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Melinda L. Kimble Acting Assistant Secretary for Oceans and International Environmental and Scientific Affairs, U.S. Department of State Fourth Session of the Conference of the Parties, UN Framework Convention on Climate Change Plenary Statement of the United States of America Buenos Aires, Argentina, November 2, 1998

Plenary Statement of the United States of America

Thank you, Mme. President.

We view this meeting as a significant step in efforts to advance implementation of the UN Framework Convention on Climate Change (FCCC), consolidate our gains and to make concrete and operational last year's Kyoto achievements.

The United States continues to make tremendous progress in our fight against global warming. Since 1992, the United States has put more than 50 national programs in place to address the problem. In the last year, we have stepped up our own aggressive domestic efforts. The U.S. federal budget for the coming year includes a 25 percent increase in investments to combat climate change -- in energy efficiency, renewable energy and R&D -- with resources now totaling over $1 billion for Fiscal Year 1999. These funds will go to a wide array of programs, including those that will produce automobiles early in the next decade with triple the gas mileage of today's cars, and that will make new housing up to 50 percent more energy efficient. In addition, the Administration announced its plan for a restructuring of the nation's energy industry, which will increase efficiency, spur renewable energy use and help cut emissions as well.

We continue to act internationally, as well. Our bilateral climate assistance programs have met the goals for the first year of President Clinton's five-year, $1 billion developing country climate initiative, promoting transfer of technology, capacity building and increased investment. This includes a strong focus on cities and the role they play in reducing greenhouse gases, as we heard this morning from Buenos Aires's own governor. And, due to the President's strong commitment to protect the global environment, we will be contributing nearly $193 million to Global Environmental Facility (GEF), whose efforts go well beyond climate change.

Kyoto was a genuine breakthrough. The entire international community owes a debt of gratitude to Japan for their tireless efforts last year in forging the Kyoto agreement. International action was taken in response to a powerful scientific consensus. Industrialized countries took on binding targets to cut their aggregate emissions by 5.2% below 1990 levels by 2008-2012 -- real reductions with a realistic compliance period. Most importantly, Kyoto also provided for market-based, flexibility mechanisms -- emissions trading, the Clean Development Mechanism, Joint Implementation -- to supplement domestic measures to reduce greenhouse gas emissions, offering powerful incentives necessary to making cost-effective reductions worldwide to achieve agreed targets.

We can protect the environment and grow our economies. The domestic experience of the United States demonstrates that we do not need large bureaucracies or overly intrusive regulation. The trading system used in the U.S. domestic SO2 program to reduce acid rain, for example, has achieved our environmental goals more rapidly at less than 50 percent of initial cost estimates. We do not underestimate the complexity of making Kyoto's provisions operational or the need to build confidence that we can make them work to the benefit of all. However, the urgency of the problem, and our own confidence in the resourcefulness of the global community gives us reason to expect success in this endeavor.

Over the last year, we have worked with all Parties to abate increases in emissions, recognizing the need for sustained effort on this problem, as well as the need to maintain employment and create conditions for sustainable development. We particularly realize how essential it is that developing countries take action consistent with the full range of their environmental and economic goals and the ultimate objective of the Convention. We must all make more progress. Our discussions have become more regular, substantive and detailed -- highlighting the benefits of taking further action.

We recognize the substantial differences among developing countries in terms of emissions profiles, levels of development, capacity for effective action, and economic and political conditions. We recognize their varying capacity to contribute to the solution. We are working to convince them of the enormous opportunities offered under the Kyoto Protocol -- as well as of the benefits of taking on binding targets and other actions to address climate change in terms of improved health, energy efficiency and other benefits.

At Kyoto, we created the structure for international efforts to address climate change. We hope that this meeting will create a process for installing the interior plumbing and circuitry to construct a Kyoto agreement that can stand the test of time. In doing so, we have three primary goals:

• First, we strongly support the agreement that was struck in Kyoto. There, we joined others in taking on an emissions reduction target. We did so with the clear understanding that we would be able to use the flexible, market-based Kyoto mechanisms without arbitrary restraints in order to meet our obligations cost-effectively. The EU, in contrast, sought to balance the burden of their member states through a differentiated burden sharing arrangement. We believe this agreement must -- and will -- hold because it is environmentally and economically sound.

• Second, we want to move beyond our differences on the flexibility mechanisms and concentrate on reaching agreement on substantive implementation questions, and developing a work plan, with clear timetables for elaborating the rules and modalities. We must make it our goal to have the CDM up and running by the year 2000. And, we must move forward with urgency to develop appropriate mechanisms for measurement, reporting, verification and compliance to create an emissions trading system with high standards.

• Third, we cannot solve the problem by Annex I actions alone. We hope to discuss other opportunities in the Kyoto Protocol with developing countries in a productive, open and frank manner and look forward to working with all Parties to find a truly global solution to the problem of climate change. President Clinton has indicated that he will not submit the Kyoto Protocol for the U.S. Senate's advice and consent to ratification without meaningful participation by key developing countries. We look forward to working with all countries to craft a solution to this problem.

These discussions may not have the glamour and novelty of Kyoto. But they can advance the tough work needed to make Kyoto's remarkable promise a reality. We hope to get beyond rhetoric and ideology, and begin to shape the tools needed to get the job done for the benefit of the global community. Thank you, Mme. President.

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