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Policy Brief POLICY BRIEF USING CLIMATE RELEVANT INNOVATION-SYSTEM BUILDERS TO ENHANCE ACCESS TO CLIMATE FINANCE FOR NDC DELIVERY INSIGHTS FROM THE CRIBs 2017 EAST AFRICA POLICY MAKERS’ WORKSHOP REUBEN MAKOMERE, JOANES ATELA AND ROB BYRNE Climate Resilient Economies Programme Policy Brief 008/2017 Key messages Previous international Implementing CRIBs will play an Coordinated imple- 1 climate finance mech- 2 CRIBs (Climate Rel- 3 intermediary role 4 mentation of CRIBs anisms such as the evant Innovation- between all relevant across East Africa will Clean Development system Builders) actors within any create opportunities Mechanism (CDM) can enable East given country, build- for regional integra- are not helping low African countries ing innovation systems tion and lobbying and middle income to design and im- around appropriate power for suitable countries due to a plement competi- climate technologies climate technologies failure to address wid- tive climate change by strengthening links and finance. er innovation system projects that at- between actors and building and related tract international leveraging funding By connecting actors technological capacity climate finance. from international 5 and institutions, na- building needs.. climate funds like the tionally and regionally, Green Climate Fund, CRIBs create enabling as well as increasing environments for cli- private investment. mate investments that are more inclusive, eq- uitable and supportive to poverty reduction and economic devel- opment efforts. INTRODUCTION issue. Innovation systems have been proven to explain International climate finance mechanisms have often the economic development of a wide range of countries failed to deliver against the climate technology needs of including all of the OECD countries and the so-called low and middle income countries. This has meant that “Asian Tiger Economies”. Innovation system building ap- Africa has lost out on the competitive edge as regards proaches have also been demonstrated as underpinning gaining from meaningful climate finance, as most of the the success of Lighting Africa – which rapidly developed benefits of instruments such as the Clean Development a new market for solar portable lanterns in Kenya – and Mechanism (CDM) have gone to large developing coun- China’s successful use of CDM funding to foster growth tries like China and India. In this context, concerted ef- in various areas. This example shows that innovation sys- forts to build national [and regional] innovation systems tems can be useful for – among others – leveraging cli- around climate technologies can leverage institutions mate finance but also improving the quality of projects, and actors across diverse fields to begin to address this and the development and uptake of climate technolo- gies related to such projects. Conceptualizing Innovation Systems low income countries could begin to overcome the fail- Innovation systems are systemic contexts where innova- ures of hardware financing mechanisms like the CDM. This tion, coordination, adoption of technology and innovative would provide the basis for more sustained, widespread techniques and economic development takes place. There transfer, and development of climate finance and tech- are 4 key components relevant to innovation systems in- nologies. This approach can directly respond to poor and cluding: marginalised communities’ needs, if executed in the right manner, involving the right actors. As such, this approach • Actors of all kinds of relevance to the contexts within presents a compelling new point of convergence for na- which innovation and technology uptake occurs tional and regional policy that could benefit East African countries if they align international climate finance to- • The strength and nature of relations and interactions wards innovation system building. between these actors In a Post-Paris Climate Agreement world, the opportuni- • Capabilities and capacities of individuals and firms ty for low income countries to seize upon this innovation and the collective skills and knowledge these consti- systems approach is further informed by: tute 1) The bottom-up nature of the Paris Climate Agree- • Institutions in terms of policies, regulations, stan- ment, giving countries the medium to pursue their dards, models, practices and norms own, self-defined pathways to implementing their NDCs (Nationally Determined Contributions). Low Innovation systems involve networks of actors (including income countries can therefore spearhead leverag- firms, universities, research institutes, government de- ing international climate finance for innovation sys- partments, NGOs, technology users including poor and tem building as the means through which implemen- marginalised women and men), and the strengths and tation and delivery of their NDCs can be realized. character of interrelationships between them. They pro- vide the context within which all processes of technolo- 2) The increasing acknowledgement of innovation sys- gy development, transfer and uptake (“innovation” in its tems as channels for realizing technology transfer broadest sense) occur. Building innovation systems in- and development within key international climate volves interactive, incremental processes which involve a institutions. This includes the UNFCCC’s Technology variety of different actors and actor needs, maturing over Executive Committee (TEC) and funding activities a long period of time through political systems. of the Green Climate Fund (GCF). There is increased acceptability towards international climate finance for innovation system building especially concerning Linking Climate Finance and Innovation low and middle income countries. Systems Building Using international climate finance to develop innovation systems around climate technologies and techniques in Fig 1: National Systems of Innovation – Innovation as a Process. The “interactive”, “coupling” or “chain-linked” mod- el of innovation Source: Based on Kline and Rosenberg (1986, p290), Arnold and Bell (2001, p287), and Conway and Steward (2009, p68) Making CRIBs Work for the East African imising opportunities to connect actors across projects, Region programmes, and sectors, linking up with and understand- Empirical work analysing successful innovation system ing technology users. Additionally the approach synchro- building around climate technologies in, among others, nises funding mechanisms within the various institutions Kenya, Tanzania and China has led to the development of nurturing climate technology transfer and development. CRIBs. CRIBs have been developed as a potentially key CRIBs thus become the crucial link both horizontally and policy vehicle through which innovation system building vertically to existing regional and international network- to deliver countries’ NDCs can be achieved, simultane- ing efforts. ously enabling countries to leverage climate finance for CRIBs were identified as having the ability to address key climate technology transfer and development. concerns raised by East African stakeholders at the 2016 Towards this end, CRIBs have four overarching goals: African Poliy Makers/Implementers Workshop on Climate Change Innovation Systems for Technology Transfer held • Build networks of diverse stakeholders in Nairobi. These included: • Foster and share learning • Underpinning green growth • Promote the development of shared visions • De-risking innovation • Support diverse experimentation • Availing a national knowledge platform on climate fi- nance and technology needs and opportunities These are buttressed by five main elements of innovation systems touching upon: • Providing a medium for comprehensively engaging national stakeholders • Technology: looking into the nature of technologies, projects and/or programmes already in existence • Proving a platform for regional and inter-regional and exploring opportunities to introduce new inno- knowledge sharing and collaboration vative interventions in terms of projects, technolo- gies, techniques or programmes • Creating space for pursuing a needs based focus to international climate technology initiatives, including • Actors: looking at the actors’ interactions, finance mainstreaming women, youth and other marginal- and technologies, examining their roles in the same ised groups and exploring ways of enhancing their contribution It is in this context that harmonizing CRIBs’ implementa- • Relations: examining existing networks and the kinds tion and activities across national, regional and inter–re- of interactions that take place within these networks. gional spaces is critical to maximizing countries’ poten- This is in addition to exploring spaces and ways of tial for leveraging international climate finance. This is enhancing these networks. in addition to facilitating national, regional and inter-re- gional coordination of actions. The approach potentially • Capabilities: looking at the state of knowledge, skills augments climate adaptation and mitigation impacts as and application of specific interventions, technolo- a consequence. In return East African countries can lever- gies, techniques, projects and/or programmes. This age this approach, showing international leadership, via also entails exploring opportunities for capacity implementation of CRIBs for delivering their NDCs under building, and ways of filling knowledge gaps. the Paris Agreement. Key to operationalizing CRIBs is maximising the diversity brought forth by different coun- • Institutions: examining institutions
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