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09. What is the actual reduction in emissions within the borders of the United States

would have to be to meet the U.S. obligation as outlined in the treaty and what data

uncertainties still exist with respect to calculating this number? A9. It is impossible to state what percentage of reductions will be required or met within the

United States. The inclusion of emissions trading, joint implementation, and the Clean Development Mechanism in the Protocol allows U.S. companies to seek out the lowest cost reductions regardless of their location. Enactment of the President's recent budget and tax proposals will also provide a significant down payment on eventual U.S. obligations, and could further lower reduction requirements.

Q10. Article 6.1(d) of the Kyoto Protocol states that "The acquisition of emission

reduction units shall be supplemental to domestic actions for the purposed of
meeting the commitments under Article 3 (of the Protocol)”
Q10.1 What does this mean?
A10.1 The term supplemental is not defined in the Protocol. We have interpreted it to

mean that reductions from trading can be added to those from domestic actions in
meeting the Protocol's commitments.

Q10.2 Since Russia and the Ukraine will be substantially below their emission

targets in the Protocol, they can sell large amounts of emissions credits. Why should the American public be willing to underwrite the transfer of what could be billions of dollars to those nations so the United States could reach its emissions reduction targets?

A10.2 Nobody in the United States is in any way required to buy CO2 reductions from

Russia or anywhere else. The market-based mechanisms provided in the Protocol are purely voluntary and available as a means of reducing costs consistent with the targets set by the Protocol.

Q10.3 What is the Administration assuming about the proportion of our reductions

that can be met through these means, and what is the limit acceptable within

the terms of the Protocol? A10.3 We have not made any assumption about the proportion of reductions that will be

met through emissions trading. The Protocol does not set any limits on this aspect of achieving reductions.

International Emissions Trading and the Costs of Kyoto Protocol Compliance
Q11. On page 4 of your written testimony, you state:

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Carollyne Hutter
Acting Publications Director

Hyacinth Billings
Production Manager

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Copyright © 1997 World Resources Institute. All rights reserved.

ISBN 1-56973-222-1
Library of Congress Catalog Card No. 97-60932
Printed in the United States of America on Recycled Paper.

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