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Contents
Executive Summary
National
Goal
Domestic
Initiatives
International
Policies
Science
& Technology
See also Fact
Sheet (also available as MS Word file)
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"Addressing global climate change will require a sustained
effort, over many generations. My approach recognizes that sustained
economic growth is the solution, not the problem -- because a nation
that grows its economy is a nation that can afford investments in
efficiency, new technologies, and a cleaner environment."
President George W. Bush
The President announced a new approach to the challenge of global
climate change. This approach is designed to harness the power of markets
and technological innovation. It holds the promise of a new partnership
with the developing world. And it recognizes that climate change is a
complex, long-term challenge that will require a sustained effort over
many generations. As the President has said, "The policy challenge is
to act in a serious and sensible way, given the limits of our knowledge.
While scientific uncertainties remain, we can begin now to address the
factors that contribute to climate change."
While investments today in science will increase our understanding of
this challenge, our investments in advanced energy and sequestration
technologies will provide the breakthroughs we need to dramatically reduce
our emissions in the longer term. In the near term, we will vigorously
pursue emissions reductions even in the absence of complete knowledge. Our
approach recognizes that sustained economic growth is an essential part of
the solution, not the problem. Economic growth will make possible the
needed investment in research, development, and deployment of advanced
technologies. This strategy is one that should offer developing countries
the incentive and means to join with us in tackling this challenge
together. Significantly, the President's plan will:
Reduce the Greenhouse Gas Intensity of the U.S.
Economy by 18 Percent in the Next Ten Years.
Greenhouse gas intensity measures the ratio of
greenhouse gas (GHG) emissions to economic output. This new approach
focuses on reducing the growth of GHG emissions, while sustaining the
economic growth needed to finance investment in new, clean energy
technologies. It sets America on a path to slow the growth of greenhouse
gas emissions, and -- as the science justifies -- to stop and then
reverse that growth:
- In efficiency terms, the 183 metric tons of emissions per million
dollars GDP that we emit today will be lowered to 151 metric tons per
million dollars GDP in 2012.
- Existing trends and efforts in technology improvement will play a
significant role. Beyond that, the President's commitment will achieve
100 million metric tons of reduced emissions in 2012 alone, with more
than 500 million metric tons in cumulative savings over the entire
decade.
- This goal is comparable to the average progress that nations
participating in the Kyoto Protocol are required to achieve.
Substantially Improve the Emission Reduction Registry.
The President directed the Secretary of Energy, in consultation with
the Secretary of Commerce, the Secretary of Agriculture, and the
Administrator of the Environmental Protection Agency, to propose
improvements to the current voluntary emission reduction registration
program under section 1605(b) of the 1992 Energy Policy Act within 120
days. These improvements will enhance measurement accuracy, reliability
and verifiability, working with and taking into account emerging domestic
and international approaches.
Protect and Provide Transferable Credits for Emissions Reduction.
The President directed the Secretary of Energy to recommend reforms to
ensure that businesses and individuals that register reductions are not
penalized under a future climate policy, and to give transferable credits
to companies that can show real emissions reductions.
Review Progress Toward Goal and Take Additional Action if
Necessary.
If, in 2012, we find that we are not on track toward meeting our goal,
and sound science justifies further policy action, the United States will
respond with additional measures that may include a broad, market-based
program as well as additional incentives and voluntary measures designed
to accelerate technology development and deployment.
Increase Funding for America's Commitment to Climate Change.
The President's FY '03 budget seeks $4.5 billion in total climate
spending -- an increase of $700 million. This commitment is unmatched in
the world, and is particularly notable given America's focus on
international and homeland security and domestic economic issues in the
President's FY '03 budget proposal.
Take Action on the Science and Technology Review.
The Secretary of Commerce and Secretary of Energy have completed their
review of the federal government's science and technology research
portfolios and recommended a path forward. As a result of their review,
the President has established a new management structure to advance and
coordinate climate change science and technology research.
- The President has established a Cabinet-level Committee on Climate
Change Science and Technology Integration to oversee this effort. The
Secretary of Commerce and Secretary of Energy will lead the effort, in
close coordination with the President's Science Advisor. The research
effort will continue to be coordinated through the National Science
and Technology Council in accordance with the Global Change Research
Act of 1990.
The President's FY '03 budget proposal dedicates $1.7 billion to
fund basic scientific research on climate change and $1.3 billion to
fund research on advanced energy and sequestration technologies.
This includes $80 million in new funding dedicated to implementation
of the Climate Change Research Initiative (CCRI) and the National
Climate Change Technology Initiative (NCCTI) announced last June. This
funding will be used to address major gaps in our current
understanding of the natural carbon cycle and the role of black soot
emissions in climate change. It will also be used to promote the
development of the most promising "breakthrough"
technologies for clean energy generation and carbon sequestration.
Implement a Comprehensive Range of New and Expanded Domestic
Policies, Including:
- Tax Incentives for Renewable Energy, Cogeneration, and New
Technology. The President's FY '03 budget seeks $555 million in
clean energy tax incentives, as the first part of a $4.6 billion
commitment over the next five years ($7.1 billion over the next 10
years). These tax credits will spur investments in renewable energy
(solar, wind, and biomass), hybrid and fuel cell vehicles,
cogeneration, and landfill gas conversion. Consistent with the
National Energy Policy, the President has directed the Secretary of
the Treasury to work with Congress to extend and expand the
production tax credit for electricity generation from wind and
biomass, to develop a new residential solar energy tax credit, and
to encourage cogeneration projects through investment tax credits.
Business Challenges. The President has challenged American
businesses to make specific commitments to improving the greenhouse
gas intensity of their operations and to reduce emissions. Recent
agreements with the semi-conductor and aluminum industries and
industries that emit methane already have significantly reduced
emissions of some of the most potent greenhouse gases. We will build
upon these successes with new agreements, producing greater
reductions.
Transportation Programs. The Administration is promoting
the development of fuel-efficient motor vehicles and trucks,
researching options for producing cleaner fuels, and implementing
programs to improve energy efficiency. The President is committed to
expanding federal research partnerships with industry, providing
market-based incentives and updating current regulatory programs
that advance our progress in this important area. This commitment
includes expanding fuel cell research, in particular through the
"FreedomCAR" initiative. The President's FY '03 budget
seeks more than $3 billion in tax credits over 11 years for
consumers to purchase fuel cell and hybrid vehicles. The Secretary
of Transportation has asked the Congressional leadership to work
with him on legislation that would authorize the Department of
Transportation to reform the Corporate Average Fuel Economy (CAFE)
program, fully considering the recent National Academy Sciences
report, so that we can safely improve fuel economy for cars and
trucks.
Carbon Sequestration. The President's FY '03 budget
requests over $3 billion - a $1 billion increase above the baseline
-- as the first part of a ten year (2002-2011) commitment to
implement and improve the conservation title of the Farm Bill, which
will significantly enhance the natural storage of carbon. The
President also directed the Secretary of Agriculture to provide
recommendations for further, targeted incentives aimed at forest and
agricultural sequestration of greenhouse gases. The President
further directed the Secretary of Agriculture, in consultation with
the Environmental Protection Agency and the Department of Energy, to
develop accounting rules and guidelines for crediting sequestration
projects, taking into account emerging domestic and international
approaches.
Promote New and Expanded International Policies to Complement
Our Domestic Program.
The President's approach seeks to expand cooperation
internationally to meet the challenge of climate change, including:
- Investing $25 Million in Climate Observation Systems in
Developing Countries. In response to the National Academy of
Sciences' recommendation for better observation systems, the
President has allocated $25 million and challenged other developed
nations to match the U.S. commitment.
Tripling Funding for "Debt-for-Nature" Forest
Conservation Programs. Building upon recent Tropical Forest
Conservation Act (TFCA) agreements with Belize, El Salvador, and
Bangladesh, the President's FY '03 budget request of $40 million
to fund "debt for nature" agreements with developing
countries nearly triples funding for this successful program.
Under TFCA, developing countries agree to protect their tropical
forests from logging, avoiding emissions and preserving the
substantial carbon sequestration services they provide. The
President also announced a new agreement with the Government of
Thailand, which will preserve important mangrove forest in
Northeastern Thailand in exchange for debt relief worth $11.4
million.
Fully Funding the Global Environmental Facility. The
Administration's FY '03 budget request of $178 million for the GEF
is more than $77 million above this year's funding and includes a
substantial $70 million payment for arrears incurred during the
prior administration. The GEF is the primary international
institution for transferring energy and sequestration technologies
to the developing world under the United Nations Framework
Convention on Climate Change (UNFCCC).
Dedicating Significant Funds to the United States Agency for
International Development (USAID). The President's FY'03
budget requests $155 million in funding for USAID climate change
programs. USAID serves as a critical vehicle for transferring
American energy and sequestration technologies to developing
countries to promote sustainable development and minimize their
GHG emissions growth.
Pursue Joint Research with Japan. The U.S. and Japan
continue their High-Level Consultations on climate change issues.
Later this month, a team of U.S. experts will meet with their
Japanese counterparts to discuss specific projects within the
various areas of climate science and technology, to identify the
highest priorities for collaborative research.
Pursue Joint Research with Italy. Following up on a
pledge of President Bush and Prime Minister Berlusconi to
undertake joint research on climate change, the U.S. and Italy
convened a Joint Climate Change Research Meeting in January 2002.
The delegations for the two countries identified more than 20
joint climate change research activities for immediate
implementation, including global and regional modeling.
Pursue Joint Research with Central America. The United
States and Central American Heads of Government signed the Central
American-United States of America Joint Accord (CONCAUSA) on
December 10, 1994. The original agreement covered cooperation
under action plans in four major areas: conservation of
biodiversity, sound use of energy, environmental legislation, and
sustainable economic development. On June 7, 2001, the United
States and its Central American partners signed an expanded and
renewed CONCAUSA Declaration, adding disaster relief and climate
change as new areas for cooperation. The new CONCAUSA Declaration
calls for intensified cooperative efforts to address climate
change through scientific research, estimating and monitoring
greenhouse gases, investing in forestry conservation, enhancing
energy efficiency, and utilizing new environmental technologies.
The President set a national goal to reduce the greenhouse gas
intensity of the U.S. economy by 18 percent over the next ten years.
Rather than pitting economic growth against the environment, the
President has established an approach that promises real progress on
climate change by tapping the power of sustained economic growth.
- The President's Yardstick -- Greenhouse Gas Intensity --
is a Better Way to Measure Progress Without Hurting Growth.
A goal expressed in terms of declining greenhouse gas intensity,
measuring greenhouse gas emissions relative to economic
activity, quantifies our effort to reduce emissions through
conservation, adoption of cleaner, more efficient, and
emission-reducing technologies, and sequestration. At the same
time, an intensity goal accommodates economic growth.
Reducing Greenhouse Gas Intensity by 18 Percent Over the
Next Ten Years is Ambitious but Achievable. The United
States will reduce the 183 metric tons of emissions per million
dollars GDP that we emit today to 151 metric tons per million
dollars GDP in 2012. We expect existing trends and efforts in
technology improvement to play a significant role. Beyond that,
our commitment will achieve 100 million metric tons of reduced
emissions in 2012 alone, with more than 500 million metric tons
in cumulative savings over the entire decade.
- Focusing on Greenhouse Gas Intensity Sets America on a Path
to Slow the Growth of Greenhouse Gas Emissions, and -- as the
Science Justifies -- to Stop and Then Reverse That Growth.
As we learn more about the science of climate change and develop
new technologies to mitigate emissions, this annual decline can
be accelerated. When the annual decline in intensity equals the
economic growth rate (currently, about 3% per year), emission
growth will have stopped. When the annual decline in intensity
exceeds the economic growth rate, emission growth will reverse.
Reversing emission growth will eventually stabilize atmospheric
concentrations as emissions decline.
- As We Advance Science and Develop Technology to
Substantially Reduce Greenhouse Gas Emissions in the Long Term,
We Do Not Want to Risk Harming the Economy in the Short Term.
Over the past 20 years, greenhouse gas emissions have risen with
economic growth, as our economy benefited from inexpensive,
fossil-fuel based -- and greenhouse gas emitting -- energy.
While new technologies promise to break this emission-economy
link, a rapid reduction in emissions would be costly and
threaten economic growth. Sustained economic growth is essential
for any long-term solution: Prosperity is what allows us to
dedicate more resources to solving environmental problems.
History shows that wealthier societies demand -- and can afford
-- more environmental protection.
- The Intensity Based Approach Promotes Near-Term
Opportunities to Conserve Fossil Fuel Use, Recover Methane, and
Sequester Carbon. Until we develop and adopt breakthrough
technologies that provide safe and reliable energy to fuel our
economy without emitting greenhouse gases, we need to promote
more rapid adoption of existing, improved energy efficiency and
renewable resources that provide cost-effective opportunities to
reduce emissions. Profitable methane recovery from landfills,
coal mines and gas pipelines offers another opportunity --
estimated by the EPA at about 30 million tons of carbon
equivalent emissions. Finally, carbon sequestration in soils and
forests can provide tens of millions of tons of emission
reductions at very low costs.
- The Intensity Based Approach Advances a Serious, but
Measured Mitigation Response. The President recognizes
America's responsibility to reduce emissions. At the same time,
any long-term solution -- one that stabilizes atmospheric
concentrations of greenhouse gases at safe levels - will require
the development and deployment of new technologies that are not
yet cost-effective. The President's policy balances the desire
for immediate reductions with the need to protect the economy
and to take advantage of developing science and technology.
The President's Goal is Ambitious and Responsible
- Reducing Greenhouse Gas Intensity by 18 Percent Over the
Next Ten Years is Comparable to the Average Progress that
Nations Participating in the Kyoto Protocol are Required to
Achieve. Our goal translates into a 4.5 percent reduction
beyond forecasts of the progress that America is expected to
make based on existing programs and private activity. Forecasts
of the average reductions required by nations implementing the
Kyoto Protocol range from zero to 7 percent.
- While Producing Results Similar to What the Kyoto Protocol
Participants Are Required to Achieve on Average, the President's
Approach Protects the Economy and Develops Institutions for a
Long-Term Solution. The focus on greenhouse gas intensity
separates the goal of reducing emissions from the potential
economic harm associated with a rigid emission cap. By measuring
greenhouse gas emissions relative to economic activity, we have
a solid yardstick against which we can measure progress as we
pursue a range of programs to reduce emissions. As we develop
technologies to produce more goods with fewer greenhouse gas
emissions, this yardstick does not penalize economic growth.
- Greenhouse Gas Intensity Is a More Practical Way to Discuss
Goals with Developing Countries. The close connection
between economic growth, energy use and greenhouse gas emissions
implies that fixed appropriate emission limits are hard to
identify when economic growth is uncertain and carbon-free,
breakthrough energy technologies are not yet in place. Such
targets are also hard to identify for developing countries where
the future rate of emissions is even more uncertain. Given its
neutrality with regard to economic growth, greenhouse gas
intensity solves or substantially reduces many of these
problems.
Enhanced National Registry for Voluntary Emissions
Reductions
The Administration will improve the current federal GHG
Reduction and Sequestration Registry that recognizes greenhouse
gas reductions by non-governmental organizations, businesses,
farmers, and the federal, state and local governments. Registry
participants and the public will have a high level of confidence
in the reductions recognized by this Registry, through capture and
sequestration projects, mitigation projects that increase energy
efficiency and/or switch fuels, and process changes to reduce
emissions of potent greenhouse gases, such as methane. An enhanced
registry will promote the identification and expansion of
innovative and effective ways to reduce greenhouse gases. The
enhanced registry will encourage participation by removing the
risk that these actions will be penalized -- or inaction rewarded
-- by future climate policy.
- Improve the Quality of the Current Program. A registry
is a tool for companies to publicly record their progress in
reducing emissions, providing public recognition of a company's
accomplishments, and a record of mitigation efforts for future
policy design. This tool goes hand-in-hand with voluntary
business challenges, described below, by providing a
standardized, credible vehicle for reporting and recognizing
progress.
- Although businesses can already register emission reductions
under section 1605(b) of the 1995 Energy Policy Act,
participation has been limited.
- The President directed the Secretary of Energy, in
consultation with the Secretary of Commerce, Secretary of
Agriculture, and the Administrator of the Environmental
Protection Agency, to propose improvements to the current
voluntary emissions reduction registration program within 120
days.
- These improvements will enhance measurement accuracy,
reliability and verifiability, working with and taking into
account emerging domestic and international approaches.
Protect and Provide Transferable Credits for Emissions
Reduction. The President directed the Secretary of Energy to
recommend reforms to ensure that businesses and individuals that
register reductions are not penalized under a future climate
policy, and to give transferable credits to companies that can
show real emissions reductions. These protections will encourage
businesses and individuals to pursue innovative strategies to
reduce or sequester greenhouse gas emissions, without the risk
that future climate policy will disadvantage them.
Background on Current Registry Program. The Energy
Policy Act of 1992 directed the Department of Energy (with EIA
as the implementing agency) to develop a program to document
voluntary actions that reduce emissions of greenhouse gases or
remove greenhouse gases from the atmosphere.
- Under the Energy Policy Act, EIA was directed to issue
"procedures for the accurate reporting of information on
annual reductions of greenhouse gas emissions and carbon
fixation achieved through any measures, including fuel
switching, forest management practices, tree planting, use of
renewable energy, manufacture or use of vehicles with reduced
greenhouse gas emissions, appliance efficiency, methane
recovery, cogeneration, chlorofluorocarbon capture and
replacement, and power plant heat rate improvement."
- In 1999, 207 companies and other organizations, representing
24 different industries or services, reported on 1,722
projects that achieved 226 million metric tons of carbon
dioxide equivalent reductions - equal to 3.4 percent of
national emissions. Participating companies included Clairol,
AT&T, Dow Chemical, Johnson & Johnson, IBM, Motorola,
Pharmacia, Upjohn, Sunoco, Southern, General Motors and DuPont.
- EIA released a February 2002 report demonstrating that this
program continues to expand. In 2000, 222 companies had
undertaken 1,882 projects to reduce or sequester greenhouse
gases. These achieved 269 million metric tons of carbon
dioxide equivalent reductions -- equal to 3.9 percent of
national emissions.
- A number of proposals to reform the existing registry -- or
create a new registry - have appeared in energy and/or climate
policy bills introduced in the past year. The Administration
will fully explore the extent to which the existing authority
under the Energy Policy Act is adequate to achieve these
reforms.
Progress Check in 2012
The domestic programs proposed by the President allow consumers
and businesses to make flexible decisions about emission
reductions rather than mandating particular control options or
rigid targets. If, however, by 2012, our progress is not
sufficient, and sound science justifies further action, the United
States will respond with additional measures that may include a
broad, market-based program, as well as additional incentives and
voluntary measures designed to accelerate technology development
and deployment.
SUMMARY
Key domestic initiatives to contribute to
achieving our goal
- Tax Incentives for Renewables and
Cogeneration. The Administration's FY'03 budget proposal
seeks $4.6 billion in clean energy tax incentives over the next
five years. These tax credits will spur investments in renewable
energy (solar, wind, and biomass), hybrid and fuel cell
vehicles, cogeneration, and landfill gas. As directed in the
National Energy Policy, the Secretary of the Treasury will work
with Congress to extend and expand the production tax credit for
electricity generation from wind and biomass, to develop a new
residential solar energy tax credit, and to encourage
cogeneration projects through investment tax credits.
- Business Challenges. The
President challenges American businesses and industries to
reduce emissions. Already, agreements with the semi-conductor
and aluminum industries, and industries that emit methane, have
dramatically reduced emissions of some of the most potent
greenhouse gases. We will build on these successes, with broader
agreements and greater reductions.
- Transportation Programs.
The Administration is promoting the development of
fuel-efficient motor vehicles and trucks, researching options
for producing cleaner fuels, and implementing programs to
improve energy efficiency. The President is committed to
expanding federal research partnerships with industry,
market-based incentives and updating current regulatory programs
that advance our progress in this important area. The
Administration has expanded fuel cell research, such as the
"FreedomCAR" initiative, and the President's '03
budget seeks more than $3 billion in tax credits over 11 years
for consumers to purchase fuel cells and hybrid vehicles. The
Secretary of Transportation has asked the Congressional
leadership to work with him on legislation that would authorize
the Department of Transportation to reform the Corporate Average
Fuel Economy (CAFE) program, fully considering the recent
National Academy Sciences report, so that we can safely improve
fuel economy for cars and trucks.
- Carbon Sequestration.
The President's FY '03 budget requests over $3 billion - a $1
billion increase above the baseline -- as the first part of a
ten year (2002-2011) commitment to implement and improve the
conservation title of the Farm Bill, which will significantly
enhance the natural storage of carbon. The President also
directed the Secretary of Agriculture to provide recommendations
on further, targeted incentives for forest and agricultural
sequestration of greenhouse gases. The President further
directed the Secretary of Agriculture, in consultation with the
Environmental Protection Agency and the Department of Energy, to
develop accounting rules and guidelines for crediting
sequestration projects, taking into account emerging domestic
and international approaches.
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Incentives and Programs for Renewables and
Industrial Cogeneration
The President's FY '03 budget proposes providing $4.6 billion in clean
energy tax incentives over the next five years ($7.1 billion over ten
years) for investments in renewable energy (solar, wind, and biomass),
hybrid and fuel cell vehicles, co-generation, landfill gas conversion, and
ethanol. These incentives are important to meeting the nation's long-term
energy supply and security needs, and reducing pollution and projected
greenhouse gas emissions. These clean energy tax incentives include:
- New 10 Percent Tax Credit for Co-Generation (Combined Heat and
Power Systems). The President has proposed a new 10 percent tax
credit for investments in combined heat and power systems between 2002
and 2006. The credit will encourage investments in highly efficient
CHP projects and spur innovation in improved CHP technologies. No
income tax credits are currently available for investment in CHP
property.
- Cogeneration. Combined heat and power (CHP), also known
as "co-generation", is a highly efficient form of
electric generation that recycles heat which is normally lost
under traditional power combustion methods. CHP captures the heat
left over from industrial use, providing a source of residential
and industrial heating and air conditioning in the local area
around the power plant. CHP systems achieve a greater level of
overall energy efficiency, thereby reducing energy consumption,
costs, and carbon emissions.
- EPA Combined Heat and Power Partnership. The new tax
credit would enhance efforts underway by the Environmental
Protection Agency to streamline the permitting process for
cogeneration plants, promote their location in brownfields and
other industrial sites, and clarify how companies can use
cogeneration to stay in compliance with Clean Air Act pollution
standards. On October 5, 2001, in partnership with 17 Fortune 500
companies, city and state governments and nonprofits, EPA
announced the Combined Heat and Power Partnership. Current CHP
projects of the founding partners represent more then 5,800
megawatts of power generating capacity, an amount capable of
serving almost 6 million households. The projects annually reduce
carbon dioxide by more than 8 million tons; the annual energy
savings equal 19 million barrels of oil. A similar program by the
Department of Energy challenges the heat and power industry to
double usage of cogeneration in the United States by 2010.
- First-Ever Tax Credit for Residential Solar Energy Systems.
The President has proposed a new 15 percent tax credit for individuals
who purchase photovoltaic equipment or solar water heating systems
used in a residence, up to a maximum credit of $2,000 for each type of
equipment. Currently, no credit is available for non-commercial
purchases of solar energy equipment. The credit would be available for
photovoltaic equipment purchased between 2002 and 2007, and for solar
water heating equipment purchased between 2002 and 2005. This credit
will encourage businesses and homeowners to invest in solar power
systems.
- Expanded Tax Credit for Electricity Produced from Wind or
Biomass. The President has proposed extending and modifying the
tax credit for electricity produced from wind or biomass. Currently,
wind energy accounts for 6 percent of renewable electricity generation
and 0.1 percent of total electricity supply. Advances have helped cut
costs by more than 80 percent during the last 20 years. This proposal
would help make electricity produced from wind and biomass competitive
with other sources of electricity supply. The proposal would:
- Extend for three years (2002-2004) the present 1.7
cent-per-kilowatt hour credit for electricity produced from wind
and closed-loop biomass (plants grown exclusively to produce
electricity); and
- Expand eligible biomass sources to include certain biomass from
forest-related resources, agricultural and other sources. For
existing biomass facilities, the credit for electricity produced
from new sources is 1.0 cent-per-kilowatt hour for three years
(2002-2004) of production. For coal fired facilities, electricity
produced from co-firing biomass from new sources is 0.5
cent-per-kilowatt hour for three years of production (2002-2004).
- Tax Credit for New Methane Landfill Projects. The President
has proposed encouraging the development of a new alternative source
of energy by providing tax credits for energy produced from landfill
gas. The credit would be approximately 1.0 cent-per-kilowatt hour (or
the equivalent in dollars per million metric BTU) for energy produced
from methane from landfills regulated by the EPA to collect and flare
methane, and 1.5 cents-per-kilowatt hour for unregulated landfills.
The credit would be available for energy produced from new facilities
through 2010.
- New Tax Credit for New Hybrid or Fuel-Cell Vehicles. The
President has proposed a new temporary tax credit of up to $4,000 for
the purchase of new hybrid vehicles and up to $8,000 for the purchase
of fuel cell vehicles between 2002 and 2007. These credits would be
available for all qualifying light vehicles, including cars, minivans,
sport utility vehicles, and light trucks. The tax credits will
encourage the purchase of highly fuel-efficient vehicles that
incorporate advanced automotive technologies and will help to move
hybrid and fuel cell vehicles from the laboratory to the highway.
- Increased Funding for Geothermal Energy. The President's 2003
budget proposal for the US Geological Survey (USGS) supports
alternative, non-fossil fuel energy development. The budget includes
an increase for USGS to investigate the nature and extent of
geothermal systems and produce updated assessments of available
geothermal energy resources in selected regions of the United States.
The near-term focus of this effort will be in the Great Basin region,
where most of the public land available for geothermal leasing lies.
This region encompasses most of Nevada and large portions of
California, Oregon, Idaho, and Utah. Available data indicate the
presence of a substantial undeveloped geothermal energy resource that
could be tapped to help provide for the growing energy requirements of
the western United States.
- Increased Funding for Renewable Energy Resources on Public Lands.
The President's '03 budget proposal calls for a major effort by the
Bureau of Land Management (BLM) to increase its renewable energy
activities in support of the President's National Energy Policy. In
2003, BLM will encourage the study, exploration, and development of
renewable energy resources from public lands. Emphasis will be
directed to advancing the use of geothermal, hydropower, wind, solar,
and biomass resources.
The President challenged American businesses and industries to reduce
greenhouse gas emissions. Already, agreements with the semi-conductor and
aluminum industries, and with industries that emit methane, are
dramatically reducing emissions of the most potent greenhouse gases. The
President's plan will build on these successes, with broader agreements
and greater reductions.
Company Challenges
- EPA's "Climate Leaders" Initiative: EPA will
launch a new, voluntary Climate Leaders program with a group of
major companies including: Florida Power and Light, GM, Lockheed
Martin, Miller Brewing Company, Bethlehem Steel, Interface Inc., SC
Johnson and Holcimus Inc. These companies have agreed to test new
greenhouse gas reporting guidelines as the basis for agreeing to
targets in the future. Each participant will establish an individual
goal for reducing greenhouse gas emissions, and will voluntarily
report those emissions. The Climate Leaders program provides a
significant opportunity to achieve the greenhouse gas intensity
reductions set forth in this policy through a voluntary approach. In
the coming months, the Administration will aggressively pursue
additional corporate partners representing a wider spectrum of the
U.S. economy.
Sector Challenges
- Semiconductors: On March 13, 2001, EPA and the
Semiconductor Industry Association signed a new voluntary agreement,
the PFC Reduction Climate Partnership. Under this partnership, the
industry agreed to reduce emissions of perfluorocarbons (PFCs) by 10
percent from 1995 levels by the end of 2010. The expected reduction
of 13.7 million metric tons of carbon dioxide equivalent in 2010
alone is comparable to taking 12 million cars off the road. PFCs
have, on average, 10,000 times the potency of carbon dioxide over
100 years, and persist in the atmosphere 2,000 to 50,000 years.
- Aluminum: Twelve of the thirteen U.S. primary aluminum
producers, representing 96 percent of the U.S. primary aluminum
production capacity, have joined EPA's Voluntary Aluminum Industrial
Partnership. Companies participating in this program have committed
to make reductions in two potent PFCs, tetrafluoromethane (CF4) and
hexafluoroethane (C2F6). The program met its 2000 goal to reduce PFC
emissions from U.S. primary aluminum smelting by 45% -- equivalent
to 1.8 million metric tons of carbon -- using cost-effective
approaches that make economic and environmental sense for the
partners.
- Methane: Because of the potency of methane relative to
carbon dioxide, a "methane-first" strategy for greenhouse
gas mitigation is cost-effective. A variety of U.S. industry and
government partnerships have reduced methane emissions, and they are
expected to hold emissions at or below 1990 levels through and
beyond 2010. Partners in EPA's methane programs are projected to
maintain emissions below 1990 levels through 2010.
- EPA's Natural Gas STAR program includes companies representing
40 percent of the U.S. natural gas production, 72 percent of
transmission company pipeline miles, 49 percent of distribution
company service connections, and 23 percent of processing
throughput. This partnership has achieved significant
reductions. In 2000, EPA estimates a reduction in methane
emissions of 4 million metric tons of carbon equivalent, and
projects for 2010 a reduction of 6 million metric tons of carbon
equivalent.
- EPA's Coalbed Methane Outreach Program (CMOP) encourages
industry to reduce methane emissions from underground coal
mines. The program provides technical assistance to mining
companies on technologies for recovered methane. EPA estimates
that CMOP reduced 2 million metric tons carbon equivalent in
2000.
- In the agriculture sector, USDA and EPA have partnered on the
Ag-STAR program and the Ruminant Livestock Efficiency Program (RLEP),
which focus on reducing methane emissions. The overall impact of
these two programs on greenhouse gas emissions has been small on
a national scale, but program stakeholders in the agricultural
community have demonstrated that the practices can reduce
greenhouse gas emissions and increase productivity.
Developing new technologies to improve the energy efficiency of
transportation in the United States will be a key element in achieving
future reductions in greenhouse gas emissions. Cars, trucks, aircraft and
other parts of the nation's transportation system are responsible for
about one-third of the carbon dioxide emissions in the United States. The
Administration is currently promoting the development of fuel-efficient
motor vehicles and trucks, researching options for producing cleaner
fuels, and implementing programs to improve energy efficiency. The
President is committed to the expansion and improvement of federal
research partnerships with industry, market-based incentives, and
reforming current regulatory programs that advance our progress in this
important area.
- The "FreedomCAR"-- Advancing Hydrogen-Based Fuel Cells.
On January 9, 2002, Energy Secretary Abraham, with the heads of
General Motors, Ford Motor Co. and the Chrysler arm of DaimlerChrysler,
announced a new partnership, FreedomCAR (Cooperative Automotive
Research), to promote the development of hydrogen as the primary fuel
for cars and trucks. The "FreedomCAR" program embraces the
long-term strategic goal of developing a new breakthrough technology -
the hydrogen-powered fuel cell -- with a vision of ultimately
eliminating our reliance on foreign oil.
- The Department Of Energy's Public-Private Projects for Low-Cost,
Breakthrough Fuel Cell Technology. In August 2002, Energy
Secretary Abraham announced new partnerships, totaling $500 million,
with Honeywell, Siemens, Westinghouse Power Corporation, Delphi
Automotive Systems, Battelle, Cummins Power Generation, and McDermott
Technologies. The partnerships build upon President Bush's commitment
to fuel cell research and cutting edge technologies. The goal of this
initiative is to cut the costs of fuel cells to as low as one-tenth
the cost of currently marketed systems and to one-third the cost of
the more advanced concepts now beginning to reach commercial
readiness.
- Tax Credits for New Hybrid or Fuel Cell Vehicles. The
President has proposed a new temporary tax credit of up to $4,000 for
the purchase of new hybrid vehicles and up to $8,000 for the purchase
of fuel-cell vehicles between 2002 and 2007. These credits would be
available for all qualifying light vehicles, including cars, minivans,
sport utility vehicles, and light trucks. The tax credits will
encourage the purchase of highly fuel-efficient vehicles that
incorporate advanced automotive technologies and will help to move
hybrid and fuel cell vehicles from the laboratory to the highway.
- Corporate Average Fuel Economy Standards (CAFE). A key
recommendation of the President's National Energy Policy directed the
Secretary of Transportation to review and provide recommendations on
establishing updated CAFE standards, with due consideration of the
July 2001 National Academy of Sciences (NAS) report. The NAS report
included several recommendations pertaining to options for structuring
the CAFE system, including permitting manufacturers to trade fuel
economy credits.
- The Administration supports increasing automobile fuel economy and
encouraging new technologies that reduce our dependence on imported
oil, while protecting passenger safety and jobs.
- On February 1, 2002, Transportation Secretary Mineta asked the
Congressional leadership to "work�on legislation that would
authorize the Department of Transportation to reform the CAFE
program, fully considering the NAS report. Possible reforms include:
(1) adopting fuel economy targets that are dependent on vehicles
attributes, such as vehicles weight, that inherently influence fuel
use and have minimal adverse safety consequences; (2) utilizing
market-based incentives, such as trading of fuel economy credits, to
obtain fuel savings at the lowest possible cost to consumer while
providing continuous incentives for additional fuel economy
enhancement; (3) encouraging development and implement of new
technologies; and (4) establishing realistic, long-term targets and
deadlines to increase economy safely while providing greater
long-term product planning for vehicles manufacturers."
- On July 10, 2001, Transportation Secretary Mineta urged Congress
to lift the appropriations ban on new rulemaking of CAF� standards
by the National Highway Transportation Safety Administration (NHTSA)
"to improve vehicle fuel efficiency standards." In
December 2001, Congress responded by lifting the ban, and last week
NHTSA initiated a public review process for safely improving the
fuel economy of new light truck standards for model year 2005
through 2010, and for reforming the CAF� program.
- Tire Pressure Monitoring Systems (TPMS). The Department of
Transportation's National Highway Transportation Safety Administration
(NHTSA) will finalize this year a rule requiring the installation of
tire pressure monitoring systems (TPMSs) in all new cars and light
trucks. Properly inflated tires improve fuel efficiency and reduce
maintenance costs. NHTSA estimates that the annualized benefits range
from $120-480 million in fuel savings and $75-165 million in reduced
tread wear. NHTSA predicts TPMS will save between .31 and 1.27 million
metric tons of carbon equivalent per year when applied to the entire
on-road fleet. That reflects between 128 and 528 million gallons of
gasoline per year.
- First-Ever EPA Agreement with Ford to Develop High-Efficiency
Auto Technology. In September 2001, EPA agreed to license to the
Ford Motor Company a unique, high-efficiency "hydraulic
hybrid" technology that has the long-term potential to reduce
energy consumption and greenhouse gas emissions. The first application
of this technology, planned for model year 2005, will result in a
minimum 30 percent improvement in vehicle fuel economy; the second
phase, planned for as early as year 2009, should double the fuel
economy of selected new vehicles. This is the first-ever licensing
agreement between EPA and an automobile company involving vehicle
powertrain technology.
In the agriculture sector, activities including fertilizer use, animal
waste management and on-farm fuel use account for 148 million metric tons
of carbon equivalent emissions, about 8 percent of total U.S. greenhouse
gas emissions. The President's FY'03 budget requests $3 billion above the
base-line over 10 years (2002-2011) for a new, conservation-focused Farm
Bill that will enhance the natural storage of carbon dioxide.
Increased Funding for USDA's Conservation Programs
- The Conservation Reserve Program (CRP) assists farm owners
and operators to conserve and improve soil, water, air and wildlife
resources by removing environmentally sensitive land from
agricultural production and keeping it under long-term
resource-conserving cover. Currently, USDA estimates that the CRP
removes nearly 34 million acres of environmentally sensitive
cropland from production, which generates long-term environmental
benefits, including the annual savings of about 15 million metric
tons of carbon emissions per year. The CRP would expand to 40
million acres, saving roughly 19 million metric tons of carbon per
year. The Administration's FY '03 budget proposes an increase of $89
million over the FY '02 enacted level.
- The Environmental Quality Incentives Program (EQIP) helps
producers make beneficial and cost-effective changes to cropping and
grazing systems; improve manure, nutrient and pest management, and
implement conservation measures to improve soil, water, and related
natural resources. USDA estimates that the EQIP program (in
combination with conservation technical assistance) provides
assistance to farmers for planning and implementing soil and water
conservation practices and removes roughly 12 million metric tons of
carbon per year. The Administration's FY'03 proposes an increase of
$800 million over the FY '02 enacted level.
- The Wetland Reserve Program (WRP) has enrolled just over 1
million acres to date. Under current authority, the program is
capped at 1,075,000 acres, and has already reached that level this
year. Estimated soil carbon sequestration resulting from conversion
of cropland on wetland soils to grassland or forest by 1997 (1.4
million acres) has resulted in carbon sequestration rates of over 2
million metric tons of carbon per year. The Administration has
supported a version of the Farm Bill that would expand the WRP to
2.225 million acres, saving roughly 4 million metric tons of carbon
per year. The Administration's FY '03 proposes an increase of $176
million over the FY '02 enacted level.
- The Forest Stewardship Program provides technical and
financial assistance to nonindustrial, private forest owners. About
147 million hectares of U.S. forests are nonindustrial, private
forestlands and provide many ecological and economic benefits and
values. These forests provide about 60 percent of our nation's
timber supply, with increases expected in the future. The
acceleration of tree planting on nonindustrial, private forestlands
and marginal agricultural lands can help meet resource needs and
provide important ancillary benefits that improve environmental
quality, such as wildlife habitat, soil conservation, water quality
protection and improvement, and recreation. Additionally, tree
planting and forest management increases uptake of carbon dioxide
and the storage of carbon in living biomass, soils, litter, and
long-life wood products. The Forest Service, in cooperation with
state forestry agencies, manages both programs, and estimates that
these programs provide 700,000 metric tons of carbon reductions per
year. The Administration's FY '03 budget proposes an increase of $16
million over the FY '02 enacted level.
SUMMARY
The President's approach will actively pursue the integration
of our domestic goals and policies with those of other nations.
The President has submitted provisions in the FY '03 budget
includes:
Tripling Funding for
"Debt-For-Nature" Programs. Building upon recent
Tropical Forest Conservation Act (TFCA) agreements with Belize, El
Salvador, and Bangladesh, the President's FY '03 budget request of
$40 million to fund "debt for nature" agreements with
developing countries nearly triples funding for this highly
successful program. The President also announced a new deal with
the Government of Thailand, which will preserve important mangrove
forest in Northeastern Thailand in exchange for debt relief worth
$11.4 million.
Investing $25 Million in
Climate Observation Systems in Developing Countries. In
response to the National Academy of Sciences' recommendation for
better observation systems, the President has allocated $25
million and challenged other developed nations to match the U.S.
commitment.
Expanding
Technology Transfer and Capacity Building in the Developing World:
-
Fully Funding the Global Environment
Facility (GEF). The President's FY '03 budget requests
$178 million for the GEF, a $77 million increase, which
includes a substantial $70 million payment for arrears
incurred during the prior Administration. These funds will
support transfer of advanced energy and sequestration
technologies to the developing world.
-
Dedicating Significant Funds to the United
States Administration on International Development. The
President's '03 budget requests $155 million in funding for
USAID climate change programs. USAID serves as a primary
vehicle for transferring American energy and sequestration
technologies to developing countries to promote sustainable
development and minimize their GHG emissions growth.
Building
on International Cooperative Agreements:
-
Joint Research with Japan. The U.S. and
Japan continue their High-Level Consultations on climate
change issues. Later this month, a team of U.S. experts will
meet with their Japanese counterparts to discuss specific
projects within the various areas of climate science and
technology, to identify the highest priorities for
collaborative research.
-
Joint Research with Italy. The U.S. and
Italy have identified more than 20 joint climate change
research activities for immediate implementation and more
topics for further development in critical areas of global and
regional climate modeling, atmospheric studies related to
climate, carbon cycle research, low-carbon technologies and
other related areas.
|
The Tropical Forest Conservation Act (TFCA) reflects
America's commitment to preserving tropical forests worldwide. Created
in 1998 and reauthorized in 2001 with broad bipartisan support, the
program offers eligible countries the opportunity to reduce their debt
to the United States while preserving their tropical forests. TFCA
encourages and empowers local communities and nongovernmental
organizations to develop and implement grassroots solutions to
conservation problems. Grants from the local fund can be used to support
a wide range of activities, such as training programs to increase the
capacity of individuals and organizations involved in forest
conservation areas; restoration of forested areas; and the protection of
parks and other protected areas. The President's 2003 budget proposal
seeks $50 million in funding for tropical forestry conservation, of
which $40 million may be used for TFCA.
Estimates of the carbon sequestration value of tropical
forests suggest a wide range of values. The World Resources Institute
estimates that carbon sequestration value ranges from 6 to 72 tons per
acre of rainforest. The 1995 IPCC report further analyzed the global
potential for carbon storage. Slowing tropical deforestation on 700
million hectares (nearly the size of the US, but only 17 percent of the
global forest area) could store 60 to87 million gigatons of carbon in 55
years. Annual carbon storage could be over two gigatons by 2050, about
14% of projected emissions.
-
-
Agreements During the Bush Administration.
TFCA agreements have been negotiated with Belize, El Salvador, and
Thailand during this administration.
-
Leverage. The four TFCA agreements to date -
Bangladesh, Belize, El Salvador, and Thailand -generate
approximately $40 million in forest conservation funding at a cost
of $19.2 million.
-
Bangladesh. Debt reduction agreement
signed September 12, 2000; saves Bangladesh $10 million in hard
currency payments and will generate $8.5 million in local
currency interest payments for tropical forest conservation of
Sundarban mangrove forests, which shields the coastline from
typhoons and provides habitat for the last genetically viable
population of Royal Bengal tigers.
-
Belize. In August, 2001, the U.S. and
Belize concluded a "debt-for-nature" agreement to
protect 23,000 acres of tropical forests. The agreement
leveraged $1.3 million in private finds raised by The Nature
Conservancy.
-
El Salvador. Debt reduction agreement
signed July 12, 2001; Tropical Forestry Agreement signed
September 14, 2001. Reduced country's official debt to the U.S.
by $3 million, generating $14.3 million for tropical forest
conservation in local currency interest payments. Initial target
of TFCA funds will be reforestation of hillsides.
-
Thailand. Debt reduction agreement signed
September 19, 2001; agreement was approved by the Thai Cabinet
on February 12, 2002. Debt agreement saves Thailand's $11.4
million in hard currency payments and will generate $9.5 million
for conservation activities. Initial targets for TFCA funds
include reforestation projects in northeastern Thailand,
protection of mangrove forests.
Investing $25 Million in Climate
Observation Systems in Developing Countries.
In response to the National Academy of Sciences'
recommendation for better observation systems, the President has
allocated $25 million and challenged other developed nations to match
the U.S. commitment.
Expanding Technology
Transfer and Capacity Building in Developing Countries
The President' FY '03 budget significantly expands
funding for current programs that transfer advanced energy and
sequestration technologies to developing countries, and provide
technical assistance and training to their citizens. Eighty-one percent
of the growth in global carbon emissions from fossil fuel use in 1990 -- 2010
is expected to come from developing countries, according to projections
by the Energy Information Administration. Reducing this projected,
exponential growth of emissions in developing countries therefore must
be a critical element of any rational policy to address global climate
change. First, the "breakthrough" technological advances
achieved under the President's National Climate Change Technology
Initiative will benefit all nations, and will not be confined to
applications in the United States. Second, America will increase its
commitment to helping the developing world gain access to advanced
energy efficiency and sequestration technologies, by reinvigorating and
expanding support for existing technology transfer programs.
-
Fully Funding the Global Environment Facility (GEF).
The U.S. contribution to the GEF and leading a robust, multinational
5-year replenishment commitment.
-
The Administration's Fiscal Year '03 budget
requested $178 million in funding for the GEF, a 77 percent
increase over the FY '02 enacted level of $100.5 million. It
includes $107.5 million to fully fund the first installment of
the U.S. pledge of $430 million to the GEF's "Third
Replenishment" (GEF-3) for 2003-2006. The FY '03 budget
also includes $70 million to clear one-third of the $211 million
arrears balances incurred by the United States during the last
Administration.
-
The GEF fulfills a critical role in improving
the environment globally, particularly in financing developing
countries' ability to address environmental issues relating to
climate change, biodiversity conservation, and land degradation.
The GEF, operating as the United Nation's Framework Convention
on Climate Change's primary "financial mechanism,"
funds the extra costs (over normal development costs) of
reducing greenhouse gas emissions in energy and other projects.
The GEF's project portfolio has demonstrated a wide range of
approaches to promoting energy efficiency and renewable energy,
often through initiatives in partnership with the private
sector. GEF grant projects are implemented at the country level
through the World Bank, UN Development Program, UN Environment
Program and regional development banks.
-
Since beginning regular operations in 1994, the
GEF has designed and implemented over 800 projects in 160
countries. The GEF has committed $3.2 billion to date,
leveraging well over $8 billion from other sources.
Co-financiers include the developing countries themselves,
bilateral aid agencies and other multilateral financial
institutions, NGOs and the private sector. Leveraging for clean
energy projects is often as high as $5 from other sources for
every GEF dollar. U.S. companies are the largest beneficiaries
of contracts extended for GEF projects, securing 30 percent of
all contracts.
-
Recent examples of highly successful GEF
projects include:
-
Mexico. The Mexico High Efficiency Lighting
Project under which Mexican consumers and businesses have
installed almost 40 percent more efficient lights than
originally projected;
-
India. The India Alternate Energy Project
promoting investment in 41 megawatts of wind power through
the provision of low-market loans, stimulating massive
follow-up investment with wind power now supplying 850
megawatts of energy in India;
-
Brazil. The Brazil Biomass Power Commercial
Demonstration Project promotes the use of high-efficiency
agricultural byproducts as fuel for electric power and
agro-industry process heat;
-
China. The Chinese Coalbed Methane Project
demonstrates technologies in Chinese coal mines for
capturing clean-burning methane as fuel;
-
Latvia. The Latvia Solid Waste Management
and Landfill Gas Recovery project ($25 million total, with
$5 million from GEF) will harness landfill gas for
electricity production and facilitate separation of
recyclable materials;
-
Philippines. The project supports the
connection of a grid-connected power plant on Mindanao which
combines solar and hydroelectric power;
-
Bangladesh. The Rural Electrification and
Renewable Energy Development project promotes solar energy
in rural areas implemented by established Bangladeshi
institutions and is expectedto provide solar power to as
many as 130,000 additional rural households;
-
Ecuador. The Renewable Energy for
Electricity Generation, Renewable Electrification of the
Galapagos Islands project is aimed at reducing Ecuador's
energy-related carbon dioxide emissions by introducing solar
and wind energy to the Galapagos Archipelago, and is
expected to provide wind and solar re-powering of village
mini-grids on three islands serving more than 5,000 people;
and
-
Kenya. The Ormat Olkaria III Georthermal
Power Development project will provide GEF financing for the
first private sector financed and managed geothermal
electric project in Africa and among the first private power
projects in Kenya and East Africa.
-
Dedicating Significant Funds to United States
Agency for International Development (USAID). The President has
maintained a strong commitment to technology transfer and capacity
building in developing countries by requesting $155 million
dedicated to climate change in the USAID FY '03 budget.
-
Following up on the recently concluded Technology
Cooperation Agreement Pilot Project (TCAPP), USAID is working with
partners in Brazil, Egypt, Mexico, the Philippines, and Southern
Africa to implement projects and activities designed to encourage
the accelerated adoption of energy efficiency and renewable energy
technologies and practices in several key sectors.
-
Brazil. Technology cooperation efforts are
focused on the development of new sustainable, energy efficient
and renewable energy technologies to meet the development needs
in the Northeast region. This effort provided start-up financing
for rural energy entrepreneurs through a combination of
enterprise development services and start-up financing.
-
Philippines. Technology cooperation efforts are
supporting national goals to expand rural electrification by
using renewable energy sources such as, wind power.
-
Southern Africa. USAID is supporting activities
designed to promote the widespread use of solar water heaters in
selected areas. Program-wide efforts also include a focus on the
development and dissemination of outreach and communication
tools in an effort to encourage information sharing.
-
The Cairo Air Improvement Project (CAIP) is a $60
million USAID program that is designed to reduce vehicular
emissions, such as particulates and lead. The CAIP is reducing air
pollution by:
-
operating a vehicle emission testing, tune-up,
and certification program and promoting the conversion of
diesel-fueled, public sector, municipal bus fleets to compressed
natural gas; and
-
reducing the concentration of air pollution from
smelters.
-
Joint Research with Japan. The U.S. and Japan
continue their High-Level Consultations on climate change issues.
Later this month a team of U.S. experts will meet with their
Japanese counterparts to discuss specific projects within the
various areas of climate science and technology to identify which of
the highest priority opportunities to pursue.
-
Joint Research with Italy. The United States
and Italy convened a "Joint Climate Change Research
Meeting" in Rome on January 22-23, 2002, following upon a
pledge of President Bush and Prime Minister Berlusconi to undertake
joint research on climate change. This pledge recognized the need to
draw on sound science and the power of technology to reduce the
uncertainty associated with future global climate and environmental
challenges. The two sides identified more than 20 joint climate
change research activities for immediate implementation and more
topics for further development in critical areas of global and
regional climate modeling, atmospheric studies related to climate,
carbon cycle research, low-carbon technologies and other related
areas. The climate science research activities for immediate
implementation will improve the capability to understand, monitor
and predict climatic variations and their impacts. In addition, the
technology research activities for immediate implementation will
contribute to the development of advanced low carbon technologies to
limit net emissions of greenhouse gases.
-
Pursue Joint Research with Central America.
The United States and Central American Heads of Government signed
the Central American-United States of America Joint Accord (CONCAUSA)
on December 10, 1994. The original agreement covered cooperation
under action plans in four major areas: conservation of
biodiversity, sound use of energy, environmental legislation, and
sustainable economic development. On June 7, 2001, the United States
and its Central American partners signed an expanded and renewed
CONCAUSA Declaration, adding disaster relief and climate change as
new areas for cooperation. The new CONCAUSA Declaration calls for
intensified cooperative efforts to address climate change through
scientific research, estimating and monitoring greenhouse gases,
investing in forestry conservation, enhancing energy efficiency, and
utilizing new environmental technologies.
SUMMARY
The President's policy builds on his June 11
commitments to global climate science and technology:
-
fully fund high-priority areas for climate
change science over the next five years; and
-
strengthen technology research at universities
and national labs, to enhance partnerships in applied
research, develop improved technology for measuring and
monitoring gross and net greenhouse gas emissions, and fund
demonstration projects for cutting-edge technologies, such as
bioreactors and fuel cells.
Increase Support for America's Commitment to
Climate Science and Technology Initiatives. The
Administrations FY'03 budget seeks an additional $700 million for
climate change programs, bringing total climate spending up to
$4.5 billion per year. This commitment to climate change research
and development is unmatched in the world, and is particularly
notable given America's focus on domestic and international
security issues in the FY '03 budget. A key element of this effort
is dedicated to funding for the Climate Change Research Initiative
and the National Climate Change Technology Initiative. These
initiatives are core components of the President's '03 budget.
They are designed to fund high-priority research to address major
gaps in our current understanding of climate science and to
promote the development of the most promising
"breakthrough" technologies for clean energy generation
and carbon sequestration.
The
Climate Change Research Initiative. The U.S. will spend
$1.7 billion in FY'03 for basic research on climate change, $40
million of which is dedicated to leverage other funding to address
major gaps in understanding the carbon cycle and the role of black
soot.
The
National Climate Change Technology Initiative. The U.S.
will spend $1.3 billion on climate change technologies, of which
$40 million will be spent on development and deployment of
advanced energy and sequestration technologies critical to
long-term emission reduction.
The President Has Established a New High-Level
Committee on Climate Change Science and Technology Integration (CCCSTI).
This Committee consists of the Secretaries of Commerce, Energy,
State, Agriculture, Interior, Health and Human Services, Defense,
and Transportation, EPA Administrator, OMB Director, NEC Director,
NASA Administrator, NSF Director and CEQ Chairman. The Executive
Director of the committee will be the Director of the Office of
Science and Technology Policy. The functions of the CCCSTI include
but are not limited to:
-
providing recommendations concerning climate
science and technology to the President;
-
recommending the movement of funding and
programs across agency boundaries; and
-
coordination with the Office of Management and
Budget on the Committee's recommendations.
The Chair of CCCSTI is responsible for the final
review of recommendations to the Climate Change Panel. Research
will continue to be coordinated through the Nation Science and
Technology Council in accordance with the Global Change Research
Act of 1990.
|
On June 11, 2001, the President announced a new
commitment to developing a science-based climate change policy, and a
new commitment to funding research on "breakthrough
technologies" that will help meet the long-run climate change
challenge. To study areas of scientific uncertainty and identify
priority areas where investments can make a difference, the President
created the Climate Change Research Initiative (CCRI). The CCRI promotes
a vision focused on the effective use of scientific knowledge in policy
and management decisions, and continued evaluation of management
strategies and choices.
The President's FY '03 budget requested $40 million for
CCRI to be shared among five agencies (NOAA, NSF, NASA, DOE, and USDA).
This investment will focus on answering key questions recently
identified by the National Academy of Sciences in its 2001 report,
"Climate Change Science: An Analysis of Some Key Questions."
The CCRI will improve the integration of scientific knowledge, including
measures of uncertainty, into effective decision support systems and
will adopt performance metrics and deliverable products useful to
policymakers in a short time frame (2-5 years). Specific
priorities identified for FY 2003 include:
-
Understanding the North American Carbon Cycle.
An intensive research effort will be focused on understanding North
American terrestrial and oceanic carbon sources and sinks, to
improve monitoring techniques, reconcile approaches for quantifying
carbon storage, and elucidate key controlling processes and land
management practices regulating carbon fluxes between the
atmosphere, land, and the ocean. This effort will develop automated
carbon dioxide and methane sensors, and improve ground-based
measurements and inventories of forest and agricultural lands.
-
Developing Reliable Representation of the Global
and Regional Climatic Forcing by Atmospheric Aerosols. Aerosols
and tropospheric ozone play unique but poorly quantified roles in
the atmospheric radiation budget. CCRI investments will implement
plans developed by the interagency National Aerosol-Climate
Interactions Program to define and evaluate the role of aerosols
that absorb solar radiation, such as black carbon and mineral dust.
Proposed activities include field campaigns (including aircraft fly-overs),
in situ monitoring stations, and improved modeling and satellite
data algorithm development.
-
Investing in Computer Modeling. The continued
development and refinement of computer models that can simulate the
past and future conditions of the Earth's climate system is
important for providing more accurate projections of future climate
change. NOAA will establish a Climate Modeling Center within the
Geophysical Fluid Dynamics Laboratory (GFDL) at Princeton, New
Jersey, to focus on model product generation research, assessment,
and policy applications.
-
Ensuring High-Quality, Long-Term Climate Data
Records. This is a long-term effort to develop high fidelity
climate data records from satellite observing systems. Initial work
will target calibration and validation of instruments planned for
the National Polar-orbiting Operational Environment Satellite System
(NPOESS) to ensure a smooth transition and guarantee climate-quality
data.
On June 11, 2001, the President announced a new
commitment to developing a science-based climate change policy, and a
new commitment to funding research on "breakthrough
technologies" that will help meet the long-run climate change
challenge. To advance and bring focus to technologies that offer great
promise to significantly reduce greenhouse gas emissions, the President
created the National Climate Change Technology Initiative (NCCTI). The
President charged the Secretaries of Commerce and Energy, working with
other agencies, to:
-
Evaluate the State of U.S. Climate Change
Technology Research and Development and Make Recommendations for
Improvement. The U.S. government funds many different
technologies that can help mitigate greenhouse gas emissions. Some
are designed to improve energy efficiency or create opportunities to
switch to fuels, products, and processes that emit lower amounts of
greenhouse gases. Others enhance carbon removal or storage in
terrestrial, ocean, and geological sinks, or explore innovative
concepts and breakthrough technologies.
-
Provide Guidance on Strengthening Basic Research
at Universities and National Laboratories, Including the Development
of Advanced Mitigation Technologies that Offer the Greatest Promise
for Low-Cost Reductions of Greenhouse Gas Emissions. There are
many scientific and technological challenges regarding costs,
environmental impacts, and public acceptability that must be
resolved before climate change mitigation technologies can reach
their full potential. Federal research efforts can help meet these
challenges.
-
Develop Opportunities to Enhance Private-Public
Partnerships in Applied Research and Development to Expedite
Innovative and Cost-Effective Approaches to Reducing Greenhouse Gas
Emissions. The U.S. government has established partnerships with
the private sector to advance technologies that mitigate greenhouse
gas emissions. It is critical to enhance this role and ensure that
partnerships with industry are directed toward the most mutually
beneficial outcomes.
-
Make Recommendations for Funding Demonstration
Projects for Cutting-Edge Technologies. Cutting-edge
technologies hold the promise of significantly reducing greenhouse
gas emissions.
-
Evaluate Improved Technologies for Measuring and
Monitoring Gross and Net Terrestrial Greenhouse Gas Emissions.
Private sector investors are reluctant to participate in projects
without reliable and credible quantification of the uncertainties
associated with different land management practices. Cost-effective
measurement systems will not only increase the attractiveness of
agricultural greenhouse gas projects to investors, but can also
provide valuable information to individual farmers and ranchers
optimizing the use of fuel, fertilizers, and other substances.
The President's FY '03 Budget requests $40 million
within the Department of Energy to begin work on NCCTI. Specific
research areas are being identified through an interagency review
process. The NCCTI will build on an existing base of research and
development in climate change technologies, primarily at the
Department of Energy, the Environmental Protection Agency, and the
Department of Agriculture. A complete report on the findings and
recommendations of the NCCTI will be issued soon.
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