Together, they have the potential to reduce compliance costs by as much as 50 to 85 percent, according to several analyses. The U.S. position also calls for developing countries to play a meaningful role in combating global warming. Our position recognizes the need for developed countries to lead the way, but calls on developing countries to play an increasing role as their emissions grow and economic conditions improve over time. The President stated very clearly that the United States will not take on binding obligations unless key developing countries meaningfully participate in this effort. The last major negotiating session prior to the Kyoto meeting concluded in Bonn last week.
Many issues remain to be resolved for an agreement to emerge from Kyoto.
We remain committed to working as hard as we can to make Kyoto a success. Now I would like to return to issues related to domestic implementation and the question of what it will mean for our country to return emissions to 1990 levels by the period 2008-2012. It will not mean, as some have suggested, skyrocketing energy prices and wholesale shifts of jobs to developing countries. The President has carefully nurtured our economy back to its strongest point in decades and would not support any action that would undermine our continued prosperity. As outlined above, our proposed domestic plan relies extensively on market-based incentives, removing barriers to innovation, establishing partnerships with industry, and reinventing federal energy policies.