EXECUTIVE SUMMARY In an in-depth analysis of an international agreement to curb greenhouse gas emissions, The Business Roundtable finds that the accord, known as the Kyoto Protocol, contains major gaps that must be filled before its impact on the world's environment and economy can be evaluated. The Business Roundtable recognizes that the Protocol is only a first step toward a comprehensive agreement to reduce emissions, but urges the Clinton Administration not to sign the Kyoto Protocol until these gaps have been addressed. Background On December 11, 1997, in Kyoto, Japan, the Parties to the United Nations Framework Convention on Climate Change reached an agreement, known as the Kyoto Protocol, that sets legally binding limits on the manmade emissions of greenhouse gases from 38 industrialized countries. Global carbon emissions would continue to increase under the agreement because it exempts Developing Countries-including China, India, Mexico, Brazil, and 130 others from any commitments to limit their rapidly growing emissions. Continued growth in energy demand, and thus greenhouse gas emissions, by Developing Countries will more than offset the reductions made by Developed Countries. President Clinton is expected to sign the Kyoto Protocol later this year, but he does not intend to submit the agreement to the Senate for its constitutional role of advice and consent until "key" Developing Countries agree to "participate meaningfully" in the effort. Key Issues of Concern • The targets and timetables would require the U.S. to make significant and immediate cuts in energy use. The Protocol would require the U.S. to reduce emissions 7% below 1990 levels by 2008-2012, an unprecedented 41% reduction in projected emission levels. The process of Senate ratification and the subsequent lengthy domestic implementation process postratification would leave the U.S. very little time to make the painful choices regarding energy use that will be necessary to achieve these reduc |