For Immediate Release Contact: Christina Shevchik/212-703-5043

New York, November 2, 1998 -- African energy and environment ministers joined with U.S. and international business leaders in Dakar, Senegal recently to prepare for the intergovernmental climate change negotiations starting in Buenos Aires today. The Dakar meeting, called by Ambassador Bakary Kante, Senegal's Director of the Environment, centered on the potential for "government-business" partnerships to tackle the twin challenges of sustainable economic development and reduction of greenhouse gas emissions.

Some 75 African officials met with business representatives from around the world, representing the oil, electricity and building materials sectors. Senior executives from prominent U.S. companies, including Texaco, Chevron, and Mobil participated as part of a 35-strong industry delegation in Dakar.

Business participation in the two-day conference took place under the umbrella of the International Chamber of Commerce (ICC), the World Business Organization, based in Paris. U.S. business participation was coordinated by the U.S. Council for International Business (USCIB).

The USCIB advances the global interests of American business both at home and abroad. It is the American affiliate of the International Chamber of Commerce (ICC), the Business and Industry Advisory Committee (BIAC) to the OECD, and the International Organisation of Employers (IOE). As such, it officially represents U.S. business positions in the main intergovernmental bodies, and vis-…-vis foreign business communities and their governments.

The conference, which took place on October 15-16, involved more than 100 key players in the United Nations Framework Convention on Climate Change (UNFCCC) negotiations. The intent of the organizers was to foster a constructive dialogue between the African governments and business, the aim of feeding innovative and practical ideas into the Buenos Aires negotiations. George Kirkland, Managing Director of Chevron Nigeria, and Clement B. Malin, Vice President, International Relations, Texaco and Chairman, USCIB Climate Change Working Group, co-chaired the Workshop with Ambassador Kante and other government officials.

The focus of the Dakar meeting was the Clean Development Mechanism (CDM). The CDM is one of a basket of market-based tools, known as "Flexibility Mechanisms" that were developed by governments in late 1997 as part of the Kyoto Protocol to the UNFCC. "From an industry perspective," said Mr. Malin, "we believe that, under the right conditions, the CDM can encourage business investment in projects that not only reduce greenhouse gas emissions, but also promote technology cooperation and enhance capacity building and sustainable development in developing countries."

Many questions and concerns continue to surround the Kyoto Protocol. However, business representatives taking part in the Workshop focused on the opportunities that the CDM could offer, if correctly designed and implemented, and with the right enabling conditions in place.

Mr. Kirkland emphasized that, "We encourage a mechanism that initially allows many different kinds of projects into the system to help 'prime the pump' and is flexible enough to allow changes based on what we learn."

The thrust of the CDM, which faces political, institutional and technical hurdles, is to create a market-based mechanism allowing developed countries to claim "greenhouse gas emission reduction credits" resulting from environmentally sound investment projects in developing countries. For the developing countries, the incentive is the flow of investment, technology, know how and institutional capacity building, which contribute to both economic development and environmental protection.

The Kyoto Protocol sets legally binding limits on greenhouse gas emissions by industrialized countries and economies in transition. The UNFCCC has been ratified by 175 countries. The Kyoto Protocol will come into force between 2008 and 2012 if 55 signatories accounting for no less than 55% of greenhouse gas emissions emitted by industrialized countries, ratify the agreement.