancially and organisationally. The Danish contribution to GEF's replenishment for the years 2002-2005, the largest to date, is about 50% larger than in the previous replenishment. Denmark, together with other EU Member States, has made an extra, voluntary contribution to the third replenishment.

Danish contributions to the GEF and UNEP will place special priority on

• Continued support to the GEF through realising the increased contribution approved at the 3rd replenishment of the GEF in 2002 and through work to secure a substantial 4th replenishment of the GEF.
   
• Support to UNEP through special priority for strategic areas such as water, energy and chemicals and continued work to improve and focus the work of UNEP. The voluntary Danish contribution will continue unchanged.

Since 1998 UNEP has implemented a reform programme to make its work more efficient and focussed. In recognition of this initiative, in 2001 Denmark increased its annual general contribution from DKK 13.8 to DKK 15.5 mill., and this level is expected to continue in the future. Thus, in per capita terms, Denmark is one of the largest contributors to UNEP.

Besides the annual contribution to the programme's Environment Fund, Denmark makes both technical and financial contributions to a number of special UNEP activities, particularly those taking place at the special cooperation centres for energy and the environment and for water and the environment.

Through the contribution to the UNEP Risø Centre, work is supported work on climate-related questions and sustainable energy. The Centre has made valuable contributions to the sections on adaptation in the IPCC's Third Assessment Report. The centre's work programme for the coming years includes many activities concerning the Kyoto Protocol's Clean Development Mechanism and contributions to the IPCC Fourth Assessment Report.

The UNEP Risø Centre was an inspiration for the UNEP cooperation centre at the Danish Hydraulic Institute (DHI) – Water and Environment. The Danish contribution to this centre helps support global initiatives by UNEP in the water area, particularly for integrated water-resource and coastal-zone management.

TABLE 7.7 DANISH CONTIBUTION TO THE GEF 2000-2004

Source: The Ministry of Foreign Affairs

Denmark is a considerable contributor to the Montreal Protocol's fund for financing the phasing-out of ozone-depleting substances in developing countries. Danish contribution is described in Table 7.8.

Another area important to Denmark is promotion of renewable energy in developing countries. Within this area, Denmark supports use of sustainable and renewable energy through so-called `trust fund contributions' to the World Bank and the Asian Development Bank.

Denmark's contribution to sustainable development includes considerable support for international organisations, particularly the UN system, in which all countries in the world participate on an equal footing. Denmark is also working to make the UN more efficient so that the division of work between the organisations becomes better and overlapping is avoided.

From the facility for assistance to developing countries, Denmark also contributes to international NGOs involved in the work with climate changes. These include the International Union for Conservation of Nature (IUCN) and the International Institute Environment and Development (IIED).

Danish contributions to multilateral institutions and programmes, including the UN organisations mentioned above and international NGOs working with climate-related activities are described in Table 7.9. The figures are provided as accounting figures and there may have been be adjustments in the figures for 2000 and 2001 compared with the figures in the previous National Communication.

7.4 ASSISTANCE THROUGH THE PRIVATE SECTOR

Denmark has the following assistance instruments and measures for assistance to developing countries through the private sector:

Mixed credits

Mixed credits can be provided in connection with projects within both the public and the private sector.

Restricted mixed credits are interest-free loans for development projects in credit-worthy developing coun-tries with per capita GDP of not more than USD 2,428 (2004/2005) and are thus not reserved for programme cooperation countries. The loans are made from a Danish bank to a credit-worthy borrower in the recipient country. The interest expense, export credit premium, etc. are paid via the assistance funds. The project's assistance relevance is evaluated on the basis of Danida's ordinary rules for project evaluation. In the period 1997-2004, assistance was granted with mixed credits for 119 projects with a total contract sum of DKK 7.4 bn. and a grant for interest payments, export credit premium, premium etc., totalling DKK 3.2 bn. (see Table 7.10).

The Private Sector Programme

Denmark supports cooperation between the private sector in the recipient countries and in Denmark, including in particular cooperation projects between companies. The Private Sector Programme in Danida's programme cooperation countries, and the VtV (business-to-business) Programme in South Africa support the establishment of long-term and mutually binding cooperation between Danish enterprises and enterprises in recipient countries. The objective with cooperation with enterprises is to create economic growth in the private sector in the recipient countries through, for example job creation, local competence development, and environment improvements. Many of the projects are environment-related, e.g. projects relating to renewable energy and energy saving through transfer of cleaner technologies. Support for these projects, divided into initiation activities and partnerships, is presented in Table 7.11. Note that figures for 2000 and 2001 have been updated compared with previous statements.

TABLE 7.8 DANISH CONTRIBUTION TO THE MONTREAL PROTOCOL MULITILATERAL OZONE FUND 2000-2004

Source: The Ministry of Foreign Affairs

TABLE 7.9 DANISH CONTRIBUTIONS TO MULTILATERAL INSTITUTIONS, NGOS, AND PROGRAMMES

Source: The Ministry of Foreign Affairs

In addition to the existing restricted mixed credit scheme, a scheme for unrestricted mixed credits was introduced in 2002. The unrestricted scheme largely corresponds to the existing restricted scheme. The main difference between the two is that the support possibilities in the unrestricted scheme are not limited to Danish suppliers and that there is no requirement concerning the origin of the supplies. Besides this, the unrestricted scheme can only be used in Denmark's programme cooperation countries and in South Africa.

Industrialisation Fund for Developing Countries

The Industrialisation Fund for Developing Countries (IFU) invests in joint ventures in the developing countries, including joint ventures on renewable energy. Investments are either as share or loan capital, to be repaid to the financing institution. The IFU can also make grants for training personnel in companies in developing countries. The IFU administers the Danish Fund for Environment and Training.

TABLE 7.10 NUMBER OF PROJECTS AND GRANTS UNDER THE SCHEME FOR MIXED CREDITS 2000-2004

Source: The Ministry of Foreign Affairs

Partnership Facility Programme

The Partnership Facility Programme was established in 1996 to involve the private sector in environmental assistance for developing countries. The goal of the Programme is to transfer technology and commercial knowledge on the environment from Danish enterprises to partner enterprises in Thailand and Malaysia by establishing commercial partnerships.

The Partnership Facility Programme focuses on cleaner technology and production, waste treatment, renewable energy and energy management as well as environment monitoring and management systems. The Programme is also open to other sectors, provided the partnership has significance for the environment.

Originally, the Programme was administered by the Danish EPA (Danced). Table 7.12 gives an overview of projects and grants since the Ministry of Foreign Affairs took over the Programme in 2001. Following an evaluation in 2004, the Partnership Facility Programme has been extended for the period 2005 to 2007 and now includes China.

TABLE 7.11 NUMBER OF PROJECTS AND GRANTS UNDER THE PRIVATE SECTOR PROGRAMME AND VTVPROGRAMME, 2000-2004

Source: The Ministry of Foreign Affairs

7.5 ASSISTANCE TO DEVELOPING COUNTRIES THAT ARE PARTICULARLY VULNERABLE TO CLIMATE CHANGE

The least developed countries are among the countries that are most vulnerable to climate change. Denmark therefore attaches particular importance to helping these countries adapt to climate change. A natural consequence of this is that Danish programme cooperation countries, with certain exceptions, are among the least developed countries. Assistance for adaptation in these countries will therefore be through integration of the climate aspect into development cooperation. The Danish Action Programme on Climate and Development mentioned in section 7.1.1 will therefore comprise an important instrument in these endeavours.

Support to the least developed countries is also composed of a number of other elements. In follow-up to the financial commitments from the Conferences of the Parties in Bonn and Marrakech, Denmark is placing priority on the Climate Convention fund for least developed countries (LDC Fund), for example, and Denmark has made the first contribution of DKK 11.4 mill. to the Fund. With this contribution Denmark is supporting the least developed countries' work on the National Adaptation Plans of Action (NAPA).

In 2004, Denmark financed implementation of two regional energy seminars in Africa. The objective of these was to promote development of strategies for sustainable energy in the African countries and to help integrate such strategies as well as possible into the countries' overall development policies. This initiative was started by Denmark to promote the ongoing energy dialogue with African countries within the framework of the EU energy initiative for combating poverty and sustainable development (EUEI).

Also with special emphasis on least developed countries, as stated in

TABLE 7.12 NUMBER OF PROJECTS AND GRANTS UNDER THE PARTNERSHIP FACILITY PROGRAMME, 2001-2004

Source: The Ministry of Foreign Affairs

Table 7.8, Denmark made contributions to the climate secretariat fund for participation by developing countries in Climate Convention meetings and the fund to support supplementary activities under the Climate Convention.

Small Island Development States (SIDS) are particularly vulnerable to global environmental impacts, including climate change. Because of this, since the mid-1990s Denmark has developed close contact to AOSIS and its members. This cooperation is expressed partly in a political cooperation under the UN, where bilateral meetings are held between Denmark and AOSIS representatives, and also in more concrete cooperation with SIDS countries in the south Pacific, where there is the greatest concentration of poor island states.

The special situation of the SIDS countries is reflected in several UN resolutions and the crucial role of the energy area for sustainable development in SIDS countries is central in these resolutions. Denmark has been active in these resolutions and places high priority on support to SIDS in accordance with these. Denmark provides support for SIDS through multilateral assistance to regional projects in the climate and energy areas and to projects on the Maldives.

From 1998 to 2002 Danida supported a SPREP project on knowledge and capacity building in the climate area for governments, NGOs, and regional organisations on the Pacific islands.

In 2003, Denmark granted DKK 11 mill. to a regional project for 14 island states in the Pacific. The objective of the project was to promote sustainable national energy policy with associated action and investment plans. The project has helped the 14 countries enhance their institutional capacity within sustainable energy with a view to improving public access to energy, promoting energy efficiency, and increasing the use of renewable energy. The project is being carried out by the South Pacific Applied Geoscience Commission (SOPAC) and it is a Danish contribution to implementation of the EU Energy Initiative.

7.6 ACTIVITIES IN CONNECTION WITH TECHNOLOGY TRANSFER

Danish support to technology transfer in relation to implementation of the Climate Convention includes a broad spectrum of activities. These activities comprise transfer of both ”soft” technology and ”hard” technology. The extent of this technology transfer is significant and can not be clearly separated from other activities in Danish development cooperation, just as there is often an unclear frontier between transfer of soft and hard technology.

The most important example of Danish-supported activities leading to technology transfer, is Danish sector programme support to the energy sector in Mozambique, Burkina Faso, Egypt, Nepal and Malaysia. These sector programmes include elements such as energy planning, including plans for use of renewable energy, establishment of large wind farms, renovation of power stations, promotion of energy efficiency and promotion of sustainable use of biomass as a fuel. Within these sector programmes, transfer of soft and hard technology goes hand-in-hand.

Danish assistance to implementation of the Climate Convention as presented in Tables 7.2 – 7.6 provides a picture of the nature and extent of Danish assistance to technology transfer. These Tables contain an estimate of the activities within climate adaptation which specifically aim at transfer of soft technology, as this appears in the figures for assistance to capacity building. Furthermore, Annex F contains examples of Danish assistance to technology transfer in the form of projects and programmes with both soft and hard technology. Finally, transfer of both soft and hard technology is the primary element of cooperation regarding CDM projects (see section 4.2.2).

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Version 1.0 December 2005, © Danish Environmental Protection Agency