USCIB Letter to President Clinton Regarding the

U.N. Framework on Climate Change and the Kyoto Protocol

March 27, 1998

The Honorable William Jefferson Clinton

President of the United States

The White House

Washington, DC 20500

Dear Mr. President:

The United States Council for International Business continues to follow the negotiations of the U.N. Framework on Climate Change, with the conviction that understanding the potential impacts of climate change, and developing appropriate policy responses to these impacts, are global long-term challenges for government and business.  In our June 6, 1997 letter to you, we expressed our concerns about the ongoing deliberations, and raised questions about the Administration’s strategy for international and domestic responses to the climate challenge. 

The Kyoto Protocol, when fully elaborated, will be the most complex and economically pervasive treaty ever negotiated. Despite continuing doubts about the feasibility and effectiveness of the actions proposed in the Protocol, the USCIB is ready to work with the Administration to ensure that the policies adopted are developed and implemented realistically, flexibly and globally.   In particular, those policies will have to reflect evolving scientific understanding so that it can, as necessary, mobilize the resources of the market economy, open trade and investment in the context of sustained long-term research, development and innovation. 

However, the Protocol leaves open a number of critical issues for future negotiations. I am writing to ask that until these issues, and those raised in the Byrd-Hagel Resolution, are resolved, this Protocol should not be ratified by the United States.  These issues are set out in detail in the attached discussion paper, and include:

1)       The current absence of developing countries’ commitments, and procedures for post 2008 - 2012 commitment period negotiations, including consideration of developing countries’ commitments;

2)       Principles, guidelines, methods and institutions for emissions trading, the clean development mechanism, joint implementation, and other joint efforts;

3)       The role and contribution of carbon sinks;

4)       Monitoring, reporting and compliance procedures, with credible sanctions for non-compliance;

5)       Whether and how to address harm to developing countries by climate change policies taken by developed countries;

6)       Continued scientific, economic and technological understanding.

The resolution of these questions is crucial to an informed assessment of the Protocol’s impact on the U.S. economy, lifestyles and environment.  Reserving U.S. ratification until such resolution is essential to protect American interests.  In particular, our members support your Administration’s efforts to involve developing country participation in emissions reduction commitments, and we urge you to make every effort to secure such participation, as an essential part of the points raised above.

In light of mainstream forecasts that U.S. emissions could exceed the Kyoto target by over 40%, it will be critical for industry and the public to understand how the Administration proposes to implement policies to achieve this objective.  Equally important, the feasibility of the Administration’s climate strategy depends on the engagement and support of all industry sectors that comprise the U.S. economy.  

We offer our assistance and wide domestic and international network of businesses to discuss assessment and minimization of the Protocol’s negative economic impacts.  We look forward to working with the Administration in order to better understand the full implications of the Kyoto Protocol, and to help ensure that the U.S. shows economic and environmental leadership in this important policy issue. We look forward to exploring these issues with members of your Administration in the time remaining before the Bonn and Buenos Aires meetings.

Sincerely,

Abraham Katz

Enc.

CC:       The Honorable Madeleine K. Albright, Secretary of State

            Ambassador Charlene Barshefsky, U.S. Trade Representative

            The Honorable William M. Daley; Secretary of Commerce

            The Honorable Daniel R. Glickman, Secretary of Agriculture

            The Honorable Robert E. Rubin, Secretary of the Treasury

            The Honorable Federico A. Pena, Secretary of Energy

            The Honorable Carole M. Browner, Administrator, U.S. Environmental Protection                             Agency

            Sen. Robert C. Byrd

            Sen. Charles T. Hagel

            Sen. Jesse A. Helms