Innovation which takes different forms, including the application of new business models, is a critical enabler of transformative climate action, according to a report released by the Asian Development Bank (ADB), United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), and United Nations Development Programme (UNDP).
The report, People and Planet: Addressing the Interlinked Challenges of Climate Change, Poverty, and Hunger in Asia and the Pacific, said innovation can also occur through the production and consumption practices, the way policy is implemented, or novel ways in which firms use technological advances.
It said science plays a big role in advancing innovation, for instance by creating new crops and farming techniques, or new climate resilient infrastructure and circular economy solutions.
“The financial sector and payment systems are also changing rapidly. In many cases, innovation in one area necessitates new ways of doing things in other areas,” it added.
The report cited as an example food systems new climate-resilient crops which call for a host of complementary innovations for the crops to become viable.
These can include sensor-based irrigation systems, financial innovations that allow farmers to use new equipment and services, or shared or pooled access processing facilities and refrigerated transport, it said.
“Governments can provide broad encouragement for innovation ecosystems by creating an enabling environment that connects finance, technology, business, and customers,” it added.
It further cited some of the recommendations in the 2023 Global Stocktaking Technical Synthesis report which are relevant for the region, such as the need for rapid deployment of existing clean energy technologies, including through technology transfer agreements.
The report said multilateral and bilateral technology transfer can help countries scale up their renewable energy and associated technology supply chains.
“Mechanisms to facilitate the process can include joint research and development projects, or technology transfer and capacity building projects that involve research and academic institutions, companies and the public sector,” it said.
The report said international organizations and multilateral development banks are in a good position to provide technical assistance for developing clean energy supply chains, especially if the assistance is aimed at stimulating deeper innovation systems capabilities in the region.
“The needs for such assistance will vary, as each country and region has their own transition scenario,” it added.
Apart from innovation and entrepreneurship, other key enablers of transformative change include education, awareness raising and skill development; policy coherence; institutional capacity building; finance, funding and investment; and regional cooperation and multi-stakeholder partnerships.
Source: PHILEXPORT News and Features
March 01, 2024
