As the effects of climate change worsen, APEC member states can consider policy approaches to achieving a sustainable future inspired by a circular green economy (BCG), including strengthening foreign links between firms to facilitate technology diffusion.
Selwyn Calizzo Jr., researcher in the APEC Policy Support Unit and author of the policy brief Charting New Paths for APEC: A Sustainable Future Inspired by Bioeconomy Green (BCG), said the BCG economy integrates policies across bioeconomics and economics. Circular and green economy. By doing so, BCG’s economic solutions synergize the individual forces of each of the three.
He said that enacting policies that promote foreign links between firms would be beneficial to BCG’s economic solutions, especially for sectors with relatively low environmental technology penetration rates – transportation and mobility; Agriculture, food and hospitality.
Citing previous papers, Calizzo said that foreign links, such as foreign direct investment (FDI) and international trade, have been empirically observed to inspire product and process innovation, horizontal (within an industry), vertical (backward or upstream) technological ramifications, and technology. Transfers between companies.
He said foreign ties also have the potential to provide access to the right technologies and to enhance cooperation and coordination between companies.
Calizzo said easing restrictions on foreign direct investment, such as market access, ownership and local content requirements, could be an important step to strengthen these foreign links.
He added, “Another key policy is to provide the necessary intellectual property rights to strike a balance between protecting innovations and facilitating technology transfer. Of course, this must be done in tandem with appropriate enforcement practices.”
Since complying with IPR regulations can be costly, Calizzo said regulators should be sensitive to local ability to facilitate and absorb innovations because technology diffusion will have a “little impact” when those who need to obtain it have insufficient financial and technical capacity to use these. techniques.
Apart from this policy approach, Calizzo also emphasized the need for economies to provide investment opportunities to expand the renewable energy sector and niche markets such as electric vehicles.
He said the expansion could be done by supporting start-ups by encouraging investments in strategically located laboratories with access to manufacturing equipment.
Calizo has identified other policy approaches to achieving sustainable growth by adopting the BCG economics model, including strengthening institutions through good governance and sound regulatory tools, promoting practice-based engagement to gain local community support and supporting the expansion of BCG economic solutions at the Asia Economic Cooperation Forum and the Pacific.
He said policy makers can support key drivers – the regulatory environment, technology and innovation, and stakeholder participation – by addressing the challenges.
Calizzo said regulations on environmental services tend to be implemented by multiple agencies but without a clear coordination strategy to prevent sectoral silos.
“What the BCG economy can do is strengthen institutions by promoting good governance. This can take the form of regular channels for coordination and exchange of ideas across agencies, an economy-wide coordination strategy or sound regulatory tools such as the carbon budget and above. Prior Environmental Impact Assessments, among others.”