© Antony Trivet / Pexels

Kenya climate
innovation center

The Summary for Policymakers of the TEC’s work

presented in June 20231 explains that the primary
This document is part of a objective of an innovation system is to produce,
collection of six case studies diffuse, and use innovations. To accomplish this
selected from the work conducted objective, the Summary for Policymakers document
by the Technology Executive identifies specific activities or functions that
should be carried out to facilitate the innovation
Committee (TEC) on "Good process. Based on empirical evidence, innovation
practices and lessons learned on studies identify seven main functions as outlined
the setup and implementation of in Table 1. Evaluating to what extent an innovation
National Systems of Innovation". system can perform these functions is necessary
to identify and assess the innovation system's
It specifically focuses on the Kenya achievements, failures and gaps or barriers. The
Climate Innovation Center (KCIC). functions assessment found that the functions
of knowledge development and diffusion (F1),
entrepreneurial experimentation (F2), market
formation (F3), and resource mobilization (F5) are
key functions to the KCIC study case.

Table 1. Kenya case of innovation

Country Kenya Focus Mitigation & adaptation

Scope Energy supply & demand, Innovation system functions (F) a

Key functions:
agriculture, water, waste F1 Knowledge development and diffusion
management F2 Entrepreneurial experimentation
F3 Market formation
F5 Resource mobilization

Non-key functions:
F4 Influence on the direction of the search
F6 Legitimation
F7 Development of positive externalities

Approach Top-down Starting year 2012

a
See the Summary for Policymakers of "Good practices and lessons learned on the setup and implementation of National Systems of Innovation",2
and table 2 for the description of functions.

1 TEC, 2023, Summary for Policy makers: Good practices and lessons learned on the setup and implementation of National Systems of Innovation, UNFCCC
Technology Executive Commission, Bonn. Available at https://unfccc.int/ttclear/tec/NSI.html.
2 TEC (2023).
 This document begins with a general introduction
of the case study, followed by a description of the
legislative framework and an examination of its
context within the national innovation system.
This provides a foundation for a more detailed
exploration of the case. These sections serve as
the basis for assessing the case by analysing its
functions. The last sections include additional
analysis of the case’s role within the national
system of innovation, key success factors and
lessons learned, and good practices.
© Antony Trivet / Pexels

2
1. Introduction to the case
The Kenya Climate Innovation Center mind, KCIC provides incubation, capacity-building
and funding to business ventures for supporting
(KCIC) was initially set up as a project by a innovations in off-grid energy, renewable
consortium of partners in September 2012 energy, agriculture and agribusiness, water
as a cutting-edge facility for promoting management, commercial forestry and waste
locally sourced green technologies in the management. Accordingly, the Center delivers
a mix of socioeconomic and environmental
Africa region by offering financing and outcomes, including GHG emission abatement,
other services to a growing network of improved climate resilience, livelihood generation,
climate innovators and entrepreneurs.3 and enhanced access to clean energy and safe
drinking water. It also promotes technology
KCIC aims to bring about long-term mitigation transfer and local innovation through private sector
and adaptation benefits with a specific focus on engagement, business model refinement and
renewable energy, clean water, agriculture and market entry support and, as one of the institutions
energy efficiency. It does this through initiatives supporting innovations in clean technology, is
targeting reductions in greenhouse gas (GHG) engaged in mainstreaming the SDGs and climate
emissions and enhanced access to clean energy, change in national planning. It is estimated that
while the resulting benefits on livelihoods and through its interventions the Center has helped to
socioeconomic sectors augment the adaptive abate over 300,000 tonnes of GHG emissions so far.
capacity of the local population. 4 With this in

3 See https://www.worldbank.org/en/news/press-release/2012/09/26/climate-innovation-center-opens-nairobi-unleash-kenya-green-business-potential.
4 See https://www.kenyacic.org/about-us/.

3
2. Legislative framework
KCIC was not established as a result of However, Kenya’s national strategies for science,
technology and innovation are well defined in other
specific Kenyan legislation, but rather documents, such as the report developed by DFID
set up as an international initiative. to support its decision-making and among Kenyan
The concept of the climate innovation partners.10 As per the DFID report’s, the national
centres (CICs) was developed in 2010 in a research policy has three main components:
joint report entitled “Climate Innovation • Vision 2030, which describes the country’s
Centers - A New Way to Foster Climate development programme, which aims to raise
Technologies in the Developing World?”,5 the average standard of living in Kenya to
by infoDev6 in collaboration with UNIDO middle income by 2030
and the United Kingdom Department for • The Science, Technology and Innovation Act
International Development (DFID).7 KCIC is 2013, which established national research
the world’s first CIC in a global network of institutions aimed at implementing Vision
CICs being established under the infoDev 2030 and the science, technology and
innovation policy
Climate Technology Program.
From its inception until 2016, the Center operated • The Universities Act of 2012, which directs
as a consortium of four institutions – private universities to produce and disseminate
consultancy PricewaterhouseCoopers, Strathmore scholarly research and promote innovation
University, international NGO Global Village Energy
In the light of KCIC’s work to achieve the SDGs
Partnership and Kenya Industrial Research and
and implement climate action in the country, in
Development Institute, a government institution
2018 the Kenyan Government recognized KCIC as
mandated to promote industrial research into
the official implementing agency of the Promote
and transfer of innovative technologies for
Climate Technologies and Innovation initiative
socioeconomic development. Since 2016, the role
under the Vision 2030 Medium Term Plan III for
of the Center has changed and it now functions as
2018–2022.11 The Vision 2030 Delivery Secretariat
a local and independent non-profit company with
has signed a memorandum of understanding
the ability to independently raise funds, beyond
with KCIC to explore opportunities for facilitating
the initial support it received, for carrying out
the implementation of climate technologies and
its activities.8
innovation in Kenya. The primary task of KCIC
Aside from the establishment of KCIC, Kenya’s under the Medium Term Plan III is to support clean
research system is still under development, with technology innovation.
only a draft science, technology and innovation
policy in place in 2008 by the Ministry of Science
and Technology, Republic of Kenya.9

5 See the report at: https://thedocs.worldbank.org/en/doc/e745077a58ec6a4094560d5b40ac16d7-0350072010/original/Climate-Innovation-Centres.pdf.

6 infoDev (see www.infodev.org) is a global partnership programme within the World Bank Group that works at the intersection of innovation, technology
and entrepreneurship to create opportunities for inclusive growth and job creation.
7 The Department for International Development (DFID) has closed in September 2020. It's been replaced by the Foreign, Commonwealth & Development
Office (FCDO).
8 In 2016, KCIC was registered as an independent company limited by guarantee. From September 2012 to May 2016, its activities were funded by UK Aid
Direct and DANIDA through the World Bank. From June 2016 to December 2020, it received financial support from DANIDA for its interventions.
9 Ministry of Science and Technology, Republic of Kenya (March 2008). Science, Technology and Innovation Policy and Strategy. Available at
http://www.ist-africa.org/home/files/kenya_sti-policy_mar08.pdf.
10 DFID (October 2019). Assessing the needs of the research system in Kenya. Report for the SRIA programme. Available at https://assets.publishing.service.
gov.uk/media/5ef4acb5d3bf7f7145b21a22/NA_report_Kenya__Dec_2019_Heart_.pdf.
11 See https://www.kenyacic.org/2018/02/partnership-to-promote-clean-technologies-and-innovations/.

4
3. Kenyan national system of innovation
Compared with other countries in Africa, In terms of green entrepreneurship, a needs
assessment study by the World Bank revealed
Kenya has a reasonably moderate science, five main challenges faced by green enterprises
technology and innovation capacity.12 in Kenya:
Of the country’s GDP, 0.8% is spent on
research and development; however, • A lack of skills, tools and insights for
translating ideas into successful businesses
47% of that expenditure comes from
international sources.13 In recent times, • Lack of access to finance, including early-
there have been efforts to bolster the NSI stage risk financing for accelerating the
by creating innovation hubs, incubators, launch of high-potential start-ups
industrial parks, centres of excellence • Lack of access to information
and technology cities, and promoting
private sector investment in research and • Lack of an enabling business environment
owing to the absence of a complementary
development initiatives.14
policy framework or to unfavourable
The institutional framework for research primarily regulations on, inter alia, quality standards
comprises the National Commission for Science and taxation
Technology and Innovation, the National Research
Fund and the Kenya National Innovation Agency.15 • Lack of access to facilities, including space
Most of the institutional framework for innovation for establishing business incubation hubs,
in the country was established between 1992 training facilities, meeting and networking
and 2012.16 hubs (with peers and investors), testing and
demonstration facilities, and manufacturing
Although the national institutions have explicit facilities20
visions and mandates, their constrained financial
situation limits effective policy implementation, Section 4 below deals with these issues in detail
the performance of research organizations and and further elaborates on the drivers and gaps in
the overall capacity of national actors.17 Many the Kenyan innovation system.
international research organizations18 and
intermediary organizations are located in Kenya,
making the country a significant research centre in
the East African region.19 Consequently, knowledge
transfer practices and intellectual property
protection systems in the country are reasonably
well developed. However, these are confined to
a limited number of research organizations, with
most research agencies and universities lacking the
funds and the capacity to undertake knowledge
development and dissemination activities.

12 Kahn, M. J. (2022). The Status of Science, Technology and Innovation in Africa. Science, Technology and Society. Available at
https://journals.sagepub.com/doi/full/10.1177/09717218221078540.
13 UNESCO (2016). UNESCO Science Report: Towards 2030. Paris: United Nations Educational, Scientific and Cultural Organization. Available at
https://unesdoc.unesco.org/ark:/48223/pf0000235406.
14 Yongabo, P., & Göransson, B. (2022). Constructing the national innovation system in Rwanda: efforts and challenges. Innovation and Development, 12(1),
pp.155–176.
15 DFID (2019).
16 Wachinga, H. (2019). National Innovation System Factors, Incentives, Culture and Institutional Linkages in Kenyan ICT Innovation Firms (Doctoral
dissertation, UoN).
17 DFID (2019).
18 Such as the Royal African Society, the Pan-African University (public), the African Population Health Research Centre, the Africa Institute for Capacity
Development and the African Economic Research Consortium (private).
19 DFID (2019).
20 Kiraka, R. N. (2021). Green Entrepreneurship: The Case Study of the Kenyan Climate Innovation Centre. In Responsible Management in Emerging Markets
(pp. 83-106). Palgrave Macmillan, Cham.

5
4. Description of the case
Since its inception, KCIC has been the go-to – Proof-of-concept grants (up to USD
50,000) as part of its incubation services
institution21 or one-stop-shop solution22
for organizing Kenyan activities aimed at – Seed funding for projects with the
implementing innovative climate solutions potential to graduate from incubation
designed to bring about economic towards becoming commercially viable
(USD 50,000 to 1 million) and investment
development and green growth. In order facilitation at more advanced stages of
to foster the implementation of mitigation innovation. The Center devises innovative
and adaptation activities, KCIC performs business and funding models to help
two fundamental functions: providing entrepreneurships overcome the ‘valley
of death’ funding gaps. To generate seed
knowledge support and mobilizing funds. funding, KCIC launched KCV in 2016 with
Accordingly, over time, the Center has an initial World Bank grant. Presently
evolved in line with those functions and KCV is 100% owned by KCIC, which had
a specialized venture fund (Kenya Climate invested USD 300,000 in convertible
debt into the company by 2018.24 The
Ventures (KCV)) and a consulting arm (KCIC combination of KCIC as an incubator
Consulting) have been established for and KCV as a seed funder helps address
funding-related activities. The role of these the complexities of early-stage climate
two entities is further elaborated below. innovations, which generally have little
capital and come with high risks, but
This section starts by describing the types have a long-term outlook 25
of activities KCIC undertakes to address the
challenges mentioned above and then the – Early-stage risk financing for accelerating
working areas in which these activities are the launch of high-potential start-
ups. KCIC set up an early-stage finance
being implemented. mechanism (ESFM) for this purpose,26
funding for which is sourced from KCV or
4.1 Type of activities other investors. Under ESFM support is
provided in the form of debt, equity and
KCIC has been promoting green entrepreneurship hybrid instruments to cover funding gaps
since its launch in 2012, in particular by addressing faced by early-stage businesses27
the challenges mentioned in section 3 above:23
• KCIC increases access to information by
• To address the lack of skills, tools and organizing awareness-raising programmes
insights for translating ideas into successful to disseminate information on technologies,
businesses, KCIC provides business markets, knowledge and technology transfer
management mentorships, technical mechanisms, up-to-date research related to
assistance and customized training different business sectors, and information
to entrepreneurs on the adoption of green solutions

• To improve access to finance, KCIC has devised • To address the lack of an enabling business
three different types of funding mechanisms environment, KCIC lobbies government
for different phases of the innovation cycle ministries and agencies to push a pro-green
(Figure 1): entrepreneur agenda. The Center taps into
the expertise of innovators, and research and

21 Gonzalez, A., Fruman, C., Tilmes, K., & Grown, C. (2016). Trade and competitiveness global practice gender practice note: FY17-20 (No. 120480, pp.1–37).
The World Bank.
22 KCIC. Welcome to Kenya Climate Innovation Center. Available at https://www.kcicgroup.org/.
23 Kiraka, R. N. (2021).
24 Mungai, E. (2018). Impact Investing in Africa: A Guide to Sustainability for Investors, Institutions, and Entrepreneurs. Springer.
25 Kenya Climate Ventures. Designing an Innovative Financing Model for Early Stage Clean Technology Companies. Available at https://documents1.
worldbank.org/curated/en/381371506073998670/pdf/119909-BRI-climate-technology-program-in-brief-7-designing-an-innovative-financ.pdf.
26 The success story of Acacia Innovations is one of the achievements of the ESFM. See https://www.kenyacic.org/2019/06/acacia-innovations-esfm-
success-story/.
27 World Bank (2018). InfoDev’s Climate Technology Program Report for the July 2018 Steering Committee Meeting: FY18 Progress Report and FY19 Work
Plan. Available at https://www.infodev.org/sites/default/files/ctp-scm_report_2018.pdf.

6
 academic institutions, for example, • KCIC works with its partners to improve
to undertake policy advocacy work and entrepreneurs’ access to facilities that offer
advise entrepreneurs on regulations and support at various stages of their business.
related matters For instance, the Center collaborated with
Strathmore University Business School to set
up a business incubation hub

Figure 1. Innovation life cycle and types of financing involved28

Proof of Commercialization
Development Research & Pilot / Market Entry
Concept / & Market
Development Demostration & Scale
Phase Prototype Development

Cumulative
Cash Flow Technological Commercialization
($) Valley of Death Valley of Death
(from
investment
&
operations)
Time
First
Revenues

Product-Market Fit

Pre-Seed Seed Early Stage Growth (Series C+)

Personal (Series A & B)
Source of Savings & 3Fs Private Equity, Project
Angels Venture Capital / Corporate VC
Funding: Financing
Corporate R&D
Funding
Micro VCs Family Offices Dept Financing
R&D Grants &
Tax Benefits

Through the above activities, KCIC supports green • Macro level: At the policy and network level,
entrepreneurship at the micro, meso and macro KCIC collaborates with organizations such as
level:29 the World Bank, governments, the Kenyan
Government, and national and international
• Micro level: Interventions at the level of academic and research institutions, for
individuals and small and medium-sized example, to provide policy advocacy and
enterprises, including provision of capacity- research support for green entrepreneurship,
building, technical support, financial including by engaging in policy
assistance and mentorships development, job creation, work on building
entrepreneurship culture and infra-structure,
• Meso level: At the level of the value chain, and provision of support for research and
KCIC operates and supports the incubation education across multiple sectors
hub, the accelerator hub and the seed fund
to address the funding needs of enterprises,
providing advice on market development
and policy-related strategies to, for example,
businesses, investors and commercial banks
to promote the ideation, prototyping and
testing of products before their scaling up
and commercialization, essentially with the
aim of creating green enterprises along the
value chain

28 Source: Pepin, K. (2020). Financing a Tech Company’s growth with Term Loans – It’s all about Timing. Available at https://kaylanpepin.com/finacing-tech-
with-term-loans/.
29 Kiraka, R. N. (2021).

7
Over the years, KCIC has mobilized more than USD Furthermore, Kenya’s agricultural sector is heavily
48 million (KES 5.4 billion) to support over 1,800 reliant on the country’s bimodal rainy season.37
start-ups.30 The start-ups are estimated to have Frequent droughts lead to severe crop losses,
generated about USD 32 million (KES 3.6 billion) with crops lost every three seasons. Only 1.7% of
in revenues, resulting in 25,000 indirect jobs and agricultural land is currently under irrigation.38 Food
benefitting over 780,000 people.31 Furthermore, and nutritional security continue to be a major
KCIC undertakes special efforts to adopt an inclusive concern for the country, particularly in the context
and gender-balanced approach in pursuit of its of climate vulnerabilities, degrading soil quality and
strategic goals.32 For instance, it specifically aims the predominance of rainfed agriculture.39
to support female entrepreneurs, with at least
30% of its overall entrepreneurs list comprising To address some of these challenges, KCIC supports
women. Similarly, women-led agribusinesses are enterprises that develop innovative agricultural
preferred with 60% of the job opportunities created technologies and agribusiness models that offer
in the agribusiness sector aimed at women.33 climate mitigation and adaptation benefits,
The Center trains, funds and provides technical increased productivity and diversification of
support to women in sectors such as water, waste production systems, and generate improved
management and commercial forestry.34 Likewise, livelihood options for small-scale farmers.
youth entrepreneurs are prioritized. Some of the main agribusiness ideas supported
by the Center include resilient crops or seeds,
climate-friendly and energy-efficient agricultural
4.2 Working areas of machinery, efficient irrigation, energy-efficient
the Kenya Climate food processing and climate-friendly alternatives
to pesticides, fertilizers, grain drying and other field
Innovation Center operations. 40

The Center’s working areas are each

described below.

Agriculture and agribusiness

The agricultural sector in Kenya plays a very
important role in terms of GDP, employment and
exports and is an important source of industrial
raw materials. However, it is hindered by
smallholdership and untapped growth potential.35
Smallholder farmers are relatively more vulnerable
to climate risks such as droughts, floods, climate-
induced pests and disease incidence, leading to
productivity losses owing to the degradation of
agroecological systems (including soil and water).36

30 Mungai, E. (March 2022). Reflecting on my decade at Climate Innovation Centre. Available at https://www.businessdailyafrica.com/bd/lifestyle/society/
reflecting-on-my-decade-at-climate-innovation-centre-3765716.
31 Mungai, E. (2022).
32 KCIC (May 2018). KCIC_Communication_on_Engagement_Report_2016-2018. Available at https://ungc-production.s3.us-west-2.amazonaws.com/
attachments/cop_2018/464457/original/KCIC_Communication_on_Engagement_report_2016-2018.pdf?1528868807.
33 Government of Kenya (2019). Guidelines for promotion, development and management of irrigation in Kenya. Ministry of Water, Sanitation and
Irrigation: Nairobi, Kenya.
34 See https://www.kenyacic.org/2022/03/women-at-the-forefront-of-a-sustainable-future/.
35 See https://www.kari.org/the-major-challenges/.
36 Osumba, J. J., and Recha, J. W. (2019). Scoping study brief-Potential for adaptation and mitigation. Available at https://cgspace.cgiar.org/bitstream/
handle/10568/107338/CCAFS%20Briefing%20paper%20-%20Potential%20for%20adaptation%20and%20mitigation.pdf?sequence=1&isAllowed=y.
37 See footnote 35 above.
38 Government of Kenya (2019).
39 Makini, F. W., Kamau, G., Makelo, M., Mose, L. O., Salasya, B., Mulinge, W., and Ong'ala, J. (2016). Status of Agricultural Innovations, Innovation Platforms,
and Innovations Investment. 2015 PARI project country report: Republic of Kenya.
40 See https://www.kenyacic.org/sectors-that-we-support/.

8
Figure 2. Examples of activities supported by the Kenya Climate Innovation Center41

Left: hydroponics farming without soil; right: innovative water harvesting. Right: Images of KCIC projects published on their website https://www.kenyacic.org/

One of the notable initiatives of KCIC in the 21% and 9% respectively of the country’s total
agricultural sector is the AgriBiz project, 42 launched energy consumption. 46 Kenya does have significant
in March 2021. The AgriBiz project, a collaboration renewable energy potential, however. In 2019,
between KCIC, the African Development Bank, renewables accounted for 74% of the total energy
DANIDA, the European Union and FAO, aims to mix in the country. 47 The most pressing challenges
enhance food security, promote manufacturing facing the Kenyan energy sector include growing
by building on the strong links along the value energy demand with an increasing gap between
chain in the sector, generate livelihoods for women demand and supply, limited grid infrastructure, a
and youth, set up business incubation hubs 43 for lack of access to modern and sustainable energy
providing business advisory and financing services, sources, overreliance on biomass, and rising
and modernizing the agricultural sector. Table 2 energy costs. 48
shows some key initiatives supported by KCIC and
KCV in agriculture and other sectors. To address these challenges, KCIC supports
innovations that provide alternatives to traditional
energy sources and reduce inefficient energy use
Energy in the domestic and industrial sectors. Some of the
Kenya has a fast-growing energy sector that is initiatives focus on off-grid technologies, including
heavily dependent on biomass: around 68% of the off-grid solar, biogas, biomass and wind energy,
country’s energy needs are fulfilled by bioenergy micro hydro for domestic and rural mini-grid use,
(mainly wood). 44 It is estimated that Kenya may and bioenergy (biogasification, biodiesel, biomass
lose 65% of its forests to charcoal production power, heating). Table 2 shows some key initiatives
by 2030. 45 Petroleum and electricity account for supported by KCIC in the energy sector.

41 See https://www.kenyacic.org/2020/12/farming-without-soil-the-big-bet-for-achieving-food-security/ and https://www.kenyacic.org/2019/11/how-

maji-agri-solutions-is-using-social-media-to-market-his-innovative-water-technology/.
42 See https://www.kcicconsulting.com/kenyan-farmers-to-flourish-from-sh5bn-agribusiness-fund/.
43 The project will establish business incubation hubs in eight counties of Kenya: Uasin Gishu, Meru, Kisii, Nyeri, Bungoma, Isiolo, Kilifi and Lamu.
44 IEA (2019). Africa Energy Outlook 2019: Overview Kenya. World Energy Outlook Special Report. Available at https://iea.blob.core.windows.net/
assets/44389eb7-6060-4640-91f8-583994972026/AEO2019_KENYA.pdf.
45 Onekon, W. A., and Kipchirchir, K. O. (2016). Assessing the effect of charcoal production and use on the transition to a green economy in Kenya. Tropical
and Subtropical Agroecosystems, 19(3), pp.327–335.
46 Takase, M., Kipkoech, R., and Essandoh, P. K. (2021). A comprehensive review of energy scenario and sustainable energy in Kenya. Fuel Communications,
7, 100015.
47 Takase et al. (2021).
48 Takase et al. (2021).

9
Water and irrigation Energy Research Centre trains KCIC’s clients (mainly
In Kenya, water resources are scarce and the SMEs) in installing and managing smart water
country is characterized by a high degree of metering solutions and in water treatment methods,
temporal and spatial variability, resulting in over among other things. Table 2 shows some key
80% of the land area being classified as arid or initiatives supported by KCIC in the water sector.
semi-arid. 49 Over 33% of the country’s water
resources originate from outside of the country.50 Waste management
Around 15% of the Kenyan population is still
In the waste management sector, KCIC facilitates
reliant on unimproved water sources such as
the implementation of innovative methods and
ponds, shallow wells and rivers, and 41% of the
practices for the generation, storage, collection,
population does not have access to basic sanitation
transport, processing, recycling and disposal of
services.51 Around 80% of the total national water
solid and liquid waste. Activities supported by the
demand is derived from surface water, of which
Center include waste separation and segregation at
half is used for irrigation purposes.52 Regions
the source, engaging local communities, reducing
with sufficient rainfall for productive agricultural
waste toxicity, recycling waste and upcycling it into
land make up less than 20% of the country’s land
reusable products, converting waste to energy,
area.53 Moreover, frequent droughts and floods are
converting waste to compost and reducing waste
worsening the situation with climate variability,
generation. Table 2 shows some key initiatives
with an increasing population and escalating water
supported by KCIC in the waste sector.
demands further aggravating the problem.54

Overextraction of water for irrigation purposes Commercial forestry

threatens the sustainability of surface water
In the commercial forestry sector, KCIC supports
management in several regions.55 Groundwater is
the development of innovations and practices
the primary source of water for domestic users not
that promote responsible forestry harvesting,
connected to public systems. Since agriculture is
afforestation and reafforestation and discourages
the backbone of Kenya’s economy, inadequate and
the felling of trees under its GreenBiz Programme.
unreliable irrigation facilities have a knock-on effect
The businesses supported by the Center focus on
on the overall economy.56 Despite multipronged
business models that engage local communities
efforts to improve irrigation coverage in the
in commercial forestry and relate to, inter alia,
country, only 16% of the irrigation potential had
marketing for trees and tree products, thrust
been achieved by 2018.57
on commercial tree species, sustainable forest
management, use of technology for forest
KCIC is implementing a number of initiatives to
monitoring, and creation of livelihood options.
address some of the challenges discussed above.
KCIC recently launched the Green Economy Youth
In particular, the Center supports clients working
Activation Programme with support from UNDP
on sustainable and efficient water management
to promote commercial forestry in the country.60
technologies such as solar filtration, desalination,
The Programme is aligned with the broader goals
water harvesting, efficient irrigation, biotechnology,
of Vision 2030 and aims to address the shortfall in
and wastewater reuse and recycling.58 Building on
the forestry sector in Kenya, where the country lost
the technical expertise of other organizations, such
10% of its forest cover from 2001 to 2018 despite
as the Strathmore Energy Research Centre, KCIC
the increase in wood imports over this time. KCIC
provides training on the design, construction and
provides incubation and mentorship services for
maintenance of water systems.59 The Strathmore
the Programme.

49 USAID (2021). Kenya Power Sector Report 2021.

50 USAID (2021).
51 See https://water.org/our-impact/where-we-work/kenya/.
52 USAID (2021).
53 USAID (2021).
54 UNESCO (2006). Kenya national water development report: case study. A WWAP case study prepared for the 2nd UN world water development report:
Water, a shared responsibility (2006). UN-WATER/WWAP/2006/12. https://unesdoc.unesco.org/ark:/48223/pf0000148866.
55 USAID (2021).
56 Silva, I. D., Ronoh, G., Maranga, I., Odhiambo, M., and Kiyegga, R. (2020). Implementing the SDG 2, 6 and 7 nexus in Kenya—A case study of solar powered
water pumping for human consumption and irrigation. In International Business, Trade and Institutional Sustainability (pp.933–942). Springer, Cham.
57 Kanda, E. K., and Lutta, V. O. (2022). The status and challenges of a modern irrigation system in Kenya: A systematic review. Irrigation and Drainage.
58 See https://www.kenyacic.org/sectors-that-we-support/.
59 Silva et al. (2020).
60 See https://www.businessdailyafrica.com/bd/lifestyle/society/sustainable-commercial-forestry-grows-income-3508290.

10
Table 2. Key initiatives supported by the Kenya Climate Innovation Center and Kenya Climate Ventures in
the agricultural, energy and water sectors
Enterprise/ Sector Technology Supported
organization by
Aviva Kenya Agriculture New Rice for Africa, hybrid, drought-tolerant varieties suitable for low- KCIC
input agriculture

Hydroponics Agriculture Hydroponic farming-growing crops in mineral nutrient solutions in water KCV
Africa instead of soil (saves water)

Eco Sawa Agriculture Organic pesticides (e.g. Dane Bio Pesticide) KCV

Agrihouse Agriculture Climate-smart farming technologies, such as greenhouse packages, shade KCV
Solutions net houses, water-harvesting reservoirs and irrigation systems

LishaBora Agriculture Hydroponic barley fodder KCIC

Hydroponics

Eco-burn Char Energy Char briquettes from 95% recycled agricultural waste KCIC
Briquettes

Tamuwa Ltd Energy Biomass briquette from bagasse KCIC

Byster Enterprises Energy Construction and installation of biogas plants KCIC

Smart Cook Energy Bioethanol-based cooking technologies KCIC

Energy Ltd

Powerspot Kenya Energy Conversion of cooking heat into thermal electric energy KCIC
Ltd

Bellac Research Energy Distribution of home biogas systems KCIC

Consultants

Arimi tech Water/ irrigation Sensor-based automatic irrigation system for arid and semi-arid areas KCIC

Takawiri Craft Water/ irrigation Handmade stationery and craft items from water hyacinth KCIC
Enterprises

SwissQuest Water Water/ irrigation Smart prepaid water metering solutions with integrated mobile payment KCIC
Supplies Co Ltd systems

Aqua Rescue Ltd Water/ irrigation Wastewater and water treatment solutions KCIC

Maji Milele Water/ irrigation Prepaid water points KCIC

AfricAqua Water/ irrigation Micro-distribution centres for water KCIC

Taka Taka Waste Development of high-quality compost from organic material; sorting of KCIC
Solutions management waste for recycling industries

Ecosave Africa Waste Use of microbes to recycle waste in ecotreat waste digesters; detoxification KCIC
management of urine before it is discharged into water systems

Adarsh polymer Waste Conversion of plastic waste into heavy oil, carbon black and other clean KCIC
Ltd management energy solutions by pyrolysis

Chemolex Limited Waste Removal of plastic from rivers KCIC

management

11
5. Assessment of the case functions
KCIC adopts a holistic approach to innovation system. The table 3 is taken
undertaking initiatives under its working from the Summary for Policymakers of
areas, facilitating both mitigation and "Good practices and lessons learned on
adaptation action. This section assesses the setup and implementation of National
the role of KCIC in fulfilling its systemic Systems of Innovation" and describes
functions, which have strengthened the the systemic functions of systems of
structure components of the Kenyan innovation.61

Table 3. Functions of systems of innovationa

Number Function Description
F1 Knowledge development Expansion and intensification of the knowledge base of the innovation system,
and diffusion dissemination of knowledge among actors in the system, creation of new
combinations of knowledge

F2 Entrepreneurial Designing business models for emergent technologies and knowledge, practices of
experimentation uncertainty reduction through experimentation with new technologies, applications
and strategies

F3 Market formation Creation of a space or an arena in which goods and services can be exchanged
between suppliers and buyers. Includes processes related to definition of demand
and choices, positioning (pricing, segmentation) of products, regulation of standards
and the rules of exchange

F4 Influence on the direction Processes that influence the direction of research of firms and other actors; that is,
of search which technologies they explore, which problems or solutions they choose to invest
in, where they channelize their resources from, etc.

F5 Resource mobilization Processes by which the system acquires the resources required for innovation, which
could be financial and human resources (workforce and capabilities), complementary
assets such as infrastructure, etc.

F6 Legitimation Mechanisms by which an emergent technology, its developers and the TIS in
question attain regulative, normative and cognitive legitimacy as viewed by the
stakeholders concerned

F7 Development of positive Creation of system-level utilities (or resources), such as pooled labour markets,
externalities complementary technologies and specialized suppliers, which are also available to
system actors that did not contribute to building them up
a
Adapted from Bergek, A., Jacobsson, S., Carlsson, B., Lindmark, S., & Rickne, A. (2008). Analyzing the functional dynamics of technological innovation
systems: A scheme of analysis. Research policy, 37(3), 407-429.

Knowledge development and diffusion: KCIC, in Resource mobilization and market formation:
partnership with other organizations, provides KCIC has devised different funding mechanisms
training and capacity-building support to high- to address the financial needs of green projects
potential, growth-oriented, emergent businesses (see section 4.1). To develop and utilize human
and investors, as well as local banks. The Center resources, the Center taps into the diverse and
helps to increase the competitiveness of companies complementary skill sets of various organizations,
by supplying local technologies, providing including government bodies, consulting firms,
information on market size, prices for various academic institutions and members of civil society.
technologies and the competitive landscape,
sharing market intelligence and technical and
business advice on best practices, and through
policy advocacy.62

61 TEC (2023).
62 InfoDev (2016). Climate Technology Program In Brief-Number 2. The Kenya Climate Innovation Center - How it Operates and Lessons for Clean
Technology Incubation. Available at https://www.infodev.org/infodev-files/inbrief_no.2_kcic_0.pdf.

12
In terms of market formation, in addition to maintains good relations with the Government,
strategies focusing on generating funds and regulatory agencies and other key stakeholders to
balancing demand–supply dynamics, KCIC adopts a facilitate the development of policies supporting
risk management approach. This involves managing technology adoption, coordinate and broker
both strategic and operational risks faced by clients technology transfer and collaborative research
across various stages of the innovation cycle, and development, and undertake international
including through its Risk Management Policy, networking activities.64 In addition, KCIC performs
adopted in 2017.63 In specific terms, KCIC addresses: due diligence in relation to its prospective clients,
investors and collaborators before making any
• Investment risk, through the ESFM, by investment or partnership decisions.65 It also
helping to close valley of death funding gaps carries out client satisfaction surveys to assess its
achievements and shortcomings. KCIC is also highly
• Reputational risk, by promoting trust-building conscious of its reputation vis-à-vis international
between networks, actors, investors and partners and donors, as negative perceptions may
donors impede the uptake and performance of projects.
It participates in international networking events
• Political risk, by conducting policy advocacy and activities to increase its visibility and that of
activities with government and international associated innovators and green entrepreneurs, and
donors of climate technology in general. Another critical
factor that has enhanced the credibility of KCIC is
• The risk of non-availability of resources, the fact that the Center is in its third
including financial and human resources, by funding cycle.66
creating appropriate networks
Development of positive externalities: KCIC
Together, these factors addressed by KCIC support promotes the creation of an enabling political,
the market formation for clean technologies. financial and technological infrastructure
by working in collaboration with, inter alia,
Legitimation: To generate credibility and government agencies, funding organizations
legitimacy for its activities, KCIC engages in and technology providers. This not only helps its
depth with potential partners and beneficiaries clients but also promotes the development and
with the purpose also of firming up the Center implementation of clean technologies. As a result
design and its focus areas. Although the Center of its activities, the Center also generates jobs,
does not engage in political activities directly, it

63 World Bank (2018a). Kenya Climate Innovation Center Company Report and Financial Statements for the Year Ended 30 June 2018. Available at
https://documents1.worldbank.org/curated/en/339371548740230173/pdf/KCIC-FS-2018.pdf.
64 InfoDev (2016).
65 World Bank (2018a).
66 Kiraka, R.N. (2021).

www.kenyacic.orgdanish-delegation-visit

© Danish Delegation Visit / Kenya Climate Innovation Center

13
builds the skills and creates infrastructure for Table 4 presents the structure-function analysis
future projects. of KCIC.

Table 4. Structure-function analysis of initiatives undertaken by the Kenya Climate Innovation Center
Function Structural element KCIC's Interventions
F1 Knowledge Actors • Provides training, capacity-building, mentorship and customized
development and guidance to promising, emergent projects and entrepreneurs
diffusion • Provides market intelligence and business advice to entrepreneurs
• Collaboration on research and development, funding for innovations,
clean technology development and diffusion
• Improves the fundraising capabilities of clients
• Pilots and demonstrates new or innovative technologies
(e.g. new rice varieties)

Institutions • Acts as an interface between companies and government agencies,

facilitating the creation of complementary policies and regulations
with a view to promoting research, technology development, and
collaboration on knowledge development (e.g. quality standards,
taxation)

Interactions • Organizes international and local collaboration, networking events

and conferences, among other things, to promote the dissemination of
knowledge and peer-to-peer learning

Infrastructure • Facilitates the creation of physical infrastructure for research and

research demonstrations

F2 Entrepreneurial Actors • Engages with different stakeholders and promotes the development of
experimentation innovative business models and funding mechanisms
• Income generation activities for women and youth, for example

Institutions • Acts as an interface between companies and government agencies,

facilitating the creation of complementary policies and regulations
with a view to promoting the development of innovative business
models and funding mechanisms (e.g. quality standards, taxation)

Interactions • Facilitates interactions between relevant actors to promote the uptake

and implementation of green business projects

Infrastructure • Facilitates the creation of physical infrastructure for business

implementation and stakeholders engagements

F3 Market formation Actors • Funds or generates funds for green projects and develops the market
supply side
• Raises awareness of the merits of using green technologies, developing
the market demand side
• Undertakes risk management to encourage stakeholders participation
• Building the capacity of actors to engage in the market
• Income generation activities, leading to the creation of demand
• Innovation awareness-building, pilot projects to create demand for
green projects/products

Institutions • Acts as an interface between companies and government agencies,

facilitating the creation of complementary policies and regulations
with a view to promoting the development of innovative business
models and funding mechanisms (e.g. quality standards, taxation)
• Undertakes risk management (reputational risk, funding risk, political
risk, etc.) for market formation

Interactions • Facilitates interactions between relevant actors to promote uptake and

implementation of green business projects

Infrastructure • Creates supporting market infrastructure by developing funding

mechanisms, developing skills through training and providing physical
space (office, networking hubs, etc.)

14
Table 4. (continued) Structure-function analysis of initiatives undertaken by the Kenya Climate
Innovation Center
Function Structural element KCIC's Interventions
F4 Influence on the Actors • Recognizes priority sectors for support and funding by KCIC influences
direction of search the selection of sectors/project categories by the green entrepreneurs

Institutions • Supports and funds clients whose businesses/innovations are aligned

with the country’s overall policy goals
• Facilitates creation of an enabling policy setting for research,
development and deployment related to green projects

Interactions • Facilitates interactions between business peers, funders and recipients,

etc., to guide the direction of research and facilitate learning from
global and local best practices, among other things

Infrastructure • Creates/provides space and facilities for research, tie-ups with research
organizations and universities, etc.

F5 Resource Actors • Mobilizes/generates funds for projects/actors by offering different

mobilization business/funding models and management of risks across the
innovation cycle
• Builds the capacities of actors to raise funds

Institutions • Engages with the Kenyan Government to facilitate funding and

implementation of projects (e.g. taxation, funding collaborations)

Interactions • Acts as an interface between potential funders and project

implementers, and facilitates delivery of funding

Infrastructure • Provides space and settings for engagements/interactions for

generation of funds

F6 Legitimation Actors • Conducts due diligence vis-à-vis clients, investors and collaborators
• Conducts satisfaction surveys to assess shortcomings and failures, etc.

Institutions • Acts as the official implementing agency of the Promote Climate

Technologies and Innovation initiative under Vision 2030
• Engages in mainstreaming SDGs and climate change in national
policymaking

Interactions • Enhances the credibility of the KCIC’s project/process by mediating

discussions between collaborators and funders, etc.

Infrastructure NA

F7 Development Actors • Creates a pool of skilled technicians to operate and maintain green
of positive projects
externalities • Builds the capacities of actors to implement projects, fundraise,
negotiate with collaborators and procure technologies, etc.

Institutions • Acts as an interface between companies and government agencies,

collaborating with the Kenyan Government to introduce policy and
regulatory changes for the market penetration of clean technologies

Interactions • Assists businesses in sourcing funding from international and local

banks and venture capitalists
• Creates and strengthens green business value chains by enhancing
networks

Infrastructure • Creates knowledge infrastructure by engaging research organizations,

universities and domain experts, etc., in projects as collaborators/
mentors
• Creates financial infrastructure by engaging funding organizations
(international, local) and venture capitalists, etc., in projects
• Helps businesses to access space, facilities and equipment, etc., needed
for setting up offices and networking hubs, etc.
• Enhances value chains and business networks

15
 6. Role of the case in Kenya’s
nationally determined contribution
In line with the country’s sustainable The NCCAP recognizes KCIC as one of the
institutions relevant to implementing the activities
development agenda and its national outlined in the Plan. The Center’s interventions
circumstances, Kenya’s National Climate play a direct role in the achievement of Kenya’s
Change Action Plan (NCCAP) 2018–2022 NDC. KCIC helps the country to align its long-term
identified critical sectors in which to development vision with strategies for addressing
climate change issues at appropriate levels
undertake mitigation and adaptation (individual/enterprise, value chain, and groups of
action for achieving its NDC targets.67 people interconnected in networks). The Center
For GHG mitigation, the priority sectors is building actor capabilities, promoting green
include energy, agriculture, forestry, innovation across sectors, mobilizing climate
finance, encouraging the private sector to engage
industry, transport and waste, while in green projects, creating income generating
water, agriculture, land use, forestry, activities, and supporting policy implementation.
energy, health and infrastructure have In association with other organizations, it is also
been identified as the most crucial sectors undertaking initiatives to generate climate finance
from the local private sector.68 Kenya expects
for adaptation-related interventions. to source 87% of its climate finance needs from
This means that KCIC’s working areas international sources and the remaining from
significantly overlap with the priority local actors.69
sectors identified by the NCCAP in line
with the country’s mitigation and
adaptation needs.

67 Government of Kenya (2018). National Climate Change Action Plan (Kenya): 2018–2022. Nairobi: Ministry of Environment and Forestry. Available at
https://www.lse.ac.uk/GranthamInstitute/wp-content/uploads/2018/10/8737.pdf.
68 See https://www.kcicgroup.org/the-4c-kenya-sustainability-conference/.
69 Government of Kenya (December 2020). Kenya’s first NDC (Updated Version). Submission of Kenya’s Updated NDC 24th December 2020. Available at
https://unfccc.int/sites/default/files/NDC/2022-06/Kenya%27s%20First%20%20NDC%20%28updated%20version%29.pdf.
© Subman / iStock

16
7. Key success factors and
lessons learned
Lessons that can be drawn from KCIC’s experience technological, political and reputational risks
can be summarized as follows. associated with the projects. Another critical
lesson from KCIC’s experience is the importance
Organizations need to evolve and diversify with of combining incubation and accelerator funding
time to achieve their ultimate goals: Although mechanisms, which help to address many of the
initiated through external support, CICs are funding needs of clean technology businesses.
designed to foster technology innovation
ecosystems, and are expected to evolve, expand Full integration of the innovation system with
and become diversified through learning-by- host country development objectives is needed to
doing and eventually develop into self-sustaining, ensure effective outcomes: KCIC’s strategic outlook,
autonomous enterprises. KCIC is a successful focus sectors and specific activities are entirely in
example of this. The Center started as a consortium sync with the long-term sustainable development
entirely funded by international actors, but as the objectives and economic priorities of the host
Kenyan innovation system matured and KCIC’s country. For instance, agriculture, the mainstay of
initiatives helped make green entrepreneurship the Kenyan economy, is one of the priority sectors
popular in the country, the Center became more of KCIC. Similarly, since Kenya is a water-stressed
diversified as a result. The Center responded to the country, KCIC undertakes interventions to better
evolving needs of the Kenyan innovation system by manage and utilize water resources. This synergy
creating a specialized entity (KCIC Consulting) for not only lends credibility to the activities of the
providing hands-on mentorship and guidance to Center but also helps to leverage the technical
emerging green businesses and a venture capital expertise and technological and financial resources
fund for addressing the investment needs of the received or generated from external and local
entrepreneurs and enhancing the effectiveness of sources to achieve the country’s overall goals.
the investment. Moreover, the Center developed its It also makes it easier for the Government to
capabilities to move beyond exclusively relying on recognize KCIC’s contributions and facilitate
foreign funding, generating alternative its functioning.
funding sources.
Local actors’ engagement at the design stage is
Collaborative, multi-actor partnerships are crucial for effectiveness: This engagement is the
crucial for effective climate action: KCIC is an basis for setting up tailormade CICs in different
example of a robust consortium model involving countries. The approach and strategies of KCIC are
different organizations from various sectors. The tailored to address gaps in the Kenyan innovation
collaboration allows KCIC to leverage extensive and system in relation to climate technology and
specialized local as well as international knowledge, focus on promoting sustainable development
skills and experience to create an enabling in the country. Replicating KCIC’s model in other
environment for implementing clean technology country contexts may not generate similar results,
innovation. It also partners with specialized however. Following the success of the Center, its
agencies on specific projects. The public–private, consortium model was replicated in Ethiopia, but
multi-actor partnership lends credibility to the this did not generate the intended results as the
Center and enhances the quality of the services actors responsible for implementing the associated
provided by the Center to its clients, particularly initiatives did not participate in the design of the
sector-specific advice and assistance. Center. Thus, besides building on external support,
it is crucial to leverage the expertise and experience
Funding models need to be designed for a specific of local actors so as to come up with practical
sector and phase of the innovation cycle: The and compelling arrangements. This also lends
financing needs of an innovation project depend legitimacy to the actions of the CIC, as is evident in
on its sectoral focus and goals, the risk perception the case of KCIC.
of the implementers, and the phase of the project
in the overall innovation cycle. Accordingly, to Effective interaction among local actors is vital
customize financial support to innovation projects for peer learning: Before engaging in any project,
on the basis of their specific requirements, KCIC KCIC undertakes an intensive analysis of market
has devised different and innovative funding barriers, issues in the value chain, and high-impact
mechanisms. These mechanisms not only help opportu-nities for innovation. For this purpose,
to address investment needs but also to alleviate rigorous consultations are conducted among

17
stakeholders, domain experts and regulators, etc. and technological information and also expedite
The business model designed as a result is not only and scale up the deployment of clean, climate-
crucial for generating impacts on the ground, but relevant technologies.
also results in peer-to-peer interactions that help to
build collaboration, generate climate finance, and International institutions and collaboration can
disseminate business ideas, business models and help local institutions to achieve effective climate
best practices, etc. Enterprises learn more when action: The success of KCIC demonstrates the
they interact with their peers and similar industries complementary role of international support in
at comparable stages of business development. building local capabilities for climate-relevant
technology innovation. Moreover, it also shows that
There is a need for effective networking between collaboration, interactions and capacity-building
the CICs: Interaction among the different CICs efforts should not be limited to government-
is crucial for sharing best practices, forging to-government exchanges. The international
partnerships and drawing lessons from other facilitation process should also engage local
countries’ experiences. A peer-learning event was businesses and other relevant stakeholders in
organized in 2019 for representatives of CICs from achieving effective and long-term outcomes. KCIC’s
Bangladesh, the Caribbean, Egypt and Ghana.70 experience illustrates that international institutions
The closed-group interaction between the CICs (including multilateral development organizations)
helped build solidarity between the participants can help in three main ways. First, they can foster
and facilitated exchanges regarding challenges in the incubation and acceleration of technology;
innovation and finding solutions. However, such second, they can serve as an interface between
interactions between the CICs are not a regular local actors and potential funding and technological
phenomenon, with the potential in this regard still resources; and third, they can stimulate policy
largely untapped. and market action at the local level to create an
enabling ecosystem for climate action. Where local
CICs represent an example of an international actors lack the capability or the understanding to
collaborative initiative for leveraging global design effective strategies, international support
capabilities to address local climate needs. They can help to identify the missing links in the NSI and
not only promote collaboration between developed design customized strategies, etc. In the process,
and developing countries, but also aim to generate international actors can provide funding, technical
networks and partnerships between developing and policy support, after which local actors can
countries or various CICs to bolster climate-relevant operate independently.
innovation.71 Effective networking between the
CICs could foster exchanges of knowledge, practices

70 CBIN sponsored a week-long learning event for CICs in February and March 2019. Staff from four CICs in Bangladesh, the Caribbean, Egypt and Ghana
convened in Ghana to learn about each centre’s programme offerings and share best practices to improve operations. See https://www.infodev.org/sites/
default/files/ctp-scm_report_2019.pdf.
71 Sagar, A. D., Bremner, C., and Grubb, M. (November 2009). Climate Innovation Centres: A partnership approach to meeting energy and climate
challenges. In Natural Resources Forum (Vol. 33, No. 4, pp.274–284). Oxford, UK: Blackwell Publishing Ltd.

18
8. Good practices for potential replication
The above lessons learned have led to • Focus on market creation for climate
technologies: For a mature and effective
the identification of the following good ecosystem for green entrepreneurship,
practices that might be replicable in policies, market structures and actors should
other countries: seek to create sustained demand and supply
dynamics for clean technologies.
• Use international collaboration to develop
local capabilities and resources: International • Engage both the public and the private sector:
partnerships and exchanges can be used to Diverse stakeholders should be engaged to
develop local technological, financial, political address the complexities and uncertainties
and human resources such that reliance on associated with the innovation processes.
international support can be reduced over This will also help to tap into the different
time. Local action should be derived from capabilities and skill sets of
international support to create an enabling various actors.
ecosystem for climate action in the long term
and not be limited by a project-based mode • Integrate the goals of climate initiatives into
of operation. local policy goals and socioeconomic priorities:
Synergies with local objectives will help to
• Evolve and diversify through learning-by- enhance participation by stakeholders and
doing: International funding and guidance minimize risk perception. The participation
should be used to kick-start an initiative. of stakeholders includes gender parity and
However, organizations should develop their employment for youth.
capabilities and expand their intervention
areas to become independent and effective
entities that remain relevant in responding
to the evolving characteristics of the
local context.

• Design innovative, customized and flexible

funding frameworks: Funding models should
be designed to suit the stage, scope and
risk perception of innovators/firms. Funding
schemes should be complemented with
enabling policy and financial regimes
for effective and sustained outcomes.

19
About the Technology Executive Committee
The Technology Executive Committee is the policy component of the Technology Mechanism, which was
established by the Conference of the Parties in 2010 to facilitate the implementation of enhanced action on
climate technology development and transfer. The Paris Agreement established a technology framework to
provide overarching guidance to the Technology Mechanism and mandated the TEC and CTCN to serve the
Paris Agreement. The TEC analyses climate technology issues and develops policies that can accelerate the
development and transfer of low-emission and climate resilient technologies.

Acknowledgements
The Technology Executive Committee extends its appreciation to Dian Phylipsen of SQ Consult, Heleen de
Coninck and Clara Caiafa of Eindhoven University of Technology, Ambuj Sagar and Nimisha Pandey of Indian
Institute of Technology Delhi, for their development of this report. It also extends its appreciation to the
representative of observer organizations participating in the TEC activity group.

Contact Details © UNFCCC July 2023

United Nations Framework Convention on Climate Change
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