Summary Note CLIM Committee delegation to Washington, USA, April 2008

Transcription

1 TEMPORARY COMMITTEE ON CLIMATE CHANGE THE SECRETARIAT Summary Note CLIM Committee delegation to Washington, USA, April 2008 Brussels, 16 June Composition and objectives of delegation The main objectives of the delegation were (i) to learn about the actions and initiatives taken or planned in the US, and mainly in the Congress, to tackle the issue of climate change, and (ii) to better understand the US position in the context of the international debate for a post-2012 climate change framework. The delegation consisted of seven members. It was led by Guido SACCONI (Italy, PSE), Chairman of the CLIM committee, and included Karl-Heinz FLORENZ (Germany, EPP-ED), CLIM rapporteur, Inés AYALA SENDER (Spain, PSE), Pilar DEL CASTILLO VERA (Spain, EPP-ED), Matthias GROOTE (Germany, PSE), Rebecca HARMS (Germany, Greens/EFA) and Jonathan EVANS (UK, EPP-ED) in his capacity as Chairman of the delegation for relations with the US. Three other Members, Bairbre DE BRÚN (UK, GUE/NGL), Avril DOYLE (Ireland, EPP-ED) and Peter LIESE (Germany, EPP-ED) joined the meetings of the delegation as associated members. The delegation was accompanied by Sabina Magnano and Markus Warasin of the Climate Change Committee secretariat, by Philippe Kamaris of the secretariat of the delegation for relations with US and by Piotr Zalewski, Press Officer. Harald Kandolf and Simon Meehan (EPP-ED group advisors), Igor Hornak (PSE group advisor) and Terhi Lehtonen (Greens/EFA group advisor) as well as Mr Florenz's personal assistant also accompanied the delegation. 2. Programme of meetings and visits The delegation visit started in the morning of Monday, 28 April, with a series of discussions with representatives from the main Think Tanks/NGOs active in the US on the issue of climate change (Mr Elliot Diringer and Mr Nikki Roy from the Pew Center for Climate Change, Mr Ned Helme and Mr Jake Schmidt from the Center for Clean Air Policy, Ms Jennifer Haverkamp and Ms Annie Petsonk from the Environmental Defense Fund, and Mr Jonathan Pershing from the World Resources Institute) on the status of the debate in the US regarding climate change as

2 well as the recent initiatives taken in this area in the Congress. The delegation was then briefed on the same issues by the Head of the EC delegation to the US, Ambassador John Bruton. The afternoon of 28 April was devoted to meetings with representatives from the international financial institutions, and in particular from the World Bank. After a welcome meeting with Ms Edith Grace Ssempala, Director for International Affairs in the World Bank s External Affairs Vice Presidency, the delegation discussed issues linked to climate change and sustainable development with Ms Kathy Sierra, Vice-President on Sustainable Development in the World Bank, and with Ms Rachel Kyte, Vice President for Business Advisory Services in the International Finance Corporation (IFC), as well as with members of their staff. The delegation also met with Ms Monique Barbut, CEO of the Global Environment Facility (GEF), and with the World Bank s European Directors. On Tuesday, 29 April, the programme of the delegation was mainly devoted to meetings in the US Congress, were the delegation had the opportunity to meet the key-actors in the debate currently taking place on measures aiming at tackling climate change. In particular, the delegation met with Senator Jeff Bingaman, Chairman of the Senate Committee on Energy and Natural Resources; with Senators Joe Lieberman and John Warner, co-sponsors of the Climate Security Act which aims at introducing cap-and-trade legislation; with Representative Ed Markey, Chairman of the House Select Committee on Global Warming and Energy, and other members of the Committee (Representatives James Sensenbrenner, James Inslee and Emanuel Cleaver). On Wednesday, 30 April, the programme of the delegation started with a meeting with Mr James L. Connaughton, Chairman of the Council on Environmental Quality, who informed the delegation about the latest actions and initiatives on climate change-related issues taken by the US administration. The delegation was then briefed by Mr Peter M. Iwanowicz, Director of the Office of Climate Change at the New York State Department of Environmental Conservation, Regional Greenhouse Gas Initiative (RGGI) on the actions currently taking place in the context of RGGI in the Northeastern and Mid-Atlantic states. The delegation then held a Press Conference in the EC delegation office, which was attended by around 20 journalists representing US and international press (see press release attached). In the afternoon, the delegation had two further meetings in the Congress, with Representative Rick Boucher, Chairman of the House Subcommittee on Energy and Air Quality, and with Representative Lee Terry, member of the House Committee on Energy and Commerce. A full programme of the delegation's visits is annexed to this summary note. 3. Issues discussed: The delegation discussed a wide range of both general and specific issues during its various meetings and visits in Washington and mainly:

3 Trends in US global warming emissions: According to IEA, in 2005 US GHG emissions were million tonnes of CO2 equivalent, a national total exceeded only by that of China With only 4% of the world population, the US emissions constitute 17% of the world s total emissions The two primary sectors driving emissions are electric generation (33%) and transportation (29%); emissions from the industrial sector contribute 16% of emissions Main trends in current Climate Change debate in the US: Fears of continuing raise of energy price Business community has moved on climate measures more at national and international level, rather than at local level At local level the discussion focuses on growth and jobs with the fear of jobs loss due to delocalisation towards emerging economies (China) Emphasis on technology will remain in the next years, no matter who will be the next US President A future US legislation will have to balance the interests of agricultural and forestry states with those of coal states Current actions/initiatives at federal level: While the current Congress has enacted various policies that are likely to reduce GHG emissions, the US currently has no comprehensive national policy to specifically address this issue. In February 2002 the US President announced a goal to reduce GHG intensity (i.e. the ratio of GHG emissions to economic output expressed in GDP) by 18% in Since then, additional voluntary measures to achieve this reduction have been proposed. The GHG intensity goal has not stopped nor stabilised GHG emissions in the US. The most significant US sectoral policies affecting climate are the 2005 Energy Policy Act and the 2007 Energy Independence and Security Act, which: set standards for fuel combustion efficiency and for energy efficiency for consumers appliances and equipments; set objectives in biofuels consumption with certain minimal environment safeguards; promote renewable generation through taxation policies. Preliminary estimates from the administration show that combined, these legislations, will prevent 5-6 billion tons of GHG emissions by 2030 A number of legislative proposals relating in a more comprehensive way to climate change have been proposed in the current Congress. The most promising of them is the Climate Security Act, co-sponsored by Senators Lieberman and Warner (see below) Current actions/initiatives at state level: The state level has been extremely active in setting climate change policies. In addition to individual initiatives there are three examples of states banding together within a region to set region-wide climate reduction policies and programs. Regional Greenhouse Gas Initiative (RGGI) Northeast and Mid-Atlantic states, launched in 2003 at the initiative of the New York State Governor. Has developed a CO2 Budget Trading Program that applies to fossil fuel-fired generating units of 25

4 MW or above. The objective is to stabilise GHG emissions from the power sector until 2014 and then begin a 2.5% decline per year until 2018 through a multi-state cap-andtrade program with a market-based emissions trading system. Western Climate initiative Western states, launched in February 2007 with the goal to achieve an aggregate reduction of 15% GHG emissions below 2005 by The participants have also agreed to design a cap-and-trade system by August Midwest Greenhouse Gas Accord, launched in November 2007 with the objective of developing a GHG reduction programme that will use a market-based and multisector cap and trade mechanism. Perspectives for adoption of a US cap-and-trade legislation before COP15 in Copenhagen: The Climate Security Act (the so called Lieberman/Warner bill) introducing a capand-trade system will be debated in the Senate on 2 nd June The administration is not in favour of such legislation and it is very likely that President Bush would veto such legislation if it were adopted It is unlikely that the Climate Security Act or other similar types of legislation will be adopted before the end of term of this Congress 1 The objective is for this exercise to facilitate the examination and adoption of a similar type of legislation in the next Congress All the Presidential candidates have voiced clear commitments in changing the US position on climate and in favour of a cap-and-trade legislation. It is, therefore, possible that a proposal for legislation be introduced in the next Congress at the initiative of the administration Forthcoming Poznan Conference and the post-2012 international framework: According to the US administration, the US is prepared to reach agreement at the international level on a quantitative long-term target for GHG emission reductions as well as on mid-term goals. Such an agreement can only be effective if all the major economies are part of it. Sectoral partnerships with China and India should also be envisaged A joint US/EU proposal has been put to WTO to eliminate tariffs on 43 climatefriendly technologies identified by the World Bank. Around 100 further of these climate-friendly technologies could be identified and the removal of tariffs on them negotiated at a later stage. There is a commitment between US, China and India to fund research and development on CCS and then exchange the technologies Financing of sustainable development: The World Bank is currently developing a strategic framework on climate change and development (SFCCD). This framework will be prepared in parallel with the World Development Report 2010 on Climate Change Addressing Climate Change is central to the development and poverty reduction agenda The main areas identified for financing are: adaptation, CDM, technology transfer 1 On 8 June 2008, the US Senate indeed decided not to put to the vote the Lieberman/Warner bill by 48 votes to 36 (60 votes in favour were needed to proceed to the vote).

5 4. Main outcome of the discussions: The debate on climate change and on the possible measures to adopt to tackle it has dramatically evolved in the US in the last four years. The state/regional level has been particularly active, although a number of interesting initiatives have also been put forward in the Congress, in particular in the Senate. Although it is extremely unlikely that a comprehensive climate legislation be adopted by the Congress before the Presidential elections in November 2008, many key-actors in the Congress share the view that such a legislation will be adopted in time for the US to play an active role in the shaping of a global climate agreement in COP 15 in Copenhagen in All the Presidential candidates have, infact, already voiced a clear commitment in favour of tackling climate change through binding GHG emissions reduction targets. A number of sectoral policies to limit GHG emission raise have been adopted in the last years. The EU experience of the Emissions Trading Scheme has also been closely followed and the second phase of the system is being favourably judged by the US counterparts. Areas of potential cooperation with the EU are the proposal to eliminate tariffs for climatefriendly technologies, as well as a common approach towards the issue of IPR and the promotion of sectoral partnerships and CCS. 5. Points for follow-up: The following points might be considered for specific follow-up: i. The debate in the US on climate-related issues is in constant evolution and will remain so for the next 18 months at least. The delegation could ask the EP delegation for relations with the US to keep the issue of climate change on the agenda of the meetings with the US counterparts, in particular concerning possible new initiatives in the Congress and/or by the new administration. A report back to the CLIM Committee on these issues should also be asked. ii. In the same context, pressure should be maintained both on the Congress and on the administration to adopt legislation in time to ensure that the US play an active role in the final round of the climate negotiations in Copenhagen in For this purpose, initiatives such as regular video-conferences (twice per year, for instance) could be envisaged iii. Contacts could be established with the Congress with a view to organising an informal meeting between the EP delegation and the US Congress delegation in the margin of COP 14 in Poznan in December 2008.

6 TEMPORARY COMMITTEE ON CLIMATE CHANGE PROGRAMME DELEGATION VISIT TO WASHINGTON Monday, Wednesday, (time: CET -6) Sunday, 27 April 2008 Individual arrival at the hotel: Hotel Renaissance M Street, Washington 1143 New Hampshire Avenue NM Tel Fax Monday, 28 April MORNING Meeting point in the hotel lobby and departure to the Delegation of the European Commission to the US for the morning's meetings Location: Delegation of the European Commission to the United States 2300 M. Street, Washington, DC Telephone: (202) Fax: (202) Meeting with Ned HELME, Executive Director, Center for Clean Air Policy (CCAP), on the sectors approach Location: EC delegation M Street, Washington, DC page 1

7 Round-table discussion with Civil Society Groups / Think Tanks Elliot DIRINGER, Director of International Strategies, and Nikki ROY, Director of Congressional Affairs, Pew Center on Global Climate Change Jake SCHMIDT, International Program Manager, CCAP Jennifer HAVERKAMP, Senior Counsel Climate & Air, and Annie PETSONK, International Counsel Climate & Air, Environmental Defense Fund Jonathan PERSHING, Director, Climate, Energy and Pollution Program, World Resources Institute Location: EC delegation M Street, Washington, DC Briefing by Ambassador John BRUTON, Head of Delegation of the European Commission to the United States Location: EC delegation M Street, Washington, DC Monday, 28 April AFTERNOON Departure to the World Bank Location: 1818 H Street, N.W. Washington D.C , USA 14:10 Arrival at the World Bank and accreditation Welcome Meeting with Edith Grace SSEMPALA - Director for International Affairs, External Affairs Vice Presidency, WB Meeting on Climate Change and Sustainable Development Kathy SIERRA, Vice President for Sustainable Development, World Bank Rachel KYTE - Vice President for Business Advisory Services, International Finance Corporation Coffee Break Meeting with Monique BARBUT, CEO of Global Environment Facility Meeting with World Bank's European Executive Directors page 2

8 Tuesday, 29 April MORNING Meeting in the Hotel Lobby and departure Meeting with Senator Jeff BINGAMAN, Chairman, Committee on Energy and Natural Resources Location: US Senate, Hart Building, Room 703 Tuesday, 29 April AFTERNOON Meeting with Senator Joe LIEBERMAN and Senator John WARNER, Members, Committee on Environment and Public Works, and senior staff members of the Committee Location: US Senate, Dirksen Building, Room Meeting with Representatives Ed MARKEY, Chairman, James SENSENBRENNER, Ranking Member, James INSLEE and Emanuel CLEAVER, Members, House Select Committee on Energy Independence and Global Warming Location: US House of Representative Rayburn Building, Room 2222 Wednesday, 30 April MORNING Meeting in the Hotel Lobby and departure Meeting with James L. CONNAUGHTON, Chairman of the Council on Environmental Quality Location: White House Complex, 722 Jackson Place, NW Meeting with Peter M. IWANOWICZ, Director of the Office of Climate Change at the New York State Department of Environmental Conservation, Regional Greenhouse Gas Initiative (RGGI) (Northeastern and Mid-Atlantic states) Location: EC delegation M. Street, Washington, DC Press Conference Location: EC delegation M. Street, Washington, DC page 3

9 Wednesday, 30 April AFTERNOON Meeting with Representative Rick BOUCHER, Chairman, House Subcommittee on Energy and Air Quality Location: US House of Representative, Rayburn Building, Room Meeting with Representative Lee TERRY, Member, House Committee on Energy and Commerce Location: US House of Representative Longsworth Building, 5th floor page 4

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