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Leaked letter tips US hand at climate talks
12 November 1998
The letter is to top US negotiator Stuart Eizenstat from the US Business Roundtable, a coalition of powerful companies including Exxon, General Motors and the Chase Manhattan Bank. The letter sets out US business demands for the summit - which match the US Government's public negotiating position.
The Roundtable is demanding:
- no limits on carbon trading.
This means that the US could meet its obligation under the 1997 Kyoto protocol to cut greenhouse gas emissions NOT by taking domestic action to clean up US industry, reduce road traffic, etc, but INSTEAD by buying emissions"credits" from other countries such as Russia. The Roundtable suggests that 80% or more of the US obligation should be met in this way
- the full involvement of developing countries, particularly China and India
in meeting emissions targets. The Kyoto agreement did not include either China or India. US opponents of the agreement, including key Republican politicians, have demanded that it should not be ratified by the US Senate until all developing countries agree to binding targets.
The letter gives details of an economic study carried out for the Roundtable, which exposes why the US is making these demands. If global trading is permitted, the Roundtable says that US GDP would fall by less than 0.4% over baseline forecasts by the year 2020. If no trading is allowed, US GDP could fall by more than 1.2% over baseline - a cost of more than $60 billion a year. But the study also shows that the US demand would damage both the European economies and the economies of developing countries. Total investment in South East Asia is forecast to rise by almost 2% over baseline forecasts by 2010 under the Kyoto agreement.But global trading could see a fall of almost 2% instead.
The letter admits that:
"participation in full global trading actually puts developing countries at a competitive disadvantage because their economies are so much more energy intensive than industrial countries."
In a remark which will embarrass US negotiators at the summit, the letter also states:
"The more restrictions on trading, the more Europe improves its competitive position -which is probably not a surprise to you and your delegation who are veterans in dealing with the EEC" [sic]
The "competitive advantage" of European Union countries derives from the fact that they have progressed faster than the US in developing more energy-efficient economies.
Commenting, Liana Stupples of Friends of the Earth International said:
"The truth is now out, and with a vengeance. This hugely embarrassing leak shows that top US companies, and the politicians they are trying to buy, are determined to carry on wrecking the climate. If there must be a greenhouse gas agreement, they want to trade their way out of the consequences. These are wrecking tactics, pure and simple.Only public pressure can now ensure that the Governments of the world are finally forced to face reality, and make a climate agreement that truly protects our environment."
NOTE TO EDITORS
The letter is dated 10th November, and is from Robert N Burt of the FMC Corporation to Stuart E Eizenstat, Undersecretary for Economics, Business and Agricultural Affairs at the US State Department. It was copied to US Vice-President Al Gore, key White House staff, US Commerce, Labour, Trade and Treasury Department heads, and leaders of the US Congress and Senate's anti climate campaign.
If you're a journalist looking for press information please contact the Friends of the Earth media team on 020 7566 1649.
Published by Friends of the Earth Trust
Last modified: Jul 2008
