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New analysis of Technology Transfer in CDM
January 2007

The Dutch Energy Research Institute, ECN, has recently published an analysis of whether technology transfer from the EU and elsewhere is occurring through the CDM, and what the value of the associated foreign investment is in the 63 CDM projects that were registered on January 1st, 2006. Technology originates from outside the host country in almost 50% of the evaluated projects. In the projects in which the technology originates from outside the host country, 80% use technology from the European Union.

The study shows that technologies used in non-CO2 greenhouse gas and wind energy projects, and a substantial share of the hydropower projects, use technology from outside the host country, but biogas, agricultural and biomass projects mainly use local technology.

The associated investment value with the CDM projects that transferred technology is estimated to be around 470 million Euros, with about 390 coming from the EU. As the non-CO2 greenhouse gas projects had very low capital costs, the investment value was mostly in the more capital-intensive wind energy and hydropower projects.

The report is available at:

http://www.ecn.nl/docs/library/report/2007/e07009.pdf