The Clean Technologies can be described as "products, services and procedures
which make usage of the sources of renewable energy for the reduction or
elimination of emissions and wastes and thereby considerably diminish the
consumption of natural resources".
Wind and solar energy which are generated
through the renewable sources, mode of transportation which functions on
renewable source of energies, cleaner recycling techniques etc. are a
few examples of clean technology There has been a massive progression in the
sector of the clean technology and a lot of finance has also been attracted by
the same. In the year 2007, there was a funding of $148 billion which was
received by the companies in the sector of solar, wind and biofuel.
For
business, clean technology has become a trending focus. Irrespective of the
industry, there is a reduction of pollutants in business with the utilization of
the clean technologies.
At a global level, there has been a unceasing debate which is about the sharing
of the responsibility in the reduction of the carbon emissions. It has been
argued by the developed nations that there ought to be an uniform accountability
among all the nations that is each nation should share an equal responsibility
towards working for a common goal i.e. the reduction of the carbon emissions
around the globe but the developing nations do not agree to the same since they
argue that they should be given a change to get the benefits of the
industrialization and the developments which come from it for a certain period
of time and hence they should be exempted from the same as of now.
Between thee
developed and the developing nations, clean technologies are hence a bone of
contention and is a continuous topic of debate. The access to the clean
technology is not equal around the globe since a there are only a few nations
which lead the world into the development of clean technologies as majority of
the nations do not have an access to them at the same level and there are also
certain barriers which exist in the same. Due to such a restricted access, there
is a major challenge which is faced by the clean technologies for reducing the
greenhouse emissions and aversion of climate change.
The focus of this project would be on the difference in the approach of the
developing and the developed nation on clean technologies and what are the
obstacles in the transferring of the same from the developed to developing. The
project would also explore the legal framework in India which makes it mandatory
for the usage of the clean technologies.
Research Objectives
- To comprehend the prerequisite of transfer of clean technologies in the
present-day world.
- To identify the issues which are there in transfer of the clean
technology from the developed to developing nations.
- To understand the Indian Legal framework for the adaptation of clean
technology for the purpose of protection of the environment.
Research Questions
- Whether the developed nations put the developing nations at a disadvantage
by making use of clean technologies as a requirement under the International
Environmental Law?
- Whether there are any obstacles in the transfer of clean technologies
from the developed nations to the developing nations and how can such
hurdles be mitigated or done away with?
- Whether there is any legal framework in India which mandated the usage
of clean technologies for the protection of the environment and whether
there are any amendments which are required in the same?
Hypothesis
"For the protection of the environment, it is crucial that clean technology is
used but the developing nations face a number of obstacles in usage of the same"
Literature Review
The literature on the transfer of the clean technology depends from nation to
nation. While researching, it was noticed by the author the scholars of the
developing nations have more literature on this subject than the those of the
developed nations. The cause of the same might be due to the fact that the
impact on the developing nations is more as compared to the developed nations
when it comes to the transfer of clean technology.
It was also noted by the author that majority of the suggested resolutions for
the barriers to transfer of clean technology are from the viewpoint of
developing countries. Typically, such suggestions include amendments which have
been recommended to alter the regulatory framework of a nation to make it more
import friendly. From the developed nations, there are a very few suggestions
which have been forwarded, wherein recommendations might have been given such as
lead being taken by the developed countries for the formulation of the
international frameworks facilitating transfer of clean technology.
For understanding the laws in India which mandate and promote the usage of clean
technologies, the author referred to the website of the Ministry of New and
Renewable Energy by the Government of India.
Research Methodology
The method of research adopted by the researcher was the doctrinal method of
research. The research commenced by the researcher understanding the concept of
clean technology and how such technologies aid in reduction of the carbon
emissions as well as the greenhouse effect. After this, the researcher examined
the utilization of clean technologies and realised that there is a disparity in
the usage between the developed and the developing nations.
The reason for such
disparity was also discovered by the researcher and then the researcher also
looked upon the issue whether the developing nations are at a disadvantageous
position in comparison of the developed nations due to the international
environmental obligation with respect to reduction of carbon emissions. Lastly,
the researcher looked for the legal framework of environmental law for the
mandatory usage of such clean technology.
Preliminary Chapterisation
- Introduction:
In the first chapter, I would give detail about what is
meant by clean technologies and what all is included in this. Along with this, I
would also highlight the importance of clean technologies and the types of
technology transfers. There are certain challenges which are faced in the
transfer of such technology which will be talked about in this chapter.
- In the second chapter, I would discuss about the difference of approach
between the developed and developing nations with respect to the clean
technology and also discuss about how the developing nations are at a
disadvantage for the usage of the same. In this chapter, the obstacles along
with solutions to such obstacles which are there in the transfer of such
technology from developed to developing nations would also be talked about.
- In the third chapter, I would talk about the Indian Legal Framework for
the mandatory usage of the clean technology for the protection of the
environment and would also see the incentives which are there for the
promotion of the same.
- Lastly, there is conclusion
What Is Clean Technology And Why Is It Trending?
The clean technology included the procedural or the conceptual approach towards
the manufacturing that requires that all the stages of the life cycle of a
process or a product should be dealt with the intent of prevention or
minimalization of the short as well as the long-term jeopardizing of the
environment which in turn negatively impacts the human health too.
In other
words, the prevention of the environmental destruction at the core itself
through the utilization of materials, practices and processes for the reduction
or eradication of the wastes and pollutants is known as the cleaner technology.
Other terms which are used for clean technology include green technology,
clean-tech, and green-tech etc. So basically it is a series or a group of
technologies that either lessen or enhance/optimize the consumption of natural
resources, and at the same time simultaneously plummeting and condensing the
negative impacts of such technology which it has on our planet as well as its
ecosystems.[1]
This concept of clean technologies from the point of view of the environment,
signifies the consuming of minimum resources with at their maximum efficiency
for the achievement of the couple benefit i.e. the conservation of the resources
as well as the protection of the environment. But when we see clean technology
from the point of view of the economy then the meaning of the same is seen in
the light of the cost efficacy and the enhanced productivity within the
resources available.[2]
Clean technologies can be categorized into three main branches. The first
category is the LNWT which is the low and non-waste technologies of production.
The aim of this is the minimization of the waste at all phases in the production
cycle. This is done by the way of alteration in the process, good housekeeping,
reduce, reuse and recycle method, the design of the equipment, as well as the
formulations of product. The second category is the recycling of the
technologies which have been created for the recovery of energy, water, raw
material, and also the by-products in end-of-pipe treatment's course. The third
category is the waste consumption technologies.
These are for the reclaiming and
utilizing of the waste products into the production and manufacturing of the
commodities with several end uses. The achieving of the waste minimization has
to be done through a way which is more selective as well as through a method
which is more environmental friendly and which does not put the environment at
risk at any of its stages. [3]
In the selection as well as the application process of the clean technologies,
there is a requirement of the comparative analysis along with the assessment of
diverse conflicting and challenging technologies which are based on the social,
economic, technological conditions together with the conditions of the
environment.
A number of substantial alterations have already been made in the
processes which are well-established. These include the production of sulfuric
acid, cyclohexanone, etc., allowing them to be created through the newer feed
stocks, catalysis and conditions. In the caustic soda manufacturing the mercury
cell technology was totally replaced by the membrane technology without mercury
pollution. [4]
The objective of the solutions of clean technology aim for a positive and
progressive impact on the anthropogenic climate change. Another important
factor for these clean technologies is for them to be economically feasible and
also to have the capacity to turn into an enterprise which can earn profits and
this is for attracting the investments which would further lead to development
in this manufacturing sector.
Currently, there are four primary sectors in the
industry of clean technology which include first, for the cutting back the
dependence on fossil fuels the utilization of sustainable energy and the
optimization usage of energy.
Second is the clean water provision which is a
basic humanistic prerequisite. The third is the reduction of all types of
pollution and the fourth one is the recycling and the waste management. [5]
Clean technology is seen as a solution which is pegged instantly due to the
increase in the global warming as well as the climate change which have become a
substantial threat to the environment. India has been planning that by the year
2030, the generation of 40 percent of its total energy would be from the
renewable resources which would be increased from that of 22 percent which was
in the year 2017. At a global level, India has also been ranked fifth in terms
of capacity of the installed renewable energy.[6]
Approach Towards Clean Technology In Developed And Developing Nations
The world has contemplated the clean technologies as a remedy to global warming
and the greenhouse gas emissions. There is a requirement of action by the all
the nations of the world since global warming poses a menace to the whole world.
However, between the developed and the developing nations, there exists a
technological gap which means that there has been development of more
sophisticated and advanced technologies by the developed nations than the
developing ones who face a number of issues in even having an access to the
same.
As a direct implication, the clean technologies can be consumed by the
developed nations for the reduction of the carbon emissions in a much easier and
efficient way much more than the developing nations.
Due to existence of such an inconsistency in the reduction of the carbon
emissions, the fight of the nations does not prove to be an efficient one
collectively. The primary objective of the clean technology is its effective
transfer from the developed world to the developing one so that the benefits can
be enjoyed by all for the collective good at a global level. By doing this, the
result would be the reduction of the discrepancy aforementioned and this would
also have a substantial improvement in the greenhouse gas emissions and the
global warming at a global level.
In the United Nations Framework Convention on Climate Change (UNFCCC), Article 4
provides for the significance of the transfer of clean technologies. In this, it
is given that there needs to be commitment of all the parties to the Convention
for the promotion as well as the cooperation in transferring of the clean
technologies. Additionally, it is also stated in the Article that as a
commitment of the developed states to the developing nations for the promotion
of the clean technology, the former should provide latter with the financial
resources for the transfer of clean technology.[7]
There are a number of ways in which the transfer of clean technologies can be
made from the developed nations to the developing ones. Firstly, the developed
nations can make a direct sale of the products which make use of the technology
to the developing nations. The installation and the maintenance of such a
product is provided by the developed nations to the developing nations.
When
transfer is made in such a form then it would be limited in nature because the
developed countries retain the technical know-how of such a technology.
Secondly, when the transfer which is made by the developed country is inclusive
of the technical know-how which includes the installing, maintaining and the commercialisation process which is related to the clean technology. When a
transfer is made in such a way then it is in a substantial manner.
The transfer
in a substantial manner can typically be made only when there is a strong IPR
protection regime of the developing country and a sufficient control can be made
by the exporter over the technology in the country importing the same. In the
importing country, such a transfer permits for a simpler propagation of the
technology.
In the transfer of clean technologies from the developed to the developing
world, Intellectual Property Rights act as a primary barrier. Where the
countries have a weaker IPR protection regime, exporting to such nations is
avoided by the exporters since this could lead to unlicensed multiplication of
their protected technologies. Commercial benefitting from their technology could
be deprived to the exporters due to such an issue. Furthermore, in such
countries the litigation expenses would have to taken care of by the exporters
themselves for protection of their technologies. [8]
When an IPR protection is granted to the products which give a new way of
performing a task or provide a novel solution to a technical problem then the
same is termed as patent. Innovation is promoted by the way of patents since
monopoly in temporary form is provided to the inventors which acts an incentive
for them to reap the maximum number of economic benefits from the same.
The
procurement of patents can prove to be an expensive process especially for the
least developed countries and such expenses can be seen as a barrier in
countries with low economy and the inventors of such technology would have no
incentive to transfer the clean technology to such nations as they would choose
to move to nations where they can earn high profits.
In a recent study it was
confirmed that out of total number of patent applications which had been filed
for clean technologies, only 0.1 percent of them were filed in the least
developed nations and a substantial number of applications were filed by India
and China for the same.[9]
Another form of IPR protect are the Trade secrets which unlike patents which
have a 20-year protection have no such temporary limitation and they also do not
have any procedural formalities. As long as a commercial or business information
has a commercial value and d it remains a secret, anything can be classified a
trade secret.
While entering into transactions, the confidentiality agreements
and non-disclosure agreements are relied upon by the businesses for protection
of their trade secrets which makes the parties to the agreement bound not to
disclose certain facts. In some countries there is a weak regime of trade
secrets which is another reason by certain companies might avoid transfer of
clean technology to these countries as it poses as a threat to them.
In certain
countries while entering into the markets the government requires the
information which is relevant to the same which might put it trade secret at a
risk for these companies and when litigation is there then also certain facts
need to be disclosed to the companies for the same.[10]
The clauses that demand that the right to transfer any amendments or
improvements which have been made to the technology back to the licensor lies
with the licensees of the licensed technology is known as the grant back clause.
To avoid any competition with respect to the updated technology from their
licensees, the inclusion of grant back clause is insisted by the licensors. The
legitimacy of grant back clauses varies as per the jurisdiction.
There has been
challenge on the same since they restrain innovation as the licensees would be
discouraged from improvement of technologies as the right would be transferred
to the licensor. In certain countries, the exporting enterprise may be
discouraged for transferring technology due to the constraints on the grant back
clauses. Grant back clauses however are also unique since permitting them in
many cases leads to innovation which can be stifling. [11]
The amount which is paid to the IPR licensor are known as Royalties. The
transfer of clean technology is affected by the way in which the royalty
payments are taxed and dealt with under the law of taxation of the developing
nations.
When the state withholds a part of the payment as tax then the
withholding taxes are charged upon them. On clean technology when the
withholding taxes are of high rate then the licensure would receive a reduced
amount considerably after the tax deduction and the licensor would be discourage
for exporting the clean technologies due to reduced profits.
Due to this, in
certain cases the licensor might include a clause within the contractual
agreement for receiving the same amount as agreed upon after the charging of a
withholding tax as if there has been no deduction of the tax for prevention of
earning any loses in the same. However, this might discourage the importing of
clean technology as such a clause might increase the cost of licensee parties
substantially.[12]
For promotion of transfer of clean technologies from developed nations to the
developing nations, there are certain things which can be done. When a pool is
created by grouping together of the similar technologies under the IPR
protection, it is known as Technology pooling. For accessing all the available
technology in this pool, a single license is necessary. This provides the
entities with an easy access to the group of protected technology.
A technology
pool can be created by pooling together clean technologies from various
exporting firms and the developing countries would have an easy access to the
same. It would prove to be favourable for the exporters as well since by getting
an access to this pool the technology they would get access to multiple
technologies and therefore in transfer of technology a technology pool would
prove to be a good option.
There can be a formation of a climate fund by the developing countries who could
come together for the same. Such a climate fund would be a joint fund which
would be utilized for aiding the researching, developing and manufacturing of
the clean technologies. All the nations who would be aiding or contributing to
the fund should have availability to all the technologies that are being
invented from such a fund with a minimum charge or with no royalties.
Additionally, the terms of making the clean technology available should be
user-friendly and should provide countries with a flexible and unhindered usage
of the same.[13]
There are a number of firms which by the way of Foreign Direct Investments are
exporting technologies to their own subsidiaries which are placed in other
nations which allows them to retail control over the technologies while
installing their technologies in other nations. The regulation of the FDIs is
done by the countries on the basis of sectors. Firms which have access to clean
technologies are more likely to be attracted by high FDI in clean technology
which would be made available due to a regime with open trade.
The individual targets of emission reduction of greenhouse effect for both
developing and developed nations have been provided by the Kyoto Protocol. By
2012, the first commitment period as given in the Kyoto Protocol ended. The
Kyoto Protocol was extended from 2013 – 2020 by the Doha Amendment for a second
commitment period however the same has not been entered into force.
The Clean
Development Mechanism has been given under Article 12 of the Kyoto Protocol
which states that if within their territories, the emission reduction target is
not met by the developed countries then they can implement project for emission
reduction in the developing countries.
Due to such project implementation, the
developed countries are credited with the Certified Emission Reduction which
under the Kyoto Protocol are considered towards their own emission reduction
targets. Installing of energy-efficient boilers and projects for rural
electrification are examples of developments under this mechanism.[14]
But there are certain limitations which point out that the Clean development
Mechanism as given under the Kyoto Protocol acts for the benefit of the
developed nations.
The first issue is that the Mechanism is dependent upon the
fact that the transfer of clean technology i.e. the development which would take
place in the developing nation would be upon the developed nations that too if
they are unable to meet their criteria for emission reduction within their own
territories.
Secondly, this also prevents the developing nations from choosing a
clean technology as per their own will since the implementation of the choice
would rest with the developed nations and they might not transfer the clean
technologies which would actually aid the developing nations in the reduction of
these emissions.
Thirdly, under this Mechanism, the actual transfer of
technology might not take place since the nation would be transferring the
pre-built technologies to the developing nations and this would deprive the
developing nations to gain access to the technology's know-how.
Fourthly, there
is mention of states in the mechanism which terms them as the parties
responsible for construction of the clean technology projects and nowhere the
private entities are given a mention whereas in most of the cases the states do
not themselves even possess the access to the clean technologies which makes it
unable for such transfer of technologies. [15]
Clean Technology In India And The Legal Framework
There are no specific guidelines or laws in India yet for overseeing the
sustainable energy sector but there are a number of acts which have a
significant role to play in the same which include the Electricity Act of 2003,
NTP i.e. The National Tariff Policy 2016, National Electricity Policy 2015,
NAPCC which is the National Action Plan on Climate Change and the National Rural
Electrification Policy. [16]
An ambitious goal has been set up by the Government of India as a part of the
Paris Agreement, that 175 GW of renewable energy would be generated by the year
2022 by India out of which solar energy would be 100 GW and wind energy would be
60 GW. This target has been revised and raised to 225 GW which is to be produced
by the year 2022.
The investments for the same are already taking place as since
2014, 42 billion francs are already being ploughed into renewable energy. Asides
from renewable energy, investments are also being made into other cleantech
sectors by India including e-mobility. Even though there is a lack of charging
stations in India, there are aimed alliances which are taking place between the
industry and the government for the manufacturing of hybrid and electric
vehicles.[17]
The Budget for the year 2021-22 was presented on 1 February 2021 by the Finance
Minister of India in which the proposal of the Government of India for launching
of Hydrogen Energy Mission was presented and in this the hydrogen would be
generated from the green power sources even though the guidelines on the same
are yet to be issued under the MNRE, a committee known as the 'Standing
Committee on Hydrogen Energy and Fuel Cells' has been constituted and the
initial draft of the Hydrogen Energy Mission has been developed and the same is
under discussion and finalization.
For boosting the participation of the private sector, the draft of Electricity
(Amendment) Bill 2020. In this for the power sector, there would be reduction in
the subsidies and there is also provision for the regulation of the contractual
disputes by setting up of an enforcement authority. The competitive bidding may
undertake the project tariff or the relevant electricity commission may
pre-determine it under the Electricity Act 2003. For keeping the tariff low, the
state is encouraged for the procurement of the power through competitive bidding
under the National Tariff Policy, 2016. [18]
In the Electricity Act, 2003, Section 86(1)(e) there is a requirement of the
state electricity commission to specify a particular percent of electricity
which has been purchased from the renewable source of energy. Regulations have
been specified by the state electricity commissions have as a follow up for the
same which provide that there is an obligation for certain entities to make
usage of the renewable energy which has been defined under the specific
regulations of the state.[19]
For diversification into the renewable energy portfolio, certain policy measures
have been undertaken by the government of India by the way of the national
tariff policy which is related to the 'renewable generation obligation'. In this
there is encouragement for the thermal power generators which is coal based. In
this there is a requirement for the conventional plants as per the central
government for the production of the renewable energy which is to be done wither
by setting up of their own generation sources for the same or by procurement of
the renewable energy from another source but there is no notification where the
limit is being prescribed by the central government. [20]
Electric Vehicles are being heavily adopted India and there are many policy
initiatives which have been adopted for the same. In Delhi incentives up
to ₹1,50,000 are being provided for speeding up this process. A report has been
released by the policy think tank of Government of India known as NITI Aayog
(National Institute for Transforming India) which highlights the requirement of
increasing an investment in this sector for speeding up the transition of our
nation to electric mobility.
There has been coordination between NITI Aayog and MNRE for the formulation of
energy storage sector in India even though at this stage, there is a lack of
regulation in the same. The Energy Storage System Roadmap for India foe the year
2019-32 was modelled by the NITI Aayog in 2019 and implementation of the same is
underway. There is continuous distribution of tenders which are being issues for
energy storage and one of the most recent was in Tamil Nadu by distribution
licensee of 1MW/3.0MWh Battery Energy Storage System.[21]
The Government of India in the year 2010 launched an initiative known as the
Jawaharlal Nehru Solar Mission (JNNSM) In this the energy security challenge of
India was addressed and the aim of this was the promotion of ecologically
sustainable growth. The target under JNNSM is to reach 100GW by the year 2022
which was approved by PM Narendra Modi in 2015 for ramping up India's solar
power capacity.
There are various incentives which are set up under this mission
up till the year 2022 including zero import duty on raw material and capital
investments, low interest rates and priority lending sector. n June 2015, Indian
Prime Minister Narendra Modi approved ramping up of the country's solar power
capacity target under the JNNSM to reach 100 GW by 2022.[22] In India, there has
been skill development in the solar and the wind energy sectors as well and by
the year 2022 over 0.3 million jobs are expected to be created in the same. [23]
For the implementation of green corridor projects, an amount of ₹75.26 billion (USD
1.05 billion) has been received by India in the form of a soft loan from the
German Development Bank. The green corridor project aims for the improvement of
the framework and conditions of the sector for grid.integrati0n of renewable
energy with c0nventional p0wer grids. 70% of interstate transmission schemes and
40% of intrastate will be funded through this soft loan.[24]
One of the primary action plans of the government of India is providing
electricity to all including all households of the villages of urban and rural
areas including the slum areas which currently are not a part of the centralized
or the grid distribution. The government is working along with a number of
cleantech companies for doing the same.
The villagers and the slum people have
been encouraged by a few cleantech companies for using the solar energy instead
of kerosene and for the same they use standardized packages. For example, In
slums of Bengaluru, there are renewable energy lanterns and stoves which are
being sold by making use of the pollinate energy.
Conclusion
Due to the current climate emergency which is being declared at a global level
by the governments of all the nations, the world is witnessing a shift towards
the clean technology solutions which are generated by the way of making use of
the clean energy which is produced from the renewable energy sources including
the wind energy, hydropower, solar energy, thermal energy, energy generated from
the bio-fuel etc the source of which can be wind, rain, tides, waves, geothermal
heat, sunlight among many others. This transformation is being done as a direct
result to the slow extinction of the fossil fuels on which there is a huge
reliance for the production of energy.
There is a requirement by both the
individuals as well as the industries to reduce their impacts on the environment
and for the same, regulatory regimes are being adopted by the governments for
this objective. The adoption of the clean technologies at present and in future
must be as a result of the mounting pressure from global organizations and
communities. The hypothesis of this research paper hence stands proved because
there is a requirement at a global level to adopt the cleantech but there are a
number of barriers in the same.
As an answer to the first research question which has been discussed in this
research paper, the answer is in positive i.e. the developed countries indeed
put the developing countries at a disadvantaged position because there is a
dependence of the latter on the former for the same and due to this dependence,
the developing nations do not get the option to pick and choose the type of
technology which they would like to utilize and instead have to make use of the
one which the developed nations would choose for them even though the same might
not be of much use to them and as a result the transfer of clean technology to
developing nations is not much efficient as of now.
The answer to the second research question is that indeed there are numerous
hurdles and obstacles which are faced by both the developed nations as well as
the developing nation which the transfer of the clean technology and the
solutions for such barriers have been discussed in the research paper in Chapter
2.
The third research question was pertaining to the legal framework of India
with respect to the clean technology and to this the researcher found out that
there is no proper legal framework in India for the same but with time there are
number of upcoming legislations for the same. there are also many incentives
which are being provided by the government of India for adoption of clean
technology.
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