The Foreign Service Journal, March 2008

Force is leading efforts to tackle the policy and regulatory barriers sur- rounding clean energy technologies. Focusing on the Indian states of West Bengal, Gujarat and Punjab, the task force is working to support grid inter- connection standards and other policy structures critical for the growth and replication of innovative energy tech- nologies. The result will be improved awareness at a state and regulatory level of the finance and policy mecha- nisms that must be in place to support cleaner energy infrastructure. Sustainable Forestry and Land Use Cleaner technologies alone, how- ever, are only part of the puzzle. Science tells us that how we use our land and manage our forests has a major impact on net greenhouse gas emissions. Promoting sustainable for- est management and smart land use is good for our economies and the nat- ural environment, and essential to any successful climate approach. Combating deforestation and sus- tainably managing forests are priori- ties for the United States. We are already a global leader in both fields, providing between $80 million and $100 million a year in direct assis- tance. We are committed to working with partner countries and organiza- tions at all levels to conserve and sus- tainably manage forests and halt deforestation and forest degradation. Forest loss and degradation are significant emissions sources that deter sustainable development, re- duce resilience to climate change, represent significant lost revenues and destroy the economic, social and environmental goods and services provided by forests on which many of the world’s people depend. A com- prehensive climate approach should recognize and encourage all efforts that have a significant impact in reducing or avoiding deforestation. Investment There is a critical need for financ- ing our transition to a new global energy system, and promoting adap- tation and sustainable land use. This requires financing tools that support the development and adoption of new technologies as well as existing clean technologies. Open trade and invest- ment in this sector are vital. The United States is committed to en- hancing our own efforts, and Pres. Bush has proposed a new fund to pro- mote international investment in clean energy technologies. This fund will be supported by contributions from governments from around the world, and will help finance clean energy projects in the developing world. Pres. Bush has asked Treasury Secretary Hank Paul- son, who is currently reaching out to partners to further develop this con- cept, to coordinate this effort. In addition, we recently joined the European Union in submitting a ground-breaking proposal in the World Trade Organization for elimi- nating tariff and non-tariff barriers for environmental goods and services. WTO members currently charge duties as high as 70 percent on certain environmental goods, impeding ac- cess to and use of these important technologies. A recent World Bank study on climate and clean energy technologies suggests that by remov- ing tariffs and non-tariff barriers to key technologies, trade could increase by an additional 7 to 14 percent annually. For maximum sustainability and effectiveness, a new climate approach should ensure that the private sector will generate the bulk of the invest- ments required to address climate change. Other key financial features such an approach should highlight are the importance of governance in attracting private investment, as well as the need for public- and private- sector investments in low-carbon technologies, especially in the early stages of development. Support for Climate Adaptation Regardless of the efforts countries make to reduce greenhouse gas emis- sions, individual countries will have to adapt to the impacts of climate change. Supporting countries’ ability to respond and adapt to climate vari- ability and change must be part of the equation. Effective adaptation strate- gies go hand-in-hand with the sustain- able development agenda of which our climate strategy is part. The United States undertakes a broad range of activities to assist countries in developing robust soci- eties, economies and ecosystems with the capacity to address the challenges and opportunities of both current and future climate conditions. These activities include analyzing data from Earth observations, developing deci- sion-support tools and integrating cli- mate information into development programs and projects. We support disaster preparedness, mitigation and relief, and coastal-zone management activities around the world, including efforts to address severe weather, storm surges and sea-level rises, as 20 F O R E I G N S E R V I C E J O U R N A L / M A R C H 2 0 0 8 I N R E S P O N S E The U.S. is already leading by example, with ambitious national targets for reducing greenhouse gas emissions.