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22 February 2011
GPPi publishes a new study on international cooperation in China’s wind energy sector
In February 2011 GPPi published a policy paper titled Catching a Second Wind – Changing the Logic of International Cooperation in China’s Wind Energy Sector. Authored by GPPi research associates Björn Conrad and Mirjam Meissner, the paper takes the example of China's wind energy market to discuss the fundamental dilemma of climate technologies.
On the one hand, the rapid development and global dissemination of climate technology is necessary to tackle global climate change. On the other hand, these technologies are commercial products, developed and sold by companies in a fiercely competitive market. The logic of climate protection favors the open exchange of technological expertise between corporations. At the same time, the logic of the market sets narrow boundaries for sharing profit-making innovation.
The new study tries to demonstrate how these two aspects can be reconciled in China's wind energy sector. The authors argue that, after previous failures to establish mutually beneficial structures of cooperation, a second window of opportunity is currently opening: China’s wind market is on the verge of a new development phase signaling a possible shift in the logic of international technology cooperation; the times of China simply catching up to foreign technologies are ending. China’s wind sector depends on original technological solutions to solve mounting problems, creating a strong incentive to revisit structures of international cooperation as a means to create urgently needed innovation. This situation opens new opportunities for EU political as well as business actors to promote the emergence of cooperative structures based on joint technology development and shared innovation that can make a tangible contribution to global climate protection while creating profitable business opportunities.
The paper provides policy recommendations for China’s political leadership, Chinese companies active in the wind sector, the EU as a political actor and European companies involved in the development, manufacturing and trade of wind energy equipment. It outlines ways to change the logic of cooperation with regard to three interlinked dimensions:
- Shift in paradigm to reflect the changing realities of China’s wind energy market
- Targeted public and private investment in strategically chosen technology areas
- Improved management of intellectual property rights and profits from innovation
The paper was funded through the Europe and Global Challenges program of the Compagnia di San Paolo in Turin (Italy), Riksbankens Jubileumsfond in Stockholm (Sweden) and VolkswagenStiftung in Hanover (Germany). It is part of the GPPi project Joint Stakeholders in Global Energy Governance? Prospects for Joint Global Problem-Solving Between the EU and China.
Read the full paper: Catching a Second Wind – Changing the Logic of International Cooperation in China’s Wind Energy Sector.
For more information, please contact Björn Conrad.