Note: Greenhouse Gases (GHG) include Carbon Dioxide, Methane, Cholorofluorocarbons (CFC-11,12) and Nitrous Oxide Source: National Academy of Sciences, 1991 and U.S. Department of Energy, 1990 position of the U.S. in the INC negotiations, which is based on: 1) a comprehensive approach to addressing all greenhouse gases and their net emissions, taking into account all sources and sinks; and 2) flexible responses on a country-by-country basis. We do not believe that setting specific targets and timetables that specify emissions reductions or caps for a specific greenhouse gas from a specific industry would be appropriate policy. In addition, U.S. industry firmly believes that a crucial element not only of any international agreement on global climate change, but also of this country's response to the issue, must be technology cooperation in the international community. The Global Climate Coalition has long supported a Technology Cooperation Corps initiative. This program holds the potential for significant environmental benefits due to U.S. industry involvement in the efforts of developing countries to constrain the growth of their greenhouse gas emissions. The U.S. NAP (at 112) briefly mentions this program. Many observers have noted that research and development and investment that capitalizes on the use of more efficient technologies to reduce greenhouse gas emissions in developing countries could be more cost effective than some efficiency improvements in the U.S.22 For example, it has been estimated that if even half of the world's expected expansion in coal utilization for power generation used U.S.-manufactured equipment, the market would be about $35 billion annually by the year 2010. cooperation in the international community must be a key element of our national response to the global climate change issue. Technology Finally, impacts on international competitiveness must be considered by the government in any debate on national policy options. See Figure 2, which presents the results of a scenario in which there is a 20 percent reduction in 1990 carbon emissions for the Organization for Economic Cooperation and Development (OECD), CIS and Eastern Europe, with China and other emerging economies allowed to double their 1990 emissions. Under this scenario, the impact on China, CIS and the rest of the emerging economies would clearly exceed the ability of these fragile economies to cope with international carbon reductions or constraints. Losses in China alone would exceed 10 percent of its annual Gross Domestic Product (GDP) by the latter half of the 21st century. Moreover, note the impact of the carbon constraints on the U.S. vis-a-vis our trading partners in the OECD. The impacts on the U.S. are both faster 22 O. Yu and E. Kinderman, "Capital Requirements, Energy Cost Savings and Global CO2 Emission Reduction" (unpublished) (1991), cited in Electric Power Research Institute, "Global Climate Change Current Issues" 23, 27 (Aug. 1, 1991). than, and overall about twice as substantial as, the effects on OECD nations. Impacts of the U.S. National Action Plan on Economic The U.S. NAP has appropriately focused its attention on the policies and measures already underway in the U.S. to reduce greenhouse gas emissions by the year 2000. The reductions that will result from implementation of the Energy Policy Act of 1992 and the Clean Air Act Amendments of 1990, as well as voluntary actions and other measures based on market conditions, should lead to economic efficiency and lower levels of emissions. What the national action plan does not include is a detailed evaluation of the costs of these policies and measures and their impacts on the economy against the base case. Just as importantly, the U.S. NAP does not compare these costs and economic impacts to ones in other scenarios. Such analyses are important to the American public for two reasons. First, it is important to demonstrate the significant difference in economic costs to society for many of the reduction actions associated with targets and timetables, as compared to the U.S. NAP. The actions already set in motion in the national action |