Muckraker: Shaken, not yet stirred

 Kyoto will shake things up in the U.S.,
 whether Americans like it or not
 Oct 13, 2004 
 http://www.workingforchange.com/article.cfm?itemid=17861 

 Last Thursday, when the Russian cabinet moved to ratify the
 Kyoto Protocol, international leaders called it the dawn of
 a new era. 

 Top officials from Canada, Japan, the European Union, and
 other Kyoto-supporting countries applauded Russia's progress
 toward ratification, which will be final once the nation's
 parliament gives it the green light (a mere formality at this
 point). Then it's just 90 days more until the treaty's
 implementation. "Russian ratification would ensure that the
 protocol enters into force and launch an exciting new phase
 in the global campaign to reduce the risks of climate change,"
 declared Joke Waller-Hunter, the executive secretary of
 the U.N. Framework Convention on Climate Change. 

 No such hearty congratulations, though, were heard from
 George W. Bush, who threw in the towel on Kyoto negotiations
 in March 2001 despite the fact that the U.S. is proud producer
 of more than one-third of global greenhouse-gas emissions.
 In fact, no statements on the matter were released by
 either the Bush or Kerry campaigns, and only scattered,
 unenthused coverage could be found in American news outlets. 

 In one Washington Post article, the chair of the White House Council
 on Environmental Quality, Jim Connaughton, veritably jeered at the treaty,
 trotting out the much-contested notion that regulating greenhouse-gas
 emissions would hamper economic progress: "The administration strongly
 opposes any treaty or policy that would cause the loss of a single
 American job," he said. 

 The tepid U.S. response to progress on Kyoto might lead Americans
 to wonder: If the protocol goes into force throughout the vast majority
 of the industrialized world and the U.S. continues to ignore it, will it
 have any impact on the United States at all? 

 Technically and symbolically, the answer is yes -- most definitely.
 The protocol contains legally binding emissions standards requiring
 36 industrialized countries to reduce their combined greenhouse-gas
 emissions by at least 5 percent below their 1990 levels by 2012.
 Those targets will have widespread ramifications for industrial
 activities within those countries -- even activities conducted by
 U.S. corporations. 

 "At least hundreds, maybe thousands of U.S. companies -- including the
 majority of the Fortune 500 -- have multinational operations in
 Kyoto-supporting countries and will have to reshape manufacturing
 strategies at their overseas plants," said Phil Clapp, president of
 National Environmental Trust. Moreover, it would make little sense for
 corporations to undertake this kind of strategic shift in their
 facilities abroad but not at home, said Clapp. "It's more efficient to
 make it a corporation-wide effort." 

 Clapp also argues that because Kyoto is based on a global
 cap-and-trade program, companies that get in on it early will
 have an advantage -- they can buy cheap emissions credits before
 the price starts to get bid up. "My guess is that American
 executives are going to start clamoring to get in the game
 before too long." 

 They may not be clamoring yet, but there are signs that
 major U.S. companies are facing up to reality. Last Saturday,
 The New York Times reported that Ford executives have been
 working behind the scenes to develop a company-wide strategy for
 carbon-dioxide reductions. And on Sunday, The Washington Post
 reported that Alcoa is starting to make plans to adjust to the
 restrictions that Kyoto will bring in countries around the world. 

 According to David Sandalow, an environmental scholar at the
 Brookings Institution who was an assistant secretary of state
 during the Clinton administration and helped to design the Kyoto
 treaty, state and regional initiatives designed to combat
 global warming are also giving U.S. executives reason to
 welcome the prospect of federal emissions controls. 

 Recently, California, New York, and other states have been taking
 matters into their own hands. Late last month, with the support of
 Gov. Arnold Schwarzenegger (R), the California Air Resources Board
 approved a landmark standard for greenhouse-gas emissions from
 all new vehicles sold in the state beginning in 2009.
 Northeastern states, meanwhile, have been working to adopt a
 regional cap-and-trade system for carbon emissions. 

 "There's a patchwork of overlapping laws emerging at a
 grassroots level, and it could become very confusing for
 American companies to have to adapt to different requirements
 in each state," said Sandalow. "Corporate leaders may soon be
 arguing that it's much easier and more efficient for them to
 operate according to one clear national standard." 

 Head for the Hill

 The ripple effect of Kyoto's implementation won't just hit the
 Fortune 500 crowd -- it's likely to resonate on Capitol Hill, too.
 Word has it that Sens. Joe Lieberman (D-Conn.) and John McCain (R-Ariz.)
 are aiming to revive their Climate Stewardship Act. It's unlikely to
 happen before the election, but they may try to push the bill through
 in the lame-duck session during the last two months of the year. 

 "We'll jump on the first viable or appropriate vehicle that we
 can take to get the act back on the Senate floor -- a bill that
 we can attach the Climate Stewardship Act to as an amendment,"
 said Lieberman's press secretary, Casey Aden-Wansbury.
 "We're hoping it will happen before the end of the year,
 but the Senate calendar, controlled by [Senate Majority Leader
 Bill] Frist [R-Tenn.], is hard to predict." 

 Aden-Wansbury said that Russia's backing of Kyoto could play a
 role in the act's passage: "It couldn't be better timing -- we
 only need seven more votes. [Russia's approval] would be a pretty
 convincing reminder that the U.S. is lagging and we've got to move forward." 

 According to Jonathan Black, legislative assistant to
 Sen. Jeff Bingaman (D-N.M) on the Energy and Natural Resources Committee,
 "The climate debate in Congress hinges on a group of senators, some of them
 pro-environment, who've made it clear they're interested in taking the
 carbon issue seriously but are concerned about the cost to the American
 economy and the fact that developing countries are unregulated,"
 which could make them cheaper locales for factories. 

 Among potential Climate Stewardship Act "swing voters" are
 Sens. Lamar Alexander (R-Tenn.), Max Baucus (D-Mont.),
 Robert Byrd (D-W.V.), Kent Conrad (D-N.D.),
 Byron Dorgan (D-N.D.), Mary Landrieu (D-La.), and
 Arlen Specter (R-Penn.). 

 "If Kyoto goes into force, it will make a very strong case [to senators
 concerned about the cost of emissions cuts] that greenhouse-gas regulations
 are becoming an economic advantage -- not a hindrance -- in the global market,"
 said Black. "It will make it harder for them to defend their arguments to the 
contrary." 

 Bingaman, McCain, and Jim Jeffords (I-Vt.) are among a handful of senators who
 released strong statements spotlighting Bush's negligence on the issue in the
 past few days. "The Bush administration continues to fumble around in the
 darkness of ignorance and the quagmire of special interests, while the
 Russians are demonstrating world leadership," Jeffords said in a statement.
 Said Bingaman on the Senate floor Monday, "Mr. President, the science of
 climate change is clear, and the potential losses to our economy from
 climate-related disruptions, such as the increased frequency of
 hurricanes and other severe storms, are starkly apparent." 

 But though Kerry made brief reference to Kyoto and global warming in the
 first presidential debate last week, he has no plans to release a statement on
 Russia's movement toward ratification of Kyoto, said Roger Ballentine, a
 senior environmental advisor to the Kerry campaign. "At this point it's
 clear that Kyoto will not be adopted in the United States, but the U.S.
 needs to show domestic leadership on this issue," he said. "Kerry's energy
 plan -- which includes 20 percent greater efficiency and 20 percent of
 America's electricity powered by renewables by 2020 -- is the single
 strongest climate initiative that's ever been proposed." 

 Another senior advisor to the Kerry campaign, Beth Viola, added that Kyoto is
 by no means the final frontier of international climate-treaty negotiations.
 The protocol has a limited life span -- it defines targets that must be
 achieved by 2012, but there is no agreement about what to do beyond that.
 International leaders need to begin devising a Kyoto Part Two -- "a new
 agreement that outlines more long-term caps and brings developing nations
 like China, India, and Indonesia into the contract," said Viola. "One of
 the first things that John Kerry would do as president would be to reengage
 with the international community on this next phase of negotiations." 

 But the U.S. has some real work to do before it will be
 taken seriously again at the bargaining table. "The most important step now is
 to put our own house in order, to enact binding emissions cuts domestically,"
 said Sandalow. "Only then will we have the credibility to lead the
 international community in phase two of the negotiations."

 Let's hope the swing senators keep this in mind when the
 Climate Stewardship Act reappears on the Senate floor. 

 See more in the Grist Magazine archives.

 Grist columnist Amanda Griscom writes Muckraker and Powers That Be.
 Her articles on energy, technology, and the environment
 have appeared in publications ranging from Rolling Stone to the
 New York Times Magazine.
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