Mr. President, on Wednesday, the U.N. Global Climate Treaty known as the Kyoto Protocol will enter into force, requiring more than 30 industrialized nations to significantly cut manmade greenhouse…
Mr. President, on Wednesday, the U.N. Global Climate Treaty known as the Kyoto Protocol will enter into force, requiring more than 30 industrialized nations to significantly cut manmade greenhouse gas emissions by 2012.
I rise today to introduce three pieces of legislation which I believe can help contribute to a new domestic and international consensus on climate change. This legislation builds upon three principles: the need for shared responsibilities between developed and developing countries; the linkages between environmental, economic, and energy policies; and the employment of greenhouse gas intensity as the best measurement upon which to build an effective climate policy.
I thank Senators Alexander, Craig, and Dole for their support and for agreeing to cosponsor these bills, which are titled: The Climate Change Technology Deployment in Developing Countries Act; The Climate Change Technology Deployment Act; and, The Climate Change Technology Tax Incentives Act.
Global climate policy affects the world's economic, energy, and environmental policies. These circles of interest in policy are interconnected. Climate change does not recognize national borders. It is a shared responsibility for all nations. Dealing with global climate policy requires a level of diplomatic intensity and coordination worthy of the magnitude of the challenge.
We all agree on the need for a clean environment and stable climate. The debate is about solutions. The question we face is not whether we should take action, but what kind of action we should take.
Climate change initiatives should include commitments to research and development, technology, and a more efficient and productive use of energy and resources.
My climate change legislation authorizes new programs, policies, and incentives to address the reduction of greenhouse gas emissions.
It focuses on the role of technology, private and public partnerships, and developing countries.
Any climate policy initiative must include clear metrics that recognize the links between energy, the economy, and the environment. Too often these policies are considered in vacuums. It is a global issue.
Bringing in the private sector and creating incentives for technological innovation will be critical to real progress on global climate policy. I believe that greenhouse gas intensity, or the amount of carbon emitted relative to economic output, is the best measurement for dealing with climate change.
Greenhouse gas emission intensity is the measurement of how efficiently a nation uses carbon emitting fuels and technology in producing goods and services. It captures the links between energy efficiency, economic development, and the environment.
The first bill, the Climate Change Technology Deployment in Developing Countries Act, provides the Secretary of State with new authority for coordinating assistance to developing countries for projects and technologies that reduce greenhouse gas intensity.
It supports the development of a U.S. global climate strategy to expand the role of the private sector, develop public-private partnerships, and encourage the deployment of greenhouse gas reducing technologies in developing countries. This bill directs the Secretary of State to engage global climate change as a foreign policy issue.
It directs the U.S. Trade Representative to negotiate the removal of trade-related barriers to the export of greenhouse gas intensity reducing technologies, and establishes an inter-agency working group to promote the export of greenhouse gas intensity reducing technologies and practices from the United States.
The legislation authorizes fellowship and exchange programs for foreign officials to visit the United States and acquire the expertise and knowledge to reduce greenhouse gas intensity in their countries. Current international approaches to global climate change overlook the role of developing countries as part of either the problem or the solution.
In July 1997, months before the Protocol was signed, the Senate unanimously passed. S. Res. 98, the Byrd-Hagel Resolution, which called on the President not to sign any treaty or agreement in Kyoto unless two conditions were met.
First, the United States should not be party to any legally binding obligations on greenhouse gas emission reductions unless developing country, parties are required to meet the same standards. Second, the President should not sign any treaty that ``would result in serious harm to the economy of the United States.''
Kyoto does not meet either of these conditions. As it stands, developing countries are exempt from the Kyoto obligations, leaving more than 30 developed countries to address greenhouse gas emissions. Developing nations are becoming the major emitters of greenhouse gases, but they are exempted from the Kyoto Protocol.
A recent Congressional Budget Office--CB0--report explains that developing countries are projected within the next 20 years to account for two-thirds of the growth in carbon dioxide emissions as their populations and economies expand. There are reasons for this.
Developing nations cannot achieve. greenhouse gas reductions until they achieve higher standards of living. They lack clean energy technology and they cannot absorb the economic impact of the changes necessary for emissions reductions. New policies will require recognition of the limitations of developing nations to meet these standards, and the necessity of including them in any successful future initiative.
Because Kyoto does not include developing countries, its approach is unrealistic. Any reduction in greenhouse gas emissions by the United States and other developed countries will soon be eclipsed by emissions from developing nations, such as China, which will soon be the world's largest emitter of manmade greenhouse gases.
It is in the shared interests of the United States and industrialized nations to help developing countries by sharing cleaner technology. Developing countries can then ``leapfrog'' over the highly polluting stages of development that countries like the U.S. have already been through.
My legislation includes tax incentives for American businesses to work with foreign countries to help develop clean energy projects and fuel-efficient technologies.
Our second bill, the Climate Change Technology Deployment Act, supports establishing domestic public-private partnerships for demonstration projects that employ greenhouse gas intensity reduction technologies. Our plan provides credit-based financial assistance and investment protection for American businesses and projects that deploy advanced climate technologies or systems. Federal financial assistance includes direct loans, loan guarantees, standby interest coverage, and power production incentive payments.
We are most successful in confronting the most difficult issues when we draw on the strength of the private sector. Public-private partnerships meld together the institutional leverage of the government with the innovation of industry.
This bill directs the Secretary of Energy to lead an inter-agency process to develop and implement a national climate strategy provided by the Office of Science and Technology Policy. It establishes a Climate Coordinating Committee and Climate Credit Board to assess, approve, and fund these projects.
Our third bill, the Climate Change Technology Tax Incentives Act, amends the tax code to provide incentives for investment in climate change technology. It also expresses our support for making permanent the current research and development tax credit, which otherwise expires on December 31, 2005. An article in the Wall Street Journal on February 4, 2005, reported on the potential for ``geologic storage'' of carbon dioxide as a means to dramatically reduce carbon dioxide emissions.
Geologic storage involves pumping carbon dioxide into the ground, rather than dumping it into the atmosphere. BP has been using geologic storage in Algeria's Sahara Desert and Statoil has been working on this in Norway's North Sea. Chevron Texaco is planning a project off the coast of Australia.
The article reports that:
the concept is drawing growing interest because it could
curb global warming more quickly than switching to
alternative energy sources or cutting energy use.
There is still much work to be done. But this kind of technology that was described in the Wall Street Journal article is the kind of technology that must be employed around the world to achieve results in reducing greenhouse gas emissions. My legislation would support more of this type of activity.
The American people and all global citizens need to better understand global climate change, its connections to our economic and energy policies, and what the realistic options are for addressing this challenge. Any recommendations regarding climate policy must meet the demands of economic growth and development, especially in the developing world. This will require a market-driven, technology-based approach that complements the world's environmental interests, and connects the public and private sectors.
Achieving reductions in greenhouse gas emissions is one of the important challenges of our time. America has an opportunity and a responsibility for global climate policy leadership. But it is a responsibility to be shared by all nations. I look forward to working with my colleagues in the Congress, the Bush administration, the private sector, public interest groups, and America's allies on achievable climate change policy.
By harnessing our many strengths, we can help shape a worthy future for all people, and build a better world.
I yield the floor.