World Energy Outlook 2007

Figure 6.1: Public Energy Research and Development Funding in IEA Countries
million dollars (2006)
20 000
12%
18 000
16 000
10%
14 000
8%
12 000
10 000
6%
8 000
6 000
4%
4 000
2%
2 000
0
0%
1980 1985 1990 1995 2000 2005
Energy efficiency
Renewable energy sources
Hydrogen and fuel cells
Other
Fossil fuels including CCS
Nuclear fission and fusion
Other power and storage technologies
Share of energy R&D in total R&D (right axis)
Source: IEA R&D database.
incentives and regulatory requirements, as well as the availability of the most
up-to-date technologies and knowledge of how best to use them. In some cases,
trade restrictions – notably import tariffs – impede market penetration. Most
appliances and equipment that either use energy or are used in the production
of energy are subject to tariffs in both China and India, though in both
countries tariffs have lowered in recent years. In China, for example, the
government requires all new wind power projects to have a 70% minimum
domestic content, and levies higher import duties on pre-assembled turbines
than on assembled components and individual parts. Tariffs on biofuels in both
countries also impede the development of the sector and raise costs. Similarly,
import barriers in other countries discourage the export of Chinese and Indian
equipment, which is often cheaper and, in some cases, more advanced. Worries
about protection of intellectual property rights can discourage firms from
entering Chinese and Indian markets. Removing such barriers, within the
framework of multilateral and unilateral negotiations over international trade
and investment rules, could give a major boost to the rate of deployment of
new technology worldwide, bringing mutual energy-security, environmental
and economic benefits.
International collaboration on developing new technologies and improving
existing ones, involving China and India and other developing countries, will
236 World Energy Outlook 2007 - GLOBAL ENERGY PROSPECTS: IMPACT OF DEVELOPMENTS IN CHINA & INDIA