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Mitigating Climate Change Through Investments in Fossil Fuel Technologies

A Synthesis Report Based on National Case Studies from Afghanistan, China, India, Kazakhstan, Kyrgyzstan, Mongolia, Tajikistan, Ukraine, and Uzbekistan

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This report is the principal written deliverable of the project "Mitigating climate change through attracting foreign direct investment in advanced fossil fuel technologies", financed from the United Nations Development Account (UNDA). The project, implemented in 2010-2012, covered nine countries: Afghanistan, China, India, Kazakhstan, Kyrgyzstan, Mongolia, Tajikistan, Ukraine, and Uzbekistan. The report takes into account findings of the national baseline studies, drafted for each of the nine countries between November 2011 and August 2012. The report summarizes and interprets the experiences, policies, and plans for the future of each country in developing a thermal electricity sector using advanced technologies that reduce carbon dioxide (CO2) emissions and exploit the countries’ fossil fuel resources.

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The role for FDI in introducing advanced fossil fuel technologies

It has long been a tenet of economics that foreign direct investment can have a positive effect on the economic development of a country through the introduction of new, advanced technologies and production processes into an economy. Similarly, there has long been the expectation that foreign investment can raise energy efficiency, productivity, as well as to reduce pollution from energy use, reduce the wasteful use of energy, and contribute to reducing carbon emissions from electricity generation. Foreign investment can often be the financial means or catalyst which serves to introduce or to accelerate the development of an economic sector or industry. At its most basic function, foreign direct investment provides capital which otherwise might not be available in the target country.

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