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United States is for the most part sensitive, but not vulnerable, to the impacts of climate change. This implics that adaptation is a concern in the United States climate change strategy. In an assessment of 11 sectors with regard to the sensitivity and adaptability of both human activities and natural resources, two (industry and health) were identified as less sensitive (even though health was reconsidered recently), seven sensitive and two problematic.

70. While the United States is a world leader in adaptation research, few studies have attempted to compare the costs of adaptation strategies with the cost of greenhouse gas mitigation strategies because it is difficult to assess adaptation costs accurately when the regional impacts of climate change are highly uncertain. Consequently, priorities have been given to shorter term strategics.

71. At this time, the United States Coastal Zone Management Act is the only plece of federal legislation that specifically includes provisions to facilitate climate change adaptation. Nonetheless, the potential impacts of climate change are being considered in a number of other areas. For example, hydroelectric planners must now take into account the potential impact of climate change on future water levels. There are proposals for changes in the Clean Water Act to improve water use efficiency, and initiatives to accommodate environmental changes in the agricultural sector.

72.

VI. FINANCIAL ASSISTANCE AND TECHNOLOGY TRANSFER

The United States did not directly fund the pilot phase of the Global Environment Facility (GEF) but it did provide parallel financing. After the restructuring of the GEF, the United States pledged $430 million to its first official phase. United States official development assistance represented 0.15 per cent of its GDP in 1993 according to OECD statistics.

73. The team considers that the national communication went well beyond the reporting guidelines in this area and found the detailed description of bilateral United States programmes that are helping to reduce greenhouse gas emissions in developing countries particularly informative and useful.

14. The team was particularly impressed with the United States Country Studies Program. This bilateral initiative assists developing countries and countries with economies in transition in the development of greenhouse gas inventories, the preparation of greenhouse gas emission projections, and the identification of actions to reduce greenhouse gas emissions or enhance sinks. Fifty-six countrics are now involved in the Programme and the carliest initiatives will reach completion in 1996.

75. The United States has clearly made climate change considerations an important component of its international assistance programmes and funding for initiatives related to climate change mitigation has increased in recent years. For 1995, the United States Agency for International Development is seeking $660 million for its energy and environment programmes,

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$280 million of which is related to climate change. The United States is also encouraging multilateral lending institutions to incorporate the same concerns into their lending practices.

76. The team noted, however, that it is not at all clear whether the United States Congress will provide the funding required to allow the United States to maintain its current level of official development assistance and mect its financial commitments to multilateral institutions associated with the climate change issue.

Joint implementation —Activities implemented jointly under the pilot phase)

77.

Since the national communication was released, the United States Initiative on Joint Implementation (USDT) selected its first seven private sector joint implementation projects from 30 applications. A second round of project applications was due to close in July 1995, with more projects being approved in November December 1995. It is not yet clear how the United States private sector will respond to the second call for projects after the Conference of the Parties at its first session decision on activities implemented jointly under the pilot phase.

78.

While the United States has not taken the effects of any joint implementation initiatives inte-account-in connection with its UNFEEC commitments, it The United States has established a mechanism to monitor and record the greenhouse gas emission reductions achieved through joint implementation. The team noted that the time required to implement these projects means that it is likely that most USUI projects will not reduce greenhouse gas emissions until 1997 or 1998 and will not have anywhere near their full impact on such emissions before the year 2000.

79.

VII. RESEARCH AND SYSTEMATIC OBSERVATION

The United States provided a detailed overview of its support for basic and applied research on climate change in its national communication and the team considers that the United States respected the reporting guidelines in this area.

80.

The United States is clearly a major contributor to international efforts on basic climate change science and applied technological research and development. Significant resources are being put into diese efforts. The United States government is providing $1.8 billion a year for basic climate research and $2 billion a year for applied research. It should be noted that while the United States Government accounts for 80 per cent of basic research on the climate change issuc, 75 per cent of the applied research is done in the private sector.

81. The United States overnment's role in short-term applied research is likely to decline in the future as there is a growing sentiment within the United States Congress that such research should he left to private industry. Funding for more basic research related to climate change may also be cut.

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82.

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EDUCATION, TRAINING AND PUBLIC AWARENESS

State and local governments are responsible for most formal education programmes in the United States. Nonetheless, the national communication describes several programmes that the federal Government is implementing to increase public awareness and provide education about the climate change issue and the team felt that the national communication did respect the reporting guidelines in this area.

83.

Many of the educational programmes described in the national communication are closely linkod with scientific research programmes on climate change. This linkage has been developed out of necessity. While the United States Government can produce and distribute selentifie information that can be used by adveentes, The United States government produces and distributes scientific and technical information that can be used in the public sector, although it is prohibited by law fro acting as an advocate for a particular goal. United States law does not permit the Government to be a public advocate on the climate change issuc. The team noted that this situation does not prevail in all OECD countrics.

84. During its visit the team was told that one of the major educational initiatives described in the national communication, the GLOBE programme (Global Learning and Observations to Benefit the Environment), was likely to have its funding significantly cut back by the United States Congress.

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