ICCP Seeks Cosponsors for Early Action Credit Legislation

Feb 12, 1999, 00:00 ET from International Climate Change Partnership

    ARLINGTON, Va., Feb. 12 /PRNewswire/ -- The International Climate Change
 Partnership (ICCP) today announced that it is urging Senators to co-sponsor
 the Chafee, Mack, Lieberman legislation on credit for voluntary early action
 to reduce greenhouse gas emissions. In a letter to the members of the Senate,
 ICCP Executive Director Kevin Fay stated, "ICCP has consistently stressed the
 need to provide legally binding assurances that voluntary actions to reduce
 greenhouse gas emissions will be credited in any future mandatory scheme
 adopted by the government."
     ICCP Chairman Judith Bayer of United Technologies Corporation stated that
 the coalition believes it is necessary to engage in a dialogue on these
 important issues. "Many companies have already taken steps to reduce
 greenhouse gas emissions or have pledged action in the near future. It is
 important that Congress provide legally binding assurances that these actions
 will be credited if some future regulatory mandate arises," said Bayer.
     Fay indicated that the business community cannot address and resolve the
 climate change issue on its own. A realistic dialogue must begin that helps
 clarify longer-term objectives and recognizes short-term activities. Credit
 for early action is an appropriate issue to initiate this dialogue.
     ICCP company representatives will be contacting Senate offices to
 encourage cosponsorship. In its letter, the coalition points out that while
 many complicated issues still need to be resolved, the Chafee, Mack, Lieberman
 legislation represents a credible starting point.
     ICCP released a list of principles on credit for early action last fall.
 Support for passage of final legislation will depend on consistency with these
 principles and resolution of a number of key issues, including the coverage of
 "manufactured products" and the related greenhouse gas emissions savings
 associated with their use, and how to deal with a wide variety of industry
 sectors having different growth characteristics.
     ICCP was formed in 1991 and is one of the largest international industry
 coalitions focused exclusively on climate change issues.
 
     The following is a letter dated Feb. 9 to United States Senators from
 Kevin Fay, Executive Director of ICCP:
     You recently received a "Dear Colleague" letter from Senators Chafee,
 Mack, and Lieberman regarding legislation to provide credit for early action
 in reducing greenhouse gas emissions. The International Climate Change
 Partnership (ICCP), one of the largest international industry coalitions
 focused exclusively on climate change policy, urges you to co-sponsor this
 important legislation. A list of ICCP members is enclosed.
     ICCP has consistently stressed the need to provide legally binding
 assurances that voluntary actions to reduce greenhouse gas emissions will be
 credited in any future mandatory scheme adopted by the government. Such
 "credits" should be granted to those companies that achieve verified
 reductions between 1990 and the commencement of any mandatory program.
 Enclosed is a copy of ICCP's position paper on credit for early action that
 provides more details on our views.
     The Credit for Voluntary Early Action Act (S 2617) was introduced at the
 end of the 105th Congress by Senators Chafee, Mack, and Lieberman. ICCP
 members believe this bill was a credible start in addressing the issue and its
 reintroduction will provide a useful basis for consideration by the 106th
 Congress.
     It has been suggested that supporting such legislation may unwittingly
 create support for the Kyoto Protocol. We do not agree. Many companies have
 already taken action based on the Framework Convention on Climate Change,
 which was ratified by the US Senate in 1993. This agreement called for the US
 to attempt to stabilize its greenhouse gas emissions at their 1990 level by
 the year 2000. Those who have acted in good faith or who take action prior to
 any mandatory program should receive legally binding assurances that their
 verified reductions will be credited, regardless of the underlying basis for
 some future regulatory mandate.
     In meetings with Senate Environment Committee staff we have outlined the
 need for potential changes to the bill prior to its reintroduction and
 identified several issues that will require additional discussion and
 resolution. Two such matters include how to address products that use or emit
 greenhouse gases, and the method for dealing with companies and industries
 with very different growth characteristics. While support for any final bill
 will depend on acceptable resolution of these and other key issues, ICCP has
 pledged its active and constructive participation in this debate.
     As an important first step, we urge your co-sponsorship of the Chafee,
 Mack, and Lieberman legislation so that you can be engaged in the dialogue.
 ICCP member representatives will be contacting you in the near future to
 discuss this matter. Please do not hesitate to have your staff contact ICCP if
 you have additional questions.
     Thank you in advance for your support.
 
      ICCP 1999 MEMBERSHIP LIST
 
      3M Company
      Air Conditioning and Refrigeration Institute
      Alliance for Responsible Atmospheric Policy
      Alliance for Responsible Environmental Alternatives - Canada
      AlliedSignal
      Association of Home Appliance Manufacturers
      Association of International Automobile Manufacturers
      AT&T
      Boeing
      BP Amoco
      Carrier
      Dow Chemical
      Halliburton Industries
      DuPont
      Eastman Kodak
      Elf Atochem
      European Chemical Industry Council (CEFIC) - European
      Fluorocarbon Technical Committee (EFCTC) Sector
      General Electric
      General Motors
      Honeywell
      ICI Klea
      Intel Corporation
      Intercontinental Energy Corporation
      Japan Fluorocarbon Manufacturers Association
      Japan Industrial Conference for Ozone Layer Protection
      National Electrical Manufacturers Association (NEMA)
      Polyisocyanurate Insulation Manufacturers Association
      Sun Company
      Trane
      Trigen Energy Corporation
      United Technologies
      Vulcan Chemicals
      Whirlpool Corporation
      York International
 
                   Position Paper on Credit for Early Action
 
                    International Climate Change Partnership
 
     Overview
     Voluntary efforts to reduce emissions of greenhouse gases prior to the
 commencement of a mandatory commitment period can slow the rate of growth of
 emissions and contribute to the longer-term goal of achieving appropriate
 greenhouse gas concentration levels. In circumstances where there is marginal
 value in an emission reduction investment, granting credit may provide the
 incentive for such investments.
     Companies that have already taken action or are contemplating doing so
 want to ensure that these contributions are not ignored when a mandatory phase
 of emission reductions begins. Failure to recognize these contributions could
 unfairly force companies to make reductions through increasingly more costly
 options. This would have the perverse effect of penalizing those companies who
 act early, while potentially benefiting competitors who save their least
 costly reductions to respond to regulatory mandates.
     Industry's aim is to ensure that these early investments that result in
 emission reductions are recognized and "credited." Such credit could be used
 to offset future obligations that may arise from any domestic allocation, cap,
 tax or permit program or sold to parties unable to meet their obligations in a
 cost-effective manner.
     It should be noted that credit for early action programs could have
 important linkages to potential domestic or international emissions trading
 systems and international flexibility mechanisms such as Joint Implementation
 and the Clean Development Mechanism. For example, a company might earn credits
 through the Clean Development Mechanism prior to 2008 and want to apply them
 against domestic obligations. Or a "downstream" company may accrue early
 credits and not be allocated a budget. It would therefore want the right to
 trade such credits either domestically or internationally.
     ICCP Credit for Early Action Principles
     Credit for early action programs will require new statutory authority.
 Failure to enact a credit program at the Federal level may stop companies from
 making commitments now and encourages a patchwork of inconsistent Federal,
 state, and local initiatives.
     No limit should be placed on the amount of emissions reductions or
 enhancement of sinks for which early action credit can be earned.
     Credit should be granted for actions resulting in verified emissions
 reductions or enhancement of sinks that occur between 1990 and the beginning
 of any official budget commitment period, whether or not such actions were
 part of a government-sponsored voluntary initiative.
     A process should be established to determine and "lock-in" appropriate
 baselines for emission reduction activities including facility operations,
 product-based initiatives, and enhancement of sinks. Such a process should be
 flexible enough to reflect special circumstances, including unique
 considerations related to reductions already achieved.
     Credits granted prior to a first budget commitment period should be
 available without discount as offsets against any greenhouse gas emission
 allocation, cap, tax, permit, or other requirement to limit or reduce
 greenhouse gas emissions that subsequently may be imposed.
     Credits granted prior to a first budget commitment period should be usable
 in any national emission budget that may be subsequently imposed. Credits
 should remain with the earning entity for use at their discretion.
     Emissions reductions or enhancement of sinks produced from participation
 in the Clean Development Mechanism, Joint Implementation, or a domestic
 emissions trading program should be eligible for early action credit if they
 occur prior to a first budget commitment period.
     Credits generated from credit for early action programs should be eligible
 for emissions trading.
     Credit accounts should be updated on an annual basis.
     Credit programs should be integrated to ensure consistency and to avoid
 "double counting."
     The International Climate Change Partnership (ICCP), organized in 1991, is
 a global coalition of companies and trade associations from diverse industries
 committed to constructive and responsible participation in the international
 policy process concerning global climate change. The ICCP recognizes that the
 continued growth in emissions of greenhouse gases is an important concern for
 all nations and that efforts are underway internationally and in national
 governments to develop policies that address this concern. ICCP also
 understands the importance of working within the process to achieve important
 environmental objectives while fostering continued economic development and
 improvement in living conditions for all.
 
 

SOURCE International Climate Change Partnership
    ARLINGTON, Va., Feb. 12 /PRNewswire/ -- The International Climate Change
 Partnership (ICCP) today announced that it is urging Senators to co-sponsor
 the Chafee, Mack, Lieberman legislation on credit for voluntary early action
 to reduce greenhouse gas emissions. In a letter to the members of the Senate,
 ICCP Executive Director Kevin Fay stated, "ICCP has consistently stressed the
 need to provide legally binding assurances that voluntary actions to reduce
 greenhouse gas emissions will be credited in any future mandatory scheme
 adopted by the government."
     ICCP Chairman Judith Bayer of United Technologies Corporation stated that
 the coalition believes it is necessary to engage in a dialogue on these
 important issues. "Many companies have already taken steps to reduce
 greenhouse gas emissions or have pledged action in the near future. It is
 important that Congress provide legally binding assurances that these actions
 will be credited if some future regulatory mandate arises," said Bayer.
     Fay indicated that the business community cannot address and resolve the
 climate change issue on its own. A realistic dialogue must begin that helps
 clarify longer-term objectives and recognizes short-term activities. Credit
 for early action is an appropriate issue to initiate this dialogue.
     ICCP company representatives will be contacting Senate offices to
 encourage cosponsorship. In its letter, the coalition points out that while
 many complicated issues still need to be resolved, the Chafee, Mack, Lieberman
 legislation represents a credible starting point.
     ICCP released a list of principles on credit for early action last fall.
 Support for passage of final legislation will depend on consistency with these
 principles and resolution of a number of key issues, including the coverage of
 "manufactured products" and the related greenhouse gas emissions savings
 associated with their use, and how to deal with a wide variety of industry
 sectors having different growth characteristics.
     ICCP was formed in 1991 and is one of the largest international industry
 coalitions focused exclusively on climate change issues.
 
     The following is a letter dated Feb. 9 to United States Senators from
 Kevin Fay, Executive Director of ICCP:
     You recently received a "Dear Colleague" letter from Senators Chafee,
 Mack, and Lieberman regarding legislation to provide credit for early action
 in reducing greenhouse gas emissions. The International Climate Change
 Partnership (ICCP), one of the largest international industry coalitions
 focused exclusively on climate change policy, urges you to co-sponsor this
 important legislation. A list of ICCP members is enclosed.
     ICCP has consistently stressed the need to provide legally binding
 assurances that voluntary actions to reduce greenhouse gas emissions will be
 credited in any future mandatory scheme adopted by the government. Such
 "credits" should be granted to those companies that achieve verified
 reductions between 1990 and the commencement of any mandatory program.
 Enclosed is a copy of ICCP's position paper on credit for early action that
 provides more details on our views.
     The Credit for Voluntary Early Action Act (S 2617) was introduced at the
 end of the 105th Congress by Senators Chafee, Mack, and Lieberman. ICCP
 members believe this bill was a credible start in addressing the issue and its
 reintroduction will provide a useful basis for consideration by the 106th
 Congress.
     It has been suggested that supporting such legislation may unwittingly
 create support for the Kyoto Protocol. We do not agree. Many companies have
 already taken action based on the Framework Convention on Climate Change,
 which was ratified by the US Senate in 1993. This agreement called for the US
 to attempt to stabilize its greenhouse gas emissions at their 1990 level by
 the year 2000. Those who have acted in good faith or who take action prior to
 any mandatory program should receive legally binding assurances that their
 verified reductions will be credited, regardless of the underlying basis for
 some future regulatory mandate.
     In meetings with Senate Environment Committee staff we have outlined the
 need for potential changes to the bill prior to its reintroduction and
 identified several issues that will require additional discussion and
 resolution. Two such matters include how to address products that use or emit
 greenhouse gases, and the method for dealing with companies and industries
 with very different growth characteristics. While support for any final bill
 will depend on acceptable resolution of these and other key issues, ICCP has
 pledged its active and constructive participation in this debate.
     As an important first step, we urge your co-sponsorship of the Chafee,
 Mack, and Lieberman legislation so that you can be engaged in the dialogue.
 ICCP member representatives will be contacting you in the near future to
 discuss this matter. Please do not hesitate to have your staff contact ICCP if
 you have additional questions.
     Thank you in advance for your support.
 
      ICCP 1999 MEMBERSHIP LIST
 
      3M Company
      Air Conditioning and Refrigeration Institute
      Alliance for Responsible Atmospheric Policy
      Alliance for Responsible Environmental Alternatives - Canada
      AlliedSignal
      Association of Home Appliance Manufacturers
      Association of International Automobile Manufacturers
      AT&T
      Boeing
      BP Amoco
      Carrier
      Dow Chemical
      Halliburton Industries
      DuPont
      Eastman Kodak
      Elf Atochem
      European Chemical Industry Council (CEFIC) - European
      Fluorocarbon Technical Committee (EFCTC) Sector
      General Electric
      General Motors
      Honeywell
      ICI Klea
      Intel Corporation
      Intercontinental Energy Corporation
      Japan Fluorocarbon Manufacturers Association
      Japan Industrial Conference for Ozone Layer Protection
      National Electrical Manufacturers Association (NEMA)
      Polyisocyanurate Insulation Manufacturers Association
      Sun Company
      Trane
      Trigen Energy Corporation
      United Technologies
      Vulcan Chemicals
      Whirlpool Corporation
      York International
 
                   Position Paper on Credit for Early Action
 
                    International Climate Change Partnership
 
     Overview
     Voluntary efforts to reduce emissions of greenhouse gases prior to the
 commencement of a mandatory commitment period can slow the rate of growth of
 emissions and contribute to the longer-term goal of achieving appropriate
 greenhouse gas concentration levels. In circumstances where there is marginal
 value in an emission reduction investment, granting credit may provide the
 incentive for such investments.
     Companies that have already taken action or are contemplating doing so
 want to ensure that these contributions are not ignored when a mandatory phase
 of emission reductions begins. Failure to recognize these contributions could
 unfairly force companies to make reductions through increasingly more costly
 options. This would have the perverse effect of penalizing those companies who
 act early, while potentially benefiting competitors who save their least
 costly reductions to respond to regulatory mandates.
     Industry's aim is to ensure that these early investments that result in
 emission reductions are recognized and "credited." Such credit could be used
 to offset future obligations that may arise from any domestic allocation, cap,
 tax or permit program or sold to parties unable to meet their obligations in a
 cost-effective manner.
     It should be noted that credit for early action programs could have
 important linkages to potential domestic or international emissions trading
 systems and international flexibility mechanisms such as Joint Implementation
 and the Clean Development Mechanism. For example, a company might earn credits
 through the Clean Development Mechanism prior to 2008 and want to apply them
 against domestic obligations. Or a "downstream" company may accrue early
 credits and not be allocated a budget. It would therefore want the right to
 trade such credits either domestically or internationally.
     ICCP Credit for Early Action Principles
     Credit for early action programs will require new statutory authority.
 Failure to enact a credit program at the Federal level may stop companies from
 making commitments now and encourages a patchwork of inconsistent Federal,
 state, and local initiatives.
     No limit should be placed on the amount of emissions reductions or
 enhancement of sinks for which early action credit can be earned.
     Credit should be granted for actions resulting in verified emissions
 reductions or enhancement of sinks that occur between 1990 and the beginning
 of any official budget commitment period, whether or not such actions were
 part of a government-sponsored voluntary initiative.
     A process should be established to determine and "lock-in" appropriate
 baselines for emission reduction activities including facility operations,
 product-based initiatives, and enhancement of sinks. Such a process should be
 flexible enough to reflect special circumstances, including unique
 considerations related to reductions already achieved.
     Credits granted prior to a first budget commitment period should be
 available without discount as offsets against any greenhouse gas emission
 allocation, cap, tax, permit, or other requirement to limit or reduce
 greenhouse gas emissions that subsequently may be imposed.
     Credits granted prior to a first budget commitment period should be usable
 in any national emission budget that may be subsequently imposed. Credits
 should remain with the earning entity for use at their discretion.
     Emissions reductions or enhancement of sinks produced from participation
 in the Clean Development Mechanism, Joint Implementation, or a domestic
 emissions trading program should be eligible for early action credit if they
 occur prior to a first budget commitment period.
     Credits generated from credit for early action programs should be eligible
 for emissions trading.
     Credit accounts should be updated on an annual basis.
     Credit programs should be integrated to ensure consistency and to avoid
 "double counting."
     The International Climate Change Partnership (ICCP), organized in 1991, is
 a global coalition of companies and trade associations from diverse industries
 committed to constructive and responsible participation in the international
 policy process concerning global climate change. The ICCP recognizes that the
 continued growth in emissions of greenhouse gases is an important concern for
 all nations and that efforts are underway internationally and in national
 governments to develop policies that address this concern. ICCP also
 understands the importance of working within the process to achieve important
 environmental objectives while fostering continued economic development and
 improvement in living conditions for all.
 
 SOURCE  International Climate Change Partnership