Remarks Prepared for Assistant Secretary Harbert
As a signatory to the United Nations Framework Convention on Climate Change, the U.S. shares with many countries its ultimate objective, stabilization of greenhouse gas concentrations in the atmosphere at a level that prevents dangerous interference with the climate system. It is an obligation we take seriously.
Serious undertakings require a serious consideration of the issues and the challenges. For a problem of the size, complexity, and time scale of climate change, the quick fix, while tempting, is not a viable option.
Given the nature of the problem, the U.S. has taken a long-term and strategic view of the issues and the challenges needed to achieve the Framework Convention's goal. In September 2006, the U.S. government issued the Climate Change Technology Plan Strategic Plan, a product of in excess of a dozen U.S. agencies which takes a century long look at the climate change challenge and the potential for technological solutions across a range of uncertainties and scenarios.
The fundamental transformation of how we produce and consume energy that is required to meet our shared goal will take place at a time when energy demand worldwide is expected to grow tremendously, with a tripling of global energy demand by 2100 not unimaginable.
When you consider that roughly 80 percent of greenhouse gas emissions are energy-related, a central challenge to achieving stabilization will be reconciling the projected growth in energy demand and the need eventually to reduce emissions. We believe that our response to climate change should integrate the legitimate aspirations of people everywhere for economic growth, energy security, and clean air. This can form the basis of a successful strategy.
Major elements of this strategy include slowing the growth in greenhouse gas emissions; advancing climate change science; accelerating technology development; promoting international collaboration; and expanding finance and open trade.
While climate change is a complex and long-term challenge, we recognize that there are cost-effective steps we can take now. In 2002, President Bush set a countrywide goal to reduce the greenhouse gas intensity of the U.S. economy by 18 percent by 2012. For a country like the U.S., with a robust economy, a large and growing population, and an economy transitioning to lighter industries, an intensity goal makes sense because it acknowledges economically valuable activity that does not require a lot of energy or greenhouse gases.
Recent data indicate we are on track to meet, even exceed, the President's goal, having reduced the U.S. greenhouse gas emission intensity by 8.5 percent between 2000-2005 while our population grew by 5.3 percent and our economy expanded by twelve percent. Preliminary data for 2006 suggests an absolute reduction in energy-related carbon dioxide emissions of 1.3 percent for that year despite economic growth of 2.9 percent.
To achieve the President's goal, the U.S. has implemented a broad portfolio of policies and programs including mandates, standards, incentives, and voluntary partnerships that are directed at hastening the market penetration of more efficient energy technologies and alternate fuels, increasing conservation, and preventing deforestation. I could spend the entire morning session detailing each of these efforts but instead I will direct you to the detailed U.S. policy and technology R&D matrices which have been distributed to each of the delegations.
We have a strong legislative and fiscal framework the Energy Policy Act of 2005 authorizes almost $12 billion annually for market-based incentives and tax credits and establishes new financial programs like loan guarantees and risk insurance to accelerate the market penetration of clean energy technologies.
More recent initiatives include the President's "Twenty in Ten" project to reduce projected gasoline consumption by 20 percent in 10 years through a combination of increased vehicle efficiency and use of alternative fuels which will help our energy security and reduce greenhouse gas emissions. This initiative mandates the use of the equivalent of 35 billion gallons of alternative and renewable fuels by 2017. Our investment in understanding climate science guided us in developing this targeted effort; and, equally important investments in advancing the technology research in alternative fuels like cellulosic ethanol will make achieving this mandate feasible. Policy, informed by science and accelerated by technology.
But policies alone are not enough. While acting to slow the pace of greenhouse gas emissions in the near term, the U.S. has laid a strong scientific and technological foundation to reduce uncertainties, clarify risks and benefits, and develop realistic mitigation and adaptation options.
Since 2001, the U.S. has invested nearly $13 billion in climate change science to increase our understanding of the climate system and the influence of human activities on it and to assess the impacts of climate change on the environment. Through these investments, which have improved our knowledge of the impacts and narrowed the uncertainties, our scientists were able to make a major contribution to the Intergovernmental Panel on Climate Change's 4th Assessment Report. And the investment in science has provided us with a greater understanding and ability to more effectively design and execute our policy, regulatory and fiscal responses to climate change.
The U.S. also is moving ahead on advanced technologies to meet the complementary challenges of energy security and climate change. By 2100, as much as half of the world's energy may have to come from low, or zero-emission technologies, and while existing technologies are important in the short term, these technologies, even with substantial refinements, will be unable to achieve stabilization over the long haul.
New technologies, then, are not a luxury, they are paramount, and technology development should be an integral part of any new framework.
Through our climate change technology programs, we are challenging our scientists and engineers to accelerate breakthroughs in low-emission solar and wind energy, biofuels, hydrogen, advanced batteries, buildings, grid technologies, nuclear power, fusion energy, and other technologies that have the potential to fundamentally transform the way we produce and consume energy.
Considering the abundance of coal in major economies and that global demand for electricity will increase by 100% by 2030, we have placed a high priority on clean coal research and solving the challenge of carbon capture and storage. This needs global action and quickly.
Today the U.S. spends more on climate change technology research and development than at any other time or by any other country in the world, investing nearly $18 billion since 2001. As result of these investments, today we have a much better idea of what technologies will be needed, when and to what effect. Our analysis also shows that advanced technologies can substantially reduce the cost of meeting any stabilization goal, 60 percent or more. Technology advances will reduce the timeline and cost of mitigation and stabilization.
Internationally, the U.S. also has set in place the building blocks on which future collaboration can be constructed. The U.S. believes that well designed multilateral collaborations focused on achieving practical results can accelerate development and commercialization of new technologies.
We have initiated or joined multilateral technology research partnerships that mirror the key strategic thrusts of our domestic science and technology programs in carbon sequestration, nuclear energy, fusion and hydrogen. Our deployment partnerships, such as the Asia-Pacific Partnership, are working to increase the uptake of more efficient technologies and processes.
We are also working with institutions to reduce the costs of new technologies through creative financing and the elimination of trade barriers.
The U.S. has developed a comprehensive strategy on climate change that is informed by science, emphasizes innovation and technological solutions, and promotes international collaboration to support the Framework Convention objective.
Through these building blocks slowing emissions growth, advancing climate science, accelerating technology development, promoting international collaboration, and expanding finance and open trade, the U.S. has set in place a strategy on which future collaboration can be built.
Although the scientific and technology challenges are considerable, the U.S. remains committed to working with all of you on a framework for progress that is realistic and effective.
We do not expect to solve all of these issues here, but we hope that out of this meeting will emerge a Plan of work to identify gaps, opportunities, technology needs, potential areas of collaboration, and a way forward to a shared goal.
It is incumbent on this assembled group of nations together to focus on the solutions to climate change instead of focusing on continuing to redefine the problem. That takes action, commitment, and investing in the solutions and it must be now.
