The Legal Barriers to Technology Transfer under the UN Framework Convention on Climate Change: The Example of China

281 Pages·2019·2.966 MB·English

by  Chen Zhou

Chen Zhou
The Legal Barriers to
Technology Transfer
under the UN
Framework Convention
on Climate Change
The Example of China
The Legal Barriers to Technology Transfer under
the UN Framework Convention on Climate Change
Chen Zhou
The Legal Barriers
to Technology Transfer under
the UN Framework
Convention on Climate
Change
The Example of China
Chen Zhou
Law School
Xiamen University
Xiamen, China
This manuscript was accomplished with financial support from China Scholarship Council
and Tilburg University PhD programme.
1. High Education for PhD Project (2008627095), China Scholarship Council (China),
2009.
2. China’s Legal Countermeasures Addressing Global Climate Change in the Era of
Post-Kyoto (11JJD820019), Ministry of Education Social Science Key Project (China),
2011.
3. Tilburg Sustainability Center, Tilburg University (The Netherlands), 2012.
ISBN 978-981-13-6138-8 ISBN 978-981-13-6139-5 (eBook)
https://doi.org/10.1007/978-981-13-6139-5
Library of Congress Control Number: 2019935894
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Acknowledgment
This thesis is the result of legal PhD research at Tilburg University, Netherlands,
dealing with the following central research question: “what are the legal barriers to
technology transfer for addressing climate change, and are there any implications
for Chinese legislation and practice?” The research was jointly supported by the
China Scholarship Council (CSC) and the Law School of Tilburg University.
Many people were involved in this PhD research during the years that it has
taken me to write this book. I am grateful to the Law School of Tilburg University
and the CSC for giving me the wonderful opportunity to carry out this research. I
am particularly aware of the debt I owe my supervisor: Professor Jonathan
Verschuuren. His inspiration and unrivalled understanding of the law and the con-
text of environmental protection greatly enlightened me. Any weaknesses in the
structure and style and any errors in the text are entirely my responsibility. Jonathan
is also a close friend. I am impressed by his sincere commitment to scholarship,
nature, and life. What a “rich” life he lives! His invaluable guidance, great patience,
and consistent encouragement made my study life possible, fruitful, and enjoyable.
I would also like to sincerely thank my second supervisor, Arie Trouwborst. As a
doctoral student whose native language is Chinese, writing this thesis was certainly
challenging, both for me and my supervisors. I am very grateful for the considerable
time and effort they put into reading, discussing, and editing my work, which was
essential for the completion of this thesis.
I would like to express my deep thanks to my colleagues at the International
Public Law Department for giving me their confidence and making me feel at home
in such an open and inspiring working environment. I would like to especially men-
tion Kees Bastmeijer, Floor Fleurke, and Li Ji in the environmental law group, who
discussed and shared their topics, opinions, and knowledge with me. Thanks to
Tony Langham and Plym Peters for their professional and efficient editing to pre-
pare this thesis for better quality. Thanks also to Femke for her efficient work to
make the thesis timely print.
My heartfelt gratitude and appreciation go to Stefanie, Eefje, Bas, Anja, Antigoni,
Zarif, Natalia, Jasper, Evgeni, Drazan, Saja, Boudewijn, and Truus. They have never
failed to offer me relaxation, closeness, warmth, and laughter whenever I needed it.
v
vi Acknowledgment
Christmas dinners, a wedding, zoo trips, and parties have all given me great plea-
sure, reminding me that even so far away from home, I am not alone.
I also want to sincerely thank Nancy Chen and her husband Sietse Dost, who
have treated me as part of their own family. Nancy is running a very successful
international consultancy firm devoted to combating climate change in the
Netherlands. As a practitioner in a related field, she has given me a unique insight
into climate change-related technology transfer. Moreover, her wisdom and wide
networking have helped me a great deal in the field research. Her lovely daughter,
Susanna, has always been a great source of joy for me. I feel at home when I am
with them.
I am grateful to the officers, professors, and all the other people I interviewed for
their willingness to share their time, knowledge, and opinions. I should particularly
like to mention the lawyer Hu Zhiyu, senior CDM consultant Lv Xuedu, Professor
Nie Jianqiang, Professor Wang Canfa, Professor Cao Mingde, Professor Wang Can,
and Professor Zou Ji for their significant help when I was carrying out field research
in China.
Many others have been involved in every stage of my research and life. Li
Mingliang, Liu Jing, Zhang Bosi, Wei Leijie, Guo Wu, Niu Zihan, Zhang Wei, Yu
Xiaofeng, and Sun Zhanhu made contributions to this thesis, each in their own way.
I am deeply grateful to them.
My thanks also go to my PhD committee members: Jonathan, Tianbao, Arie,
Kees, and Panos. Their criticisms, questions, comments, and suggestions have
enabled me to significantly improve this thesis.
Special thanks to Professor Qin Tianbao, who guided my way to the Netherlands –
a quiet country where beauty can be easily discovered at every corner and everyone
is smiling. It has been a life-changing experience. I am indebted for the limitless
support and encouragement from Professor Qin, a mentor and a friend who occu-
pies a very special place in my life and to whom I owe much of what I have achieved
so far in my academic career.
Finally, I must express my gratitude to my father Zhou Baosheng and my mother
Shi Guang. Although they did not have a chance to attend university and lived
almost all their lives in a small, secluded village in Western China, they are very
open-minded and have always encouraged me to be a person with knowledge since
I was a little girl. My deepest love is reserved for them. Without their love, good
companionship, and continual encouragement during the lengthy and difficult
period of my research, this thesis would never have been completed.
Xiamen Chen Zhou
December 2018
Contents
1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1 A Study of Climate Change-Related Technology Transfer
and the Legal Barriers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1.1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1.2 Definition of the Problem. . . . . . . . . . . . . . . . . . . . . . . . . . . 5
1.1.3 Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
1.2 Basic Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
1.2.1 Technologies, Environmentally Sound Technologies
(ESTs) and Climate sound Technologies . . . . . . . . . . . . . . . 10
1.2.2 Technology Transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
1.3 Background: Climate Change-Related Technology Transfer . . . . . 20
1.3.1 Technology Transfer and Climate Change . . . . . . . . . . . . . . 20
1.3.2 The Theoretical Basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
1.3.3 Practices and Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
1.4 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
2 The Legal Framework of Climate Change- Related Technology
Transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
2.1 Background: Rio Declaration and Agenda 21 . . . . . . . . . . . . . . . . . 30
2.1.1 An Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
2.1.2 The Principle of Common But Differentiated
Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
2.1.3 The Principle of Cooperation . . . . . . . . . . . . . . . . . . . . . . . . 33
2.1.4 Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
2.2 Technology Transfer in the UNFCCC . . . . . . . . . . . . . . . . . . . . . . . 34
2.2.1 Technology Transfer Commitments . . . . . . . . . . . . . . . . . . . 35
2.2.2 Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
2.3 Technology Transfer in the Kyoto Protocol . . . . . . . . . . . . . . . . . . . 51
2.3.1 The Reaffirmation of the Commitment to Technology
Transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
2.3.2 Innovative Measures to Technology Transfer . . . . . . . . . . . 52
vii
viii Contents
2.4 Technology Transfer in the Post-Kyoto Proceedings . . . . . . . . . . . . 56
2.4.1 The Bali Action Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
2.4.2 The Copenhagen Accord . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
2.4.3 Recent Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
2.5 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
3 Instrumental Barriers to Supplying Climate Sound Technology . . . . 67
3.1 The Legal Barriers Confronting the Public Sector
in Supplying Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
3.1.1 The Barriers Emerging in International Law . . . . . . . . . . . . 69
3.1.2 The Barriers Emerging in National Law . . . . . . . . . . . . . . . 96
3.2 The Legal Barriers Confronting the Private Sector
in Supplying Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
3.2.1 Market-Based Barriers to Technology Transfer . . . . . . . . . . 102
3.2.2 Corporate Social-Environmental
Responsibility (CSR) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
3.3 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
4 Instrumental Barriers to Receiving Climate
Sound Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
4.1 Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
4.1.1 Summary of Developing Countries’ Needs . . . . . . . . . . . . . 112
4.1.2 The Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
4.2 Weak Bargaining Power in the Climate Technology
Transfer Negotiations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
4.2.1 Developing Countries in Climate Change Negotiations . . . 114
4.2.2 Climate Change-Related Technology
Transfer Negotiations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
4.3 The Lack of Capacity for Climate Technology Transfer . . . . . . . . . 117
4.3.1 The Lack of Capacity at the Macro Level . . . . . . . . . . . . . . 117
4.3.2 The Lack of Capacity at the Micro Level . . . . . . . . . . . . . . 123
4.4 Poor Regulatory Framework and Enforcement . . . . . . . . . . . . . . . . 127
4.4.1 The Lack of an Overall Plan for Climate
Technology Transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
4.4.2 The Lack of Supporting Legislation . . . . . . . . . . . . . . . . . . 129
4.4.3 Appropriate Policies for FDI and Technology
Licensing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
4.4.4 Incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
4.4.5 Poor Implementation and Enforcement . . . . . . . . . . . . . . . . 134
4.5 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
5 Chinese Legislation and Practices in Climate Sound Technology
Transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
5.1 Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
5.1.1 The Chinese Perspective on Climate Change . . . . . . . . . . . 140
5.1.2 Climate Change-Related Technology Transfer
in China: An Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
Contents ix
5.1.3 International Transfer of Climate Sound Technology
in China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154
5.2 The Legal Framework of Climate Change-Related
Technology Transfer in China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167
5.2.1 Technology Transfer in the Climate Change
Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
5.2.2 Technology Transfer in Economic Law . . . . . . . . . . . . . . . . 191
5.3 Legal Barriers to Receiving Climate Sound Technologies
in China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
5.3.1 Barriers Resulting from the Legal Basis of Climate
Sound Technology Transfer . . . . . . . . . . . . . . . . . . . . . . . . . 208
5.3.2 Implementation and Enforcement . . . . . . . . . . . . . . . . . . . . 229
5.4 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239
6 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243
6.1 What Do We Mean by Technology Transfer in Addressing
Climate Change? What Are the Distinctive Features
in Comparison With Regular Technology Transfer
and What Is the Theoretical Basis Behind This? . . . . . . . . . . . . . . . 244
6.2 What Is the Legal Framework of Climate Change- Related
Technology Transfer? What Specific Principles, Rules,
Institutions and Mechanisms Have Been Formulated? . . . . . . . . . . 246
6.3 What Are the Legal Barriers in the Process of Supplying
and Receiving Climate Sound Technologies in General
and Specifically How Do They Impact on International
Technology Transfer? What Kinds of Solutions, If Any,
Have Been Proposed to Tackle These Barriers? . . . . . . . . . . . . . . . 248
6.4 Has Climate Change-Related Technology Transfer Been
Regulated in China? What Legal Barriers Exist Specifically
in Chinese Legislation and Practices? . . . . . . . . . . . . . . . . . . . . . . . 253
Table of Legislation (Preliminary) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267
Abbreviations and Acronyms
BIS Bureau of Industry and Security
BRICS Brazil, Russia, India, China and South Africa
CCS Carbon Capture and Storage
CDM Clean Development Mechanism
CER Certified Emission Reduction
CESTT Centre of Environmentally Sound Technology Transfer
CJV Contractual Joint Venture
COP Conference of Party
CSRs Corporate Social-environmental Responsibilities
CTCN Climate Technology Centre and Network
DSM Dispute Settlement Mechanism
EB Executive Board
EGTT Expert Group on Technology Transfer
EJV Equity Joint Venture
ESTs Environmental Sound Technologies
GCF Green Climate Fund
GEF Global Environment Facility
GGER Greenhouse Gas Emissions Reduction
IP Intellectual Property
IPRs Intellectual Property Rights
LDCs Least Developed Countries
MCP Multilateral Consultative Process
MDGs Millennium Development Goals
MEAs Multinational Environment Agreements
MNEs Multinational Enterprises
MOC Ministry of Commerce
MOEP Ministry of Environmental Protection
MOFERT Ministry of Foreign Economic Relations and Trade
MOST Ministry of Science and Technology
MOWR Ministry of Water Resource
MRV Measurement, Reporting and Verification
xi