am aggressive start. We received $107 million out of a total of $208 million requested. We received virtually our entire request for continued deployment of renewable sources of energy from the Energy and Water Development Appropriations Subcommittee. These clean energy supplies should help displace carbon generating energy supplies in the longer term. We received an increase of about 15 percent over last year from the Interior Subcommittee for energy efficiency programs, which represents the largest increase of any Interior account this year. A table (Attachment 1) summarizing fiscal year 1995 program funding is attached to my testimony. The Administration continues to support the goals of this important program. We will, of course, continue to request the funding that is needed to assure the success. of the program in the future. We thank the Committee for your support. We look forward to rapid implementation of many other programs. We will use innovative incentives, such as pooling utility rebates which have worked so well to encourage manufacturing of more efficient refrigerators and will now do the same for commercial equipment. More rapid development of appliance standards will complement that effort. "Rebuild America" will work with communities, utilities, the energy service industry, State and local governments, manufacturers, and consumer groups across this Nation through grants, technical assistance, and collaborative partnerships to rapidly increase the efficiency of our commercial buildings. Finally, we have formed several renewable energy consortia among industry, utilities, consumers, and government that will accelerate penetration of renewable energy technologies. Voluntary System for Reporting Greenhouse Gas Emission Reductions The credibility of our innovative environmental compliance approach rests on a foundation of accurate accounting, so let me provide an update on the development of the Voluntary System for Reporting Greenhouse Gas Emission Reductions, called for under Section 1605(b) of the Energy Policy Act of 1992. This system will play a major role in allowing us to measure how well we are meeting the goals of the various Climate Change Actions by providing a repository for private and public participants to voluntarily record their accomplishments on an annual basis. They can record their organization's annual greenhouse gas emissions and the reductions made each year. Because of the innovative, voluntary nature of this recording program, we quickly determined that we could only be successful if we provided multiple and varied opportunities for public comment in developing the program. After collecting written public comments in the Summer of 1993, the project team, working with the Environmental Protection Agency and the Departments of Agriculture and Transportation, conducted six workshops late last Fall. The message from the workshop participants was clear design a flexible, simple system that would not involve significant transaction costs to volunteers, and do it in a way that would allow the reported data to be transparent and reviewable for a variety of uses. We concluded that we needed to design an accurate, workable, and cost-effective system to which people would voluntarily report but we could not let the perfect become the enemy of the good. - The Department published Draft Reporting Guidelines and Technical Supporting Documents in early June, followed by a public meeting to collect comments in late June. By early August, over sixty organizations submitted written comments on the draft. Most comments were very supportive of the design of the guidelines. Some comments continued to point out that the design of the data forms must allow effective third party review of the quality of the data. Many of the responses suggested very useful technical improvements to the supporting materials. I am pleased to say that the project team has completed its detailed consideration of the comments and that an announcement of availability of the final Voluntary Reporting Guidelines and Supporting Technical Documents will be made by October 19. Based on the extensive comments we have collected, these Guidelines and Supporting Technical Documents, and the Energy Information Administration's reporting forms, will lead to a system that will be used extensively on a voluntary basis, as this subcommittee had envisioned when it designed Section 1605 of the Energy Policy Act. Most importantly, I believe that this system will create an incentive for voluntary reporting of emissions reductions and sequestration and encourage the private sector to implement new and additional cost-effective actions. The schedule for producing these guidelines, their Supporting Technical Documents, and the Energy Information Administration's reporting forms for the 1605 project are attached to my testimony (Attachment 2). Now I would like to turn your attention to the international side of our climate strategy. The Importance of Working with Developing Countries Our Administration understands that our climate actions alone will not solve the climate problem. While developed countries have been the source of most of the emissions since the beginning of the industrial revolution, their relative importance has been changing. Most of the emissions of the 21st century will originate in the developing world. In work conducted at your request, Mr. Chairman, although the Energy Information Administration (EIA) estimates that between 1970 and 1992 energy-related CO2 emissions of the Organization for Economic Cooperation and Development (OECD) countries increased absolutely, in percentage terms these emissions declined from 61 percent of world carbon emissions in 1970 to 49 percent in 1992. Ten of the non-OECD countries accounted for three-quarters of the non-OECD energy use and carbon emissions in 1992. This represents 38 percent of world carbon emissions and 35 percent of world energy consumption in 1992. Over the 1970-1992 period, the gross domestic product of the non-OECD region grew by 90 percent, energy demand by 120 percent and carbon emissions by 99 percent. This contrasts sharply with the picture within the OECD where GDP grew by 83 percent, energy demand by 36 percent, and carbon emissions by 24 percent. With similar economic growth rates over this period, the OECD region was much more successful, due both to structural change and to the introduction of advanced energy ́efficient technologies, in decoupling energy demand and carbon emissions growth from improving living standards than was the non-OECD region. This spectacular growth in emissions in the developing world, the Former Soviet Union, and Eastem Europe is expected to continue. The Energy Information Administration has run various scenarios out to 2050 with different population growth rates and resource availability assumptions. The range of projected OECD carbon emissions is between 4.1 billion metric tons and 5.1 billion metric tons in 2050. The rest of the world, on the other hand, ranges from 7 billion metric tons to 28 billion metric tons in 2050. It must be recognized, however, that the Former Soviet Union and Eastern Europe have made emission reduction commitments under the Framework Convention consistent with those of the United States. The International Energy Agency has also studied the potential for growth in energy use and related emissions. It concludes that most of that growth occurs in Asia. China's emissions, for example, are forecast to grow from 2.4 billion metric tons in 1990 to 5 billion metric tons in 2010 – doubling its emissions in only 20 years. Other East Asian countries together will more than double their emissions over that same period, from 1 billion metric tons in 1990 to 2.6 billion metric tons in 2010. South Asia is also a major growth region. The International Energy Agency forecasts a growth in that region's emissions from 0.7 billion metric tons in 1990 to 1.7 billion metric tons by 2010. The remaining countries of the developing world also experience emissions growth, about a doubling from 2.4 billion metric tons in 1990 to 4.7 billion metric tons in 2010. In annual percentage terms, this growth in the developing world means that by 2010 the developing world will be responsible for 44 percent of global energy related CO2 emissions, while the OECD is responsible for 42 percent in that year. This contrasts sharply with the picture in 1971 when the OECD countries produced 61 percent of these emissions while the developing world generated only 17 percent of the emissions. These numbers illustrate why climate change is a global problem. Without the commitment of the developing countries, OECD emission reductions will be more than offset by those of the developing world. Forming a global partnership for mitigation requires that means must be found to foster economic growth in the developing countries while decoupling that growth from CO2 emissions growth. Advanced western technologies will help solve this dilemma, but new ways need to be found that merge economic interests of all countries with the requirements for increased environmental protection globally. Further, when compared to the United States, it has been the experience of some of our private sector companies, such as the AES Corporation and the New England Electric System, that more cost-effective opportunities to reduce or sequester emissions exist in developing countries. They have found opportunities abroad that cost one or two dollars per ton of carbon as compared to tens of dollars per ton in the United States. Given the tight fiscal situations governments face, we must begin to encourage the private sector to use its resources in ways that foster these goals. Joint Implementation projects might be large-scale power plants that are more efficient and emit less greenhouse gases than the more conventional alternatives. They also might be a myriad of smaller activities including reforestation efforts, re lighting urban areas with compact florescent bulbs, replacing malfunctioning steam traps in district heating systems with state-of-the-art steam traps, or providing solar-powered refrigerators to remote villages so that medicine can be stored. There are opportunities for all groups, both big and small, rich and poor. In my view, global cooperation is a prerequisite for sustainable development. Sustainable development requires our balancing of our environmental and economic needs, both here and abroad. U.S. technologies and services provide a means for growth to occur without harming the environment. Consequently, by bolstering U.S. industry's access to and competitiveness in burgeoning markets, we promote growth in a responsible manner. Joint Implementation and Presidential Energy Trade Missions: Leveraging Opportunities The Climate Change Convention describes an international cooperative program called Joint Implementation. Joint Implementation is meant to stimulate public and private sector interests in different countries to work together to reduce projected greenhouse gas emissions and to support sustainable development projects in developing countries and countries with economies in transition. One of the roles of the Department of Energy is to assist domestic private sector interests and partner countries to identify opportunities and to proceed to project implementation. We will also provide technical assistance, as our resources permit. And as I will now discuss, we will continue to develop umbrella agreements with interested govemments that will foster the conditions for the formation of Joint Implementation projects and for cooperation with developing countries. Presidential Missions to India and Pakistan To help engage more nations in the global effort to reduce greenhouse gases, the Department of Energy has made climate change a key topic of our recent trade missions to India and Pakistan. These nations are illustrative of why we need to engage developing nations in the effort to combat climate change. India needs to add 60,000 megawatts of electric power by the year 2000. Pakistan's development is hobbled at times by up to a 33 percent shortfall in meeting energy demands and it plans to add 5,000 megawatts of electric power by the end of 1997. These growth patterns are the norm in South Asia, and are particularly evident in China, where 500 megawatts of electric power are |