Technology transfer, climate change and the developing countries: the difficulties posed by green patents

Abstract

This article considers the absence of enforceable technology transfer obligations within the Paris Agreement. It acknowledges that the patent system is an imperfect incentive for innovation but that patent protection is necessary for research and development. Developed countries have consistently objected to attempts by developing countries to address patents in international treaties, most recently the Paris Agreement. As such, this article proposes an incentivized licensing approach that would require governments to grant tax deductions to companies that enter into green technology licensing deals with developing countries. This approach recognizes the role that patents play in technology transfer and places an obligation on governments to actively encourage green technology transfer. Furthermore, governments of developing countries would be able to access the Green Climate Fund to ensure that licensors are adequately remunerated for their technology. This solution strikes a balance between the needs of companies to recoup investment, the desire of developed countries to maintain strong patent rights and the ability of developing countries to access technology transfer to achieve a Just Transition.