/CN.16/2023/2

E

UnitedNations

GE.23-00718(E)

EconomicandSocialCouncil

Distr.:General

16January2023

Original:English

CommissiononScienceandTechnologyforDevelopment

Twenty-sixthsession

Geneva,27–31March2023

Item3(a)oftheprovisionalagenda

Technologyandinnovationforcleanerandmoreproductive

andcompetitiveproduction

Technologyandinnovationforcleanerandmoreproductiveandcompetitiveproduction

ReportoftheSecretary-General

Summary

Thediscussioninthisreportisfocusedonhowcountriescouldtakeadvantageoftechnologiesandinnovationforcleaner,moreproductiveandcompetitiveproductiontocatalyseeconomicgrowthandstructuraltransformation,whileaddressingtheexistentialthreatofclimatechange.Forthemostpart,thetechnologyrequiredisavailable;whatisneededisthepoliticalwilltofacilitateitsdeploymentwidelyforpeopleandplanet.Nationalpoliciesarecrucialforcreatinggreenwindowsofopportunity,thefavourablebuttime-boundconditionsfordevelopingcountriestocatchupeconomicallythatareassociatedwithsustainabletransformation.Atthesametime,firmsandGovernmentsneedtobereadytorespondandtakeadvantageoftheseopportunities.Countriesshouldcombinetheacquisitionofexternaltechnologieswithgradualandconsistentdevelopmentofdomestictechnologicalcapabilities.Thisrequiressector-specificstrategies,butmanycountrieshavelowtechnicalandfinancialresourcesfordesigningandimplementingthem.Thus,thereisalsoacriticalroleforinternationalcooperationinpromotingtechnologytransfer,helpingtostrengthencapacitiesforbuildingsustainability-orientedinnovationsystemsindevelopingcountries,adoptingamorepartnership-orientedapproachtogreentechnologydevelopment,shiftingresearchforgreeninnovationsfromthenationaltothemultilaterallevel,adoptingmultilateralapproachestotechnologyassessmentandsupportingNorth–South,South–Southandtriangularcooperationonscience,technologyandinnovationforgreeninnovation.

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Introduction*

1.Atitstwenty-fifthsessionheldinMay2022,theCommissiononScienceandTechnologyforDevelopmentoftheUnitedNationsselected“Technologyandinnovationforcleanerandmoreproductiveandcompetitiveproduction”asoneofitsprioritythemesforthe2022–2023intersessionalperiod.

2.ThesecretariatoftheCommissionconvenedanintersessionalpanelmeetingon25and26October2022tobetterunderstandthisthemeandassisttheCommissioninitsdeliberationsatitstwenty-sixthsession.ThisreportisbasedontheissuespaperpreparedbytheCommissionsecretariat,thepanel’sfindingsandrecommendations,countrycasestudiescontributedbyCommissionMemberStatesandcontributionsfromUnitedNationsentities.1

3.DigitaltransformationandtheadoptionofIndustry4.0technologiessuchasartificialintelligenceandthe“Internetofthings”aretransformingbusinessandproductivesectors.Whenguidedbyadevelopmentcompass,technologicalchangecanhelptheglobalcommunityrecoverpost-coronavirusdisease(COVID-19)andbringaboutthetransformationsneeded,suchasreducepoverty,tackleclimatechangeandputtheworldonasustainablepath,toachievetheSustainableDevelopmentGoals.Thesetechnologiesalsoofferawindowofopportunityfordevelopingcountriestocatchuptechnologicallyandnarrowglobaldivides.Criticalareasforinnovationinthisnewtechnologicalrevolutionarerenewableenergytechnologiesandfrontiertechnologiesforsustainableproductionandconsumption.Innovationintheseareascouldhelpdiversifyeconomies,createhigher-wagejobsandcatalyseeconomicgrowthandstructuraltransformation,whileaddressingtheexistentialthreatofclimatechange.Nationalpoliciesarecrucialtocreatingthesegreenopportunities.Thetechnologiesrequiredforasustainabletransformationofeconomiesandsocieties,forthemostpart,alreadyexist.Thereshouldbepoliticalwilltofacilitatetheirdeploymentindevelopingcountries.Atthesametime,firmsandGovernmentsmustbereadytorespondandtakeadvantageofthem.Butmanycountrieshavelowtechnicalandfinancialresourcesfordesigningandimplementingtherequiredsector-specificstrategies.Thereisthereforeacriticalroleforinternationalcooperationinprovidingthetechnicalandfinancialsupporttodevelopingcountriestobenefitfromthesegreenwindowsofopportunities.

I.Technologyandinnovationformoresustainabledevelopmentpathways

4.Innovationisakeydriverofeconomicgrowth,andscienceandtechnologycreatethebasisforregularinnovations.Economicgrowthhasincreasedtheoverallwelfareofsociety,butclimatechange,erosionoffertilesoils,depletionoffishstocksandeutrophicationandcontaminationofwaterbodieserodethelivelihoodofbillionsofpeopleworldwideandthreatenthewell-beingoffuturegenerations.Thus,atransitiontowardsmoresustainabledevelopmentpatternsisimperative,increasingincomesandaccesstobasicneeds(e.g.,cleanwaterandelectricity)whilebringingenvironmentalpressures(close)tozero.

*AllwebsitesreferredtoinfootnoteswereaccessedinNovember2022.

1ContributionsfromtheGovernmentsofAustria,Belarus,Belgium,Brazil,Cameroon,China,Cuba,theDominicanRepublic,Egypt,theGambia,Guinea,India,Japan,Kenya,Latvia,Oman,Peru,thePhilippines,theRussianFederation,SouthAfrica,Switzerland,Thailand,TürkiyeandtheUnitedStatesofAmerica,aswellasfromtheEconomicandSocialCommissionforAsiaandthePacific,EconomicandSocialCommissionforWesternAsia,FoodandAgricultureOrganizationoftheUnitedNations,InternationalAtomicEnergyAgency,InternationalTradeCentre,InternationalTelecommunicationUnion,UnitedNationsEnvironmentProgramme,UnitedNationsIndustrialDevelopmentOrganization,WorldTourismOrganizationandMajorGroupforChildrenandYoutharegratefullyacknowledged.Foralldocumentationfromtheintersessionalpanelmeeting,see

/meeting/cstd-2022-2023-inter-sessional-panel

.

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5.Thereisapressingneedtopromoteinnovationsforcleanerandmoreefficientproduction(inthisreport,calledgreeninnovationforshort)thatstimulateeconomicgrowthwithoutdepletingtheplanet’snaturalresources.Theseinnovationsalsoresultinnewsolutionsthatmayhelprecoversomeofthehighlystressedordamagedelementsofecosystems,e.g.,absorbingCO2fromtheatmosphereorrestoringcontaminatedsoilsorwaterbodies.Greeninnovationisusuallyassociatedwithrenewableenergytechnologies,butseveraltechnologieswillbenecessarytoachieveasustainabletransition.Theseincludemoretraditionaltechnologiesandnewdigitalones,suchasartificialintelligence,theInternetofthingsandblockchain.

6.Indevelopingcountries,innovationrequirescreativeadaptationoftechnologiesalongandbeyondthepathsfollowedbymoretechnologicallyadvancedeconomies.2Latecomerdevelopmentmayfollownewdirections,skippingsomestagesorestablishingentirelydistincttrajectoriesthatbuildonexistingknowledge.3Thesedevelopmentpathsareconditionedbywindowsofopportunityemergingfromradicaltechnologicalinnovationandchangesinmarketdemandormajoradjustmentstogovernmentregulationsorpolicyinterventions.4Inlatecomers,technical,marketandpolicychangesmaylowerbarrierstoentryandreducelearningtimes,whiletheincumbentsmaybelockedintoroutinesanddominantknow-how.Still,takingadvantageoftheseopportunitiesisnotautomaticbutdependsonexistingproductive,technologicalandinnovativecapacitiesandtheresponseoffirmsandGovernments.5

7.Totackleclimatechange,itiscrucialtosupportdevelopingcountriesinmakingtheirproductioncleaner,moreproductiveandmorecompetitive.Newandcreativeapproachesarerequiredfordevelopingcountriestobenefitfromgreenwindowsofopportunity.Muchsuccesswilldependonestablishingeffectiveinnovationsystemsatthenationallevel;however,internationalcooperationandpoliticalwilltofacilitatetechnologytransferarecritical.6

8.Greeninnovationhascharacteristicsthatimplyamoreprominentroleforglobalmechanisms.Itsbenefitsexceedeconomicvaluereflectedinmarketpricesandincludevarious“externalities”beyondthetypicalspillovereffectsassociatedwithinnovation.Thesebenefitsalsoinvolveahighdegreeofglobalinterdependency.Localactionshaverelativelymoresignificantbenefitstothirdparties,includingthosequitefarremovedfromthecreationandimplementationofaninnovation.Moreover,theseinnovationsoftenneedtofollowaradicaltransformationofthecurrentgrowthpathway.

9.Broadernotionsof“innovationcooperation”areneededtoadvanceinternationaltechnologyeffortsforsustainabledevelopment.Suchaframingallowsforabroaderperspectiveonpracticalinternationaltechnologytransfercooperationbetweencountries.Italsoemphasizestheneedforequitablepartnerships,ratherthandonor–recipientrelationships,andforthedevelopmentoflocalinnovationcapabilities,leadingtomoreeffectivemarshallingoftechnologiestohelpdevelopingcountriesachievesustainabledevelopment.7However,suchinternationalcooperationforgeneratinggreeninnovationsishighlyunderdevelopedanddoesnotreflecttheurgentneedtodevelopnewtechnologicalsolutionstotheworld’senvironmentalchallenges.

2PerezCandSoeteL(1988).Catchingupintechnology:entrybarriersandwindowsofopportunity.InDosiGetal.eds.TechnicalChangeandEconomicTheory.FrancisPinter.London:458–479.

3AltenburgT,StammAandSchmitzH(2008).Breakthrough?China’sandIndia’stransitionfromproductiontoinnovation.WorldDevelopment,36(2):325–344,andLeeK(2019).TheArtofEconomicCatch-Up:Barriers,DetoursandLeapfrogginginInnovationSystems.CambridgeUniversityPress.

4PerezandSoete,1988.

5LeeKandMalerbaF(2017).Catch-upcyclesandchangesinindustrialleadership:Windowsofopportunityandresponsesoffirmsandcountriesintheevolutionofsectoralsystems.ResearchPolicy.46(2):338–351.

6UnitedNationsConferenceonTradeandDevelopment(UNCTAD),forthcoming,TechnologyandInnovationReport2023.

7PandeyN,deConinckHandSagarAD(2022).Beyondtechnologytransfer:Innovationcooperationtoadvancesustainabledevelopmentindevelopingcountries.WileyInterdisciplinaryReviews:EnergyandEnvironment.11(2):e422,JohnWileyandSons.

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II.Opportunitiesforcatchingupthroughgreentechnologiesandinnovation

10.Latecomercatch-upprocessesingreenerindustriesinvolvethreekeycomponents:greenwindowsofopportunities,sectoralsystemsandcatch-uptrajectories.8Thecomponentscanbesummarizedasfollows:

(a)Greenwindowsofopportunityarefavourablebuttime-boundconditionsfor

latecomerdevelopmentarisingfrompolicyinterventionsandchangesinmarketsandtechnologiesassociatedwithgreentransformation.

(b)Sectoralsystemsincludethepreconditionsandthestrategiesundertakenby

relevantinstitutionstoturnopportunitiesintoreality.Ingeneral,theabilitytoexploitwindowsofopportunityinspecificindustriesdependsonafirm’sexisting,accumulatedcapabilitiesinthesameorcloselyrelatedsectorsandthedevelopmentofthesectoralinnovationsystemsinwhichthoseaccumulatedcapabilitiesareembedded.

(c)Catch-uptrajectoriesoriginatefromtheinteractionsofgreenwindowsof

opportunitywiththepreconditionsandresponsesinsectoralsystems.Theyrepresentlatecomerfirms’successfulattainmentoftechnologicalandproductivecapabilities,shiftingthebalanceofeconomicpowerbetweenincumbentsandlatecomers.

11.BuildingonthefindingoftheUNCTADTechnologyandInnovationReport2021thatdevelopingcountriescouldbenefitfromadoptingfrontiertechnologieswhilecontinuingtodiversifytheirproductionbasesbymasteringexistingtechnologies,inthefollowingsections,thegreenwindowsfordevelopingcountrieswillbeexaminedinrelationtothreemainchannels:(a)theproductionofrenewableenergytechnologies,(b)theapplicationoffrontiertechnologiestogreenerglobalvaluechainsand(c)thediversificationofeconomiestowardssectorswithlowercarbonfootprints.

A.Development,adoptionandproductionofrenewableenergytechnologies

12.Greenwindowsofopportunitiesforadoptingandproducingrenewableenergytechnologiesareoftencreatedbypublicactionandpolicies.Althoughdemandandtechnologicalchangesinfluencethesegreenwindows,theyareoftenpromotedbypublicactionsandrelatedadjustmentstotheinstitutionalframeworkconditions.Forexample,inthecaseofthedevelopmentofthebiofuelindustryinBrazil,theinstitutionalwindowwascreatedbyinnovationandindustrialpoliciestoaddressmarketdisruptionwiththeoilcrisisin1973.InChina,sector-focused“missions”,suchastherooftopsubsidyprogrammeandthegolden-sundemonstrationprogrammewerecriticalfordevelopingthesolarsector.9InEgypt,theRenewableEnergyLaw(DecreeNo.203/2014)encouragedtheprivatesectortoproduceelectricityfromrenewableresourcesthroughseveralpartnerships.InthePhilippines,theRenewableEnergyActof2008acceleratedthedevelopmentofrenewableenergysourcesbyprovidingincentivesfortechnologyadoption.10

13.Creatingamarketisacrucialelementoftheinstitutionalwindowsofopportunity.Inthisrespect,renewableenergysectorsdifferfrommanyconsumerandcapitalgoodssectors.Intheconsumerandcapitalgoodssectors,government-leddemandcreationistheexceptionratherthantherule.Increasesinmarketdemandcanbedomesticorglobal,whichiscrucialfordevelopingcountrieswithsmalldomesticmarkets.However,giventhelimitedtradabilityofmanygreenenergyproducts,domesticmarketcreationisoftenmore

8LemaR,FuXandRabellottiR(2020).Greenwindowsofopportunity:Latecomerdevelopmentintheageoftransformationtowardsustainability.IndustrialandCorporateChange.29(5):1193–1209,OxfordUniversityPress.

9IizukaM(2015).Diverseandunevenpathwaystowardstransitiontolowcarbondevelopment:thecaseofsolar[photovoltaic]PVtechnologyinChina.InnovationandDevelopment.5(2):241–261.

10See/system/files/non-official-document/CSTD2022-23_c06_C_Egypt_en.pdfand

/system/files/non-official-document/CSTD2022-23_c16_C_Philippines_en.pdf

.

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critical.Examplesofdemand-pullpoliciesarefeed-intariffsaimedatcreatingcompetitiveparitybetweengreenenergiesandfossilfuelsbysubsidizingthedemand.InIndia,theFasterAdoptionandManufacturingofElectricVehiclesschemeincludesstimulationforthepurchaseandthedeploymentofcharginginfrastructure.InthePhilippines,thePhilippineGreenPublicProcurementRoadMapaimsatincreasingdemandforgreenproductsandservicesbyintegratingsustainabilitycriteriaintothepublicprocurementprocess.

14.Policiesfacilitatingtradeingreentechnologyproductsalsoopenlearningopportunitiesthroughobservationandreverseengineering.Thisdoesnotimplythatdevelopingcountrieswillautomaticallybeabletousethistechnologicallearningintheshorttermforimportsubstitutionofgreentechnologyproductsorbuildingupoftheirexportsector,whichwouldbetwomodesofrealizingthegreenwindowofopportunity.Somegreentechnologyitems,suchassolarphotovoltaicmodules,aregloballytradedcommodities,andthecompetitionisnotbasedonthesimplelearningofitskeyfeaturesbutratheronahighlyefficientindustrialvaluechain.Developingcountrieswithoutastrongmanufacturingsectorfacebarrierstoadoptingnewtechnologiestoexpandproductionforimportreplacementandexports,eveninlow-technologygreeninnovationwithhighrelevancefortheenvironment.

15.Institutionalwindowscanalsoinducetechnicalchangeintheformofmission-guidedpublicresearchanddevelopmentprogrammesthatgobeyondlevellingtheplayingfieldtofixingmarketfailuresandinvolvingbroaderprogrammesofmarketco-creationandshaping.SomeexamplesareademonstrationprojectondeployingsolarenergysystemsinruralhealthunitsinthePhilippinesandthegovernmentalsupportforresearchanddevelopment,experimentalproofandtechnologydemonstrationprojectsoncleanenergyinIndia.Intheabsenceofinvestmentsintechnologicalchange,marketinvestmentsingreensubsidiescanresultinamarkettrapwherelatecomersmaybecomemarketleadersbutremaintechnologyfollowers.Conversely,iftheinducedtechnologicalchangeisnotmatchedby(domesticorexternal)marketdemand,strongtechnologicalcapabilitiesmayremaindormant.11

16.Responsestogreenwindowsofopportunitiesinrenewableenergytechnologiesareinfluencedbythetechnologicalmaturityofandtradabilitywithingreensectors.Thus,policiesshouldbetailoredtothecatch-upstageandconsidersectoralspecificitiestoexploitgreenwindows.Therearetypicalpatterns,suchasusingenvironmentalandenergypoliciestocreateademandwindow,andthenindustrialandinnovationpoliciestoexploitit.Forinstance,astrategyforwindenergymaycreateademandwindow,followedbyasubsequentlawspecifyingashareofdomesticcomponentsinwindplantsasaresponsetothewindow.12Conversely,inthecaseoftheshiftfromcombustionenginestoelectricvehicles,innovationandindustrialpoliciesareusedtoreacttoandinternalizetheopportunitybysupportingdomesticdesignandmanufacturing.Thentransportationpolicyisusedfordomesticdiffusioninexploitingandconsolidatingthewindowinpreparationforexports.13

B.Greeningglobalvaluechains

17.Theriseofglobalvaluechainshasallowedmanydevelopingcountriestoentertheglobalmarketbasedontheirspecificadvantagesandspecializationintasksratherthanfinalgoods.Butjoiningglobalvaluechainsisnotsufficienttoguaranteesustainablegrowth.Itrequiresscalingthevalueaddedladderandmovingprogressivelytomoresophisticated

11HainDS,JurowetzkiR,KondaPandOehlerL(2020).Fromcatchinguptoindustrialleadership:towardsanintegratedmarket-technologyperspective.Anapplicationofsemanticpatent-to-patentsimilarityinthewindand[electricvehicles]EVsector.IndustrialandCorporateChange.29(5):1233–1255,OxfordUniversityPress.

12LemaR,BergerAandSchmitzH(2013).China’simpactontheglobalwindpowerindustry.JournalofCurrentChineseAffairs.42(1):37–69.

13KondaP(2022).DomesticdeploymentintheformativephaseoftheChineseelectricvehiclessector:evolutionofthepolicy-regimesandwindowsofopportunity.InnovationandDevelopment.1–24.

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tasks.Onewayisgreeningglobalvaluechainsbyreducingtheecologicalfootprintoffirms,suchastheimpactongreenhousegasemissions,biodiversitylossandoverexploitationofnaturalresources.14

18.Thegreeningoftheglobalvaluechainsinmanufacturingindustrieshasthreedrivers:(a)newpatternsofdemandpreferencesandconsumerbehaviours,(b)newgreenstrategiesbyleadfirmsandglobalbuyersand(c)enforcementofenvironmentalstandardsandassociatedpatternsofupgradinganddowngradingacrossglobalsupplybases.Thisgreeningofglobalvaluechainswouldunfoldinsectorsthatdonotbelongtowhatisusuallyconsideredgreenerindustries.Theseincludemanufacturingsectorscrucialtomanydevelopingcountries,suchastraditionalmanufacturingindustries,includingfoodproduction,garmentandtextiles,leatherandshoes,andfurniture.

19.Thegreeningoftheglobalvaluechaininmanufacturingindustriesunfoldsasfollows:

(a)First,thegreentransformationimperativeleadstonewpatternsofconsumer

behaviour,newdemandpreferences,changingpolicylandscapesandincreasingcivilactivismthatalsochangeconsumptionandreducetheenvironmentalimpactofproductionandtrade.Therearealsodriversrootedintheprofitmotive,suchassavingsderivedfromdecreasedmaterialuse,whichiscost-effectiveandlowersenvironmentalpressurebyeasingthedemandforprimaryresources.Changingdemandforlessresource-intensiveandmoreenvironmentallyfriendlyproductsandserviceshasramificationsasnewrequirementsaretransmittedthroughglobalvaluechains.

(b)Second,newdesigns,standardsandspecificationstypicallyenforcetheserequirementsinthevaluechains.Theyareusuallydefinedandimplementedincountriesthatpioneerenvironmentallybenignproducts,processesandservices.15Manynewrequirementsare“privatestandards”definedandenforcedbyleadfirms.Thesedesigns,standardsandspecificationsalsointernalizeseveralpublicenvironmentalregulationsandsemiprivateenvironmentalcertifications,suchastechnicalregulationscertification(e.g.theRoundTableonResponsibleSoy),16whichincludesauthorities,governmentalagenciesandpublicdonors.Thus,theintroductionofsustainabilityrequirementshasimplicationsfortheentirevaluechain,includingitsgovernance,i.e.howsomefirmsinthechainsetandenforcetheparametersunderwhichothersoperate.17

(c)Third,thesechangesinthegovernanceregimeofglobalvaluechainscreate

entrybarriersandwindowsofopportunityforsuppliersintheglobalSouth.Theymaytranslateintonewconstraintsforsuppliersinmeetingtheserequirements,therebymakingentryintoglobalvaluechainsmoredifficultorforcinganexitfromglobalvaluechainsforexistingsuppliers,inasustainability-drivensuppliersqueeze.18Atthesametime,certainsuppliersmaybeabletodevelopsustainabilitycapabilities,leveragingthemtotheiradvantage,providedthatcertainpreconditionsareinplaceandappropriatestrategicactionsaretaken.Theembeddednessofsuppliersinwell-functioningproductionandinnovationsystemsiscrucial.19

20.Toseizethistechnologicalwindowofopportunity,latecomercountriesshoulddevelopandimplementappropriatepolicystrategiestoaddresscriticalchallengesindigitalcompetency,infrastructuresandinstitutions,buildinginnovationcapacityandovercomingfinancialbarriers.Nationalstrategiesandpoliciestostrengthentheadoptionoffrontierdigitaltechnologiesinthemanufacturingindustryshouldbealignedwithinterventionsand

14DeMarchiV,DiMariaE,KrishnanA,PonteSandBarrientosS(2019).Environmentalupgradinginglobalvaluechains.HandbookonGlobalValueChains.EdwardElgarPublishing:310–323.

15BeiseMandRenningsK(2005).Leadmarketsandregulation:aframeworkforanalysingtheinternationaldiffusionofenvironmentalinnovations.EcologicalEconomics.52(1):5–17.

16See/.

17HumphreyJandSchmitzH(2001).Governanceinglobalvaluechains.IDSBulletin.32(3).

18PonteS(2020).Thehiddencostsofenvironmentalupgradinginglobalvaluechains.ReviewofInternationalPoliticalEconomy.29(3):818–843.

19PietrobelliCandRabellottiR(2011).Globalvaluechainsmeetinnovationsystems:Aretherelearningopportunitiesfordevelopingcountries?WorldDevelopment.39(7):1261–1269.

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initiativesintheenvironmentalandenergydomainstounlockthesustainabilitypotentialofdigitaltechnologies.Anessentialelementofanysuchstrategyisthedevelopmentofthedigitalinfrastructure,whichisapreconditionforpromotingtheadoptionandadaptationofIndustry4.0technologiesandfortheirusetomakevaluechainsgreener.

C.Diversifyingtowardsmoresustainableeconomicsectors

21.Developingcountriescouldseektomasteranddeployexistingtechnologiestodiversifytheireconomieswiththedualobjectiveofstructuraltransformationandlowercarbonemissions.Anoptimumpathofdiversificationofeconomicactivitiesmayexist,consistingofthecontinuousmovetoselectedactivitiesthataremoreproductiveandmoreenvironmentallyfriendlyandcloselyrelatedtotheexistingproductivecapacitiesofagivencountry.

22.Recentstudieshaveexaminedthepossibilityofcountriesdiversifyingtowardsproductsassociatedwithgreeneroutcomesandhigherlevelsoftechnology(so-calledmorecomplexproducts).Sofar,theserecentstudieshaveproducedmixedresults.SomestudieshavefoundthatcountrieswithalowereconomiccomplexityshowlowCO2emissions;aseconomiccomplexityincreases,emissionsalsorise,buteventually,theystarttodecreaseforcountriesathigherlevelsofeconomiccomplexity.20Atthesametime,otherstudieshavefoundthatincreasingeconomiccomplexityresultsinbetteroverallecologicalperformance,asmeasuredbythetotalquantityofnaturalresourcesconsumedbythepopulationandtheareaofproductivelandandwaterneededtosupporthumanactivitiesandsequesterthewastetheygenerate.21

23.Theimpactontheenvironmentofincreasingeconomiccomplexityalsodependsonthelevelofdevelopmentofcountries.22Somestudieshavefoundthatincreasingeconomiccomplexityindevelopingcountrieshasresultedinhighercarbonemissionsbuthaslimitedorundetectableenvironmentaldegradationinhigh-incomeeconomies.23Italsoreducestheenvironmentalqualityine