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FOIA Number: 2017-1094-F
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This is not a textual record. This is used as an
administrative marker by the William J. Clinton
Presidential Library Staff.
Collection/Record Group:
Clinton Presidential Records
Subgroup/Office of Origin:
WH Task Force on Climate Change
Series/Staff Member:
Roger Ballentine; Paul Bledsoe; Julie Anderson
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OA/ID Number:
41299
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Climate Change: US Action and Strategy
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100
3
9
3
CLIMATE
CHANGE:
U.S. ACTION
and
STRATEGY
COP-5 BONN, GERMANY, OCTOBER 25-NOVEMBER 5.1999
PHOTOCOPY
PRESERVATION
PHOTOCOPY
PRESERVATION
CONFERENCE OF THE PARTIES (COP-5)
Oc
C
0 Stat
TAKING
ACTION
ON
CLIMATE
CHANGE
United States: Taking Action on Climate Change
TABLE OF CONTENTS
Executive Summary
1
1. New Federal
5
Initiatives
Executive Order on Bio-Based
7
Products and Bioenergy
Federal Energy Efficiency
11
Executive Order
Wind Powering
17
America Initiative
Brightfields Initiative
19
II. States and
21
Localities Taking
Action
III. U.S. Companies
25
Moving Forward
IV. Ongoing
31
U.S. Domestic
Programs
i
United States: Taking Action on Climate Change
EXECUTIVE SUMMARY
C
limate change threatens the United States and all nations. To help address this
threat, the United States is taking significant new steps to reduce greenhouse gas
emissions. During the past year, President Clinton launched initiatives on bioenergy,
wind and solar energy, and Federal energy efficiency. In addition, a growing number
of state and local governments and private companies are stepping forward to address
climate change with prudent, creative, cost-effective strategies to reduce greenhouse
gas emissions. At the same time, the United States continues to invest more than
$1 billion per year in research and development on technologies that will help reduce
greenhouse gas emissions. In short, from city council chambers to corporate board-
rooms, the United States is mobilizing against global warming-the greatest environ-
mental challenge of the 21st century.
New Initiatives
Wind Powering America. This new
In 1999, the Clinton Administration
U.S. Department of Energy (DOE)
launched four initiatives that will help
initiative seeks to supply 5 percent of
reduce greenhouse gas emissions in the
U.S. electricity through wind tech-
United States:
nologies by 2020, which would
avoid emissions of 35 MMTCE.
Bioenergy. In August 1999, the
Brightfields. DOE announced a
President signed an Executive Order
program aimed at using former
to accelerate the development of bio-
industrial sites contaminated with
based industries. The President set a
toxic waste for producing pollution-
goal of tripling U.S. use of bioenergy
free solar energy.
and bioproducts by 2010. This
would reduce annual greenhouse gas
These new Federal initiatives on climate
emissions by an amount equal to as
are set forth in the first section of this
much as 100 million metric tons of
report.
carbon (MMTCE).
U.S. States, Localities,
Federal energy. In June 1999,
and Companies
President Clinton issued an Execu-
Moving Forward
tive Order requiring each Federal
In addition to actions at the Federal
agency to reduce greenhouse gas
level, many states, cities, industries, and
emissions from energy use in build-
sectors of the U.S. economy are moving
ings by 30 percent below 1990 levels
forward on their own to address climate
by 2010.
change, understanding that the threat is
real and prudent action is called for.
1
United States: Taking Action on Climate Change
EXECUTIVE SUMMARY
These actions are described in more
emissions reductions of almost
detail in Parts II and III of this report.
40 MMTCE over the next decade.
Federal efforts focused on non-CO₂
Ongoing Federal
Efforts
greenhouse gases have locked in
emissions reductions of well over
The foundation of President Clinton's
100 MMTCE through 2010. In so
environmentally and economically
doing, they are expected to maintain
sound plan for reducing U.S. greenhouse
methane emissions at or below 1990
gas emissions remains the Climate
levels through 2010. Not counting
Change Technology Initiative (CCTI)-
applications to replace ozone-depleting
a vigorous five-year, $6.3 billion pro-
substances, they will also maintain
gram of tax incentives and investments
industrial emissions of hydrofluorocar-
focusing on energy efficiency and renew-
bons (HFCs), perfluorocarbons
able energy technologies. Last year, in
(PFCs), and sulfur hexafluoride (SF₆)
Fiscal Year 1999, President Clinton and
at or below 1990 levels through 2010.
Vice President Gore secured more than
$1 billion in CCTI funding. These
Other CCTI investments have a more
CCTI investments already are yielding
long-term R&D focus and can be
real results and real emissions reductions.
expected to yield even greater reductions
For example:
in the decade ahead. Among these are:
the Partnership for a New Generation of
Federal energy efficiency standards for
Vehicles, a government-industry effort to
equipment and appliances, such as
develop cars that achieve up to three
heating and cooling equipment,
times the fuel efficiency of today's cars;
water heaters, lighting, refrigerators,
the Partnership for Advancing Technology
clothes washers and dryers, and
in Housing, which aims to improve the
cooking equipment will avoid cumu-
energy efficiency of new homes by more
lative emissions of more than 225
than 50 percent and to retrofit 15 mil-
MMTCE by 2010.
lion existing homes to make them
30 percent more energy efficient within
Federally led voluntary programs,
a decade; and research partnerships for
such as ENERGY STAR® labeling for
key renewable energy technologies such
high efficiency products and build-
as wind, photovoltaics, geothermal, and
ings, already have resulted in more
biomass.
than $3 billion in technology invest-
ments by U.S. companies, con-
In addition to the CCTI, other important
sumers, and state and local organiza-
elements of the President's October 1997
tions. These investments will deliver
plan include a proposal to restructure the
electricity industry by introducing compe-
tition that will provide incentives for
2
United States: Taking Action on Climate Change
EXECUTIVE SUMMARY
energy efficiency; a wide range of industry
aimed at increasing energy efficiency
consultations with key energy-intensive
and spurring the broader use of
industry sectors to improve energy use
renewable energy; working with
and reduce emissions; a commitment to
industry and others to promote sen-
work with the U.S. Congress and industry
sible solutions; and employing mar-
on legislation to reward companies that
ket-based mechanisms to ensure
take early action to reduce their emissions;
cost-effective reductions. All of the
reducing the Federal government's own
materials included in this report
greenhouse gas emissions; and a strong
are part of Stage 1 of the
program of scientific research to further
President's plan.
our understanding of human and natural-
ly induced changes in the Earth's environ-
Stage 2: Review and evaluation in
ment and assess the likely consequences of
preparation for a domestic emissions
global warming.
trading system. Under the President's
plan, the United States will review its
These ongoing Federal programs and poli-
progress beginning around 2004 and
cies to address climate change are set forth
evaluate next steps as it moves towards
in more detail in Part IV of this report.
a market-based permit trading system
for carbon emissions. Emissions trad-
Part of a Larger
ing will harness the power of the mar-
Three-Stage Plan
ket to achieve a national greenhouse
gas target at the lowest possible cost.
The programs and policies set forth in this
The United States is using emissions
report are part of the United States' longer-
trading successfully to reduce the pol-
term response to the challenge of climate
lution that causes acid rain, exceeding
change. In 1993, following the U.S. ratifi-
environmental objectives while reduc-
cation of the UN Framework Convention
ing the costs to 50 percent below the
on Climate Change, President Clinton
expected level.
launched the Climate Change Action Plan
(CCAP), emphasizing a series of win-win
Stage 3: Binding targets through a
voluntary initiatives for reducing green-
domestic emissions trading pro-
house gases. These efforts were expanded
gram. Beginning in 2008, an emis-
significantly in October 1997, prior to the
sions trading program would be
Kyoto conference, when the President out-
implemented to cut emissions in the
lined his more comprehensive, three-stage
major greenhouse gas-emitting sectors
plan for reducing U.S. emissions. The
of the U.S. economy: buildings, trans-
three stages of the plan are:
portation, industry, and electricity.
Stage 1: Priming the pump through
The President's three-stage plan recog-
R&D investments and tax incentives
nizes the long-term nature of efforts to
address climate change. It allows us to
3
United States: Taking Action on Climate Change
EXECUTIVE SUMMARY
monitor our progress and re-assess our
the lower-emitting service and high-
success in reducing emissions, the state
technology sectors.
of scientific knowledge, and the response
of the U.S. economy. The plan's graduat-
The Way Forward
ed approach to emissions reduction will
allow the United States to exploit the
At the same time, we realize that it is far
opportunities that exist for win-win
too soon to conclude that the 1998
reductions that both help the environ-
emissions figures represent a trend, and
ment and save money for consumers,
there is certainly no room for compla-
businesses, and governments.
cency. Reducing emissions will continue
to be an uphill climb-both for the
United States and the entire world.
1998 Emissions
In 1998, greenhouse gas emissions in the
In the long run, the President's balanced
United States grew only slightly
approach to the challenge of climate
(0.4 percent) despite strong U.S. eco-
change will allow the United States to
nomic growth (3.9 percent). Although
continue to grow our economy and pro-
there were several one-time contributing
tect the environment at the same time.
factors (including mild weather that
reduced the demand for heating fuel),
As President Clinton has said: "One of
the 1998 emissions figures are encourag-
the big ideas the world has to abandon is
ing. Clearly, these numbers demonstrate
the idea that the only way to build a
that economic growth and emissions
modern prosperous economy is with the
need not move in lockstep. The 1998
industrial energy use patterns of a for-
figures are consistent with a long-term
mer era. It is not true."
movement in the U.S. economy toward
4
United States: Taking Action on Climate Change
PART I: NEW FEDERAL INITIATIVES
O
ver the past year, the Clinton Administration introduced a series of new
Federal initiatives to address the challenge of climate change. They include:
Executive Order on Bio-Based Products and Bioenergy
Executive Order on Federal Energy Efficiency
Wind Powering America Initiative
Brightfields Initiative
This section discusses each of these initiatives in turn.
Measuring Greenhouse Gas Emissions and
Emissions Reductions
Greenhouse gas emissions can be
add together emissions reductions for
expressed either in terms of metric tons
all programs listed in this report to
of carbon equivalent (MTCE) or in
arrive at an estimate of total U.S. reduc-
metric tons of carbon dioxide equiva-
tions. Furthermore, estimates from gov-
lent. This report uses MTCE or million
ernment agencies and industry sectors
MTCE (MMTCE). To convert
rely on different baselines and cannot be
carbon equivalents to carbon dioxide
directly compared. There is a substantial
equivalents, multiply by 3.67.
amount of uncertainty associated with
any of these projections because the
Because of the interaction effects of
estimates attempt to quantify projected
programs designed to reinforce each
technology adoption more than a decade
other, it would not be appropriate to
into the future.
5
United States: Taking Action on Climate Change
THE PRESIDENT'S NEW EXECUTIVE ORDER
ON BIO-BASED PRODUCTS AND BIOENERGY
O
n August 12, 1999, President Clinton announced new steps to spur bio-based
technologies that can help grow the U.S. economy, enhance U.S. energy security,
and meet environmental challenges, including global warming. The President issued
Executive Order 13134 coordinating Federal efforts to accelerate these 21st century
technologies-which can convert sustainably grown crops, trees, and other "biomass"
into fuels, power, and products. He also set a goal of tripling U.S. use of bioenergy
and bioproducts by 2010. Meeting this goal could create $15 to $20 billion in new
income for farmers and rural America, and reduce annual greenhouse gas emissions
by an amount equal to as much as 100 million metric tons of carbon (MMTCE)-
the equivalent of taking more than 70 million cars off the road.
What the Executive
and environmental potential of bio-based
Order Does
industries. The new Executive Order:
Scientific advances in agriculture, forestry,
and other biological sciences are making
Establishes a permanent council con-
bioenergy and bioproducts technically
sisting of the Secretaries of Energy
feasible and economically viable. Recent
and Agriculture, the Environmental
reports and studies concluded that U.S.
Protection Agency Administrator,
government support for research is
the Director of the National Science
essential to realizing the full economic
Foundation, and other agency heads
Biomass: Clean Renewable Energy for the 21st Century
The term biomass refers to trees, crops,
energy and other applications results
and agricultural, forestry, and other
in near-zero net carbon release. Thus,
organic waste materials that can be
substituting sustainably grown bio-
used to make fuels, chemicals, and
mass for fossil fuels can dramatically
electricity. Biomass is a clean and
reduce greenhouse gas emissions that
renewable source of energy. It can be
contribute to global warming, while
used to fuel cars, power factories, and
also reducing emissions of nitrogen
create a host of chemicals and other
oxides (NOx), sulfur oxides (SOx),
everyday products. Energy from bio-
and other pollutants. In addition, the
mass sources-mostly from wood and
deep-rooted plants commonly used
wood waste-currently accounts for
for biomass, such as poplar, willow,
about 3 percent of the total U.S. ener-
and switchgrass, are helpful in control-
gy supply. Since biomass crops absorb
ling erosion, filtering chemicals from
carbon during growth, their use for
water runoff, and slowing floodwaters.
7
United States: Taking Action on Climate Change
THE PRESIDENT'S NEW EXECUTIVE ORDER
ON BIO-BASED PRODUCTS AND BIOENERGY
to develop a detailed research program
USDA, and the National Science
to be presented as part of the annual
Foundation.
Federal budget.
Instructs the council to review major
Bioenergy and
Bioproducts Are
agency regulations, incentives, and
Here Today
programs to ensure that they are
effective in promoting the use of
Clean bioenergy and bioproducts are very
bioproducts and bioenergy. The
much here and now. Already DOE and
council's plan will be reviewed by an
USDA are participating in partnerships
outside advisory group with repre-
on a number of breakthrough bioenergy
sentatives from bio-based industries,
and bioproducts projects, including:
agriculture and forestry sectors, uni-
Biomass-to-Ethanol Demonstration
versities, and environmental groups.
Projects. During the autumn of 1998, BC
Directs the U.S. Department of
International Corporation broke ground
Energy (DOE) and the U.S.
in Jennings, Louisiana, for the first com-
Department of Agriculture (USDA)
mercial plant to produce ethanol from the
to establish a National Bio-based
cellulose in agricultural waste-in this
Products and Bioenergy Coordina-
case, sugar cane bagasse. A number of
tion Office to manage the prepara-
other demonstration projects to convert
tion of interagency budgets and pro-
municipal solid waste to ethanol are under
vide a convenient point of entry for
development.
anyone interested in Federal work in
bio-based products and bioenergy.
Biorefinery for Chemicals. Cargill
Corporation, one of the largest privately
The Executive Order also builds on the
held companies in the United States,
Administration's record of strong and
built a prototype biorefinery in Blair,
consistent support for bio-based indus-
Nebraska. This new facility will use corn
tries, as indicated by: (1) the electricity
to produce a stream of chemical products
restructuring bill introduced by the
and also a biodegradable polymer, poly-
Administration earlier in 1999 requiring
lactic acid, used in manufacturing films,
that 7.5 percent of all U.S. electricity
fibers, rigid materials, and coatings.
come from renewable resources by 2010;
(2) Executive Order 13101, signed in
Co-Firing Technologies. A number of
September 1998, instructing Federal
projects are underway to explore ways to
agencies to make use of bio-based prod-
use biomass such as switchgrass and
ucts; (3) new proposed tax credits for
short-rotation wood crops like willows to
bio-based electricity production; and
make electricity by co-firing them with
(4) increased research funding for DOE,
coal. Two of the most prominent studies-
the Iowa Chariton Valley initiative and
8
United States: Taking Action on Climate Change
THE PRESIDENT'S NEW EXECUTIVE ORDER
ON BIO-BASED PRODUCTS AND BIOENERGY
the New York Salix project-also will
The Administration's
investigate the technical and economic
Fiscal Year 2000
aspects of biomass gasification, in which
Budget on Biomass
biomass is made into a fuel gas that can
The President's Fiscal Year 2000 budget
be used for heat or power production.
request contains $242 million for invest-
ments in biomass research, development,
Biomass to Energy. In the United States,
and deployment, including:
more than 270 landfill gas-to-energy pro-
jects use the gas from decomposing waste
Advanced Biomass Power and Fuels—
as an energy source.
funding for DOE and USDA to continue
developing, testing, and demonstrating
Economic Potential of
high-yield, low-cost biomass feedstocks;
Using Biomass for
processes for co-firing biomass with coal
Energy and Products
to produce electricity; advanced tech-
Using biomass for energy and products
nologies for biomass gasification using
is not only good for the environment, it
paper industry by-products; and continued
also promises real economic opportunities
work on producing alternative fuels, such
for farmers, the forest products industry,
as cellulosic ethanol, from biomass.
energy producers, and chemical manufac-
National Biomass Partnership-funding
turers. In rural areas, a fast-growing
for DOE, USDA, and other Federal agen-
bioenergy market will increase the demand
for energy crops, agricultural and forest
cies and their private partners to launch a
national partnership to develop advanced
residues, and wastes of all types. By creating
high-tech jobs and new economic oppor-
integrated biomass technologies.
tunities, meeting the President's goal of
The President also proposed a package of
tripling U.S. use of bioenergy and bio-
biomass tax credits, which would add
products could add $15 to $20 billion in
an extension of five years to the current
new income for farmers and many rural
tax credit of 1.5 cents per kilowatt-hour
communities, ensuring that they are an
for electricity produced from biomass. In
integral part of a prosperous 21st century
addition, the proposal expands the types
global economy. The President's
of biomass eligible for the credit to
Committee of Advisors on Science and
include certain forest-related, agricultural,
Technology noted in a recent report,
and other resources. Finally, the package
"Powerful Partnerships: The Federal Role
includes a 1.0 cent per kilowatt-hour tax
in International Cooperation on Energy
credit for electricity produced by co-firing
Innovation," that investments in bioenergy
biomass in coal plants.
technologies, infrastructures, and markets
can play a crucial role in helping the
world meet its future energy needs in an
environmentally sustainable way.
9
United States: Taking Action on Climate Change
THE PRESIDENT'S NEW FEDERAL ENERGY
EFFICIENCY EXECUTIVE ORDER
O
n June 3, 1999, President Clinton issued Executive Order 13123 that will
help meet the challenge of global warming by requiring each Federal
agency to reduce greenhouse gas emissions from energy use in buildings by 30
percent below 1990 levels by 2010. This will reduce annual greenhouse gas emissions
by 2.4 million metric tons of carbon equivalent (MMTCE)-the equivalent of tak-
ing 1.7 million cars off the road-and save U.S. taxpayers more than $750 million a
year. The order also will expand markets for renewable technologies, reduce air pollution,
and serve as a powerful example to U.S. businesses and consumers who can reap
substantial benefits from energy improvements.
Aggressive New Goals
New Energy Efficiency Goal for
The Federal government is the largest
Industrial and Laboratory Facilities.
energy consumer in the United States.
The order requires each Federal agency to
Its annual energy bill runs more than $8
improve its energy efficiency in industrial
billion, including $4 billion to heat, cool,
and laboratory facilities by 25 percent rel-
and power 500,000 buildings. Federal
ative to 1990 by 2010.
agencies already have reduced energy
consumption 17 percent per square foot
Expanded Use of Renewable Energy.
relative to 1985 levels. The Executive
Building on the President's commitment
Order builds on that progress, extending
to install 20,000 Federal solar energy sys-
current energy efficiency goals and set-
tems by 2010, the order calls for Federal
ting new targets for greenhouse gas
agencies to expand their investments in
reductions, renewable energy use, and
renewable energy through applications of
water conservation.
solar, wind, geothermal, and biomass
technologies at Federal facilities and
New Greenhouse Gas Reduction Goal.
through the purchase of electricity from
The order requires each Federal agency
renewable energy sources.
to reduce greenhouse gas emissions that
Water Conservation. The order calls for
result from energy use in its buildings by
30 percent below 1990 levels by 2010.
Federal agencies to improve their efficiency
in the use of water in order to reduce
This is the Federal government's first-ever
goal tied to greenhouse gas reductions.
water consumption and associated energy
use. The order requires the U.S.
New Energy Efficiency Goal for
Department of Energy (DOE) to work
Facilities. The Executive Order requires
with other Federal agencies to develop
each Federal agency to improve energy
water consumption baselines and then set
efficiency in its buildings by 35 percent
appropriate goals for water conservation.
relative to 1985 levels by 2010.
11
United States: Taking Action on Climate Change
THE PRESIDENT'S NEW FEDERAL ENERGY EFFICIENCY
EXECUTIVE ORDER
Fewer Exempt Facilities. Prior to the
by their efforts and may be paid only if
President's new Executive Order, a large
actual savings result from the reduced
number of facilities (accounting for
energy use. All additional savings go to
17 percent of energy use in buildings)
the Federal government. The government
were exempt from meeting Federal energy
benefits from new equipment, reduced
goals. Now all facilities are subject to
energy costs, improved energy efficiency,
those goals and requirements unless they
reduced greenhouse gas emissions, and
meet new exemption criteria to be devel-
conservation of nonrenewable fuels.
oped by DOE. In addition, each agency
must report all exempt facilities in its
To date, DOE and the U.S. Department
annual report to the President and explain
of Defense (DoD) have made more than
the rationale behind excluding them from
$8 billion in ESPC contract authority
Federal energy goals.
available for all Federal agencies to fund
energy improvements. In addition, many
Cutting-Edge Tools
of these contracts are "Super ESPCs"
and Strategies
that rely on the same principles as regular
ESPCs but offer an umbrella contract to
The Executive Order calls for agencies to
allow expedited service. The Executive
use a wide range of energy management
Order calls for agencies to maximize their
tools and strategies to fulfill the new
use of ESPCs and utility energy efficiency
energy efficiency, renewable energy, and
service contracts to realize energy and
greenhouse gas reduction goals.
cost savings.
Alternative Financing. Financing options
Life-Cycle Cost Analysis. Federal agencies
such as Energy Savings Performance
need to consider the full cost of their
Contracts (ESPCs) and utility energy
investments, including energy, operation,
efficiency service contracts offer Federal
and maintenance costs, not simply the
agencies powerful tools for leveraging
purchase cost of projects or products. By
private sector financing to fund cost-
taking all costs into account, agencies can
saving energy improvements at no net cost
save money and reduce energy use. To
to taxpayers. Under ESPCs, private sector
that end, the order requires agencies to
energy service companies finance the up-
consider life-cycle costs-that is, invest-
front cost of purchasing and installing
ment, capital, installation, energy, operating,
new energy efficient equipment. The
maintenance, and disposal costs-over the
Federal government uses a portion of the
life of the project or product.
savings it accrues through reduced energy
bills to repay the energy service company
ENERGY STAR® Labels and Other
over the life of the contract. Contractors
Energy Efficient Products. The order
then receive a predetermined share of the
calls for agencies to purchase energy effi-
value of the energy savings generated
cient products such as those with the
12
United States: Taking Action on Climate Change
THE PRESIDENT'S NEW FEDERAL ENERGY EFFICIENCY
EXECUTIVE ORDER
ENERGY STAR label. Purchasing compact
Off-Grid Electricity Generation. The
fluorescent light bulbs, highly efficient
Executive Order requires agencies to
boilers, and other energy efficient prod-
consider off-grid electricity opportunities
ucts can save Federal agencies hundreds
that often provide energy and environ-
of millions of dollars.
mental benefits, while allowing agencies
to avoid the costs of building new trans-
ENERGY STAR BuildingSM Label.
mission lines or digging up existing
Agencies shall strive to meet the ENERGY
lines. Off-grid options can be particularly
STAR Building criteria in their eligible
effective in remote locations such as
facilities to the maximum extent practica-
some U.S. national parks. Technologies
ble by the end of 2002. The label signifies
range from solar outdoor lighting to small
that the building is in the top 25 percent
wind turbines and fuel cells.
of similar buildings with regard to
energy efficiency.
Sustainable Building Design. In July
1998, a number of Federal agencies
Electricity from Renewable Energy and
committed to constructing sustainably
Energy Efficient Sources. Given that
designed buildings. The June 1999
more than 70 percent of the Federal
Executive Order requires all Federal agen-
government's costs for energy used in
cies to apply sustainable design principles
buildings comes from electricity, the
to the siting, design, and construction of
Executive Order requires agencies to con-
new facilities, thereby saving energy and
sider the source of their electricity and
taxpayer dollars, and reducing pollution.
opt for cleaner, more efficient electricity
generation. Specifically, agencies shall
strive to minimize the greenhouse gas
Strengthening
Agency Accountability
intensity of purchased electricity. In addi-
tion, agencies should adopt policies to
The Executive Order provides a frame-
increase the use of electricity from renew-
work to hold agencies accountable for
able energy sources.
their progress in Federal energy manage-
ment. The following new management
Highly Efficient Energy Systems. The
strategies and reporting requirements
Executive Order calls for agencies to
will help ensure that all Federal agencies
make greater use of highly efficient energy
manage energy use wisely, reaping sub-
systems, including combined heat and
stantial fiscal and environmental benefits
power systems that use "waste" heat from
for years to come.
industrial processes to supply power to
other needs. These systems can offer
Annual Reports to the President and
tremendous energy and cost savings, as
Annual Score Cards. Under the
well as significant environmental benefits.
Executive Order, each Federal agency
must submit an annual report to the
13
United States: Taking Action on Climate Change
THE PRESIDENT'S NEW FEDERAL ENERGY EFFICIENCY
EXECUTIVE ORDER
President describing the agency's progress
Under this award, Viron Energy Services
in meeting the goals. In addition, the
and Pepco Energy Services will upgrade
Deputy Director for Management of the
the energy performance of 837 Federal
Office of Management Budget will evalu-
buildings at no up-front cost to taxpayers.
ate each agency's performance and submit
The 18-year service contract, covering
agency score cards to the President.
five military installations in the
Washington, DC, area, will reduce annual
President's Management Council. The
energy consumption by 17 percent. The
President's Management Council, which
reductions will reduce annual greenhouse
generally consists of deputy secretaries
gas emissions by 24,000 metric tons of
from all agencies, will monitor agency
carbon equivalent (MTCE)-equivalent
progress on Federal energy management
to taking more than 19,000 cars off the
and provide a high-level forum for iden-
road-and will save DoD more than
tifying ways to accelerate improvements.
$219 million in energy and related costs.
Agency Energy Teams. The Executive
Other examples of energy-saving actions
Order requires each agency to form a
that the Executive Order is designed to
technical energy support team to ensure
promote include:
that energy management strategies are
implemented across all facilities. The
Energy Efficient Procurement. The
energy teams bring together legal, pro-
Defense Logistics Agency (DLA), which
curement, and other essential agency
supplies almost 20 percent of all light
representatives to overcome barriers to
bulbs purchased by the Federal govern-
realizing energy and cost savings.
ment, teamed up with DOE to offer
half-price compact fluorescent light bulbs
New Public-Private Advisory
to any Federal purchaser.
Committee. The order calls for DOE to
organize an advisory committee to bring
Last year, the DLA supplied 1.5 million
together private and public sector experts
bulbs to Federal purchasers. If the bulbs
who can advise agencies on ways to improve
had all been compact fluorescents, savings
their energy management practices.
over the life of the bulbs would have
totaled $7.5 million. Recently, DOE
Concrete Steps,
added compact fluorescents to the
Concrete Savings
ENERGY STAR product-rating program,
providing consumers with quality assur-
In conjunction with the signing of a new
ance when they purchase the bulbs. A
Executive Order to promote energy effi-
compact fluorescent bulb can last up to
ciency, President Clinton announced the
five years, saving $67 over its lifetime.
Pentagon's intent to award the Federal
government's largest-ever Energy
Saving Performance Contract (ESPC).
14
United States: Taking Action on Climate Change
THE PRESIDENT'S NEW FEDERAL ENERGY EFFICIENCY
EXECUTIVE ORDER
Renewable Energy Projects. Some 18
and "solar walls" that preheat outside air
Federal agencies-from the departments
for interior heating.
of Agriculture, Interior, and Transportation
to the Smithsonian Institution and the
Buying Renewable Power. EPA's Rich-
U.S. Postal Service-recently received a
mond, California, laboratory became the
combined $1.5 million in DOE funding
first major Federal facility to use 100
for more than 100 cost-effective renew-
percent renewable energy. Initially, 60
able energy projects at government sites.
percent of the power supplied will
The technologies include more than 50
come from geo-thermal sources, and 40
new or renovated solar water heating sys-
percent will come from biomass. This
tems, large and small photovoltaic (PV)
green power purchase will produce
systems, PV-powered lights, wind power,
environmental benefits equivalent to
eliminating more than two million pas-
Prior Federal Energy
senger car miles driven in California
Efficiency Efforts
each year.
The President's June 1999 Executive
ENERGY STAR Buildings. EPA retrofitted
Order builds upon previous efforts to
GSA's Foley Square Federal Office
improve Federal energy efficiency. The
Building in New York City to qualify for
Energy Policy Act of 1992 established
the ENERGY STAR Buildings Label. The
the goal of improving energy efficiency
building, which opened in 1994, has 1.2
in Federal office buildings by 20 per-
million square feet and houses offices of
cent on an energy-per-square-foot basis
the Federal Bureau of Investigation,
by the year 2000, compared with a
Internal Revenue Service, and EPA. By
baseline year of 1985. In March 1994,
deploying equipment and products that
President Clinton issued Executive
qualify the building for the ENERGY
Order 12902, which extended the
STAR label, Foley Square saves taxpayers
energy efficiency goal to 30 percent
$1.3 million annually in energy costs.
below 1985 levels by 2005. The latest
order extends these goals still further,
while also tightening provisions on
exempted facilities and setting forth
the first-ever Federal goal tied specifi-
cally to greenhouse gas reductions.
15
United States: Taking Action on Climate Change
WIND POWERING AMERICA INITIATIVE
W
ind is an emissions-free energy technology with largely untapped potential
to meet future U.S. energy needs while helping address the challenge of cli-
mate change. Wind Powering America is a new U.S. Department of Energy (DOE)
initiative announced in June 1999 to supply 5 percent of U.S. electricity through
wind technologies by 2020. Meeting this goal will avoid annual greenhouse gas
emissions of over 30 million metric tons of carbon equivalent (MMTCE) in 2020.
Mid-term program goals include:
Doubling the number of states with more than 20 megawatts of wind
capacity to 16 by 2005, and tripling that number to 24 by 2010.
Increasing the contribution of wind turbines to Federal electricity use to 5
percent (1,000 megawatts) by 2010.
Accelerated R&D
Remote Community Power. Kotzebue,
Wind Powering America will seek to meet
Alaska, located north of the Arctic circle, is
its goals through a robust program to
putting wind energy to work in reducing
accelerate the research, development, and
its dependence on diesel fuel for electric
deployment of wind technologies. The
power. Shipment of diesel fuel to Kotzebue
initiative will build partnerships with
as well as many other Alaskan communi-
states and localities, educate the U.S.
ties is expensive, seasonally limited, and
public on the benefits of wind power,
environmentally risky. Kotzebue recently
and encourage Federal agencies and
began operating a wind farm comprised of
organizations to lead by example in the
10 rugged 66-kilowatt turbines that are
employment of wind technologies.
reliably providing up to 10 percent of the
community's power needs with an energy
cost savings of about 40 percent.
Wind Power Is
Here and Now
Federal Opportunity. Three 225-kilowatt
A New "Crop" for Farmers. Since 1998
wind turbines are saving the U.S. Navy
more than 400 megawatts of new wind
more than $100,000 each year in diesel
generating capacity has been installed on
fuel costs for powering its station on San
farmlands in the Great Plains region of the
Clemente Island, 70 miles off the coast of
United States, providing a substantial eco-
Southern California. In addition, the tur-
nomic boost directly to farmers, landowners,
bines are helping the Navy respond to
and local communities while satisfying the
stringent local air pollution control man-
growing demand for clean electricity. Wind
dates. With a near-perfect reliability
farming creates construction and service
record, the project is serving as a model
jobs in rural regions, as well substantial tax
for the way that wind energy can bring
revenues for local municipalities.
benefits to Federal facilities.
17
United States: Taking Action on Climate Change
BRIGHTFIELDS INITIATIVE
B
rightfields is a new initiative launched by the U.S. Department of Energy
(DOE) in August 1999, aimed at using former industrial sites contaminated
with toxic waste for producing pollution-free solar energy. This novel concept
addresses three of the nation's greatest challenges: climate change, urban revitalization,
and toxic waste cleanup.
From "Brownfields"
Chicago First City to Use
to "Brightfields"
Brightfields Approach
Many former industrial sites in U.S.
The City of Chicago, working with DOE
urban areas are hard to redevelop because
and Commonwealth Edison, developed
of a legacy of toxic waste contamination.
an extensive plan that uses the bright-
This initiative will turn these "brown-
fields approach to advance its economic
fields" into "brightfields" by placing clean
development, climate change, air quality,
energy systems, such as photovoltaic
and electricity reliability goals.
arrays, and high-tech solar manufactur-
ing facilities on these sites.
As a first step, municipal officials persuaded
the Spire Corporation to manufacture solar
Solar energy technologies, and photovoltaic
panels at one of the city's brownfields, cre-
systems in particular, are well-suited to
ating more than 100 new jobs. A solar
brownfield sites. They require little mainte-
energy system also will be installed, both to
nance and can stand directly on the ground
supply some of the company's electricity
without penetrating the surface or disturbing
needs and to serve as a demonstration and
any existing contamination. The systems
educational site. In addition, the city and
can be installed to function on or off the
Commonwealth Edison committed $8
local power grid, depending on the needs
million over the next five years to purchase
of the site and existing infrastructure. They
and install solar energy systems at other
are especially attractive in urban areas with
brownfield sites, schools, office buildings,
air quality concerns. With zero emissions,
and municipal and commercial properties,
solar energy systems can offset emissions
and along transportation routes.
from other energy sources, particularly dur-
ing peak hours when utilities often rely on
DOE has begun work with cities in
older systems that pollute more heavily.
California, Connecticut, Minnesota,
New York, and Virginia to explore ways
Brightfields also provide an opportunity for
that brightfields can help communities
blighted urban neighborhoods to attract
address concerns about land use, eco-
high-tech jobs and environmentally con-
nomic development, energy, air quality,
scious businesses that are interested in
and climate change.
supporting green investments or locating
in environmentally friendly industrial parks.
19
United States: Taking Action on Climate Change
PART II: STATES AND LOCALITIES
TAKING ACTION
M
any U.S. states and communities are helping lead the fight against global
warming. State and local governments, as regulators of many direct and indirect
sources of greenhouse gas emissions and as managers of facilities that consume significant
amounts of energy, are in a unique position to make a difference. Many are doing
just that by stepping forward-both in partnership with the Federal government and
on their own initiative-with innovative programs to reduce emissions. Their efforts
are creating jobs and strengthening local economies, saving energy and money, and
improving local air and environmental quality.
State and Local
5.7 million metric tons of carbon equiv-
Success Stories
alent (MMTCE) from the state's
The following are just a few examples
business-as-usual projections. Strategies
of the wide array of actions that states
include improving commercial and
and localities are taking to address cli-
industrial energy efficiency, using innov-
mate change:
ative technologies, preventing pollution,
recycling, reducing solid waste, and
The State of New Jersey committed to
sequestering carbon. One project, the
reduce its greenhouse gas emissions by
Affordable Housing Initiative, offers
3.5 percent below 1990 levels by 2005.
grants to developers to design low-income
This amounts to a reduction equal to
housing that meets energy efficiency
U.S. Mayors Issue Statement on Global Warming
In September 1999, a group of more
Local Environmental Initiatives (ICLEI)
than 530 local officials in the United
coordinated issuance of the statement.
States issued a "Statement on Global
Warming," expressing concern about
Sixty-six U.S. cities have joined ICLEI's
the impacts of climate change on their
U.S. Cities for Climate Protection
communities and urging accelerated
Campaign. Participating cities agree to
Federal efforts to assist them in reduc-
a set of milestones that includes prepar-
ing global warming pollution.
ing a baseline survey of emissions, setting
Signatories included the mayors of
a reduction target, preparing a local
Atlanta, Baltimore, Chicago, Cincinnati,
action plan, and implementing the plan.
Denver, Honolulu, Las Vegas, Madison,
In 1998, the campaign avoided green-
Milwaukee, Minneapolis, Newark,
house gas emissions of approximately
New Orleans, Portland, Salt Lake City,
1.3 million metric tons of carbon equiv-
San Francisco, Seattle, St. Louis, and
alent (MMTCE).
Tampa. The International Council for
21
United States: Taking Action on Climate Change
PART II: STATES AND LOCALITIES TAKING ACTION
standards 30 percent better than current
As part of an overall restructuring of the
building codes. The state also established
State of California's utility industry,
a Carbon Dioxide Bank working group
the state established a Renewable Resource
and signed a letter of intent with the
Trust Fund to collect $540 million from
Netherlands that establishes a framework
investor-owned utilities to support existing
for developing joint initiatives to address
and emerging renewable energy tech-
global warming, including an emissions
nologies. Municipal utilities and individual
trading system.
customers also may contribute to the
fund. The fund is used to support produc-
In 1997, the State of Oregon enacted
tion incentives, producer and consumer
landmark legislation establishing a car-
rebates, and an education program to
bon dioxide standard for all new power
help develop a consumer market for
plants of 25 megawatts or more. New
renewables. California also is collecting
natural gas-fired plants must emit 17 per-
$218 million from the state's
cent less carbon dioxide per kilowatt-hour
investor-owned utilities for energy effi-
than the most efficient gas-fired plants
ciency projects.
currently operating in the United States.
The standard can be met by any combi-
In the State of North Carolina, Wake
nation of efficiency, co-generation, or
County Public Schools embarked on an
offsets from off-site mitigation. The miti-
ambitious effort to upgrade the energy
gation measures will offset 3.2 MMTCE
efficiency of the county's 120 school and
over the next 100 years.
administration buildings. By using a
shared savings program in which indi-
The State of Wisconsin is implementing
vidual schools receive a 10 percent share
energy efficient technologies and prac-
of their total annual energy savings, the
tices throughout state government, and
school system involved the entire
encouraging consumers and businesses
community in energy efficiency efforts.
to do the same. The state's high-visibility
Measures already in place are avoiding
public education campaign included
more than 2,400 MTCE annually.
retail store displays, newspaper and radio
spots, brochures, and a toll-free call-in
The city and county of Denver,
number. To date, Wisconsin has upgraded
Colorado, invested in lighting upgrades
53 million square feet in state government
in 4.5 million square feet of office space,
buildings, avoided annual greenhouse
as well as multiple energy efficiency mea-
gas emissions of almost 30,000 metric
sures in nearly 2,000 additional facilities.
tons of carbon equivalent (MTCE),
The city's downtown district now has
and saved more than $7 million in
the highest number of buildings with
annual energy costs.
the ENERGY STAR® label of any U.S.
municipality. ENERGY STAR BuildingsˢM is
a U.S. Environmental Protection Agency
22
United States: Taking Action on Climate Change
PART II: STATES AND LOCALITIES TAKING ACTION
(EPA) program recognizing buildings that
Minneapolis and St. Paul, Minnesota,
are in the top 25 percent of their class
continued efforts toward fulfilling their
with regard to energy efficiency. The city
pledge (made in 1993) to reduce their
also replaced incandescent light bulbs
combined carbon dioxide emissions by
with high-efficiency red light emitting
20 percent below 1988 levels by the year
diodes in traffic signals at more than
2005. So far, the Twin Cities' efforts
1,200 intersections. All told, Denver's
have focused largely on improving ener-
efforts avoid emissions of more than
gy efficiency in municipal properties,
1,900 MTCE each year.
which has saved more than $877,000 in
annual energy costs.
In San Diego, California, the city
government, San Diego County, and the
Low Income Weatherization
San Diego Unified School District are
and State Energy Grants
focused on a concentrated effort to
improve building energy efficiency. The
Two U.S. Department of Energy
city's Environmental Services Building,
(DOE) programs specifically target
for example, became the first facility in
energy efficiency investments at the
the United States to receive EPA's
state and local levels. The
ENERGY STAR Buildings label. The county
Weatherization Assistance Program
recently installed energy efficient lighting
delivers home energy efficiency
in some 5 million square feet of office
services, such as insulation, to low-
space in less than 18 months. Together,
income U.S. households, reducing
these efforts are reducing annual green-
energy costs, improving health and
house gas emissions by more than 1,200
safety, and reducing carbon emissions.
MTCE and saving $5.6 million in annu-
In Fiscal Year 2000, this program will
al energy costs.
weatherize the homes of 66,000 low-
income families, avoiding emissions
The New York State Energy Research
of more than 760,000 metric tons of
and Development Authority (NYSER-
carbon equivalent (MTCE) and sav-
DA) now offers to pay 50 percent of an
ing $248 million. The State Energy
applicant's consulting services for feasi-
Program has provided grant funds to
bility audits for energy upgrades in five
carry out more than 8,700 projects
of the state's electric distribution systems.
since 1976. The program promotes
NYSERDA will pay for an additional 25
the adoption of high-potential ener-
percent of the audit costs of any applicant
gy technologies developed under
who has joined EPA's ENERGY STAR
DOE energy efficiency and renew-
Buildings partnership.
able energy research programs, flexi-
bly addressing unique state needs
and opportunities.
23
United States: Taking Action on Climate Change
PART II: STATES AND LOCALITIES TAKING ACTION
Soon, more than a dozen school districts
Renewable and energy efficiency projects
in the State of Iowa will have installed
have been initiated at four sites in the
nonpolluting wind turbines to produce
state, reducing annual greenhouse gas
electricity for classrooms. Forest City
emissions by 185 MTCE, and saving
Community Schools, for example, began
$140,500 per year in energy costs and
operating a 600-kilowatt wind turbine
fuel savings.
in January 1999 that is expected to pro-
vide 80 to 90 percent of the school's
Working In
electrical needs.
Partnership with
Federal Government
Prince Georges County, Maryland,
In addition to the Weatherization
installed a methane recovery system at a
landfill and uses the methane to provide
Assistance Program and the State Energy
heat, hot water, and electricity to a nearby
Program, the Federal government has
correctional facility. Annual methane emis-
numerous programs that provide support
sions were reduced by more than 250,000
to state and local climate change efforts,
MTCE, and energy revenues total nearly
including many of those discussed here.
$1.3 million.
Among these programs are ENERGY STAR
Buildings, WasteWi$e, and a number of
The University of Virginia is making
others set forth in the final section of
energy efficiency upgrades to more than 7
this report.
million square feet of facilities through
lighting retrofits, building system improve-
One program, EPA's State and Local
ments, heating pipe insulation, occupancy
Climate Change Program, is a
sensors, and other measures. The university
capacity-building initiative that provides
invested $4.3 million in energy efficiency
states and communities with guidance and
steps, avoiding annual greenhouse gas
technical information in establishing
emissions of more than 1,700 MTCE.
greenhouse gas baseline emissions invento-
ries and identifying options to reduce
In 1999, Santa Monica, California,
emissions. To date, 34 of 50 states have
became the first major municipal govern-
completed greenhouse gas emission inven-
ment in the world to purchase renewable
tories, and 25 states are producing action
energy to provide all of its power needs
plans to identify options that reduce emis-
(approximately 5 megawatts).
sions. For example, Vermont's State Action
Plan identified ways to reduce cumulative
In 1994, the State of Utah established a
emissions by 21 percent, or almost 13
partnership with the National Park Service
MMTCE by 2020. Vermont's policies
to demonstrate the use of renewable
also would reduce acid rain precursors by
energy and energy efficient technologies in
24 percent, ground level ozone by 30 per-
the parks and monuments of Utah.
cent, and energy use by 16 percent.
24
United States: Taking Action on Climate Change
PART III: U.S. COMPANIES MOVING FORWARD
M
any U.S. businesses are stepping forward to assume leadership roles in
addressing the challenge of climate change.
Growing Commitment
Carrier air conditioners, Pratt & Whitney
to Greenhouse Gas
engines, and Sikorsky helicopters-
Reductions
announced a plan to cut emissions by
An increasing number of U.S. companies
improving energy efficiency 25 percent
are committed to taking real actions to
per unit of production by 2010. In addi-
cut their greenhouse gas emissions. In
tion, IBM announced a corporate-wide
the past six months:
annual goal of improving energy efficiency
by 4 percent. IBM also set a reduction
DuPont announced three goals for 2010
target for PFCs; and by 2002, IBM will
related to climate change. The first is to
reduce its emissions of perfluoroethane
reduce greenhouse gas emissions by 65
by 40 percent per unit of production.
percent from a 1990 baseline; the second
Also, British Petroleum extended its com-
is to hold energy use flat at 1990 levels;
mitment to reduce greenhouse gas emis-
and the third, to generate 10 percent of
sions 10 percent below 1990 levels by 2010
DuPont's energy from renewables. These
to include its newly acquired U.S. sub-
goals build upon previous objectives
sidiaries, Amoco and Arco.
announced for 2000.
Motorola led efforts in the semiconductor
World Class Leadership
industry to reduce greenhouse gas emis-
In April 1999, thanks to the leadership
sions by pledging to reduce the company's
of Motorola and others, the global
perfluorocarbon (PFC) emissions by 50
semiconductor industry agreed to
percent relative to a 1995 baseline by
reduce perfluorocarbon (PFC) emis-
2010. The mitigation is made possible
sions by 10 percent by 2010 relative to
by reducing the use of PFCs or replacing
a 1990 baseline. Manufacturers in
them during the cleaning and etching
Europe, Japan, Korea, the United
stages of the manufacturing process.
States, and Taiwan committed to
Motorola's target exceeds the goal for PFC
aggressive action to reduce the use of
reduction set by most of the other
PFCs in existing equipment and agreed
members of the semiconductor industry.
to invest in major design changes for
(See "World Class Leadership.")
future low- or no-emitting manufactur-
ing processes. Companies that accepted
DuPont and Motorola are just the latest
the World Semiconductor Council's
additions to the roster of U.S. corpora-
reduction target for PFC emissions
tions that understand the threat of global
produce more than 90 percent of the
warming is real. In 1998, United
world's semiconductors.
Technologies-producers of Otis elevators,
25
United States: Taking Action on Climate Change
PART III: U.S. COMPANIES MOVING FORWARD
Real Actions,
label, compared with the industry average
Real Reductions
of 40 percent. Panasonic also aggressively
In recent years, dozens of firms in a variety
promotes public awareness of energy
of industries have been moving forward
efficiency. Because of the firm's efforts,
with real actions to reduce their emis-
EPA's ENERGY STAR public service
sions of greenhouse gases and improve
announcement recently ran hourly on the
their energy efficiency. Examples include:
large astrovision screen in Times Square,
New York City.
Alcan Ingot committed to reducing its
PFC emissions by about 50 percent, rel-
Ricob Corporation is a leader in the
ative to 1990 levels, by the year 2000
design and manufacture of energy effi-
through the U.S. Environmental
cient ENERGY STAR office equipment and
Protection Agency's (EPA) Voluntary
in educating its own employees and the
Aluminum Industrial Partnership program.
public about the environmental benefits
At Alcan's Sebree Aluminum Plant, the
of energy efficiency. Ricoh markets a wide
company reduced its PFC emissions by
range of ENERGY STAR digital printers,
63 percent over the past five years through
faxes, and copiers. The company also
the installation of computer-based systems
developed an exceptional web-based
that improve the flow of raw materials
interactive educational tool on ENERGY
into aluminum smelting pots.
STAR and the environment. The tool was
intended initially for the Ricoh's sales
Applied Materials is addressing climate
staff and service technicians in the United
change aggressively by developing a tech-
States and Canada but is now used for
nology that cleans semiconductor chemical
public education as well. Ricoh expects
vapor deposition chambers with minimal
to attract millions of web viewers by the
emissions of PFCs. The technology
end of 1999 and to expand the use of
simultaneously improves productivity by
this educational tool to other countries.
reducing chamber clean time by up to 60
percent. A high-density, microwave-driven
ST Microelectronics improved energy
plasma discharge dissociates PFC
efficiency and reduced PFC emissions in
molecules with an efficiency greater than
semiconductor manufacturing. The
99 percent and consequently reduces
company benchmarked its energy use at
greenhouse gas emissions by two orders
production facilities and is implementing
of magnitude.
energy efficiency projects using wind
turbine, photovoltaic, thermal solar,
Panasonic is a leader in the manufacture
fuel cell, and cogeneration technologies
and promotion of energy efficient ENERGY
that will reduce greenhouse gas emissions
STAR® home electronic products. During
by a factor of 10 by 2010.
Panasonic's first year of partnering with
EPA, almost 97 percent of the company's
Texas Industries is pursuing a goal of
unit sales qualified for the ENERGY STAR
zero waste in its cement and steel oper-
26
United States: Taking Action on Climate Change
PART III: U.S. COMPANIES MOVING FORWARD
ations. To jumpstart the process of reach-
Reduction Partnership for Electric Power
ing this goal, the company developed a
Systems program. TXU realized signifi-
technology that uses a steel making by-
cant reductions in the use of SF₆ gas by
product, slag, in the cement manufacturing
introducing advanced leak detection
process. The technology increases
equipment, initiating aggressive policies
cement production by up to 15 percent,
to identify equipment in need of repair,
reduces greenhouse gas emissions by
and implementing a strict inventory
about 10 percent, and lowers conventional
protocol that ensures all purchased SF₆
air pollutants by up to 40 percent.
is fully and properly used.
Trigen is a corporate leader in promoting
combined heat and power across the
Industry Sectors
Move Forward
country, and the company has been
successfully installing high-performing
In addition to the semiconductor industry
projects. For example, Trigen's Grays
(see "World Class Leadership" on page
Ferry combined-cycle gas turbine cogener-
20), a number of other industry sectors
ation unit in Philadelphia replaced several
old oil-fired district heating boilers. The
Corporations Speak Out
for Action
project is designed to operate at 70 percent
fuel efficiency, producing 150 megawatts
In 1998, the new Pew Center on
of power and 1.4 million pounds of
Climate Change launched a $5 million
steam per hour. The district energy system
campaign to build support for taking
provides heat to 70 percent of the down-
action on climate change. Boeing,
town area's buildings and institutional
DuPont, Shell, Weyerhaeuser, and
facilities. The project is estimated to reduce
some 17 other major corporations
emissions by approximately 90,000 metric
joined the center's Business
tons of carbon equivalent (MTCE)
Environmental Leadership Council,
annually. The cogeneration project at the
agreeing that "enough is known
Loctite Corporation in Rocky Hill,
about the science and environmental
Connecticut, operates at 88 percent effi-
impacts of climate change for us to take
ciency and is capable of generating 9.5
actions to address its consequences."
million kilowatts per year of electric
In addition, the Business Roundtable,
energy. Annual emissions reductions are
a group of CEOs from leading U.S.
estimated at 750 MTCE per year.
corporations, this year released a
report advocating "the deployment of
TXU, one of the largest energy providers
more energy-efficient and break-
in the United States, is committed to
through technologies" and called on
reducing emissions of sulfur hexafluoride
government and industry to work
(SF₆) gas voluntarily in partnership with
together to find answers to the chal-
EPA's Climate Challenge and Emission
lenges of climate change.
27
United States: Taking Action on Climate Change
PART III: U.S. COMPANIES MOVING FORWARD
also are improving efficiency and reduc-
half of this sector's energy is used for feed-
ing greenhouse gas emissions:
stocks, while the remainder provides fuel,
power, and steam. The Chemical
The electric utility sector entered into
Manufacturers Association (CMA) adopted
the Climate Challenge program in 1994
its own Climate Action Program to reduce
and agreed to reduce, avoid, or sequester
or avoid greenhouse gas emissions. A large
greenhouse gas emissions voluntarily by
portion of the industry reported emissions
2000. Utility companies, together with
every year from 1992 through 1997;
the U.S. Department of Energy (DOE)
energy efficiency performance for those
and EPA, developed a workbook of
companies improved nearly 22 percent
reduction options that was widely circu-
per pound of production with a corre-
lated. Individual companies entered into
sponding drop in carbon dioxide emissions
agreements, and, as a result of their par-
of 24 percent. The CMA awards compa-
ticipation, utilities estimate emissions
nies for outstanding energy efficiency
reductions of as much as 47 million met-
projects, thereby providing a model that
ric tons of carbon equivalent (MMTCE)
other companies can use to reduce emis-
in 2000.
sions and improve efficiency. The projects
range from waste elimination and equip-
The steel industry is the fourth largest
ment innovations to new catalysts and
energy-consuming manufacturing subsec-
process redesign. CMA intends to continue
tor in the United States. The industry
to implement its Energy Efficiency
recently undertook a number of projects
Continuous Improvement and Climate
to increase energy efficiency and reduce
Action Programs vigorously in order to
waste. From 1994 to 1996 alone, the
strengthen the industry's performance.
energy intensity of blast furnace iron
making dropped by 4 percent. A compa-
The cement industry emits carbon diox-
rable drop in carbon dioxide emissions
ide from the use of fossil fuels as well as
accompanied the reduction in energy con-
from the calcination process in which
sumption. Nearly 80 percent of obsolete
limestone is heated. Companies repre-
scrap from post-consumer products, such
senting more than 70 percent of U.S.
as discarded cars and appliances, is cur-
cement production have joined EPA's
rently recycled; the steel industry is
Climate Wise program to take advantage
engaged in research to allow it to meet its
of the latest methods of improving energy
goal of 100 percent recovery. Utilizing
efficiency and reducing emissions. A
scrap steel greatly reduces the amount
spreadsheet-based workbook incorporates
of energy required to make steel from
issues specific to the cement industry and
virgin materials.
enables companies to prepare an action
plan and report the results of their efforts.
The chemical industry represents nearly
The companies estimate that in 2000,
7 percent of total U.S. energy use. About
annual emissions will be reduced by 8
28
United States: Taking Action on Climate Change
PART III: U.S. COMPANIES MOVING FORWARD
percent below the business-as-usual pro-
sions, as well as zero carbon dioxide
jection and that annual savings will total
emissions released from the smelting
$2.3 million.
process. In addition, 11 of 12 U.S. pri-
mary aluminum manufacturers reduced
The aluminum industry is another
their annual greenhouse gas emissions
energy-intensive sector with many
by 1.8 MMTCE annually and are
opportunities to reduce its greenhouse
committed to reducing PFC emissions
gas emissions. The industry is investing
by 45 percent to 1990 levels by 2000
in R&D, with a goal of a 15 percent
through EPA's Voluntary Aluminum
reduction in energy use and concomi-
Industry Partnership.
tant decrease in carbon dioxide emis-
Industry Consultations
An important component of the Presi-
the Administration and industry lead-
dent's October 1997 plan to reduce
ers are focusing on the development of
U.S. greenhouse gas reductions is to
a common methodology on emissions
build voluntary partnerships with
baselines, measuring, monitoring, and
energy-intensive industries to develop
reporting, as well as the identification
strategies to cut emissions. High-level
of opportunities for the development
Administration officials have met with
and diffusion of less carbon-intensive
top management of the aluminum,
technologies and practices. As part of
cement, forest products, gas pipelines,
these consultations, the Administration
and steel industries, and publicly
and industry officials discuss ways to
owned and investor-owned electric
ensure credit for businesses that take
utilities. These consultations between
early actions to reduce emissions.
29
United States: Taking Action on Climate Change
PART IV: ONGOING U.S. DOMESTIC PROGRAMS
I
n addition to efforts by U.S. states and localities, U.S. companies, and new Federal
initiatives, there are literally dozens of win-win climate change programs and initia-
tives put into place by President Clinton since 1993. These new programs aim to
develop and deploy energy efficient technologies and spur the development and
broader use of renewable energy. These efforts have accelerated and expanded since
the Kyoto climate change conference in 1997. Sustaining this commitment to reduc-
ing U.S. greenhouse gas emissions has been a focused effort by President Clinton to
invest in the research, development, and deployment of energy efficiency technologies
and renewable energy-an area whose budget in the U.S. Department of Energy
(DOE) has exceeded $800 million each and every year of the Clinton Administration.
The following survey highlights the most
sions result from the electricity needed
important of these investments, as well as
to run appliances and equipment in
a number of programs aimed at reducing
buildings, such as heating, ventilation,
or avoiding U.S. greenhouse gas emissions
and air conditioning equipment. Studies
administered by the U.S. Environmental
show that many homes and businesses
Protection Agency (EPA), the U.S.
could reduce their energy use by about
Department of Agriculture (USDA), and
30 percent using proven, cost-effective
other agencies. Together, the programs
products, and investing in simple prof-
cover the four major greenhouse gas-
itable building upgrades. A variety of
emitting sectors of the U.S. economy
DOE and EPA programs focus on
(buildings, transportation, industry, and
developing and promoting the broader
electricity), carbon sequestration, agri-
use of cleaner and more efficient build-
culture and forestry, and a robust sci-
ing and appliance technologies. The
entific research program.
programs include:
As the other components of the President's
Partnership for
strategy are implemented by industry
Advancing Technology
partners, citizens, and the U.S. Congress,
in Housing (PATH)
the Administration expects accelerated
PATH is a partnership between the
and greater energy efficiency, environ-
Federal government and the building
mental, security, and economic benefits.
industry to develop and deploy hous-
ing technologies to make new homes
50 percent more energy efficient and to
Buildings
make at least 15 million existing homes
The buildings sector is responsible for
30 percent more energy efficient with-
approximately 35 percent of U.S. green-
in a decade. Meeting PATH's goals
house gas emissions. Most of the emis-
would reduce annual carbon emissions
31
United States: Taking Action on Climate Change
PART IV: ONGOING U.S. DOMESTIC PROGRAMS
in 2010 by an amount equal to nearly 24
Energy Efficiency
Standards for Equipment
million metric tons of carbon equivalent
and Appliances
(MMTCE)-the amount produced by
To save energy and reduce consumer
some 20 million cars-and would save
utility bills, the U.S. government develops
consumers $11 billion a year in energy
test procedures and national minimum
costs. PATH has established five pilot
energy efficiency standards for equipment
communities in Denver, Los Angeles,
and appliances, such as heating and
Pittsubrgh, and Tuscon that are incorpo-
cooling equipment, water heaters, light-
rating new housing technologies and
ing, refrigerators, clothes washers and
advanced building concepts.
dryers, and cooking equipment.
Climate Change Technology Initiative
The centerpiece of President Clinton's
Most of CCTI's specific investment
domestic climate change program is the
initiatives and programs are discussed
Climate Change Technology Initiative
within this section. Highlights of
(CCTI)-a package of targeted tax
CCTI's proposed tax package include:
incentives and investments aimed at
Tax credits for energy efficient homes.
increasing energy efficiency and spurring
Consumers would receive $1,000-
broader use of renewable energy. The
$2,000 credit toward the purchase of a
package amounts to an additional $6.3
new energy efficient home; a 10-20
billion over five years ($3.6 billion in tax
percent tax credit for the purchase of
cuts and $2.7 billion in new investment),
selected energy efficient products for
their homes and buildings; and a
over and above what was already planned
$1,000-$2,000 credit for installing a
for climate change-related investments.
rooftop solar system.
The CCTI has been endorsed and sup-
Tax credits for fuel-efficient cars.
ported by the President's Committee of
The package includes tax credits ranging
Advisors on Science and Technology
from $1,000-$4,000 for the purchase
(PCAST). In 1997, PCAST produced a
of a qualifying electric, fuel cell, or
major analysis of energy R&D needs that
hybrid vehicle.
provided the analytical underpinning for
Tax credits for renewable energy.
CCTI's package of investments. In Fiscal
The package extends the 1.5 cents per
Year 1999, the President secured more
kilowatt hour tax credit for the pro-
than $1 billion for CCTI investments-a
duction of electricity from wind and
25 percent increase over the prior year. As
biomass; expands the biomass credit
of this writing, the Administration was
to cover additional sources of biomass;
and adds a 1.0 cent per kilowatt hour
engaged in negotiations to preserve these
tax credit for co-firing coal and biomass
gains in the face of efforts by the U.S.
in power plants.
Congress to scale back on investments in
energy efficiency and renewables.
32
United States: Taking Action on Climate Change
PART IV: ONGOING U.S. DOMESTIC PROGRAMS
Through 1997, residential appliance stan-
The ENERGY STAR Buildings⁵M
dards avoided cumulative emissions of 37
Partnership encourages individual
MMTCE and saved consumers a cumula-
building owners, developers, and
tive $13.3 billion. By 2010, the currently
managers to install energy efficient
enacted standards will have avoided
lighting and undertake a five-stage
cumulative emissions of more than more
strategy to capitalize on system
than 225 MMTCE and saved consumers
interactions that maximize energy
almost $50 billion.
savings at minimum cost. To date,
buildings representing more than 13
In the upcoming year, the U.S. govern-
percent of U.S. commercial square
ment expects to publish standards for
footage have signed up for the pro-
clothes washers, water heaters, fluores-
gram. Among them are the Empire
cent lamp ballasts, and central air condi-
State Building, World Trade Center,
tioners. These standards, and the recently
and Chicago's Sears Tower.
enacted standards for refrigerators and
room air conditioners, are expected to
EPA estimates that by 2010 investments
have avoided cumulative emissions of
in ENERGY STAR technologies and services
almost 12 MMTCE through 2010.
already in place today will reduce
cumulative greenhouse gas emissions
by 40 MMTCE and save consumers
ENERGY STAR® Partnerships
and businesses more than $13 billion
The ENERGY STAR partnership programs
in energy costs.
are designed to remove market barriers to
the purchase of energy efficient products,
Energy Efficiency in Schools
services, and technologies in residential,
commercial. and industrial buildings.
The energy to run the nation's 115,000
primary and secondary schools costs
approximately $5 billion annually-more
The ENERGY STAR Products pro-
than the cost of textbooks and comput-
gram allows manufactures of selected
ers combined. DOE and EPA have two
energy efficient products to promote
programs that are working in coordina-
their products with the ENERGY STAR
tion to improve energy efficiency in U.S.
label. This allows consumers to easily
primary and secondary schools. DOE's
identify products that help the envi-
EnergySmart Schools works in partner-
ronment and save energy and
ship with major companies, unions,
money. More than 3,000 highly effi-
nonprofits, and Federal, state, and local
cient ENERGY STAR product models,
agencies to cut energy bills in schools so
ranging from computers to refrigera-
that the savings can be reinvested in stu-
tors to central air-conditioning units,
dents and their education. EPA's ENERGY
currently are available to consumers.
STAR Label for Schools provides tools
33
United States: Taking Action on Climate Change
PART IV: ONGOING U.S. DOMESTIC PROGRAMS
for schools to evaluate their own energy
of U.S. annual petroleum consumption).
use, find ways to reduce it, and meet indoor
Reflecting the fact that more than three-
air quality standards. DOE estimates that a
fourths of total energy consumption in
25 percent reduction in schools' energy use
the transportation sector is used in cars
will cut annual U.S. greenhouse gas emis-
and trucks, U.S. climate efforts in this
sions by 3 to 4 MMTCE.
area aim almost exclusively at reducing the
consumption of oil (and oil by-products)
in those vehicles.
New United States and
European Community
Agreement on
ENERGY STAR Labeling
Partnership for a New
Generation of Vehicles
Partnership for a New Generation of
Later this year, the United States and
Vehicles (PNGV) is a Federal government-
the European Community are expected
industry effort that aims to develop
to sign an agreement making the
attractive, affordable, family-size cars
ENERGY STAR label an international
that meet all applicable safety and envi-
symbol for energy efficiency. The
ronmental standards while achieving up
agreement is intended to unify volun-
to three times the fuel efficiency of today's
tary energy efficiency labeling programs
cars. Since 1993, the program has made
in two of the major global markets
great strides in developing lower-cost,
for office equipment. This coordinated
lightweight materials, operational fuel
effort will serve to increase global
cells, and advanced internal combus-
supply of energy efficient equipment
tion engines for use in hybrid vehicles.
and demand by establishing uniform
The PNGV program aims to develop
criteria for energy efficiency in the
concept cars in 2000 and produce a
United States and the European Union.
production prototype mid-sized family
In addition, the proposed agreement
would lend greater authority to efforts
car capable of 80 miles per gallon (mpg)
by 2004. In Fiscal Year 1999, appropria-
by other countries to stimulate the
tions for PNGV-related work totaled
market for energy efficient products
more than $240 million.
and establish the ENERGY STAR pro-
gram as the international symbol for
energy efficiency. The agreement cur-
Light and Heavy Trucks
rently is awaiting EC approval.
Similar government and industry efforts
are aimed at developing cleaner, more
efficient diesel engines for both light and
Transportation
heavy trucks.
The transportation sector accounts for
approximately 30 percent of U.S. annual
By 2002, DOE aims to develop
advanced diesel cycle engine tech-
greenhouse gas emissions (and 65 percent
nologies for pickup trucks, vans,
34
United States: Taking Action on Climate Change
PART IV: ONGOING U.S. DOMESTIC PROGRAMS
and sport utility vehicles that achieve
Industry
at least a 35 percent fuel efficiency
Industry accounts for approximately
improvement relative to current
one-third of U.S. annual carbon dioxide
gasoline-fueled trucks while meeting
emissions (and 27 percent of U.S. energy
strict emission standards.
consumption in 1997). A number of
DOE and EPA programs focus on devel-
By 2004, DOE, in coordination with
oping and promoting energy efficient
EPA and the U.S. Department of
technologies and practices in the nation's
Defense, aims to develop engine and
most energy-intensive industries.
vehicle technologies for heavy
trucks that will increase the fuel econ-
omy to 12 mpg from the current
Industries of the Future
average of 5.3 mpg.
This DOE program works cooperatively
with the nation's most energy-intensive
industries-such as aluminum, glass,
chemicals, forest products, mining, petro-
Breakthroughs on
leum refining, and steel-on research to
Concept Cars
develop technologies that increase energy
A direct result of the Partnership for a
and resource efficiency. Together, partici-
New Generation of Vehicles (PNGV)
pating industries use more than 80 percent
is the development of "concept cars,"
of all energy consumed in U.S. manufac-
including hybrid vehicles that com-
turing. Promising collaborative efforts
bine a traditional power source with
include improvements in the process of
battery storage and electric motors.
making steel, pulp and paper, and other
On October 5, 1999, Ford presented
energy-intensive products that could dra-
to DOE the company's P2000 concept
matically increase efficiency and lower
car, which uses advanced materials to
greenhouse gas emissions. DOE esti-
reduce the weight of a full-size vehicle
mates that participating industries will
by 40 percent. Combined with an
prevent emissions of more than 25
advanced direct injection engine, the
MMTCE by 2010 and realize $4 billion
P2000 is projected to deliver 63 miles
in energy cost savings.
per gallon. In addition, General
Motors and Daimler Chrysler displayed
Climate Wise
driveable vehicles powered by fuel
This EPA program gives technical assis-
cells. Concept cars that meet PNGV's
tance to more than 530 individual
80 mpg goal are expected to be
manufacturing companies that have
unveiled in 2000.
entered into partnership agreements with
the Federal government to reduce green-
35
United States: Taking Action on Climate Change
PART IV: ONGOING U.S. DOMESTIC PROGRAMS
house gas emissions, increase productivity,
HFC, PFC and SF₆ Emission
Reduction Programs
and save money. Companies submit
comprehensive action plans that identify
Of all greenhouse gases, perfluorocarbons
specific steps they will undertake between
(PFCs), sulfur hexafluoride (SF₆), and
the time they enter into the compact and
several hydrofluorocarbons (HFCs) are
2000. By 2010, Climate Wise partners are
the most potent because of their extreme
projected to have avoided cumulative
stability in the atmosphere and strong
greenhouse gas emissions of nearly 14
absorption of radiation. PFCs, for example,
MMTCE and saved $2 billion through
commonly have atmospheric lifetimes
their participation in the program.
on the order of thousands of years. The
U.S. government administers a variety of
industry-government voluntary partner-
Methane Reduction
Programs
ships that are reducing emissions of
The U.S. government administers a vari-
those gases substantially. The Voluntary
ety of industry-government voluntary
Aluminum Industrial Partnership
partnerships that significantly reduce U.S.
(VAIP) works with 11 of the nation's 12
methane emissions from a variety of
primary aluminum producers to reduce
sources: The Landfill Methane Outreach
PFC emissions while increasing the effi-
Program, the Coalbed Methane Outreach
ciency of primary aluminum production.
Program, Natural GasStar, AgSTAR, and
The Federal government also administers
the Ruminant Livestock Efficiency
a regulatory program through the Clean
Program (RLEP). These programs encour-
Air Act to help direct industry toward
age emissions reductions either through
safe, new alternatives as manufacturers
the profitable collection and use of
consider substitutes for ozone-depleting
methane, as opposed to its release to the
chlorofluorocarbons (CFCs) and halon
atmosphere, or, in the case of RLEP,
compounds.
through more efficient production in the
livestock and dairy sectors. In 1998, par-
Investments already made by partners in
ticipants in the programs reduced
voluntary programs will reduce cumula-
methane emissions by almost 5 MMTCE.
tive emissions by more than 49 MMTCE
EPA estimates that investments already
over the lifetime of the projects. In addition,
an estimated 54 MMTCE will have been
made to reduce methane emissions by
partners in these programs will reduce
prevented by 2000 through regulation.
cumulative emissions by almost 70
HFC and PFC emissions in applications
MMTCE and save more than $1 billion.
to replace ozone-depleting substances are
By 2010, EPA expects that methane
expected to be significantly below busi-
emissions will be stabilized at 1990 levels
ness-as-usual scenarios due to voluntary
as a result of these voluntary partnerships.
and regulatory initiatives. HFC, PFC and
SF₆ emissions from other industrial
36
United States: Taking Action on Climate Change
PART IV: ONGOING U.S. DOMESTIC PROGRAMS
sources are expected to be at or below
than 900 organizations are WasteWi$e
1990 levels by 2010.
partners. Waste reduction activities reduce
greenhouse gas emissions in several ways,
Industrial Combined Heat
including energy savings, increased carbon
and Power Systems
sequestration, and avoided methane emis-
DOE is developing new industrial com-
sions. In 1998 alone, the combined waste
bined heat and power (CHP) systems to
reduction results of Waste Wi$e partners
capture thermal heat that otherwise would
prevented emissions of approximately 4.5
be wasted. CHP systems are expected to
MMTCE-equal to the average annual
be 15 percent more energy efficient and
emissions from electric power consump-
80 percent cleaner than conventional
tion from roughly 2.7 million households.
power systems and cut electricity costs
by 10 percent. In addition, EPA and
Electricity
DOE are working to eliminate barriers
to the rapid dissemination of combined
Greenhouse gas emissions from the
heat and power technology.
generation, transmission, and distribu-
tion of electricity account for 30 percent
of U.S. annual greenhouse gas emissions.
Motor Challenge
U.S. climate efforts in this area include
Motor Challenge, Steam Challenge,
improving the efficiency of electricity
Combined Heat and Power Challenge,
generation through substituting lower
and Compressed Air Challenge are a
carbon and carbon-free fuels, reducing
group of voluntary initiatives aimed at
the demand for electricity through
improving energy efficiency in U.S.
greater end use efficiency, and restructur-
manufacturing plants by breaking down
ing the electric power industry. These
market barriers to the development and
efforts are being accomplished through a
diffusion of energy efficient technologies
combination of DOE and EPA volun-
and practices. These four Federal pro-
tary partnerships and R&D efforts.
grams offer industry a variety of technical
assistance, tools, and information. By
Electricity Restructuring
2015, these initiatives are expected to
A core element of the President's climate
reduce emissions by approximately 20
MMTCE and generate $3 billion in
change program involves restructuring
annual cost savings.
the electricity industry in a manner that
will reduce greenhouse gas emissions while
cutting consumers' energy bills. The
WasteWiSe
Administration's restructuring proposal
WasteWi$e works with U.S. businesses;
includes a requirement that utilities open
Federal, state, local, and tribal government
up their distribution and transmission
agencies; and other institutions to reduce
wires to all qualified sellers; a renewable
municipal solid waste. Presently, more
portfolio standard to increase the use of
37
United States: Taking Action on Climate Change
PART IV: ONGOING U.S. DOMESTIC PROGRAMS
electricity from renewable sources to at
includes $120 million in proposed
least 7.5 percent of sales by 2010; a $3
tax credits to support this program.
billion per year Public Benefits Fund to
Meeting the initiative's goals will
spur greater investment in energy efficien-
reduce carbon emissions equivalent
cy and renewable energy technologies; and
to the annual emissions from
a green labeling requirement to inform
850,000 cars by 2010.
consumers about clean energy options.
This plan is projected to reduce carbon
Hydrogen Research Program
emissions by roughly 40 to 60 MMTCE
DOE currently is accelerating research on
in 2010 while saving consumers at least
low-cost hydrogen production and stor-
$20 billion per year on their electricity
age-prerequisites to the widespread use
bills. The plan is now under consideration
of hydrogen as a fuel. Over the next five
by the U.S. Congress.
years, hydrogen is expected to make a sig-
nificant penetration into several niche
Photovoltaic Energy
fuel markets, owing to the recent demon-
Systems R&D
stration of low-cost, high-performance
Over the past 20 years, Federal research
Proton Exchange Membrane (PEM) fuel
and development has resulted in a 90 per-
cell systems by Daimler Chrysler, Ford,
cent cost reduction in solar photovoltaics
and other companies.
(PV). As a result, industrial manufacturing
of PV modules more than doubled
High Temperature
between 1994 and 1998, growing from
Superconductivity
26 megawatts in 1994 to more than 53
DOE supports industry-led projects to
megawatts in 1998. DOE now is acceler-
capitalize on recent breakthroughs in
ating its R&D of the next generation of
superconducting wire technology, aimed
photovoltaic cells; increasing manufacturing
at developing super-efficient power
R&D; increasing research in buildings-
equipment, such as advanced motors,
integrated applications; and developing
power cables, and transformers. These
new, unconventional technologies.
technologies would allow more electricity
to reach the consumer without increas-
Million Solar Roofs. This initia-
ing the use of fossil fuels.
tive, announced by the President in
June 1997, seeks to place solar ener-
Climate Challenge
gy systems on one million roofs by
This program is a joint voluntary effort
2010. To date, commitments for
between DOE and the electric utility
900,000 have been made, indicat-
industry to reduce, avoid, or sequester
ing the potential for widespread
greenhouse gases. Utilities identify and
market penetration of solar tech-
implement cost-effective activities that
nologies. The President's Climate
are specified in agreements between the
Change Technology Initiative
38
United States: Taking Action on Climate Change
PART IV: ONGOING U.S. DOMESTIC PROGRAMS
Federal government and individual elec-
40-year license, DOE initiated the Nuclear
tric utilities. Under this program, the
Energy Plant Optimization (NEPO)
electric utility industry as a whole also
program. NEPO supports collaborative
has developed nine industry-wide initia-
R&D with industry, aimed at resolving
tives to research, develop, and promote
open issues related to plant aging. It also
technologies and practices that lower
supports the application of new technolo-
greenhouse gas emissions. Currently,
gies to improve plant economics, reliability,
Climate Challenge's partner utilities
and availability.
number more than 600 and represent 71
percent of the 1990 U.S. carbon emissions
Sequestration
from electricity generation. Utilities
and Agriculture
estimate that pledged Climate Challenge
actions would reduce emissions by as
R&D for Sequestration
much as 47 MMTCE in 2000.
DOE is pursuing research on sequestration
technologies to separate and capture car-
Cleaner Coal and
bon dioxide from energy processes and
Natural Gas
combustion, disposal technologies for
DOE supports an aggressive R&D effort
storing carbon dioxide in underground
to develop next-generation technologies
geological structures and in the deep
for the combustion and use of coal and
ocean, and advanced concepts to trans-
natural gas. For example, research and
form carbon dioxide into either useful
development of new coal combustion
or environmentally benign products. In
technologies, such as integrated gasification
the post-2015 time period, this program
combined-cycle and pressurized fluidized
has the potential to eliminate hundreds
bed combustion, could lead to ultra-high
of millions of metric tons of greenhouse
efficiency coal plants with dramatically
gases from the atmosphere.
lower greenhouse gas emissions-as much
as 75 MMTCE by 2030.
Carbon Sequestration in
Agriculture and Forestry
Nuclear Energy
Natural carbon sinks will play a critical
Nuclear power plants provide approxi-
role in helping the world meet the chal-
mately 20 percent of U.S. electricity and
lenge of climate change. Recently, focus
avoid greenhouse gas emissions of 150
has intensified on agriculture and
MMTCE annually. Licenses for U.S.
forestry practices that can affect the abil-
nuclear power plants will begin to expire
ity of farmland and forests to sequester
in large numbers in 2010. To ensure that
carbon and help mitigate the impacts of
current nuclear plants can continue to
climate change. As understanding of these
deliver adequate and affordable energy
practices has increased, the U.S. govern-
supplies up to and beyond their initial
ment has begun to analyze the net carbon
effects of various USDA conservation and
39
United States: Taking Action on Climate Change
PART IV: ONGOING U.S. DOMESTIC PROGRAMS
environmental programs and to determine
Scientific Research
how they can be enhanced and expanded
The Administration is continuing its
to foster greater sequestration. In general,
strong support ($1.7 billion in Fiscal
the programs assist farmers, ranchers,
Year 1999 funding) for the U.S. Global
and other landowners in conserving and
Change Research Program (USGCRP),
improving soil, water, and other natural
which seeks to provide a sound scientific
resources associated with rural land. The
understanding of the human and natural
programs include:
forces that influence the Earth's climate
system. National and international poli-
Conservation Technical Assistance
cymakers use the information produced
(CTA) helps farmers develop and
by USGCRP scientists to make informed
implement conservation plans on
decisions on global change issues.
farms and ranches. Practices that
Specific new research focuses include:
sequester carbon include cover crops,
residue management, crop rotation,
Carbon Cycle Initiative-a new
and buffer establishment.
multiagency initiative to improve
understanding of the ways that car-
Conservation Reserve Program
bon cycles between the atmosphere,
(CRP) provides rental payments and
oceans, and land.
cost-sharing on 36.4 million acres for
grass, shrub, or tree planting in
Soil Carbon Inventory-expanded
exchange for retiring highly erodible
efforts to conduct a comprehensive
or other environmentally sensitive
scientific inventory of carbon stored in
cropland.
U.S. soils and develop methods to
predict how various practices and
Forestry Incentives Program (FIP)
policies would affect soil carbon levels.
provides financial and technical assis-
tance to encourage production of
Consequences of Climate
sawtimber and pulpwood on nonin-
Change-the first national assess-
dustrial private forestlands, and the
ment of the potential impacts of
Stewardship Incentives Program
climate change on the United States.
(SIP) provides financial and techni-
cal assistance to expand tree planting
and implement stewardship plans on
private properties.
40
The U.S. View
GREENHOUSE GAS EMISSIONS TRADING:
A COUNTRY'S- AND COMPANY'S-EYE VIEW
T
he Kyoto Protocol combines ambitious greenhouse gas reduction targets with
innovative market-based mechanisms to help country Parties achieve those tar-
gets at the lowest possible cost. Recognizing that reducing greenhouse gas emissions
is many times more expensive in some countries than in others, the Protocol allows
the Parties to use "emissions trading" and other flexibility mechanisms to meet their
commitments at much reduced cost. This paper describes how emissions trading
could work, from the perspective of a country, and from the perspective of compa-
nies and other legal entities.
How Will Emissions
for one ton of emissions that may be
Trading Work?
transferred between countries.
The Kyoto Protocol establishes binding
greenhouse gas emissions targets for 39
Because the cost of controlling green-
countries. These targets take the form of
house gases differs by many times from
an "assigned amount"-the number of
country to country, emissions trading
metric tons of greenhouse gases (counted
will allow enormous savings in meeting
as carbon dioxide equivalent) that may
the Kyoto targets. Countries that have
be emitted by sources within the coun-
relatively inexpensive ways to control
try during the five-year commitment
greenhouse gases have incentives to
period running from 2008 through
reduce emissions by more than their tar-
2012. Each country must make sure that
gets require, because they can sell to oth-
its emissions during the five-year period
ers tradable allowances that they will not
do not exceed its assigned amount.
need. Countries facing the most expen-
sive control measures have incentives to
Articles 3 and 17 of the Kyoto Protocol
buy less costly allowances from others,
allow countries with binding targets to
and thereby increase the amount they
lower the cost of meeting their targets by
may emit. Since greenhouse gases are
participating in international emissions
global pollutants, the environmental
trading. In emissions trading, one coun-
impact of reducing them is the same no
try transfers part of its assigned amount
matter where the reductions take place.
to another. This transfer of assigned
The same overall reduction is achieved,
amount lowers the number of tons of
total costs are reduced, and both buyers
greenhouse gases that the first country
and sellers gain from the savings allowed
may emit between 2008 and 2012, and
by trading.
raises the number of tons that the second
country may emit by an equal amount. It
While countries can benefit by engaging
is useful to think of each one-ton unit of
in emissions trading at the government-
assigned amount as a tradable allowance
to-government level, far more savings are
possible if countries also authorize their
The U.S. View
GREENHOUSE GAS EMISSIONS TRADING:
A COUNTRY'S- AND COMPANY'S-EYE VIEW
legal entities (companies, individuals,
their tradable allowances. Buying and
NGOs, etc.) to trade. The cost of con-
selling countries could arrange their
trolling greenhouse gas emissions varies
transactions directly or use brokers or
dramatically between companies both
exchanges. Trades would be accom-
within the same country and across bor-
plished by removing allowances from the
ders. The private sector can be much
national registry of the selling country
more effective than governments in find-
and adding them to the national registry
ing the lowest-cost emission reduction
of the buying country.
opportunities. The greatest savings can
come if private sector companies with
Trading rules should require each country
the ability to reduce emissions are
to report to the Secretariat for the Frame-
allowed to buy and sell allowances with
work Convention on Climate Change in
other companies in the same country
Bonn at least once each year on the trades
and with companies in other countries.
it has conducted and the appropriate
increases or decreases in its assigned
How Would a
amount. These reports would be in addi-
Country Engage in
tion to the annual reports that countries
Emissions Trading?
must make to the Secretariat on their
greenhouse gas emissions. Together, this
Trading rules should require a country
information would serve as the starting
that wants to trade to have the necessary
point for determining whether a country
capacity and infrastructure to measure and
met its commitment to keep emissions
report on its emissions of greenhouse
within its assigned amount, as adjusted
gases, according to the requirements of
up or down by trading.
Articles 5 and 7 of the Protocol. In addi-
tion, the rules should require the country
The emissions trading rules could be
to establish a national registry-a comput-
structured to give countries strong
erized system to record who holds tradable
incentives to comply with basic require-
allowances; to keep track of changes in
ments of the Protocol. For example, a
allowance holdings due to emissions trad-
country that came out of compliance
ing; and to show which allowances have
with the Article 5 and 7 measurement
already been used to cover past emissions
and reporting rules, or that failed to
(these would be permanently retired) and
maintain its national registry, could lose
which remain available to be used against
its eligibility to trade. The prospect of
future emissions.¹
losing the savings available from trading
could be a strong inducement to keep
A country that wants to increase the
buyer countries in compliance. Likewise,
number of tons of greenhouse gases that
it is allowed to emit could seek out other
the prospect of losing investment revenue
could be a strong encouragement for sell-
countries that are willing to sell some of
er countries to remain in compliance.
2
The U.S. View
GREENHOUSE GAS EMISSIONS TRADING:
A COUNTRY'S- AND COMPANY'S-EYE VIEW
How Would a Private
and trades, and shows which allowances
Company Engage in
have been used and which remain avail-
Emissions Trading?
able for future use. Electric utilities, bro-
In addition to trading at the governmen-
kers, and private individuals have
tal level, some countries plan to use both
accounts in the registry recording their
domestic and international emissions
allowance holdings, purchases, and sales.
trading at the company level as part of
Some allowances have even been pur-
their program to meet their Kyoto com-
chased by school children and environ-
mitments. The highly successful U.S.
mentalists, who have taken them "off the
acid rain program, established in 1990,
market" to further reduce emissions.
is a model for how a domestic green-
house gas trading program could work.
The results speak for themselves. Sulfur
The acid rain program sets a strict limit
dioxide emissions are being cut about
on the total national emissions of sulfur
30 percent more rapidly than expected,
dioxide allowed from electric power
bringing cleaner air to millions of
plants. There is a fixed number of emis-
Americans. And the total costs of the acid
sion allowances available each year, each
rain program are now projected to be well
one permitting the emission of one ton
under half of original expectations.
of sulfur dioxide. These allowances were
allocated to power plant owners.²
Countries could establish similar domestic
Emissions are rigorously monitored, and
emissions trading programs for green-
at the end of each year, each plant owner
house gases. While private companies
must turn back to the government
and other legal entities would be able to
enough allowances to cover its emissions
hold and trade allowances, the country
during the year.
would remain fully responsible for com-
pliance with Kyoto commitments. All
The sulfur dioxide allowances can be
legal entity holdings would be recorded in
bought and sold. Companies facing high
the country's national registry. In setting
emission control costs have the flexibility
up their domestic programs, countries
to choose their own compliance strategies.
would have to address many issues,
They can reduce their emissions by
including which sectors to include in the
enough to match their allowance allocation
emissions trading system and which to
(e.g., by installing pollution controls,
address through other policies. Other
switching to cleaner fuels, or improving
issues include how to distribute
efficiency). They can also choose to pur-
allowances (allocation or auction?), and
chase more allowances. Companies with
how frequently to require emitters to
inexpensive opportunities to reduce
turn them in (every year, or only at the
emissions below their allocations can sell
end of the five-year period?). But the
allowances they do not need. A national
potential savings would make the effort
registry records all allowance holdings
well worthwhile.
3
The U.S. View
GREENHOUSE GAS EMISSIONS TRADING:
A COUNTRY'S- AND COMPANY'S-EYE VIEW
Companies and other legal entities sub-
between legal entities of different coun-
ject to these programs would have
tries would be carried out by moving the
strong incentives to look constantly for
traded allowances from the account of
innovative ways to control their green-
the selling entity in the registry of one
house gas emissions. Those who found
country, to the account of the buying
inexpensive opportunities to reduce
entity in the registry of the other coun-
their emissions could sell the allowances
try. By buying and selling allowances not
they do not need to other companies
only within the same country, but also
who face higher costs. These tangible
across borders, companies and other
rewards for innovation should result in
legal entities would dramatically reduce
a steady stream of cost-saving break-
the overall cost of meeting the agreed
throughs and new technologies.
Kyoto targets.
A country's domestic emissions trading
And that is the key to success in meeting
program would also connect seamlessly
the ambitious commitments made in
with the international emissions trading
Kyoto, and sustaining and strengthening
system, using the same system of nation-
our efforts to protect the global climate
al registries to keep track of every
over the coming decades.
allowance traded. An international trade
1 Allowances would be identified by serial number
and country of origin. Those that have been used
to cover emissions would be marked in the user
country's registry as permanently retired. Those not
yet used could be kept for use later in the five-year
period, traded to other countries, or "banked" for
the country's use in the next commitment period.
2 A country can distribute allowances in several ways:
They can be auctioned to the highest bidders, or
they can be allocated (given out) by a variety of for-
mulas to the companies that the country makes
responsible for emissions, to consumers, or to others.
4
The U.S. View
FACT SHEET ON THE KYOTO PROTOCOL
A
t a conference held December 1-11, 1997, in Kyoto, Japan, the Parties to
the UN Framework Convention on Climate Change agreed to an historic
Protocol to reduce greenhouse gas emissions by harnessing the forces of the global
marketplace to protect the environment.
Key aspects of the Kyoto Protocol include
weather, either of which could spike
emissions targets, timetables for industrial-
emissions in a particular year.
ized nations, and market-based measures
for meeting those targets. The Protocol
The first budget period will be
makes a down payment on the meaning-
2008-2012. The parties rejected bud-
ful participation of developing countries,
get periods beginning as early as
but more needs to be done in this area.
2003, as neither realistic nor achiev-
Securing meaningful developing country
able. Having a full decade before the
participation remains a core U.S. goal.
start of the binding period will allow
more time for companies to make the
Emissions Targets
transition to greater energy efficiency
and/or lower carbon technologies.
A central feature of the Kyoto Protocol
is a set of binding emissions targets for
The emissions targets include all six
developed nations. The specific limits
major greenhouse gases: carbon diox-
vary from country to country, though
ide, methane, nitrous oxide, and three
those for the key industrial powers of the
synthetic substitutes for ozone-deplet-
European Union, Japan, and the United
ing CFCs that are highly potent and
States are similar-8 percent below 1990
long-lasting in the atmosphere.
emissions levels for the European Union,
7 percent for the United States, and 6
Activities that absorb carbon, such as
percent for Japan.
planting trees, will be used as offsets
against emissions targets. "Sinks"
The framework for these emissions tar-
were also included in the interest of
gets includes the following provisions:
encouraging activities like afforesta-
tion and reforestation.
Emissions targets are to be reached
over a five-year budget period rather
Accounting for the role of forests is
than by a single year. Allowing emis-
critical to a comprehensive and envi-
sions to be averaged across a budget
ronmentally responsible approach to
period increases flexibility by helping
climate change. It also provides the
to smooth out short-term fluctua-
private sector with low-cost opportu-
tions in economic performance or
nities to reduce emissions.
1-
The U.S. View
FACT SHEET ON THE KYOTO PROTOCOL
International
a group could further contribute to cost-
Emissions Trading
effective solutions to this problem.
The Kyoto Protocol allows nations with
emissions targets to trade greenhouse gas
Joint Implementation
allowances. Using this mechanism,
Among Developed
countries can achieve reductions at the
Countries
lowest cost. Emissions trading was devel-
Countries with emissions targets may
oped in the United States to reduce sul-
obtain credit toward their targets through
fur dioxide that causes acid rain and has
project-based emission reductions in
been successful beyond expectations.
other such countries. The private sector
may participate in these activities.
Under an emissions trading regime,
countries or companies can purchase less
Additional details may be agreed upon
expensive emissions permits from coun-
by the Parties at future meetings.
tries that have more permits than they
need (because they have met their targets
with room to spare). Structured effective-
Clean Development
ly, emissions trading can provide a pow-
Mechanism
erful economic incentive to cut emissions
Another important market-based com-
while also allowing important flexibility
ponent of the Kyoto Protocol is the so-
for taking cost-effective actions.
called Clean Development Mechanism
(CDM). The CDM embraces the con-
The Kyoto Protocol established emis-
cept of joint implementation for credit
sions trading. Rules and guidelines-in
in developing countries. With the Clean
particular for verification, reporting, and
Development Mechanism, developed
accountability-will be developed.
countries will be able to use certified
emissions reductions from project activi-
The inclusion of emissions trading in the
ties in developing countries to con-
Kyoto Protocol reflects an important
tribute to their compliance with green-
decision to address climate change
house gas reduction targets.
through the flexibility of market mecha-
nisms. The Conference rejected proposals
This Clean Development Mechanism
to require all Parties with targets to
will allow companies in the developed
impose specific mandatory measures, such
world to enter into cooperative projects
as energy taxes. A number of countries,
to reduce emissions in the developing
including Australia, Canada, Japan, New
world-such as the construction of
Zealand, Russia, Ukraine, and the United
high-tech, environmentally sound power
States, reached a conceptual agreement to
plants-for the benefit of both parties.
pursue, through an umbrella group, the
The companies will be able to reduce
implementation of a trading regime. Such
emissions at lower costs than they could
2-
The U.S. View
FACT SHEET ON THE KYOTO PROTOCOL
at home, while developing countries will
Protocol identifies various sectors
be able to receive the kind of technology
(including the energy, transport, and
that can allow them to grow more sus-
industry sectors as well as agriculture,
tainably. The CDM will certify and
forestry, and waste management) in
score projects. The CDM can also allow
which national programs should be
developing countries to bring projects
developed to combat climate change.
forward in circumstances where there is
The Protocol also provides for more
no immediate developed country partner.
specific reporting on actions taken.
Under the Clean Development Mechan-
Securing meaningful participation from
ism, companies can choose to make
key developing countries remains a pri-
investments in projects or to buy emis-
ority for the United States. The
sions reductions. In addition, Parties will
Administration has stated that without
ensure that a small portion of proceeds
such participation, it will not submit the
are used to help particularly vulnerable
Kyoto Protocol to the Senate for advice
developing countries, such as island
and consent to ratification.
states, adapt to the environmental conse-
quences of climate change.
Compliance and
Enforcement
Importantly, certified emissions reductions
achieved starting in the year 2000 can
The Protocol contains several provisions
count toward compliance with the first
intended to promote compliance. These
budget period. This means that private
include requirements related to measure-
companies in the developed world will be
ment of greenhouse gases, reporting, and
able to benefit from taking early action.
review of implementation.
The Protocol also contains certain con-
Developing Countries
sequences for failure to meet obligations.
Various Protocol provisions, taken togeth-
For example, a Party that is not in com-
er, represent a down payment on develop-
pliance with its measurement and
ing country participation in efforts to
reporting requirements cannot receive
reduce greenhouse gas emissions.
credit for joint implementation projects.
Developing countries will be engaged
Effective procedures and a mechanism to
through the Clean Development
determine and address noncompliance
Mechanism noted above.
are to be decided at a later meeting. For
both environmental and competitiveness
The Protocol advances the implementa-
reasons, the United States will be work-
tion by all Parties of their commitments
ing on proposals to strengthen the com-
under the 1992 Framework Convention
pliance and enforcement regime under
on Climate Change. For example, the
the Protocol.
-3-
The U.S. View
FACT SHEET ON THE KYOTO PROTOCOL
Entry Into Force
became the first developing country to
The Kyoto Protocol opened for signa-
announce its intention to take on a bind-
ture in March 1998. To enter into force,
ing emissions target for the 2008-2012
it must be ratified by at least 55 coun-
time period. Kazakhstan announced that
tries, accounting for at least 55 percent
it intended to do so as well.
of the total 1990 carbon dioxide emis-
sions of developed countries. U.S. ratifi-
During the Buenos Aires conference, on
cation will require the advice and con-
November 12, 1998, the United States
sent of the Senate.
signed the Kyoto Protocol at the United
Nations in New York. Signing reaffirms
the United States' commitment to work
Buenos Aires
with other nations to meet the Protocol's
Action Plan
ambitious environmental goals and
At the Fourth Session of the Conference of
ensures a continued strong U.S. role in
the Parties (CoP-4) held November 2-13,
settling issues left unresolved at Kyoto.
1998, in Buenos Aires, Argentina, the
Signing does not impose an obligation
Parties to the UN Framework Convention
on the United States to implement the
on Climate Change agreed to a two-year
Kyoto Protocol. (The Protocol cannot
action plan for advancing the ambitious
become binding on the United States
agenda outlined in the historic Kyoto
without the approval of the United
Protocol.
States Senate.) The President will not
submit the Protocol to the U.S. Senate
CoP-4 also saw a significant break-
for approval without the meaningful
through on the issue of developing coun-
participation of key developing countries
try participation in international efforts
in efforts to address climate change.
to address climate change. Argentina
4
The U.S. View
FACT SHEET ON THE KYOTO PROTOCOL
A
t a conference held December 1-11, 1997, in Kyoto, Japan, the Parties to
the UN Framework Convention on Climate Change agreed to an historic
Protocol to reduce greenhouse gas emissions by harnessing the forces of the global
marketplace to protect the environment.
Key aspects of the Kyoto Protocol include
weather, either of which could spike
emissions targets, timetables for industrial-
emissions in a particular year.
ized nations, and market-based measures
for meeting those targets. The Protocol
The first budget period will be
makes a down payment on the meaning-
2008-2012. The parties rejected bud-
ful participation of developing countries,
get periods beginning as early as
but more needs to be done in this area.
2003, as neither realistic nor achiev-
Securing meaningful developing country
able. Having a full decade before the
participation remains a core U.S. goal.
start of the binding period will allow
more time for companies to make the
Emissions Targets
transition to greater energy efficiency
and/or lower carbon technologies.
A central feature of the Kyoto Protocol
is a set of binding emissions targets for
The emissions targets include all six
developed nations. The specific limits
major greenhouse gases: carbon diox-
vary from country to country, though
ide, methane, nitrous oxide, and three
those for the key industrial powers of the
synthetic substitutes for ozone-deplet-
European Union, Japan, and the United
ing CFCs that are highly potent and
States are similar-8 percent below 1990
long-lasting in the atmosphere.
emissions levels for the European Union,
7 percent for the United States, and 6
Activities that absorb carbon, such as
percent for Japan.
planting trees, will be used as offsets
against emissions targets. "Sinks"
The framework for these emissions tar-
were also included in the interest of
gets includes the following provisions:
encouraging activities like afforesta-
tion and reforestation.
Emissions targets are to be reached
over a five-year budget period rather
Accounting for the role of forests is
than by a single year. Allowing emis-
critical to a comprehensive and envi-
sions to be averaged across a budget
ronmentally responsible approach to
period increases flexibility by helping
climate change. It also provides the
to smooth out short-term fluctua-
private sector with low-cost opportu-
tions in economic performance or
nities to reduce emissions.
The U.S. View
FACT SHEET ON THE KYOTO PROTOCOL
International
a group could further contribute to cost-
Emissions Trading
effective solutions to this problem.
The Kyoto Protocol allows nations with
emissions targets to trade greenhouse gas
Joint Implementation
allowances. Using this mechanism,
Among Developed
countries can achieve reductions at the
Countries
lowest cost. Emissions trading was devel-
Countries with emissions targets may
oped in the United States to reduce sul-
fur dioxide that causes acid rain and has
obtain credit toward their targets through
project-based emission reductions in
been successful beyond expectations.
other such countries. The private sector
Under an emissions trading regime,
may participate in these activities.
countries or companies can purchase less
Additional details may be agreed upon
expensive emissions permits from coun-
by the Parties at future meetings.
tries that have more permits than they
need (because they have met their targets
with room to spare). Structured effective-
Clean Development
ly, emissions trading can provide a pow-
Mechanism
erful economic incentive to cut emissions
Another important market-based com-
while also allowing important flexibility
ponent of the Kyoto Protocol is the so-
for taking cost-effective actions.
called Clean Development Mechanism
(CDM). The CDM embraces the con-
The Kyoto Protocol established emis-
cept of joint implementation for credit
sions trading. Rules and guidelines-in
in developing countries. With the Clean
particular for verification, reporting, and
Development Mechanism, developed
accountability-will be developed.
countries will be able to use certified
emissions reductions from project activi-
The inclusion of emissions trading in the
ties in developing countries to con-
Kyoto Protocol reflects an important
tribute to their compliance with green-
decision to address climate change
house gas reduction targets.
through the flexibility of market mecha-
nisms. The Conference rejected proposals
This Clean Development Mechanism
to require all Parties with targets to
will allow companies in the developed
impose specific mandatory measures, such
world to enter into cooperative projects
as energy taxes. A number of countries,
to reduce emissions in the developing
including Australia, Canada, Japan, New
world-such as the construction of
Zealand, Russia, Ukraine, and the United
high-tech, environmentally sound power
States, reached a conceptual agreement to
plants-for the benefit of both parties.
pursue, through an umbrella group, the
The companies will be able to reduce
implementation of a trading regime. Such
emissions at lower costs than they could
2
The U.S. View
FACT SHEET ON THE KYOTO PROTOCOL
Entry Into Force
became the first developing country to
The Kyoto Protocol opened for signa-
announce its intention to take on a bind-
ture in March 1998. To enter into force,
ing emissions target for the 2008-2012
it must be ratified by at least 55 coun-
time period. Kazakhstan announced that
tries, accounting for at least 55 percent
it intended to do so as well.
of the total 1990 carbon dioxide emis-
sions of developed countries. U.S. ratifi-
During the Buenos Aires conference, on
cation will require the advice and con-
November 12, 1998, the United States
sent of the Senate.
signed the Kyoto Protocol at the United
Nations in New York. Signing reaffirms
the United States' commitment to work
Buenos Aires
with other nations to meet the Protocol's
Action Plan
ambitious environmental goals and
At the Fourth Session of the Conference of
ensures a continued strong U.S. role in
the Parties (CoP-4) held November 2-13,
settling issues left unresolved at Kyoto.
1998, in Buenos Aires, Argentina, the
Signing does not impose an obligation
Parties to the UN Framework Convention
on the United States to implement the
on Climate Change agreed to a two-year
Kyoto Protocol. (The Protocol cannot
action plan for advancing the ambitious
become binding on the United States
agenda outlined in the historic Kyoto
without the approval of the United
Protocol.
States Senate.) The President will not
submit the Protocol to the U.S. Senate
CoP-4 also saw a significant break-
for approval without the meaningful
through on the issue of developing coun-
participation of key developing countries
try participation in international efforts
in efforts to address climate change.
to address climate change. Argentina
4
The U.S. View
FACT SHEET ON THE KYOTO PROTOCOL
at home, while developing countries will
Protocol identifies various sectors
be able to receive the kind of technology
(including the energy, transport, and
that can allow them to grow more sus-
industry sectors as well as agriculture,
tainably. The CDM will certify and
forestry, and waste management) in
score projects. The CDM can also allow
which national programs should be
developing countries to bring projects
developed to combat climate change.
forward in circumstances where there is
The Protocol also provides for more
no immediate developed country partner.
specific reporting on actions taken.
Under the Clean Development Mechan-
Securing meaningful participation from
ism, companies can choose to make
key developing countries remains a pri-
investments in projects or to buy emis-
ority for the United States. The
sions reductions. In addition, Parties will
Administration has stated that without
ensure that a small portion of proceeds
such participation, it will not submit the
are used to help particularly vulnerable
Kyoto Protocol to the Senate for advice
developing countries, such as island
and consent to ratification.
states, adapt to the environmental conse-
quences of climate change.
Compliance and
Enforcement
Importantly, certified emissions reductions
achieved starting in the year 2000 can
The Protocol contains several provisions
count toward compliance with the first
intended to promote compliance. These
budget period. This means that private
include requirements related to measure-
companies in the developed world will be
ment of greenhouse gases, reporting, and
able to benefit from taking early action.
review of implementation.
The Protocol also contains certain con-
Developing Countries
sequences for failure to meet obligations.
Various Protocol provisions, taken togeth-
For example, a Party that is not in com-
er, represent a down payment on develop-
pliance with its measurement and
ing country participation in efforts to
reporting requirements cannot receive
reduce greenhouse gas emissions.
credit for joint implementation projects.
Developing countries will be engaged
Effective procedures and a mechanism to
through the Clean Development
determine and address noncompliance
Mechanism noted above.
are to be decided at a later meeting. For
both environmental and competitiveness
The Protocol advances the implementa-
reasons, the United States will be work-
tion by all Parties of their commitments
ing on proposals to strengthen the com-
under the 1992 Framework Convention
pliance and enforcement regime under
on Climate Change. For example, the
the Protocol.
3
The U.S. View
INTERNATIONAL EMISSIONS TRADING
T
he Kyoto Protocol combines ambitious environmental targets with innovative
market-based mechanisms to help Parties achieve those targets at the lowest
possible cost. Recognizing that the cost of reducing greenhouse gas emissions is
many times greater in some countries than in others, the Protocol allows each coun-
try with a binding target (an Annex B country) to use "emissions trading" and other
flexibility mechanisms to meet their commitments.
How Emissions
U.S. Experience with
Trading Would Work
Emissions Trading
In an emissions trading system, Annex B
U.S. experience with domestic emissions
countries and their authorized private
trading has been highly successful. The
entities will be able to purchase emis-
acid rain provisions of the U.S. Clean
sions allowances from each other. Each
Air Act allow electric power plants to
Annex B country's binding target deter-
trade sulfur dioxide allowances, resulting
mines how many allowances it has.
in an active private market. Emissions
Countries may buy or sell these emis-
are being cut significantly ahead of
sions allowances at the government-to-
schedule-over the last three years, emis-
government level. Countries may also
sions have been reduced over 30 percent
authorize their legal entities (companies,
more than required-and the cost of
individuals, NGOs, etc.) to buy and sell
emissions reductions has been less than
emissions allowances. If the cost of con-
50 percent of what was expected.
trolling emissions is different in two
countries, both will benefit if the one
facing lower costs sells some of its emis-
Benefits of Trading
sions allowances to the other. The envi-
In order to provide real environmental
ronmental impact of reducing green-
benefits, a trading system must have
house gases will be the same no matter
mechanisms for verification, reporting,
where the reductions take place. Thus,
and accountability that meet high stan-
emissions trading will allow the overall
dards. At the same time, the system
reduction required by the Kyoto targets
must be designed to be as efficient as
to be achieved at a lower total cost, with
possible to result in cost-effective reduc-
both buyers and sellers gaining from the
tions. Greenhouse gas emissions trading
savings allowed by trading.
would bring many benefits. It would:
Promote ratification of and global
compliance with the Protocol by
making reductions less costly;
(over)
The U.S. View
INTERNATIONAL EMISSIONS TRADING
Provide incentives to reduce emis-
Next Steps
sions below target levels;
The rules of an emissions trading sys-
Cut the cost of reducing greenhouse
tem need to be clear and predictable-
gases by allowing the marketplace to
ensuring the integrity of the process
identify the most cost-effective
while avoiding restrictions that would
reductions, thereby making efficient
burden the market or reduce cost sav-
use of scarce global resources; and
ings. To participate in trading, a coun-
try must take on a binding target under
Quicken the pace at which countries
the Protocol and meet the high stan-
address climate change by creating
dards of the emissions trading system.
a market for innovative ways to
The U.S. is working with a number of
reduce emissions cost-effectively and
countries to help establish the necessary
fostering the rapid development and
measurement and reporting capacity.
diffusion of new technologies that
reduce emissions.
2
The U.S. View
THE CLEAN DEVELOPMENT MECHANISM
A
t Kyoto, industrialized and developing nations came together to shape an
innovative, market-based approach to promoting sustainable development and
providing cost-effective reductions of greenhouse gas emissions. The Clean
Development Mechanism (CDM) is a win-win proposition in which industrialized
countries or their companies could earn emissions credits while developing countries
acquire technology and capital and earn emission credits that could be banked or sold.
How CDM Could Work
Encourages Meeting Environ-
A CDM project might work as follows:
mental Goals. The CDM, in com-
a company from an industrialized coun-
bination with emissions trading and
try could help build a highly efficient
joint implementation, will allow
plant in a developing country rather
developed countries to secure the
than a less efficient plant previously
most cost-effective emissions reduc-
planned. This would result in emissions
tions wherever they may be found.
reductions below what would have been
the case without the project investment.
Spurs Technology Investment.
Those reductions would be certified as
The CDM promotes the diffusion
credits, and the developing nation and
of climate-friendly technologies and
investing company would then deter-
creates a worldwide market for them.
mine how to share the credits. The
developing country could acquire tech-
Helps Meet the Costs of Adaptation.
nology and capital investment as well as
Finally, the CDM will aid those
countries that are most vulnerable
a share of credits it could sell or bank.
The company could acquire a share of
to climate change since, under the
credits it could use to meet its emissions
Protocol, a "share of the proceeds"
reduction commitments at home.
from qualifying projects is to be used
to assist those countries in meeting
the costs of adaptation.
Benefits of the CDM
Promotes Sustainable Develop-
Next Steps
ment. The CDM will create an
The U.S. is committed to working with
incentive for environmentally friend-
the international community to develop
ly investment in developing coun-
operational rules on a priority basis,
tries, contributing to economic
especially in view of the Protocol provi-
growth while providing local envi-
sions allowing CDM activities to begin
ronmental and health benefits.
as early as 2000. The Parties need to
work through a number of issues relat-
(over)
The U.S. View
THE CLEAN DEVELOPMENT MECHANISM
ing to how the CDM will function,
The CDM should help ensure com-
including determining roles for base-
pliance with targets and be based on
lines, verification, institutional struc-
principles of efficiency, transparency,
tures, and allocation of project proceeds.
:
and accountability; and,
Work on these issues will continue at the
fifth Conference of the Parties in Bonn
Wherever possible, the CDM should
and should be guided by the following
use existing institutions to streamline
key principles:
the process.
The CDM should assist developing
countries in achieving sustainable
development;
The CDM should be a flexible, mar-
ket-based mechanism that ensures
cost-effective reductions through
public and private sector investment
in clean energy and carbon seques-
tration projects;
2
PRESIDENT CLINTON & VICE PRESIDENT GORE
SPEAK OUT ON CLIMATE CHANGE
"The evidence of global warming grows stronger every day, yet Congress is trying to
strangle common-sense programs that save energy, save consumers money, and
reduce global warming pollution. I urge Congress to work with us, not against us,
to meet the challenges of climate change."
-Vice President Gore, August 2, 1999,
Releasing Declassified Arctic Images to Help Research on Global Warming
"I'm establishing a Cabinet-level council to develop strategic plans to help to bring
bio-based technologies from farms, forests and labs to the marketplace In addi-
tion, I am setting a goal of tripling America's use of bioenergy and bio-based prod-
ucts by 2010. That would generate as much as $20 billion a year in new income
for farmers and rural communities, while reducing greenhouse gas emissions by as
much as 100 million tons a year-the equivalent of taking more than 70 million
cars off the road."
-President Clinton, August 12, 1999, Issuing BioEnergy Executive Order
"One of the big ideas the world has to abandon is the idea that the only way to
build a modern prosperous economy is with the industrial energy use patterns of a
former era. It is not true."
-President Clinton, September 12, 1999, Auckland, New Zealand
"The overwhelming consensus of world scientific opinion is that greenhouse gases
from human activity are raising the Earth's temperature in a rapid and unsustain-
able way. The five warmest years since the 15th century have all been in the 1990s;
1998 was the warmest year ever recorded, eclipsing the record set just the year
before, in 1997. Unless we change course, most scientists believe the seas will rise
so high they will swallow whole islands and coastal areas. Storms, like hurricanes,
and droughts both will intensify. Diseases like malaria will be borne by mosquitoes
to higher and higher altitudes, and across borders, threatening more lives-a phe-
nomenon we already see today in Africa."
-President Clinton, September 15, 1999, Auckland, New Zealand
"All of us, developed and developing countries alike, should take action now to halt
global climate change Does this mean developing countries then must sacrifice
growth to protect the environment? Absolutely not The challenge and opportuni-
ty for developing countries is to skip the cost of the Industrial Age by using tech-
nologies that improve the economy and the environment at the same time."
-President Clinton, September 21, 1999, UN General Assembly
PRESIDENT CLINTON & VICE PRESIDENT GORE
SPEAK OUT ON CLIMATE CHANGE
D
uring 1999, President Clinton and Vice President Gore have spoken out time and
time again on global climate change. A few of their remarks follow:
"Our most fateful new challenge is the threat of global warming. 1998 was the
warmest year ever recorded. Last year's heat waves, floods, and storms are but a hint
of what future generations may endure if we do not act now. Tonight I propose a
new clean air fund to help communities reduce greenhouse and other pollution, and
tax incentives and investments to spur clean energy technology. And I want to work
with members of Congress in both parties to reward companies that take early, vol-
untary action to reduce greenhouse gases."
-President Clinton, January 19,1999, State of the Union Address
"President Clinton and I are proposing significant new investments in fiscal year
2000 to accelerate our aggressive, common-sense efforts to meet the challenge of
global warming. That is why President Clinton and I are proposing a record $4
billion for expanded research and other programs to better understand and protect
our climate, and for tax incentives for consumers and businesses to purchase energy
efficient cars, homes, and appliances."
-Vice President Gore, January 25, 1999, On Climate Change Budget Proposal
"We must do more to meet our most profound, common global environmental
challenge, the challenge of global warming. I have proposed a clean air partnership
fund to help communities reduce both greenhouse pollution and smog, as well as
tax and research incentives to spur clean energy technologies. I want to work with
members of Congress in both parties to reward companies that take early, volun-
tary action to reduce greenhouse gases."
-President Clinton, March 4, 1999, U.S. Interior Department 150th Anniversary
"I am directing all federal departments and agencies to take steps to markedly
improve the energy efficiency of our buildings. With new technologies and con-
tracts with private companies, the Federal government will cut its greenhouse gas
emissions by 30 percent. That is the equivalent of taking 1.7 million cars off the
road. By taking these steps, we will also save the taxpayers over $750 million a year
when they are fully implemented."
-President Clinton, June 3, 1999, Issuing Federal Energy Efficiency Executive Order
"For American families and consumers this legislation will mean lower energy costs
and the potential for new economic opportunities. For our nation, it will mean
more jobs, more innovation, increased competitiveness, and greater energy security.
And for our environment, the gains in energy efficiency will mean better air quality
and fewer emissions of the greenhouse gases contributing to global warming."
-Vice President Gore, June 29, 1999,
On Introduction of Administration's Energy Efficiency Tax Incentives Into Congress
(over)
The U.S. View
U.S. GOVERNMENT ACTIVITIES: TECHNOLOGY
COOPERATION & CLIMATE CHANGE
I
n keeping with its obligations under the United Nations Framework Convention
on Climate Change (UNFCCC), the U.S. Government works through a range of
agencies to implement technology cooperation activities designed to promote the
transfer of climate-friendly technologies to developing and transition countries
worldwide. In the U.S. view, technology cooperation extends beyond the simple sale
or transfer of hardware. Successfully establishing a program of technology transfer
requires the development of in-country enabling conditions and capabilities that
support the sustained flow of technologies and expertise.
Since the private sector is the source of
standing of technology cooperation
most climate-friendly technologies, and
models. The U.S. views the consultative
the vehicle for their transfer, U.S. tech-
process as an important opportunity to
nology cooperation activities directly
establish effective programs that meet
engage the private sector to accelerate
UNFCCC goals.
the development of markets by removing
barriers to investment and facilitating
U.S. Government
the commercial deployment of technolo-
Activities and Projects
gies. Specific activities focus on policy
Public sector programs can be important
reform, institutional strengthening,
vehicles for expanding technology trans-
capacity building, information dissemi-
fer in the area of climate change. In par-
nation, technology assessment, technolo-
ticular, the public sector can play a piv-
gy demonstration and research.
otal role promoting market-based tech-
nology transfer by assisting in the
Background
removal of market barriers and building
Under the UNFCCC, developed coun-
human capacity. In recognition of this,
tries have agreed to assist in transferring
the U.S. Government supports a range of
climate-friendly technologies to develop-
bilateral programs that promote the dif-
ing countries to help them meet their
fusion of climate-friendly technology in
commitments.¹ Technology transfer under
developing and transition countries
the UNFCCC has been defined as both
worldwide. Agencies participating in cli-
"soft" and "hard" aspects of technology
mate technology cooperation activities
transfer, and address both the mitigation
include the U.S. Agency for International
of greenhouse gas emissions, and adapta-
Development, U.S. Department of
tion to the impacts of climate change.2
Energy, U.S. Environmental Protection
Agency U.S. Department of State and
To promote technology cooperation
U.S. Department of Agriculture.
under the Convention, the Parties are
currently engaged in a consultative
The U.S. Government also actively par-
process to develop a common under-
ticipates in multilateral efforts to
The U.S. View
U.S. GOVERNMENT ACTIVITIES:
TECHNOLOGY COOPERATION & CLIMATE CHANGE
strengthen technology cooperation
Public-Private Partnerships. The pri-
under the UNFCCC. The U.S.
mary agent of technology transfer is the
Government plays a lead role in the
private sector. Through its technical
Climate Technology Initiative (CTI), a
capabilities, financial resources, and
multilateral initiative of 23 IEA/OECD
commercial networks, the private sector
countries and the European Commission
provides a worldwide mechanism for
to promote the technology cooperation
technology transfer. Public-private part-
objectives of the UNFCCC. The U.S.
nerships can be important platforms for
Government is also deeply committed to
governments to experiment with various
working to further UNFCCC negotia-
measures and mechanisms for increasing
tions on technology transfer and actively
technology transfer. In addition to the
participates in the consultative process
removal of policy, economic, legal, and
on technology transfer.
Technology Cooperation
Approach and Tools
Agreement Pilot Project
Consistent with the role of the private
sector as the main vehicle for technolo-
Launched in 1997, the Technology
gy transfer, U.S. government-supported
Cooperation Agreement Pilot
technology cooperation programs focus
Project (TCAPP) is an interagency
effort that establishes a model for
on creating conditions for expanding
markets for clean technology (see
implementing technology transfer
under the United Nations Framework
"Technology Cooperation Agreement
Pilot Project"). Technology markets and
Convention on Climate Change
institutional conditions, however, are
(UNFCCC). TCAPP helps develop-
enormously complex and variable from
ing and transition countries attract
country to country. There is no generic
investment in clean energy technolo-
strategy for removing barriers to the dif-
gies that meet their existing develop-
fusion of technology. Rather, measures
ment priorities. Through TCAPP, the
and activities must be customized to
U.S. Government has established
suit the needs and constraints of each
partnerships between governments,
country and in many cases the specific
firms, and the donor community.
technology market within a country.
Participating countries include Brazil,
Among the lessons learned by the U.S.
China, Egypt, Kazakhstan, Korea,
from existing programs are the impor-
Mexico, and the Philippines. TCAPP
tance of engaging in-country stakehold-
is also assisting 14 countries in the
ers, developing public-private partner-
Southern African Development
ships, disseminating information, and
Community with a regional technolo-
ensuring sustainable programs through
gy cooperation needs assessment initi-
capacity building.
ated by the OECD and the Climate
Technology Initiative.
2
The U.S. View
U.S. GOVERNMENT ACTIVITIES:
TECHNOLOGY COOPERATION & CLIMATE CHANGE
technical barriers, governments can help
Information Dissemination. Ready
promote private sector technology trans-
access to accurate technical, com-
fer by sharing information on invest-
mercial, and legal information is
ment opportunities that can lead to
critical to the technology transfer
technology transfer.
process. Specific information needs
depend on the requirements and pri-
Capacity Building. Effective capaci-
orities of each country, and informa-
ty building focuses on strengthening
tion centers play an important role
both human and institutional capac-
in identifying and meeting these
ity through training and technical
needs. U.S. Government programs
assistance. To ensure success, U.S.
work to establish comprehensive and
Government capacity building pro-
effective systems for organizing and
grams are country specific, depend-
coordinating the flow of technology
ing on the priorities and needs of a
transfer information.
particular country. Participants
include members of the regulatory,
Pilot Projects. Establishing new
non-governmental, financial, techni-
markets for technologies can require
cal, business, and NGO communi-
in-country technology demonstra-
ties. Training and assistance activities
tion and verification. U.S. Govern-
are typically linked to technology
ment programs identify and imple-
priorities that have been developed
ment pilot projects for a range of
by in-country stakeholders and show
technology applications worldwide.
commercial promise.
1
Article 4.5 reads in part, "[t]he developed country
Partners shall take all practicable steps to pro-
mote, facilitate and finance as appropriate, the
transfer of, or access to, environmentally sound
technologies to other Parties, particularly develop-
ing country Parties, to enable them to implement
the provisions of the Convention."
2
In a decision adopted under CoP-2 in Geneva, the
Parties defined technology transfer for the purposes
of Convention activities. In particular, the term
"transfer of technology encompasses practices and
processes such as 'soft' technologies, for example,
capacity building, information networks, training
and research, as well as 'hard' technologies, for
example, equipment to control, reduce or prevent
anthropogenic emissions of greenhouse gases in
energy, transport, forestry, agriculture, and industry
sectors, to enhance removals by sinks, and to facili-
tate adaptation."
3
The U.S. View
LAND USE CHANGE ISSUES
Carbon Sequestration
The IPCC Special Report on Land
Carbon sequestration refers to the storage
Use Change Issues. The Parties tasked
of carbon dioxide from the atmosphere
the Intergovernmental Panel on Climate
by soils, trees, crops, and other plants.
Change (IPCC) with conducting a com-
Carbon "sinks" such as farmland,
prehensive study on land-use, land-use
rangeland, and forests can make a great
change, and forestry activities. Authors of
contribution to reducing net greenhouse
the Special Report include international
gas emissions. Conservation activities
technical experts. The Special Report will
such as planting trees on marginal lands,
be released in Spring 2000.
restoring degraded soils, and adopting
best management practices that improve
Workshops on Land Use Change and
water quality, soil quality, and habitat
Forestry. In addition, the Subsidiary
protection, also have the added benefit
Body for Scientific and Technological
of absorbing carbon.
Advice (SBSTA) held two workshops on
land use, land use change and forestry
issues. The first workshop was held in
Carbon Sinks and the
Rome in September 1998 and the second
Kyoto Protocol
was held in Indianapolis, Indiana in
The Kyoto Protocol recognizes that sinks
April 1999. The workshops gave the
must be included as part of an economi-
parties the opportunity to discuss
cally and environmentally sound approach
methodological and technical issues relat-
to climate change-an approach that the
ed to additional sink categories.
United States worked hard to achieve.
Specifically, Article 3.3 of the Protocol
Next Steps
allows certain forestry activities-
afforestation, reforestation, and deforesta-
Following the release of the IPCC Special
tion-to be counted toward a party's
Report next Spring, a workshop will be
reduction commitments. Moreover, Article
held to consider its results and to prepare
3.4 allows the Parties of the Protocol
the way for decisions on sinks at the
to add additional sink activities, such as
Sixth Conference of the Parties to the
those related to agricultural soils.
UNCCC ("CoP-6"). Considering the
complexity associated with these issues,
it is critical that the Parties work together
Progress
to lay out a structure for decision-mak-
In 1998, the Parties agreed to move for-
ing between CoP-5 and CoP-6, discuss
ward with a process to define, measure
the criteria for decision-making, and
and verify various categories of carbon
the role of data and information within
sinks. This process includes:
that framework.
The U.S. View
LAND USE CHANGE ISSUES
The United States seeks a comprehensive
approach to the treatment of sinks that
is both environmentally and scientifically
sound. Activities added to Article 3.4
should be cost effective, quantifiable and
verifiable; cover all relevant sources,
sinks, and reservoirs of greenhouse gases;
promote sustainable management; and
promote sustainable agriculture in light
of climate change considerations. The
United States looks forward to continuing
to engage in a substantive discussion on
these land use change issues at
CoP-5/SBSTA-11.
The U.S. View
COMPLIANCE AND THE KYOTO PROTOCOL
The Kyoto Protocol contains numer-
At CoP-5, the Joint Working Group
ous compliance-related elements,
will continue to address these issues,
such as stringent reporting require-
taking into account the compliance
ments and an expert review process
workshop that was held October 6-7
to assess implementation and identi-
in Vienna.
fy potential cases of non-compliance.
As reflected in its various submis-
The Protocol calls for further elabo-
sions and interventions, the United
ration of the procedure(s) to deter-
States has been a strong proponent
mine and address cases of non-com-
of a compliance system that is trans-
pliance, as well as the consequences
parent, credible, and provides rea-
for non-compliance.
sonable certainty in terms of conse-
quences.
As a result, the Fourth Conference of
the Parties (CoP-4) in Buenos Aires
We have favored a regime that incor-
established a Joint Working Group
porates not only facilitative features
on Compliance, whose tasks are to:
(to help prevent non-compliance),
but also enforcement features to
- Identify compliance-related ele-
address non-compliance with emis-
ments in the Protocol;
sions targets and related obligations
(such as Kyoto mechanisms).
- Follow the development of these
elements in various groups and
In terms of the procedural aspects of
identify gaps in order that they
the regime, we have made proposals
are addressed in the suitable
as to how compliance questions
forum;
should be triggered and considered.
- Develop procedures by which
In terms of consequences for non-
compliance with obligations
compliance, the United States has
should be addressed; and
favored binding consequences for
cases of non-compliance such as
- Ensure coherent approaches to
exceeding emissions targets and mea-
developing a comprehensive
surement/reporting violations.
compliance system.
Binding consequences should be
agreed upon in advance.
Frank E. Loy
Under Secretary of State for Global Affairs
Biography
Frank E. Loy was sworn in as Under Secretary for Global Affairs on November 2, 1998,
replacing Timothy E. Wirth. He was confirmed by the Senate on October 21, 1998.
Mr. Loy has had multiple careers: He has served the federal government three times,
twice in the Department of State; has served as a senior business executive; has led an
American foundation; practiced law in Los Angeles; and been active in numerous not-
for-profit organizations.
From 1980 to 1981 he served as the Director of the State Department's Bureau of
Refugee Programs, with the personal rank of Ambassador. From 1965-1970 he served as
Deputy Assistant Secretary of State for Economic Affairs. In that role he negotiated
numerous international bilateral air transport agreements, represented the U.S. at
meetings of international organizations such as ICAO and IMCO, and was vice-chair of
the U.S. delegation to the multinational negotiations that successfully created the present
structure of INTELSAT, the organization that operates the space segments of the
international communications network. Earlier he had served as Special Assistant to the
Administrator of the Federal Aviation Agency and as Director of that agency's Office of
Policy Development.
He previously served as co-chair -- with Robert Shapiro, CEO of Monsanto Corporation -
- of the Trade and Environment Policy Advisory Committee to the US Special Trade
Representative, Ambassador Charlene Barshevsky. In the fall of 1996, Mr. Loy was
Visiting Lecturer at the Yale Law School, teaching a course in international
environmental law and policy. He served in 1994 as Chair of the Conference of Parties of
the Convention on International Trade in Endangered Species (CITIES), in which over
1,000 delegates from more than 120 countries and over 500 observers participated.
From 1981 to 1995 Mr. Loy was president of the German Marshall fund of the U.S., an
independent American grant making institution with an annual budget of over $10
million and a capital fund of about $200 million. It is the only American foundation
concentrating exclusively on issues affecting both Europe and the U.S., particularly in the
fields of economics, politics and the environment. The Fund is also the managing partner
of a consortium of American, European and Japanese foundations engaged in
environmental grant making in Central Europe.
Mr. Loy served as Senior Vice President for International and Regulatory Affairs of Pan
American World Airways during the period 1970-1973.
He spent the years 1974 to 1979 in the successful effort to bring the Penn Central
Transportation Company out of bankruptcy. He served under contract, as president of the
subsidiary that operated all the non-railroad businesses of the bankrupt company,
including, among others, an oil pipeline, and oil refinery, the operator of the Six Flags
theme parks, Arvida, the Florida land development company and hotel operator, and the
Roosevelt, Biltmore and Barclay (now Intercontinental) hotels in New York City. When
the bankruptcy terminated he became the President of the successor company, the Penn
Central Corporation, listed on the New York Stock Exchange.
Since the last period of government service in 1981, Mr. Loy has served or chaired
numerous board of directors of non-profit organizations, particularly in environment and
fostering democracy in Eastern and Central Europe. These include: the Environmental
Defense Fund, on whose board he has served since 1981 -- he was chair from 1983-1990
--; the Budapest-based Regional Environmental Center for Central and Eastern Europe,
where he served from the time of his appointment in 1990 by the Bush administration
until 1997; the league of Conservation Voters, the bi-partisan political arm of the
environmental community; the Institute for International Economics, which he helped
found in 1981; and the Foundation for a Civil Society -- where he currently serves as
chair, which for the past 7 years has conducted programs promoting democratic
institutions and Central and Eastern Europe, particularly the Czech and Slovak republics.
Educated in Germany, Italy and Switzerland in his early years, Mr. Loy went to public
schools in Los Angeles from the age of 10. He earned a B.A. degree at the University of
California at Los Angeles and an LL.B. at Harvard Law School. He lives in Washington
with his wife, Dale Haven Loy, a painter, and is the father of two children, Lisel and Eric.
Released by the Office of the Under Secretary for Global Affairs on November 2, 1998
[End of Document]
I Biographies of Principal Officers I Department of State I
This is an official U.S. Government sourcefor information on the WWW.
Inclusion of non-U.S. Government linksdoes not imply endorsement of contents.
THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
June 7, 1999
PRESIDENT CLINTON NAMES ROGER BALLENTINE
AS DEPUTY ASSISTANT TO THE PRESIDENT
FOR ENVIRONMENTAL INITIATIVES
The President has named Roger Ballentine as Deputy Assistant to the President for
Environmental Initiatives. He will coordinate with the Administration's effort on climate
change, and on the President's Lands Legacy Initiative, working closely with George Frampton,
Acting Chairman of the Council on Environmental Quality.
Mr. Ballentine, of Connecticut, has been serving as Special Assistant to the President for
Legislative Affairs. He was previously a partner at the Washington law firm of Patton, Boggs
L.L.P. prior to coming to the White House. He has also been Adjunct Professor of Law at the
Georgetown University Law Center, and he served as Special Counsel to the Minorityin the
House of Representatives for the handling of election challenges.
Mr. Ballentine is a graduate of the University of Connecticut and Harvard Law School.
###
DAVID B. SANDALOW
David Sandalow is President Clinton's nominee to serve as Assistant Secretary of State for
Oceans, Environment and Science.
Mr. Sandalow currently serves as Associate Director for the Global Environment, White House
Council on Environmental Quality, and Senior Director for Environmental Affairs, National
Security Council. In these positions, he helps advise the President and Vice President on a broad
range of international environment issues. Issues in his portfolio include climate change, ozone
depletion, biodiversity, biosafety, oceans, trade and environment, forests, chemicals, regional
environmental issues and U.S. policy toward the multilateral development banks.
Mr. Sandalow has served as a member of the Standing Committee on Environmental Law of the
American Bar Association and Steering Committee of the D.C. Bar's Committee on
Environmental and Natural Resources Law. He is a past co-chair of the American Bar
Association's Annual Conference on Environmental Law.
Prior to coming to the White House, Mr. Sandalow was with the Office of General Counsel at
EPA and in the private practice of law. Mr. Sandalow also served as Special Assistant to the
Director of the Michigan Department of Commerce.
Mr. Sandalow is a graduate of the University of Michigan Law School (J.D. 1982) and Yale
College (B.A. Philosophy 1978).
Mark G. Hambley
U.S. Special Negotiator on Climate Change
and Alternate Head of the U.S. Delegation, COP-5
Mark G. Hambley has led the U.S. negotiating team at numerous climate change
conferences which have been held since the start of the Berlin Mandate talks in
August 1995 under the auspices of the UN Framework Convention on Climate
Change (UNFCCC). He will serve as Alternate Head of the U.S. Delegation of the
Fifth Conference of the Parties (COP-5) in Bonn, Germany. Under Secretary of
State Frank E. Loy will head the U.S. Delegation during the High Level Segment of
COP-5, November 2-4.
Ambassador Hambley served as Alternate Head of Delegation at the Third
Conference of the Parties in December 1997, the negotiating session that
culminated with the Kyoto Protocol, and at the Fourth Conference at Buenos Aires in
November 1998. Under Secretary of State Stuart Eizenstat was Head of the U.S.
Delegation at COP-3 and COP-4.
In between these conferences, Ambassador Hambley heads the interagency working
group on climate change and leads the U.S. delegations to the annual meetings of
the subsidiary bodies of the climate change convention. His duties have entailed
extensive travel throughout Europe, Africa, Asia, and Latin America, where he has
engaged governments and local business and environmental leaders on aspects of
U.S. climate change policy. He has also been a frequent participant at numerous
international and domestic workshops and panels on this topic.
Since joining the U.S. Department of State in 1971, Ambassador Hambley has had
fifteen postings in eleven countries, including appointments as U.S. Consul General
in Alexandria, Egypt, and in Jeddah, Saudi Arabia. He served as the U.S.
Ambassador in Qatar during the Gulf War and later as Ambassador to Lebanon.
Since February 1995, he has been the U.S. Special Representative to the UN
Commission on Sustainable Development. Ambassador Hambley has been a
member of the Senior Foreign Service since 1989 and has received several
governmental and civic accolades, including the Director General's Reporting Award,
Departmental superior and meritorious honor awards, and the U.S. Navy's Superior
Public Service Medal. He is a Fellow of the Royal Geographical Society and a life-
time member of the National Geographic Society.
A native of the State of Idaho, Ambassador Hambley was educated in Ontario and
Illinois and at American University, the American University of Beirut, UCLA, and at
Columbia. His languages are French and Arabic.
JEFFERSON B. SEABRIGHT is Executive Director of the White House Task Force on
Climate Change, which coordinates Administration policy, outreach and communications on
global climate change issues. Prior to joining the Task Force, Mr. Seabright served as Director
of the Office of Energy, Environment, and Technology for the U.S. Agency for International
Development where he managed energy and environmental technology programs in over 20
developing countries. Prior to this position, Mr. Seabright was Special Assistant to the
Administrator of USAID. He spend eight years on Capitol Hill as Legislative Assistant to
Senator John D. Rockefeller IV and Senator Timothy E. Wirth, where he was responsible for
environmental, trade, development, and foreign policy issues. He also worked as a Foreign
Service Office for the U.S. Department of State and as an analyst for the firm of Booz, Allen &
Hamilton. Mr. Seabright is a graduate of Oberlin College and holds a Master's Degree from the
London School of Economics.
BIO FOR DAVID GARDINER
David Gardiner is currently Deputy Chairman of the White House Climate Change Task Force.
In that capacity, he provides the Task Force with strategic and policy advice on domestic and
international climate change issues. In June, 1993, President Clinton appointed Mr. Gardiner as
Assistant Administrator for Policy at the Environmental Protection Agency, and he served in that
position until July, 1999. As Assistant Administrator, he led EPA's climate change efforts, as
well as programs to reinvent EPA's approaches to key sectors, such as transportation,
agriculture, metal finishing, and real estate development. In addition, Mr. Gardiner managed the
Agency's environmental economics work, and developed its new Center for Environmental
Information and Statistics. Prior to joining EPA, he was the Sierra Club's Legislative Director
in Washington, DC, overseeing their efforts on clean air, climate change, land protection, and
international issues.
Mr. Gardiner has a Bachelor of Arts with honors from Harvard College. He lives in Arlington,
VA, with his wife, Betsy, and their three daughters.
FIFTH SESSION
OF THE CONFERENCE
OF THE
PARTIES (COP-5)
UNITED NATIONS FRAMEWORK
CONVENTION ON
CLIMATE CHANGE
BONN, GERMANY
OCTOBER 25- NOVEMBER 5,1999
PHOTOCOPY
PRESERVATION
UNITED STATES DEPARTMENT OF STATE
www.usia.gov/topical/global/environ