Norine Kennedy Archives

ICC Sets Out Business Priorities for Long-Term Climate Regime

Published on October 30, 2013

Hand-Gear

The International Chamber of Commerce (ICC) has issued a new paper for the next round international climate negotiations, to be held in Warsaw from November 11 to 22. The statement, “A business perspective on climate change negotiations: Competitiveness – Opportunity – Partnership,” reflects ICC’s long experience in the UN Framework Convention on Climate Change (UNFCCC), and its coordinating role for businesses of all sectors and nationalities that are engaging in the climate debate.

ICC emphasizes that the new international agreement must work in synergy with established trade and investment rules. The document outlines business priorities for a balanced and globally effective post-2020 climate agreement:

  • Strengthening competitiveness by eliminating tariff and non-tariff barriers to trade
  • Creating opportunities for economic growth and energy access
  • Building partnerships for investment and innovation.

According to Norine Kennedy, USCIB’s vice president for energy, environment and strategic international engagement, in Warsaw USCIB will be working with ICC, as well as the Major Economies Business Forum (BizMEF), to make the case for meaningful and substantive business engagement in the framing of the new agreement, which is expected to be completed in 2015 in Paris.

Separately, BizMEF, which encompasses business groups from the largest economies, has issued a number of new papers for Warsaw, which address a range of issues including climate investment and finance, and new options for mitigating global warming.

According to Kennedy, the UN deliberations will take place in the context of recent findings of the Intergovernmental Panel on Climate Change (IPCC) indicating stronger certainty about human impacts on the planet’s climate.

“As rapidly developing countries such as China, India and Brazil produce increasing greenhouse gas emissions, the challenge ahead is to involve all countries in commitments under an internationally binding agreement that mobilizes national resources and private sector investment and innovation,” she said.

As part of its outreach for Warsaw, ICC is also showcasing 22 private-sector initiatives for climate solutions. Click here to read more on ICC’s website.

Staff contact: Norine Kennedy

More on USCIB’s Environment Committee

UN Climate Negotiators Set Course for New Agreement

Published on October 15, 2013

4616_image001USCIB is gearing up to represent American business at the next United Nations climate conference in Warsaw next month. The clock is ticking, with governments having committed to forging a new comprehensive climate agreement, to take effect in 2020, by the end of 2015.

Expectations are modest for the 19th conference of parties to the UN Framework Convention on Climate Change, to be held November 11-22. Yet according to Norine Kennedy, USCIB’s vice president for strategic international engagement, the recent release of the first installment of the Intergovernmental Panel on Climate Change (IPCC) 5th assessment report, along with political and economic pressures on climate negotiators to make progress, will be  major considerations  in the Warsaw discussions.

USCIB has secured recognition as an accredited business organization to the UN Framework Convention, and for the first time will send a USCIB delegation to the talks, led by Ann Condon (GE) chair of USCIB’s Environment Committee, and USCIB President and CEO Peter Robinson.

Top USCIB priorities for the negotiations include energy security, access to energy and protection of intellectual property rights, Kennedy said. “We will work closely with the International Chamber of Commerce and the Major Economies Business Forum [known as BizMEF] to make the case for a comprehensive agreement, one that strengthens enabling frameworks for business investment and innovation across all sectors.”

Kennedy said BizMEF will organize a business dialogue in Warsaw to lay out a roadmap for substantive and recognized business input, following the successful event on this topic in Doha last year.

First-ever ministerial meeting with business

USCIB also played a leading role in two important preparatory meetings, advocating for meaningful opportunities for business views and involvement in the new international climate regime.

Earlier this month, private-sector representatives took part in ministerial talks in Warsaw organized by Poland’s environment ministry. It was the first time since the original Rio Earth Summit in 1992 that business groups were invited to play such an active role in shaping a global climate agreement. The Polish business organization, Lewiatan, USCIB and other member business organizations of BizMEF (including BusinessEurope, Business New Zealand, Keidanren and the Brazilian Confederation of Business) were on hand. USCIB member companies also took part, including GE, Boeing and Intel.

Speaking at the ministerial-business consultation, Kennedy stated that the UN Framework Convention should continue this process, since “an effective and recognized dialogue between business and government at both national and international arenas will be critical to the successful design and roll-out of the new international agreement.” The Polish government expressed its intention to encourage the continuation of such business-government consultations over this next phase of negotiations.

Speeding technology deployment

Separately, on September 19 in Washington, D.C., USCIB partnered with the Business Council for Sustainable Energy to convene a U.S. business consultation on the new UN Climate Technology Center and Network (CTCN).

UN negotiators have established a “Technology Mechanism” to facilitate the faster uptake of climate-related technologies by developing countries. The CTCN is the Technology Mechanism’s technical arm, created to answer specific technology requests from developing countries.

The dialogue, hosted by the UN Foundation, brought together American business executives with U.S. and Canadian government officials and representatives of the UN Environment Program. Participants addressed:

  • specific barriers to technology cooperation that the CTCN can help address
  • priority areas on which the CTCN should focus
  • specific services  to foster private sector investments in adaptation and mitigation technologies in developing countries
  • links with finance institutions and investors
  • ways to engage with and attract the private sector.

USCIB will work with the Business Council for Sustainable Energy and the International Chamber of Commerce to identify areas where the business community can inform the work of the CTCN as it gets up and running.

Staff contact: Norine Kennedy

More on USCIB’s Environment Committee

As General Assembly Opens, USCIB Flags Business Priorities in UN “DoorKnock” Consultations

Published on October 4, 2013
Daniella Ballou-Aares (State Department) and Clifford Henry (Procter & Gamble) at the UN door-knock consultations
Daniella Ballou-Aares (State Department) and Clifford Henry (Procter & Gamble) at the UN door-knock consultations

On September 26, on the margins of the UN General Assembly, USCIB members met with UN and member state representatives to discuss U.S. business priorities in the UN’s new development agenda and UN Sustainable Development Goals (SDGs). Hosted by Pfizer, the day of “UN door-knock” policy consultations included a Green Economies Dialogue luncheon roundtable on green growth aspects of the SDGs. (Click here to view videos from the event.)

“USCIB members are arguing for a strong focus on peace, security, good governance and economic growth in the SDGs,” said Clifford Henry (Procter & Gamble), Chair of USCIB’s Corporate Responsibility Committee, who led the business delegation. “These and other fundamental priorities underpin enabling conditions for job creation, environmental stewardship and economic development.”

USCIB members underscored the need for open trade and investment regimes, as well as strong intellectual property protection, as prerequisites for the deployment of business, financial, and technical expertise to advance development and address international challenges of energy access, food security and poverty eradication.  Other companies taking part included American Chemistry Council, Diageo, ExxonMobil, General Electric and Pfizer.

In the morning, USCIB members met with Ambassador Takehiro Kagawa, of the Japanese Ministry for Foreign Affairs, and Daniella Ballou-Aares, Special Advisor on development to the U.S. Secretary of State. In the afternoon, Karina Gerlach, a member of the UN Secretary General’s High-Level Expert Group for the Post-2015 Development Agenda, and Shamshad Akhtar, the UN’s Assistant Secretary General for economic development, briefed the group on work-streams that make up the UN-wide effort – including the Experts Group on Finance for Sustainable Development – and suggested ways to involve business in these deliberations.

”Events like this one are an opportunity to advance a common agenda of prosperity and betterment of the human condition,” stated USCIB President and CEO Peter Robinson in opening theGreen Economies Dialogue roundtable: Speakers from MIT, the U.S. State Department, the UN Development Program, the University of California at San Diego and the Colombian Ministry of Foreign Affairs provided their perspectives on ways to prioritize and track economic aspects of progress under the SDGs, and the opportunity to engage the business community in developed and developing countries in partnerships as part of the UN post-2015 development deliberations.

The Green Economies Dialogue is a platform – created by USCIB and the United States Council Foundation in the lead-up to last year’s Rio+20 earth summit – for business to engage with national governments, thought leaders, representatives of international institutions and academics on green growth and green economy issues.

The second phase of the Green Economies Dialogue will concentrate on interaction with governments and the UN around the Post-2015 Development Agenda, especially concerning greener economic development and the formulation and pursuit of the SDGs. These goals are expected to drive UN activities, direct national budgets and influence stakeholder expectations in coming years, across a wide range of strategic issues, such as corporate responsibility, environmental regulation, and energy.

To aid in the development of business views and advocacy, USCIB has formed an SDG Working Group co-chaired by Brian Lowry (Monsanto) and Tam Nguyen (Bechtel).

 

More on USCIB’s Environment Committee

More on USCIB’s Corporate Responsibility Committee

BIAC to Participate in OECD/IEA Global Forum on Climate Change

Published on September 9, 2013

The Organization for Economic Cooperation and Development (OECD) has for a long-time made a major contribution to international climate discussions, among others by contributing fact-based analysis of least-cost policies and by helping countries identify and implement effective and efficient policy mixes to meet their commitments. The Climate Change Expert Group, for which the OECD and the International Energy Agency (IEA) are providing secretariat support, is playing an important role in promoting dialogue on and enhancing understanding of technical issues in the international climate change negotiations and has contributed detailed analysis on a range of issues relevant to the on-going negotiations (see the flyer of the Climate Change Expert Group for an overview of the Group’s work).

The private sector is closely involved, contributing to a series of expert meetings. The next Global Forum on Climate Change organized by the Expert Group will take place at the OECD Headquarters on September 18-19. The Business and Industry Advisory Committee to the OECD will offer the business perspective on key elements needed for an effective 2015 agreement, addressing issues related to effective climate finance, emissions accounting for post-2020 commitments as well as the broader benefits of climate change mitigation.

Staff contact: Norine Kennedy

More on USCIB’s Environment Committee

The Big Idea: The UN’s Development Agenda: An Opportunity to Cement Private Sector-Led Growth

Published on September 1, 2013

4614_image001The United Nations has embarked on an ambitious effort to define forward-looking objectives to succeed the Millennium Development Goals (MDGs), which the UN adopted in 2000 and which set 2015 as a deadline to reach targets toward ending extreme poverty, ensuring universal primary education, curbing the spread of infectious diseases, and attaining a number of other fundamental goals. (See USCIB President and CEO Peter Robinson’s Spring 2013 column.)

Many may roll their eyes and think, “There they go again – the UN with its hand out, dreaming up ways to waste money.” However, we believe this exercise represents a unique opportunity to catalyze the international community around the importance of private sector-led growth and a more robust, inclusive global economy. The business community needs to be a driving force in this vitally important debate.

It is important to recognize just how far we have moved from the old model of development policy, which relied largely on official development assistance (ODA) by governments. In the four decades following World War II, ODA made up 70 percent of the resources flowing from developed to developing countries, while just 30 percent came from private investment. But the levels of private investment in developing countries surged with the global economic boom of the 1990s, and by the end of the century, that ratio was reversed. Today, over 80 percent of capital flows to developing countries come from private investment, while the share from ODA continues to fall (to say nothing of the additional contribution of in-country investment by indigenous companies, particularly in rapidly developing economies such as China or Brazil).

This shift is well documented and widely acknowledged, yet previous discussions of development in the UN, including the MDGs, has largely focused on ODA, with private investment – and the conditions that facilitate it – getting little, if any, attention. The MDGs have been criticized as, in effect, a debate over where to target aid rather than how to generate economic growth. To be sure, assistance to the least developed countries is critically important. But in our view, the post-2015 development agenda is a unique opportunity to drive progress for economic and development advancement in all countries.

In addition, the international community and global business now recognize the importance of integrating broader environmental, economic and social elements in the wider concept of sustainable development. This goes far beyond a narrow focus on ODA. The post-2015 development agenda provides a window for us to achieve consensus – individuals, governments, businesses, indeed all stakeholders – around the essential elements of sustainable development in the 21st century.

The UN can help address this imbalance through a new development agenda that recognizes and fosters private investment as the main engine for economic growth and sustainable development. This new development agenda, which would include new Sustainable Development Goals (SDGs) to build on the MDGs, represents an opportunity to shift the focus to how individual countries can create the right conditions for sustained economic growth, environmental stewardship and development – and progress to a state of economic self-sufficiency without aid.

To fully embrace this opportunity, United Nations members will need to take five steps:

1) Ensure national focus and implementation

This approach calls for development goals that promote national policies and institutions that will lead to peace and security, good governance, economic growth, environmental protection and social progress – the mutually reinforcing objectives of sustainable development. Global goals are useful, but we must recognize that all the key drivers for development take place within a national context and must be implemented through national institutions.

2) Address broad framework conditions

The Millennium Development Goals were a good start, but they left out many important framework issues, such as peace, security and good governance. Good national governance, including the rule of law, accountable government, independent courts, individual liberty, the absence of corruption, clear property rights and functioning national institutions are all prerequisites to sustained growth and sustainable development.

3) Promote private-sector growth

Private investment and economic growth cannot and will not happen in the absence of a conducive environment at the national level, which must include sound macro-economic and fiscal policies, adequate infrastructure, communication and education systems, and efficient business regulations in the areas covered by the World Bank’s influential Doing Business reports. Efficient business regulations support entrepreneurship and recue the untaxed informal economy. Moreover, the lack of clear property rights – for both enterprises and households – remains the single biggest impediment to reducing informality.

4) Focus on entrepreneurs and enterprises

Any discussion on employment must focus primarily on enterprises. There is universal agreement on the urgent need for job creation, but far too little focus on who will actually create the jobs. So we must always finish that sentence, emphasizing the urgent need for jobs to be created by enterprises. Increased employment is the outcome of policies that promote entrepreneurship and support enterprise creation, particularly small and medium-sized enterprises, which are the main engines of job growth in every country.

5) Harness the business case for development

Put most simply, development is good for business, and business is good for development. The vast majority of potential consumers live in the developing world, and companies recognize that their future growth and competitiveness hinges on the ability to address the needs of developing economies. At the same time, economic growth is one of the most powerful drivers of poverty reduction in the world, and business is the most reliable engine powering that growth. Harnessing this virtuous circle is the best path to sustainable growth.

The business community is actively seeking to help shape the SDG and the broad post-2015 agenda. USCIB and its global network – the International Chamber of Commerce, the International Organization of Employers, and the Business and Industry Advisory to the OECD – have engaged with the UN secretariat and member states in an effort to secure truly ambitious and effective targets for private sector-led growth and the achievement of other critical societal goals. Only by working together can we ensure that the 21st century is truly the century of broad, sustained development for all the peoples of the world.

 

Adam Greene is USCIB’s vice president of labor and corporate responsibility; Norine Kennedy is USCIB’s vice president for strategic international engagement. This essay appeared in the Autumn  2013 issue of International Business, USCIB’s quarterly journal. It is part of our regular series of thought-leadership columns. To submit a column or suggest a topic, please contact Jonathan Huneke (jhuneke@uscib.org).

More on International Business and USCIB’s other publications

US Business to Meet With Government and UN Representatives in New York

Published on August 27, 2013

USCIB will hold “UN Door Knock” consultations on September 26 for USCIB members to meet with important government delegations and highlight key business recommendations on the Millennium Development Goals (MDGs), the Sustainable Development Goals (SDGs), the Post-2015 Development Agenda and Green Growth. As the global community looks to set a new blue print for development, building on the MDGs and Rio outcomes, business is making a strong case to bring forward policies that drive economic growth, environmental stewardship and social development.

USCIB’s UN Door Knock consultations will signal the strong interest of U.S. business in a well-designed UN gameplan for development that involves and incents business. The meetings will also make the case for enhanced business engagement in the UN.

The Door Knock will be hosted by Pfizer and will begin with an orientation breakfast for USCIB Members. The day will consist of a series of consultations with representatives of the UN, the United States, Japan, and the European Union.

USCIB will also convene an International Business Green Economies Dialogue (GED) Luncheon Roundtable. This event will discuss the ways in which the SDGs can contribute to enabling frameworks for development, poverty eradication andgreener economic activity through innovation, investment and partnership
at national and international levels. It will highlight practicality for and the contribution from U.S. companies doing business in globalized marke

The GED luncheon roundtable will feature panel sessions on:

  • SDGs and Enabling Frameworks at the National
    Level—Job Creation and Infrastructure
  • SDGs and Enabling Frameworks at the International Level—Finance, Investment and Technology Deployment

The Roundtable will include invited speakers from government (Brazil, U.S., Kenya, Colombia), academia (Resources for the Future, MIT, UC San Diego) and the private sector (International Organization of Employers, USCIB).

To register for this event, please email Kira Yevtukhova (kyevtukhova@uscib.org). Please note that participation in this event is restricted to USCIB members and invited guests.

Staff contact: Norine Kennedy

Analysis UN Secretary General Report on the Millennium Development Goals and the Post2015 Development Agenda

Published on August 26, 2013

In preparation for next month’s UN General Assembly on the Millennium Development Goals (MDGs) and Post-2015 Development Agenda, Secretary General Ban Ki-moon has released a report, A Life of Dignity for All, containing his updates on the MDGs and vision for the road ahead. The Secretary General’s report, which will form the foundation for post-2015 discussions, highlights critical elements that have driven success in the achievement of the MDGs and which can contribute to the success of a post-2015 development agenda.

  • Emphasizing inclusive growth, decent employment and social protection;
  • Allocating more resources for essential services and ensuring access for all;
  • Strengthening political will and improving the international policy environment;
  • Harnessing the power of multi-stakeholder partnerships.

At its August 22, 2013 meeting, the USCIB SDGs Working Group noted many themes in the SG reports which USCIB has also drawn attention to in its advocacy, such as conducive business environments, the importance of rule of law and well-functioning institutions and the importance of job creation. Julie Kim, ECOSOC Counsellor, US Mission to the United Nations described U.S. perspectives and expectations on the UN Post-2015 Development Agenda and SDGs, indicating that countries are still discussing how formal SDG negotiations will commence in February. USCIB’s SDG Working Group, co-chaired by Tam Nguyen, Chevron, and Brian Lowry, Monsanto, is defining USCIB recommendations and priorities on the SDGs. For more information on USCIB’s SDG Working Group and ongoing involvement in the Post-2015 Development Agenda, click here. Contact Adam Greene (agreene@uscib.org) or Norine Kennedy (nkennedy@uscib.org) to join the working group or for further details.

Secretary General Ban’s report highlights sustainable development — enabled by the integration of economic growth, social justice and environmental stewardship — as a global guiding principle and operational standard. According to Ban Ki-Moon, this universal agenda requires profound economic transformations and a new global partnership. It also requires the international community, including the UN, to embrace a more coherent and effective response to support the agenda.

The report calls for a new, broader set of targets beyond 2015 that reflect new global realities and challenges. The goals should be measurable, adaptable to both global and local settings and apply to all countries.

Secretary General Ban believes that a universal development agenda beyond 2015 will require:

  • A robust framework for sustainable development finance including both private and public funding
  • A broadening of the tax base and an improvement of tax administration
  • A commitment by the public and private scientific and research communities to develop new and transformative technologies

On September 25, the General Assembly will convene a special event to review current efforts to achieve the Millennium Development Goals and rally political support for their acceleration. The event will reflect on the broad contours of the development agenda beyond 2015.  The General Assembly could launch the final phase of the intergovernmental consultations on a post-2015 development agenda at its sixty-ninth session [September 2014].

Conclusion/Calls to Action

Secretary General Ban concludes his report by making a series of calls on:

  • Member States and the entire international community to take every step possible to achieve the Millennium Development Goals;
  • Member States to adopt a universal post-2015 development agenda, with sustainable development at its core, and provide clarity on the road map to 2015;
  • The international system to embrace a more coherent and effective response to support this agenda.

Elements of a Post-2015 Agenda

A life of dignity for all: accelerating progress towards the Millennium Development Goals (MDGs) and advancing the UN development agenda beyond 2015

The UN SG’s report calls for transformative and mutually reinforcing actions that will apply to all countries. These include:

  • Eradicating poverty in all its forms
  • Tackling exclusion and inequality
  • Empowering women and girls
  • Providing quality education and lifelong learning
  • Improving health
  • Addressing climate change
  • Addressing environmental challenges
  • Promoting inclusive and sustainable growth and decent employment
  • Ending hunger and malnutrition
  • Addressing demographic challenges
  • Enhancing the positive contribution of migrants
  • Meeting the challenges of urbanization
  •  Building peace and effective governance based on the rule of law and sound institutions
  • Fostering a renewed global partnership
  • Strengthening the international development cooperation network

A USCIB comparative matrix of the reports on the SDGs by the UN Secretary General, the Post-2015 High-level Panel, the Sustainable Development Solutions Network and the UN Global Compact is available here.

Staff contact: Norine Kennedy

New UN High Level Political Forum to Focus on Sustainable Development through Head of State Meetings

Published on July 24, 2013

What is the UN High Level Political Forum (HLPF)?

The 2012 United Nations Conference on Sustainable Development (Rio+20) agreed to establish the High Level Political Forum (HLPF), a new UN body to replace the Commission on Sustainable Development. In June 2013, Member States concluded several months of political negotiations to define the “Format and Organizational Aspects of the high-level political forum.”  This new body is expected to play a central role in framing the UN’s Post-2015 Development Agenda.

The new high-level political forum, consistent with its intergovernmental universal character, will:

  • Provide political leadership, guidance and recommendations for sustainable development;
  • Follow up on implementation of all UN activities related to sustainable development, including the SDGs;
  • Enhance the integration of the three dimensions of sustainable development (economic, social and environmental);
  • Have a focused, dynamic and action-oriented agenda, ensuring the appropriate consideration of new and emerging sustainable development challenges

When will the HLPF meet?

The date for its first meeting is September 24, 2013 during the opening of the 68th Session of the UN General Assembly.  The first meeting will be an inaugural event and substantive sessions will be scheduled later in the year.  The HLPF will conveneannually at the ministerial level under the auspices of the UN Economic and Social Council (ECOSOC) and it will, every four years, bring together heads of State and Government, under the auspices of the UN General Assembly, to provide political momentum for sustainable development.

How to participate and the role of business:

USCIB, working with the ICC and other business groups, has represented U.S. business in UN sustainability meetings since 1992. The creation of the HLPF offers USCIB an opportunity to provide U.S. business views on economic, social and environmental dimensions of sustainability, and to offer practical private sector experiences relating to the enabling conditions needed for investment, innovation and job creation.

The HLPF will be open to all “Major Groups” and “other stakeholders,” e.g. education and academic entities, volunteer groups, etc., who will be able to:

  • Attend all official meetings of the forum;
  • Have access to all official information and documents;
  • Intervene in official meetings, submit documents and present written and oral contributions, to make recommendations, and to organize side-events and roundtables

Business and industry organizations have submitted recommendations for a dedicated and recognized business channel to the HLPF.

Staff contacts: Norine Kennedy and Adam Greene

Comparative Matrix Expert Group Reports Proposals for Sustainable Development Goals

Published on July 24, 2013

USCIB has updated its comparative matrix of the proposed goals and targets in the reports by the Post-2015 High-level Panel, the Sustainable Development Solutions Network (SDSN), and the UN Global Compact to include Secretary General Ban Ki-moon’s report, which will serve as the basis for post-2015 discussions. The first three reports reviewed in this matrix were alldelivered to the Secretary General and served as input to his report, A life of dignity for all: accelerating progress towards the Millennium Development Goals (MDGs) and advancing the UN development agenda beyond 2015,  to the September 2013 General Assembly Special Event on the MDGs and the Post-2015 Development Agenda.

While USCIB sees useful elements in some of the proposals, it does not endorse any of the suggested goals and is developing business recommendations to the UN for consideration as the SDGs are elaborated.

Common thematic elements in the reports include:

  • a continued focus and effort on the achievement of the Millennium Development Goals (i.e. the eradication of extreme poverty and hunger, education, and empowering women)
  • a focus on governance and enabling frameworks (i.e. transparency, accountability, access to information and participation)
  • goals specifically referencing common environmental issues (i.e. water, natural resources, biodiversity and sanitation)
  • a major focus on curbing climate change and ensuring sustainable energy
  • an emphasis on economic growth through modernizing infrastructure and technology

Click here to download the updated comparative matrix.

Staff contacts: Norine Kennedy and Adam Greene

US and China Agree to Action on Climate Change

Published on July 22, 2013

smogAt this month’s U.S.-China Strategic & Economic Dialogue (S&ED) in Washington, D.C., the two countries agreed to undertake a number of steps to address climate change. This followed an announcement that the two nations will begin formal talks on a high-standard bilateral investment treaty (click here for our earlier report).

In May, the USCIB China Environment Task Force met with the EPA’s Steve Wolfson to discuss coordination and capacity-building between China and the U.S. on climate change, including Secretary of State Kerry’s newly created U.S.-China Climate Change Working Group.

On July 10, the working group presented its report on bilateral cooperation between the two countries. This non-binding climate plan lays out five new action initiatives with the goal of reducing greenhouse gas emissions and air pollution by tackling the largest sources of emissions in both countries, focusing on: vehicle emissions; smart grids; carbon capture, utilization and storage; greenhouse gas data collection and management; and building and industry energy efficiency.

In a fact sheet, the U.S. Department of State released the following details of specific projects and commitments.

  1. Reducing emissions from heavy-duty and other vehicles: Heavy-duty vehicles are the fastest growing source of greenhouse gas emissions from transportation in the U.S. and account for more than half of transportation fuel consumed in China. Light-duty vehicles also contribute significantly to greenhouse gas emissions, fuel use and air pollution. Efforts under this initiative will include advancing comprehensive policies to reduce CO2 and black carbon emissions.
  2. Increasing carbon capture, utilization, and storage (CCUS):
    The U.S. and China account for more than 40 percent of global coal consumption. Emissions from coal combustion in the electric power and industrial sectors can be significantly reduced through CCUS. China and the U.S. will cooperate to overcome barriers by implementing several large-scale, integrated CCUS projects in both countries, which will engage companies in both countries and allow for enhanced trade and commerce.
  3. Increasing energy efficiency in buildings, industry and transport:
    The U.S. and China recognize that there is significant scope for reducing emissions and costs through comprehensive efforts to improve energy efficiency. Both sides commit to intensify their efforts, initially focusing on promoting the energy efficiency of buildings, which account for over 30 percent of energy use in both countries.
  4. Improving greenhouse gas data collection and management:
    Both countries place a high priority on comprehensive, accurate reporting of economy-wide greenhouse gas emissions data to track progress in reducing emissions and to develop and implement mitigation policies. The U.S. will work with China to build capacity for collection and management of greenhouse gas emissions data.
  5. Promoting smart grids: The power sector accounts for over one third of U.S. and Chinese carbon emissions. To reduce greenhouse gas emissions from the power sector and put in place a resilient, low-carbon power grid, both countries will collaborate on developing modern, “smart” grid systems, deploying renewable and clean energy, and improving demand management.

In their joint report, the two parties made clear that this just the beginning of a new phase in U.S.-China cooperation on climate change issues, where the Climate Change Working Group is designed to serve as the new leader in this critical bilateral relationship. Working closely with private sector and non-governmental stakeholders, the working group will develop implementation plans for the following initiatives by October 2013, with the goal of continuing to find new ways to expand cooperation on climate and clean energy issues.

Staff contacts: Norine Kennedy and Justine Badimon

More on USCIB’s Environment Committee

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