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Drafting Group B, chaired by Takao Shibata (Japan), was only able to consider the draft on technology transfer during its meeting Thursday afternoon.

TRANSFER OF ENVIRONMENTALLY SOUND TECHNOLOGY, COOPERATION AND CAPACITY BUILDING: Section A. The Commission on Sustainable Development: In paragraph 4 (favorable access to ESTs), the US and Australia reserved its position on the G-77/China's proposed paragraph that: cites Chapter 34 of Agenda 21; stresses ESTs on concessional and preferential terms; and notes the broadening of the concept of transfer of technology and the limitations of markets. The G-77/China proposed a new paragraph 5 bis recalling Agenda 21's support for developing countries' access to ESTs and know-how. The EU proposed a paragraph 5 bis, which recalls that the private sector has the primary role in technology transfer.

Section B. The Commission's Work Programme: In paragraph 6 (commitments), the G-77/China added sub-paragraph 6(4), calling on UN agencies and other relevant bodies to survey and assess ESTs and report to the fourth session of the CSD; and sub-paragraph 6(5), calling for a technology triangle at the national level. The EU proposed new sub-paragraph 6A(1), welcoming information systems on EST initiated by UNEP, and inviting the agency to report to the fourth session of the CSD. In paragraph 7 (measures to assess ESTs), the G-77/China proposed a new sub-paragraph that calls for the establishment of EST centers. Other amendments to paragraph 7 called for assessment of ESTs, and a role for EST centers in the transfer of ESTs to the private sector in developing countries. In sub-paragraph 7(4) (environmental performance indicators), the US, supported by the EU, deleted "commonly agreed targets and goals."

Section C. Financial Arrangements: In paragraph 8 (strengthening EST partnerships), the G-77/China inserted a reference to new and additional financial resources and the benefits of a shift to waste management technology for materials and energy use. The EU deleted references to financial and fiscal incentives to facilitate EST transfers and inserted references to the enabling role of governments. In sub-paragraph 8(5) (government action on external investment), the US inserted a reference to increasing EST investment through internalization of costs in competitive markets, such as through economic instruments and regulatory policies.

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