A Green Impact Fund for Technology

Abstract

The Green Impact Fund for Technology (GIFT) is a proposed new international financing facility that would enable originators of innovative green technologies to exchange some of their monopoly privileges in return for impact rewards. The invited exchange would apply only in the lower-income countries: originators choosing to forgo their monopoly markups in this GIFT Zone would receive annual premiums based on the emission reductions achieved with deployments of their“greenovation” in that GIFT Zone. The GIFT’s main purpose is greatly to improve the diffusion of impactful green technologies in the Global South. It would do so first by inducing participating originators to waive licensing fees and monopoly markups, and second by giving these originators a financial interest in the wide and effective use of their participating innovations. In addition, the GIFT would stimulate development of additional greenovations that–tailored to prevailing needs, cultures, circumstances, and preferences in the GIFT Zone–would be especially impactful there. These two effects would produce a third: the GIFT would help build capacities to develop, manufacture, distribute, install, operate, and maintain greenovations in the GIFT Zone.