Policy Overview

Carlos Rymer February 26, 2007

U.S. Carbon Policy 2001-2008: A Voluntary Approach

In 2001, the United States decided not to ratify the Kyoto Protocol, an

international agreement to reduce greenhouse gas emissions, on the basis that it would

affect its economy (White House, 2001). Avoiding mandatory caps on greenhouse gas

emissions from all sources, the new administration decided to address climate change

through a voluntary approach that emphasizes partnerships to voluntarily reduce

greenhouse gas intensity, known as the ratio of greenhouse gas emissions per unit of

Gross Domestic Product. The national goal was to reduce greenhouse gas intensity by

18% below current levels through 2012. This policy includes several programs for

voluntary reductions of greenhouse gas emissions, including Climate VISION, Climate

Leaders, SmartWay Transport Partnership, and ENERGY STAR (U.S DOS, 2006).

In addition to voluntary reductions of greenhouse gas emissions, the approach

includes investments in research and development of renewable energy and energy

efficiency technologies, higher fuel economy for light trucks, tax incentives for

renewable energy and vehicle fuel efficient technologies, and a voluntary greenhouse

gas registry, among other programs. In terms of science and emerging technologies, the

policy directs funds to improve climate science and understanding and develop new

technologies like carbon capture and sequestration, clean coal, hydrogen, and nuclear

fusion and fission. Finally, the approach promotes international collaboration by

removing barriers to clean energy technology transfer around the world (U.S. DOS,

2006).

There are several examples of how this policy is working to slow the growth of

greenhouse gas emissions. The Climate VISION program has ensured the commitment

of 14 U.S. industries, accounting for 40% of U.S. total emissions, to greenhouse gas

intensity reductions (Climate VISION, 2006). The Climate Leaders program has

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garnered 109 partners to date, with commitments from 59 partners for greenhouse gas

intensity reductions goals. To date, 5 of these partners have achieved their goals (EPA,

2007). These commitments by companies and sectors have led to the development of

new tactics to achieve greenhouse gas intensity reductions.

Recently, a new market has emerged to help meet voluntary greenhouse gas

emission reductions. This new market provides carbon offsets or credits by funding the

carbon-reducing projects, such as renewable energy and energy efficiency installations

or by practices that sequester carbon dioxide (such as tree-planting or no-till

agriculture). These carbon offsets can then be purchased by individuals and companies

to meet their own greenhouse gas emission reduction goals. The essential concept of

this mechanism is that it encourages the addition of projects that reduce greenhouse gas

emissions. Only new, additional projects can be considered for credits under this

market mechanism (Taiyab, 2006).

This new carbon market is being used by businesses, non-governmental

organizations, government agencies, international conferences, and individuals to

voluntarily reduce their greenhouse gas emissions. For example, an increasing number

of businesses and agencies, including HSBC Bank and the World Bank, have made

commitments to reduce their energy use and purchase carbon offsets for the remaining

greenhouse gas emissions (Taiyab, 2006). This growing market has allowed companies

to more easily achieve their greenhouse gas intensity goals on a voluntary basis, as the

current U.S. policy advocates.

In terms of international collaboration, the U.S. voluntary approach has led to the

establishment of the Asia-Pacific Partnership on Clean Development and Climate. This

partnership promotes the development and deployment of clean energy technologies.

Consisting of six countries, this partnership focuses on expanding investment for clean

energy technologies and addresses 8 public-private sectors. Although partners have

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different greenhouse gas reduction goals, they all have the common goal of enabling

deployment of clean, efficient, and cost-effective technologies (APPCDC, 2006).

The U.S. voluntary approach to reducing greenhouse gas emissions has created a

strong debate amongst those who believe stronger, mandatory actions must be taken to

reflect the recommendation of consensus-based science and those who believe that a

voluntary approach is the best option to achieve climate stability and economic growth

(PCGCC, 2001). Nonetheless, it has provided incentives to reduce the growth rate of

greenhouse gas emissions in the United States.

Works Cited

Asia-Pacific Partnership on Clean Development and Climate. 2006. Asia-Pacific Partnership on Clean
Development and Climate Executive Summary of Task Force Action Plans.
http://www.asiapacificpartnership.org/APP%20Action%20Plans/ExecutiveSummary%20_31%20Oct%200
6_%20_2_.pdf. Last Accessed: February 25, 2007.

Climate VISION. 2006. Program Mission. U.S. Department of Energy.

http://www.climatevision.gov/mission.html. Last Accessed: February 25, 2007.

Department of State. 2006. Energy Needs, Clean Development, and Climate Change. U.S. Partnerships in
Action.

Environmental Protection Agency. 2007. Climate Leaders Fact Sheet. Climate Leaders Program.
http://www.epa.gov/climateleaders/docs/partnership_fact_sheet.pdf. Last Accessed: February 25, 2007.

Pew Center on Global Climate Change. 2001. The U.S. Domestic Response to Climate Change: Key Elements of
a Prospective Program.
http://www.pewclimate.org/policy_center/policy_reports_and_analysis/brief_us_domestic_response/inde
x.cfm. Last Accessed: February 25, 2007.

Taiyab, Nadaa. 2006. Exploring the market for voluntary carbon offsets. International Institute for
Environment and Development, London.

White House. 2001. Text of a Letter from the President to Senators Hagel, Helm, Craig, and Roberts.
http://www.whitehouse.gov/news/releases/2001/03/20010314.html. Last Accessed: February 25, 2007.