In 1995, industry accounted for 41% of global energy use. Although the efficiency of industrial processes has increased greatly during the past decades, energy efficiency improvements remain the major opportunity to reduce CO, emissions. Industrialisation may affect the environment adversely, stressing the need for transfer of cleaner technologies to developing countries. A review of trends, barriers and opportunities for technology transfer is presented. Technology transfer is a process involving assessment, agreement, implementation, evaluation and adaptation, and repetition. Institutional barriers and policies influence the transaction process, as well as the efficiency of the transfer process, in particular in the adaptation and repetition stages of the technology transfer process. Investments in industrial technology are dominated by the private sector. In industry, energy efficiency is often the result of investments in modern equipment, stressing the importance and need for environmentally sound and long-term investment policies. The interactive and dynamic character of technology transfer stresses the need for innovative and flexible approaches, through partnerships between various stakeholders. Adaptation of technology to local conditions is essential, but practices vary widely. Countries that spend on average more on adaptation, seem to be more successful in technology transfer, hence successful technology transfer depends on transfer of technological capabilities. Published by Elsevier Science Ltd.