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any of you aware of efforts to track and assess the investments made by foreign firms in the United States to reduce greenhouse emissions?

Mr. SUSSMAN. I can't say that I am.

Mr. WIRTH. The Japanese have been deeply involved in energy technologies, as you know, around the world. There is a recent report out from Japan I believe called "New Earth 21," which focuses on the 21st Century, and in that the Japanese have indicated that they believe that energy and environmental technologies will be for the Japanese in the 21st Century much of what consumer electronics and automobiles were for them in the 20th Century, signaling a very, very aggressive activity on their part.

I can't answer specifically questions on the question that you have raised. We can look for that. I have seen various figures and various anecdotal information about the U.S. loss of the market in our own backyard and U.S. loss of the market around the world. It is something to which I think we ought to pay a great deal more attention as a country than we have in the past, and this administration is committed to doing that.

Mr. CRAPO. Thank you very much.

Ms. TIERNEY. Congressman, could I follow up, to understand the question you are asking, so that when we are following through, we know what we are answering. Are we answering what is going on with regard to the Japanese or other foreign companies' investment in development of environmental or efficiency technologies here, or their investments which lead to emission reductions within the boundaries of the United States?

Mr. CRAPO. I guess I was not focusing on it. As I look at it, I would be interested in the answer to both questions. I am interested particularly in investments made in the United States to reduce emissions. But if it is an investment outside the United States that reduces an emission within the boundaries of the United States, I think that would be of interest, as well.

Thank you, Mr. Chairman.

Mr. SHARP. I thank the gentleman.

[The information follows:]

I am not aware of any reliable way to track the effect of foreign investments on emissions of pollutants within U.S. border unless the foreign companies are willing to provide the data. We have contacted the U.S. Department of Commerce in preparing a response to your inquiry. The Bureau of Economic Analysis of the Department of Commerce maintains a data series on investments in the United States for pollution abatement and control, but the series does not include whether the investment was made by a domestic or foreign company. The Bureau also collects data on foreign investment in the United States, but that series does not include the purpose of the investment. There are also no data series on foreign investment outside the United States that might reduce greenhouse gas emissions within U.S. borders.

Mr. SHARP. In August, we have another international meeting to follow through on the Rio treaty. What is your understanding of where some of these other countries are in terms of their signing onto the treaty? In both Europe and Japan, what are we hearing? Mr. WIRTH. 160 countries have signed the treaty, and I believe 25 or so have ratified the treaty, and we are 1 of the 25. The first step that we are taking is the encouragement of others to ratify this treaty and to move along with the momentum that came out of UNCED in the summer of 1992.

Second, I think it is probably fair to say that the United States has been in the lead in terms of very specifically identifying what we believe the target is and how we believe we are going to meet our share of that target. There has been a good deal of discussion in the developed world, in particular, about this, and I think the European Community is now looking at a very significant energy program there to meet their part of the goal.

I think that has waited for determinations as to what is going to happen to the European Economic Community and whether that was going to come together or not. Now it looks as if that is coming together and I think taking the next step from that will reflect on the goals met at Rio.

The Japanese are in the same situation. They have been very aggressive in terms of marketing technologies and looking at performance in their own backyard. But I think it is probably fair to say that right now the United States has done specifically more in terms of actually measuring and achieving the goal of stabilization at the 1990 level by the year 2000.

Again, going back to the questions that Congressman Synar was asking while you were over voting, are we going to be able to lead, yes, we can, if we lead by example. It is enormously important that we do point out that in our own backyard we can reach that goal, that we are committed to doing so, and that gives us the suasion and the position to aggressively work with other countries to help persuade them that, in effect, the goals of Rio should not be just rhetoric, but which have to become a reality.

Ms. TIERNEY. Could I add to that?

Mr. SHARP. Yes.

Ms. TIERNEY. Next week, Secretary O'Leary will be meeting with the energy ministers from the International Energy Agency countries and non-member countries who will be attending that meeting as well. She plans to take up this particular issue and the importance to the United States of parallel action in other countries.

We would be happy to report back what we learn from that. I don't know that it will be any different from what the counselor just described, but Secretary O'Leary intends to use our leadership position to try to persuade others to continue on their own commitments.

Mr. SHARP. Well, I think it is very important. Last year and the year before, the Europeans and, perhaps to a lesser extent, the Japanese, were quite critical of the United States, suggesting that we were the ones that wouldn't do anything and they were so eager, and there may be reasons why they haven't ratified yet, because of the Maastrict Treaty and others. But it seems to me that they may need some reminding from the United States that they, too, have to live up to their rhetoric like we all have to at some point or die by our rhetoric.

To be frank about it, while I think we can be an example and demonstrate that, I think examples work wonderfully in families for raising children, but in international politics, while I find that is useful, sometimes it takes something stronger than example, that lots of people are quite willing for you to be the example, if it costs you, but if it costs them anything, they somehow find a way to worm out of it.

Not that that doesn't happen to our domestic politics, either. That is what is going on in this budget agreement right now. I mean who wants to take responsibility, for God's sake? After all, the public might expect that.

But I think it is a push-pull kind of thing in which sometimes they will be pushing us, sometimes we will be pushing them, but we have to continually remind them. It seems to me at this point, we have a leg up and we are in a position to remind them of what their responsibilities are.

[The following cable was received for the record:]

The following excerpts on the issue of global climate change were extracted from a cable summarizing the June 4, 1993 International Energy Agency ministers meeting in Paris.

SUMMARY

JTH AGREE TC
EA MINISTERS MEETING JUNE
PURSUE STRENGTHENED ACTIVITIES ON REDUCING ENERGY
RELATED CO2 EMISSIONS INCLUDING ENERGY EFFICIENCY AND
RUSSIAN ENERGY THE P COMMUNICLE CONTAINED THE FIRST
~SHAREC
FORMAL STATEMENT OF THE TE MEMBER COUNTRIES
GOALS CF ENERGY POLICY SINCE THE 1977 ADOPTION OF IEA
PRINCIPLES" THE MARKET-ORIENTED SHARED GOALS STATEMENT
ECT SUNS LE CURRENT POLICY AND PROVIDES GUIDANCE C
SECRETARY OF ENERGY

CHER COUNTRIES OF THE WORLD

CLEARY EXPLAINED HOW THE CLINTON ADMINISTRATION S NEW
ENERGY PRIORITIES REINE OF CE CURRENT IEA ACTIVITIES ON
RUSSIA AND THE ENVIRONMEN
DETAILS OF DISCUSSION ARE
BEING REPORTED SEPTEL
OF MINISTERIA

TEXT

COMMUNIQUE

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2

SHARED GOALS

THE MEMBER COUNTRIES ESTABLISHED THE IEA IN 1974
AS A FORUM IN WHICH TO CO-OPERATE IN ENHANCING THEIR
COLLECTIVE ENERGY SECURITY
IN THE
THE CHALLENGES FACED
ENERGY SECTOR HAVE EVOLVED OVER THE PAST TWO DECADES.
HE GOAL OF ENERGY SECURITY WHICH REMAINS A PRIMARY
ONE AS BEEN COMPLEMENTED IN RECENT YEARS BY INCREASING
AWARENESS OF THE SIGNIFICANCE. FOR ENERGY POLICY AND FOR
CONCERN OVER
ENERGY SECURITY. OF TWO FURTHER FACTORS:
--E ENVIRONMENTAL IMPACT OF ENERGY-RELATED ACTIVITIES.
THE GROWING GLOBALISATION OF ENERGY ISSUES.
CIFFERENT COUNTRIES
ANC ENERGY MARKETS BECOME
INCREASINGLY INTERDEPENDENT

3

ANC

ECONOMIES

IN THE -:GH OF THESE DEVELOPMENTS AND EXPECTED TRENDS IN ENERGY DEMAND AND SUPPLY MINISTERS BELIEVES APPROPRIATE

AS

IN VIEW OF
IEA

AND TMELY TO ISSUE
A BASIS FOR
THE
IN THIS REGARD.

SECURITY ANC

SEMENT OF THE SHARED GOALS THAT PROVIDE
DEVELOPING THEIR ENERGY POL:C:ES
EXISTENCE OF FREE ANC OPEN MARKETS :S A FUNDAMENTAL
POINT OF DEPARTURE CONS:STENT WITH ENERGY
ENVIRONMENTAL PROTECT: ON WHICH NEED TO BE GIVEN
PARTICULAR EMF-AS:S BY GOVERNMENTS.
ACHIEVING THE SHARED GOALE MAY VARY ACCORDING TC
NE: DUAL COUNTRIES

CIRCUMSTANCES

THE MEANS OF

AND EACH EA

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COUNTRY WILL -AVE TO DECIDE FOR SELF THE BEST OVERALL
BALANCE AMONG THE VARIOLS GOALS
G-CEA ECONOMIC DEVELOPMENT ENERGY SECURITY AND
ENVIRONMENTAL PROTECTION WIL:

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THE ADOPTION OF A
TO ENERGY AND ENVIRONMENT ISSUES
AND ENVIRONMENT POLICIES
EA MEMBER COUNTRIES

NATIONAL AND GLOBAL SOLUTIONS TO REDUCE POLLUTANTS AND

GREENHOUSE GAS EMISSIONS HAVE

:MPLICATIONS FOR ENERGY

SECURITY ENERGY TRADE ECONOMIC GROWT
RELATIONS W: NON-MEMBER COUNTRIES.

AND IEA

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THAT

THE GLOBAL CLIMATE HOW TO MEET THE CHALLENGE CHANGE SSUE POSES FOR ENERGY POLICY MAKERS IS THE FOCUS DESPITE THE POLICY OF CONTINUING INTERNATIONAL DEBATE. MES RES TAKEN TO DATE WITHOUT THE RAPID ESTABLISHMENT AND IMPLEMENTATION OF FURTHER EFFECTIVE POLICIES AND PROGRAMME E PEDUCE EMISSIONS DE CO CO2 EMISSIONS COULD ACCORDING TO THE ROSE BY 15 PER CENT BY THE YEAR 2002. WORLD ENERGY OUTLOO MINISTERS CONCERNED ABOUT THIS PROSPECT RANGE OF C:SCUSSED THE POSSIBLE AREAS FOR THAT THE AGREE GREATER ACTION AND POLICY INSTRUMENTS EFFORTS NE CESSARY TO THE EXTENT

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-HLT
ARE RECUIRES AND
PRACTICAELE THE EXTERNAL COSTS OF ENERGY PRODUCTION
MINISTERS JRGE
SHOULD BE REFLECTED IN PRICES

AND SE

RAPID RATIFICATION OF HE FRAME WORK CONVENTION ON
CLIMATE CHANGE TY ALL SIGNATORY COUNTRIES AND REQUEST
THE IEA TO AUGMENT S CONTRIBUTION TO THE

MCE MENTATION OF THE CONVENTION

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EFFICIENCY IN ENERGY PRODUCTION AND USE. INCLUDING THE
TRANSPORTATION SECTOR CAN HELP REDUCE EMISSIONS AND
PROMOTE ENERGY SECURITY WHILE THERE IS A LARGE

TEC-NICAL POTENTIAL FOR INCREASED ENERGY EFFICIENCY,
THERE EXIST SIGNIFICANT SOCIAL AND ECONOMIC BARRIERS C
ITS ACHIEVEMENT PRIOR: SHOULD BE GIVEN TO MARKET
FORCES IN EFFECTING EFFICIENCY GAINS. HOWEVER, RELIANCE
ON MARKET FORCES ALONE IS UNLIKELY TO OVERCOME THESE
BARRIERS MINISTERS AGREE THAT INNOVATIVE AND BOLD
APPRCACHES ARE REQUIRED BY GOVERNMENTS. IN COOPERATION
WITH INDUSTRY TO REALISE THE OPPORTUNITIES FOR ENERGY
EFFICIENCY MPROVEMENTS AND TO ACCELERATE THE
DEF CYMENT OF NEW AND MORE EFFICIENT TECHNOLOGIES.

: Е

NON-FOSSIL FUELS

SINCE THE AMOUNT OF ENERGY

NON-HYDRO-BASED RENEWABLE ENERGY TECHNOLOGIES CONTRIBUTE IS QUITE SMAL COMPARED TO THE TECHNICAL POTENTIAL INCREASED GOVERNMENT SUPPORT OF RENEWABLE -NOLOGIES IS WARRANTED REGARDING NUCLEAR POWER NUMBER OF TEA COUNTRIES ARE OF THE VIEW THAT THE USE OF NUCLEAR ENERGY BECAUSE : EMITE NO SULPHUR C:OXIDE NITROGEN CXICES OR GREENHOUSE GASES PROVIDES AN IMPORTANT RESPONSE TO THE CHALLENGE OF STABILISING GREEN-OUSE GAS EMISSIONS L NUMBER OF OTHER IEA COUNTRIES ARE OF THE OPINION THE THOSE ADVANTAGES NC- OFFSET -E ENVIRONMENTAL CONCERNS OVER HE USE NUCLEAR ENERGY AND AVE DECIDED NOT TO UTILISE NUCLEAR POWER

CO

OF

19

PROBLEMS

TECHNOLOGY THE DEVELOPMENT AND ADOPTION OF :MPROVED TECHNOLOGIES CAN SIGNIFICANTLY REDUCE AND INF.LENCE THE NATURE OF FUTURE ENERGY REQUIREMENTS TECHNOLOGY PROMOTION BY GOVERNMENT CAN CONTRIBUTE SIGNIFICANTLY TO MITIGATING AND SOLVING ENVIRONMENTAL INTENSIFIED ENERGY TECHNOLOGY CO-OPERATION A MONG EA ME MEER COUNTRIES AND WITH NON-MEMBER COUNTRIES S AN INDISPENSIBLE MEANS TO ACCELERATE TECHNOLOGY ADVANCES AND TO ENHANCE LONG-TERM ENERGY SECURITY AND ENVIRONMENTAL PROTECTION MINISTERS ACKNOWLEDGE THE NEED TO FURTHER INTEGRATE ENVIRONMENTAL OBJECTIVES INTO NATION. ENERGY FESE ARC- DEVELOPMENT AND DEMONSTRATION PROGRAMME S AND TO PROMOTE INTERNATIONAL EC-NOLOGY COLLABORATION AND CO-ORDINATION AIMING AT SUSTAINABLE DEVELOPMENT AND FULLY RESPECTING

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INTELLECTUAL PROPERTY RIGHTS

IN THIS RESPECT.

THE

MINISTERS TOOK NOTE OF THE RECENT ESTABLISHMENT OF
CEA INTERNATIONA CENTRE FOR GAS TECHNOLOGY

THE

OF

PC.

CEMAT: ON MINISTERS AS, THE EA TO ANALYSE: THAT INFENCE NEW TECHNOLOGY DIFFUSION INTO THE MARIE 3 IDENTIFYING BARRIERS AND ASSESSING POLICY THE ROLE INTERNATIONAL TECHNOLOGY CC-OPERATION AE IN MEETING-E OBJECTIVES OF THE CONVENTION ON CLIMATE CHANGE AND THE EFFECT ENVIRONMENTAL AND OTHER GOVERNMENT POLICIES HAVE ON THE PENETRATION OF NE W MORE ENVIRONMENTALLY BENIGN TEC-NOLOGIES

CELME WORK

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