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HOW TO MEET THE CHALLENGE THAT THE GLOBAL CLIMATE CHANGE :SSUE POSES FOR ENERGY POLICY MAKERS IS THE FOCUS

OF

CONTINUING INTERNATIONAL DEBATE DESPITE THE POL: CY MES RES TAKEN TO DATE WITHOUT THE RAPID ESTABLISHMENT AND IMPLEMENTATION OF SURTHER EFFECTIVE POLICIES AND DE CO CO2 EMISSIONS COULD

PROGRAMME E TO REDUCE EMISSIONS

ROSE BY IS PER CENT BY THE YEAR 2002. ACCORDING TO THE
WORLD ENERGY CUT.00
MINISTERS CONCERNED ABOUT THIS
PROSPECT C:SCUSSED THE FUL. RANGE OF POSSIBLE AREAS FOR
ACTION AND POLICY INSTRUMENTS
THE AGREE THAT GREATER
EFFORTS ARE RECUIRED AND THAT TO THE EXTENT NECESSARY
AND PRACTICABLE THE EXTERNAL COSTS OF ENERGY PRODUCTION
AND SE S-CLC BE REFLECTED IN PRICES
F-FID RATIFICATION OF THE FRAME WOR CONVENT: ON ON
CLIMATE CHARGE
ALL SIGNATORY COUNTRIES AND REQUEST
S CONTRIBUTION TO THE
CF THE CONVENTION

THE IEA TO AUGMENT
IMPLEMENT --

MINISTERS JRGE

AREAS FOR IMPROVEMENT

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ACCELERATED GAINS IN

ENERGY EFFICIENCY EFFICIENCY IN ENERGY PRODUCTION AND USE INCLUDING THE RANSPORTATION SECTOR CAN HELP REDUCE EMISSIONS AND PROMOTE ENERGY SECURITY WHILE THERE IS A LARGE TECHNICAL POTENTIAL FOR INCREASED ENERGY EFFICIENCY. THERE EXIST SIGNIFICANT SOCIAL AND ECONOMIC BARRIERS C TS ACHIEVEMENT PRIOR: SHOULD BE GIVEN TO MARKET FORCES IN EFFECTING EFFICIENCY GAINS HOWEVER. RELIANCE ON MARPET FORCES ALONE S UNLIFE. TO OVERCOME THESE BARRIERS MINISTERS AGREE THAT INNOVATIVE AND BOLD APORCACHES ARE REQUIRED ev GOVERNMENTS. IN COOPERATION WITH INDUSTRY TO REALISE THE OPPORTUNITIES FOR ENERGY EFFICIENCY :MPROVEMENTS AND TC ACCELERATE THE CEP CYMENT OF NEW AND MORE EFFICIENT TECHNOLOGIES.

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NON-FOSSIL FUELS

EAR ENERGY

SINCE THE AMOUNT OF ENERGY NON-HYDRO-BASED RENEWABLE ENERGY TECHNOLOGIES CONTRIBUTE :S QUITE SMAL- COMPAREC TO THE TECHNICA. POTENTIAL INCREASED GOVERNMENT SUPPORT OF RENEWAB.E NC. OGIES IS WARRANTED REGARDING NUCLEAR POWER NUMBER OF DEL COUNTRIES ARE OF THE VIEW -HA THE USE OF BECAUSE IT EMITE NO SULPHUR DIOXIDE ROGEN CX:DES OF GREENHOUSE GASES PROVIDES AN CRTANT RESPONSE CHALLENGE ၁ STABILISING EEN-CUBE GAS EMISSIONS L NUMBER OF OTHER EA TREE ARE OF THE OPINION THAT THOSE ADVANTAGES NOT OFFSET --E ENVIRONMENTAL CONCERNS OVER THE NUCLEAR ENERGY ANC -AVE DECIDED NOT TO UTILISE POKEC

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USE
NUCLEAR

OF

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TECHNOLOGY

PROMOTION BY

THE DEVELOPMENT AND ADOPTION OF :MPROVED TECHNOLOGIES CAN SIGNIFICANTLY REDUCE AND INF.LENCE THE NATURE OF FUTURE ENERGY REQUIREMENTS TECHNOLOGY GOVERNMENT CAN CONTRIBUTE SIGNIFICANTLY TO MITIGATING AND SOLVING ENVIRONMENTAL PROBLEMS INTENSIFIED ENERGY TECHNOLOGY CO-OPERATION AMONG EA MEMBER COUNTRIES AND -:-- NON-MEMBER COUNTRIES AN INDISPENS:BLE MEANS TO ACCELERATE TECHNOLOGY ADVANCES AND TO ENHANCE LONG-TERM ENERGY SECURITY AND ENVIRONMENTAL PROTECTION MINISTERS ACKNOWLEDGE THE NEEC TO FURTHER INTEGRATE ENVIRONMENTAL OBJECTIVES INTO NATIONA. ENERS PESE ARC- DEVELOPMENT AND DEMONSTRATION PROGRAMMES ANC TO PROMOTE INTERNATIONAL TECHNOLOGY COLLABORATION AND CO-ORDINATION AIMING A SUSTAINABLE DEVELOPMENT AND FULL RESPECTING INTELLECTUAL IN THIS RESPECT MINISTERS TOOK NOTE OF THE RECENT ESTABLISHMENT INTERNATIONAL CENTRE FOR GAS TECHNOLOGY CEMATION MINISTERS AS THE CEL TO ANALYSE

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OF THE

THE

INFLUENCE NEW TECHNOLOGY DIFFUSION INTO THE IDENTIFYING BARRIERS AND ASSESSING POLICY THE ROLE INTERNATIONAL TECHNOLOGY CC-OPERATION -IN MEEING THE OB.ECTIVES OF THE CONVENTION CN CLIMATE CHANGE ANC THE EFFECT GOVERNMENT POLICIES HAVE ON THE PENETRATION OF NEW MORE ENVIRONMENTALLY BENIGN TECHNOLOGIES

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ACCESS e- INDIVIDUAL DEVELOPING COUNTRIES AND ECONOMIES IN TRANSITION TO MODERN COST-EFFECTIVE ENERGY TECHNOLOGIES APPROPRIATE TO LOCAL CIRCUMSTANCES WILL PROMOTE SUSTAINABLE DEVELOPMENT ADOPTION OF CLEAN. EFFICIENT TECHNOLOGIES THROUGHOUT THE WORLD WILL HELP TO ACHIEVE NEEDED GAINS IN ENERGY EFFICIENCY AND REDUCTIONS IN GREENHOUSE GAS EMISSIONS AND OTHER POLLUTANTS. MINISTERS WELCOME THE LAUNCHING OF THE GREENHOUSE GAS TECHNOLOGY INFORMATION EXCHANGE (GREENTIE) AND CALL UPON THE EA TO STEP JP ITS EFFORTS TO PROMOTE INTERNATIONAL CC-OPERATION IN ENERGY RESEARCH AND TECHNOLOGY IN THIS

AREA

2:

ACCORDING

IN THE

CO-OPERATION WITH NON-MEMBER COUNTRIES:
TC E WORLD ENERGY OUTLOOK CO2 EMISSIONS
NON-DECO REGIONS COULD INCREASE BY OVER 50 PER CENT
THUS CO-OPERATION WITH
BETWEEN 1998 AND 2010

INCREASINGLY :MPORAN

CN-ME MEER COUNTRIES BECOMES AN
CEA BE:CRY SINCE THE POTENTIAL FOR SLOWING THE RATE
OF EVISE: ONS GROWTH IN THESE COUNTRIES WITHOUT IMPAIRING
THE ECONOMIC GECAT ASERATIONS IS GREAT AND

CAN

EBE ACHIEVED MORE CCS EFFECTIVELY THAN IN MOS CEA COUNTRIES IN THIS CONTEXT MINISTERS REQUEST THE CELTO ASSESS THE MELOCATIONS AND BENE":TS OF REL: AB.E ACTIVITIES WITH AND MEASURABLE .CENT IMPLEMENTATION IN ACCORDANCE WITH THE FRAMEWOR MEMBER COUNTRIES ARE CONVENTION ON CLIMATE CHANGE ENCOURAGED TO STRENGTHEN BILATERAL CO-OPERATION WITH NON-MEMBER COUNTRIES TO HIS END

NON-MEMBER COUNTRIES

A.SC

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AXES

L MIX OF MEASURES

ECONOMIC ANALYSIS OF THE POTENT:A. EFFECTS ENERGY ANC CARBON AXEE ELDS IMPORTANT CONCLUSIONS BEARING ON POLICY CHOICE ANALYSIS SUGGESTS THAT T WOULD CAVE RELATIVELY HIGH AND SUBSTANTIALLY DIFFERENT LEVELS OF AXES BETWEEN REGIONS AND COUNTRIES TO MEET IN EACH :EA COUNTRY SEPARATELY THE GOAL OF STABILISATION OF cca AND HER GREENHOUSE GAS EMISSIONS

NEVERTHELESS A CARBON TAX COULD CONTRIBUTE EMISSIONS EFFECTIVELY TO THE REDUCTION OF a▾ INCREASING EFFICIENCY AN IMPROVING THE COMPETITIVENESS OF ES: ENERGY SOURCES

INANCIAL INCENTIVES FISCAL AND OTHER FINANCIAL INCENTIVES CAN BE APPROPELTE AND EFFECTIVE INSTRUMENTS FCF VARIOUS REASONS PARTICULARLY TO ENCOURAGE THE DEVELOPMENT AND DEPLOYMENT OF ADVANCED TECHNOLOGIES AND BUT SUCH TO PROMOTE INVESTMENT ENERGY EFFICIENCY INCENTIVES NEED TO BE DESIGNED TO AVOID NEGATIVE EFFECTS NCLAS SECTION 8 of 8 DAR:S .4463

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REGULATIONS

REGULATIONS TO REDUCE

EXISSIONS MAY

SECTOR

IN SOME SITUATIONS BE MORE COST-EFFECTIVE THAN TAXES
BUT THEY NEED TO BE DESIGNED TO FACILITATE NOT FRUSTRATE
COMPETITION INTERNATIONALLY CO-ORDINATED NORMS AND
VOLUNTARY
STANDARDS MAY BE HELPFUL IN THIS REGARD
AND THE PRIVATE
GOVERNMENT
AGREEMENTS BETWEEN THE
CAN ALSO BE EFFICIENT AND EVEN PREFERABLE APPROACHES.
THE EA DEVELOP METHODOLOGIES TO
MINISTERS REQUEST THAT
RELEVANT REGULATIONS AND
ANALYSE THE EFFECTIVENESS OF
VOLUNTARY AGREEMENTS.

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ACTION:

A MIX OF MEASURES: THE EFFECTIVENESS OF INDIVIDUAL POL: CY MEASURES WILL VARY AMONG IEA MEMBER COUNTRIES

THEREFORE

THE RESPONSE BY EACH COUNTRY WILL BE A COMPLEX MIX OF POSSIBLE MEASURES. DESIGNED TO DE AL :TH THE CIRCUMSTANCES THAT NATION FACES. MINISTERS AGREE THAT CONCERTED ACTIONS BY IEA MEMBER COUNTRIES ARE NEEDED "AKING ACCOUNT OF THE STAGE OF ECONOMIC

DEVELOPMENT OF EACH COUNTRY AND REGIONAL ARRANGEMENTS
AMONG COUNTRIES THE EFFECTS OF INDIVIDUAL EA COUNTRY
EFFORTS TO REDUCE EMISSIONS SHOULD BE COMPARABLE TO THE
EXTENT POSS:9_E MINISTERS CALL ON THE EA TO
ACCENTUATE ITS EFFORTS TO ANALYSE THE EFFECTIVENESS OF
VAR:OLE POLICY INSTRUMENTS AND THEIR EFFECTS ON
ENERGY MARKETS AND TO DEVELOP CRITERIA AND
METHODOLOGIES TO PERMIT AN ASSESSMENT OF THE
COMPARAB

OF COUNTRY RESPONSES MINISTERS AGREE C SUPPLY WITHIN THE EXISTING EA PROCEDURES THE INFORMATION NECESSARY TO EVALUATE THE COMPARABILITY OF ACTIONS TAKEN

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Mr. WIRTH. I think one thing is very clear, if we don't do it, nobody else is going to, and we do have that responsibility, as the remaining super power, which we have all said for so long. And if the United States ducks its responsibility, probably everybody else is going to do it, as well. If we meet our responsibility and do it aggressively and clearly, which the administration intends to do, then we are in a much better position for whatever leverage is available to us in the international community.

Mr. SHARP. Well, I think that is true. I think it is very clear, if we do nothing, that nothing gets done or very little will get done. I just want to add the voices of those in helping to bring pressure to bear on some of the other folks, too.

Mr. WIRTH. Absolutely. We are committed to that and that is why the President's goal of having this action plan and having this framework completed by the end of August is so very important, and we can clearly point out where we are, where we think we are and have measured that and looked at that, and that gives us then the ability to go back to other countries.

What the enforcement mechanism is going to be, what the international reporting mechanism is going to be, none of this has yet been fleshed out, and those negotiations will be going on over the next year and a half, as well, to figure out how do you determine whether a country has, in fact, achieved its goal, what is the baseline going to be, what are the measurements against that goal going to be. When you get into joint implementation, who gets credit, do we get credit if we do a program with the Malaysians, do they get credit, what is the tradeoff between the two. These are all very difficult technical questions, but we must begin in our own backyard.

Mr. SHARP. I certainly wish you well and look forward to working with you folks, because this is a highly complex and very important move that we are undertaking, and I think that it behooves us— which sounds as if you folks are committed to-to be as thorough and as comprehensive and as open in the process as we can be, because to be successful, we are going to have to obviously embark on a policy that is ultimately acceptable to the American people not to mention other governments have to worry about their people, and then that acceptability I think will be based on how much confidence there is that we are identifying the problem correctly and we know what we are talking about and we are moving aggressively where we can and where we can cost-effectively.

I am sure you don't need that lecture, but I have to remind myself of our responsibilities from time to time. Especially, the atmosphere on Capitol Hill this week is such that the American people ought to be reminding everybody what their responsibilities are.

Mr. WIRTH. Mr. Chairman, thank you very much and we look forward to working with you and the committee.

Mr. SHARP. Good.

Mr. Crapo, did you have anything?

Mr. CRAPO. I just had two items, Mr. Chairman.

First, Congressman Hastert had an opening statement and I would ask unanimous consent that it be made a part of the record. Mr. SHARP. Without objection, it will be.

We will hold it open, if there are others.

Mr. CRAPO. That was my other point. I know a number of members have conflicts today and I would ask unanimous consent that the record be held open for questions and statements, if that would be possible.

Mr. SHARP. We certainly will do that.

Thank you very much.

[Whereupon, at 11:54 a.m., the hearing was adjourned.]
[The following statements were submitted for the record.]

STATEMENT OF HON. J. DENNIS HASTERT

Thank you, Mr. Chairman. I appreciate the chance to be here for this subcommittee's hearing on global warming. Certainly, Mr. Chairman, your continued interest should be commended.

As I recall from our last hearing on this issue, we had some noteworthy scientists testify. They made excellent comments and explained their theories carefully. But none was willing to say that there's a cause-and-effect relationship between the concentration of atmospheric greenhouse gases and global climate change. This is similar to what most scientists seem to be saying or not saying. Maybe we as policy makers should take this seriously. All this is why I noted with interest President Clinton's comments on Earth Day, and why I'm curious about what he meant when he talked about the administration producing plans-by August-for emissions reductions.

I'm pleased to have these distinguished members of President Clinton's team here today, and I certainly look forward to the testimony.

STATEMENT OF HON. GARY A. FRANKS

Mr. Chairman, I would like to thank you for holding today's meeting on Global Warming. I look forward to hearing the testimony to be presented today.

Although there is consensus that the Global climate has warmed, there does not appear to be agreement as to its effects. This is a very important point to consider when constructing policy measures to address this issue. The measures we take will not be responsible ones if they are not based on scientific data. I can not stress this point enough.

For example, there are efforts to reduce the emission of carbon dioxide. There is evidence, however, which supports the notion that increases in carbon dioxide do always have negative effects. Results from controlled studies demonstrate that a 50 percent increase in levels of carbon dioxide, will increase crop yields, double the water-use efficiency of most of the earth's vegetation, and possibly triple the productivity of forests.

In light of such information, we should resist efforts to set limits on how much carbon dioxide the Nation emits or any other greenhouse gases, unless scientific data is presented to justify such restrictions. Let me be clear and state that should scientific data support such restrictions, all measures should be taken to correct the negative effects.

It is my hope, that the proposals outlined today, take into consideration sicentific studies being taken on global warming.

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STATEMENT OF THE GLOBAL CLIMATE COALITION

Mr. Chairman, members of the subcommittee: The Global Climate Coalition broad-based organization of business trade associations and companies representing virtually all elements of United States industry, including the energy-producing and energy-consuming sectors. A list of our members is attached.

We believe that it is essential that the climate change issue be framed in the context of industrial competitiveness in a global economic environment. A strong and growing U.S. economy and a robust industrial sector are prerequisites to addressing domestic and international environmental challenges. Ill-considered policy responses to issues such as climate change, especially those that adversely affect the competitiveness of our Nation's industries, would ultimately hamstring our ability to respond to pressing energy and environmental challenges. We are pleased to provide our written statement on the subcommittee's May 26 oversight hearing on global climate change.

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