"ne Enrth's well-bein!J is ... (lltisslle important to America- it" lhis.

pledge, President Bush

aud it's n" iSSl/f tJJut should he ilnpor/nll t to every Hafio" and
;11 ClIcryparl.0Itl" Ivorld.,My Administratioll is cOnlmittcd to
t'l leade"shiprole 01/ the issue oj di1l1ateClJallge. We recogllize
oHUfSpiIllSibility., ana lUe will mee/" ;t~t home, ill our hClIli-
sJJherc, (/~'ii'»/he w6tld. "-"-G~lirge W. Bush, June 2001 "
W reiterated the seriousness of climate
change and ordered a Cabinet·level
review of U.s. climate change policy. He
requested working groups to develop
innovative approache~ that would: (I) be
consistent" with the goal 01 stabilizing
greenhouse gas concentrations in the
atnlosphere! (2)be suUiciently flexible to
allow ·for new rindinlls, (3) support con·
tinued economic growth and prosperity;

Chapter 1 (4) prOVide market· based incentives; (5)

Incorporate technological advances/ and
«(1) promote global participation.
The Prcsldem's decision to take a
Int'fodu eti on deeper look at climate change policy
arose from the recognition that the inter-
national dialogue begun to date lacked

and Overview the" requisite participatory breadth for a

global response to climate change. At
the 1992 Earth SLJmmit in Rio de]aneiro,
the United NatIons Framework Conven·
tion on Climate Change (UNFCCq
was adopted, with the ultimate objective
of providing a higher quality of life

.....": .
•. :"j.

CEQ 009582

for future generations. Signatories
pledged to:
aehinle.••ll4biliZRliulI oj grcrnho"s( gas
eOllcmtralillJlS I'" Ibe alltlolphm 01 a 1(11(1
d'ill would prflltl1l dallj(rollS alllbro-
/'O!lnric iHtniM-met !Ditb Ihr c!illwlt s)'5I/111.
Sud, a lQld sbou/.1 bt acbinlt.1 u,ithi'l n
tilllc/ralllc 1ugidetd fo al/olU ICOSYS//lIIS 10
alla/'I lIilturally lu dimnlc dlilllge. 10
msure 1/'4/ jpoJ /Jroduclion is not lbrra/-
mcd, alld 10 rnnbft tcOl1omic dn,tIop,"mllo
proeml '" a suslailla/Jle /IUI"n",
In Rio, ambitious plans were set In
motion to address climate change.
However, participation In constlUcting
measures for adaptinll to and mili~,'ating
the effect~ of climate change fell short
of the breadth necessary to confront a
problem that President Bush rCcently
said has "the potential to impact every
corner pf the world." A global problem
demands a truly participatory gl~bal
response, while at the same time taking
near·term actio'n that would reduce pro-
jected growth in emissions cost·effec·
tively and enhance our ability to cope
with climate change impacts.
Based on his Cabinet's review and
~commel]dation, President Bush reo
ccntl)' announced a commitment to
reduce greenhouse gas intensity in the
Uniled States by 18 percent over the
next decade through a combination of
voluntary, Incentive· based, and eXisting
mandatory measures. This represents a
45 percent reduction' from forecast
emissions In 2012, a serious, sensible,
and science-based response to this
global problem-desplte the remaining
uncertainties concerning the precise
magnitude, timing, and .fClIiomil pat.
terns of climate' change. The President's
commitnlent also e'01phasizedthe need
for partners in this endeavor. All coun·
tries must actively work together to
achieve the lonij-tenn goal of stabilizing
greenhouse gas concentrations at a level
Ihat will prevent dangerous iriterference
with che climate system.
For qur p~rt, ,the United States
intends to cont/nue to be a constructive
and active Party to the Framework Con-
vention. We are leading glQbal research
eHom to enhance the understanding of
Ihe science of Climate change, as called
for under the Framework Convention.
We lead the world in investment in c1i·
mate science and in recent years have
spent $1.7 billion on federal research
annually. Since 1990, the United Slat~
has provided over $18 billion for dim~ie
~tcm .research-more resources ,than
any other country. In June 2001, Presi-
dent Bush announced a ne:wClimate
Change Researeh Initiative to foalS on
key remaining gaps In our unden;tanding
of anthropogenIc climate change,and Its
potential impacts.
As envisioned by the Framework
Convention, we are helpins t;' develop
technologlcs to address climate change.
to
The President has plc:elBed ~Prioriti'l:C
research' budgets under the National Oi·
mate Change Technology Initiative: 50
that lunds will be available to develop
,advanced energy and sequestration tech-
nologies. Energy policies ilnprove effi-
ciency and 5Ubstltute cleaner fuels. while
sequestration technolol;ies will promote
economic and environmentally sound
methods fonhe capture and storage of
greenhouse gases.
We plan to increase bilateral support
for climate ohservation systems and to
finance even more deOlonstl'lllion proJ-
ects of advanced energy technologies In
developing countries. PreSident Bush's
Western Hemisphere Inltiativc-<reated
to enhance climate change cooperation
with developing counrries in the Ameri-
cas and elsc:whc~will also strengthen
Implementation of our Framework Con.
vention commitments. In line with those
commitments, we have provld~d over
$1 billion in climate change· related assls·
tance to developing countties, over the
last five years. All of this is just the begin·
ning: 'We intend to strengthen our coop·
eration on climate science and advanced
technologies amund the world whenever
and wherever possible.'
We continue to make progrrss in,lim-
iting U.S. emissions of greenhouse gases
by becoming more energy efficient. In
the last decade, we have seen tremen-
dous U.s. 'economic growth, and our
level of emissions per unit of economic
I Some ltc1'ioOl of 'hb rCPort (r .,."the proJ~ction"lnChilp~tr S) arc included. dnpltt the abs.tna: of l blndln, rtqUif'C"
mtnl ~O do so hnder the- uUlvc-ntion. Note thll thest proj«tion1 do not indudc the impact or the- Prdldenf. dim1lC
Chaogt Inill~d\'f ~onOlln(td in fcbruory ~llQ2. nor do lh<y .nclud. ,he: .If.... of ...."""•• In the N.II.... r ""11 "".
icy lhi( hnC' 001 )'tt bcC'n ;mplc";rnrrd.
Intradueti.. aad Overview I 3
output has declined significantly. The
President' has committed. the United
States to continue thiS impr~~errientand
red~ce intensitY ~~~d(orecaStleveis
throughenhani::ed'volun~ry me~su~.
The UrlitedSo,tes is a ~orld: leader in
addmsing~OI:faclaptjnll to ~variety~f
national and global Sclc:ntlflcprobfems
that could be eXaee'rbated,bY climate
chan8'e, including malaria> hunger, mal-
nOUrishment, property' losses due to
ex~reme weather'c"ents, and habitat loss
and other threais to biological 4ivet'5It}r.
C!lmatechange:ls a lonll,terrnpi'Ob~
lerri. deeades,ln themiiKinll,tI1atc.1I1not
be solved ovemi~hi.Areal,solutlon inust
be dUl'abl~. scl~nct'-base.t(a'nd economi,
cally ~st3inable. rnp~rtlcular, we seek
an environmentally wund approach that
will not hann the U.S.economY,·~lilth
reinains' a Critically iinpciiUilf engine of
global' prosperity. We believe that eco·
'no'mic development is key topmtccting
the global' environment.!n the real
world, no one 'Will forego meeting basic
family needs to protect the glooal com-
mons. Environmental protection 15 nei-
ther achievable nor sustainable without
opportunities for continued develop-
ment and greater prosperity. Our objec·
tive is to ensure a long-tenn solutioillhat
is environmental,ly effective" economi·
cally efficient and sustainable, and
appropriate in terms of addressing the
urgent problems of today while enhanc·
ing our ability to deal with future prob.
lems. Protecting the global environment
is too important a responsibility for any·
thinlliess.
In thiS U.s. aima~. Aclioll Report, we
proVide our third fomial national com·
munitatlon under the Framework
Convention, as envisioned under Arti.
c1es 4 and "2 of the Convention. We
destribe our national Circumstances,
identify existing and planned policies
and measures, indicate future trends in
greenhouse gas emissions, outline
expected impacts and aclaptation meas-
ures, and provide information on finan·
cial resources, technology' transfer,
research, and systematic observations.'
CEQ 009383
4 , U.S. CLIMATE ACTION REPORT 2002
The remainder of tl,lis chapter provides
a brief,description of the climate sy~tem
science that. sets the contcxt' for U.S.
action, as well asan overview of the U.S.
program th~t is the focus of this report
'e;',':;liYeffid",ncy. which paTtlyoffsct the
.NATIONALCIRCUMSTANCES:
THE'U.S.CONTEXT
The perspective of the United States
on climate change is informed by our
CCOnolliicprospcrity, 'the rich diversity
of our climate/conditions and ,natura"
resources, a~d' tile demographic ,trends
ofovei280millio~' resiaents~ Becausc
of our,di~erse:c1iiriiJtic zones, c1injatc
chansewlH,not affect the countty uni-
foimly. This diversity '''itt.also cnhancc
our economy's n:silience'to future cli·
:mDtechange. ' .
. Higher 'anthropogenic grecn house:
sas emissions areil consequence ofr()bust
cco~bmlc growll;,' hillh~ri~comcstriJdl.
tiorially promote i "creased expenditures
ofenell!Y.During· ~the ,'I~§6s," invc;t.
m~n\s'in' tCt;hnology' Icd'iil 'hlcre3ses in
inc;easeS ji.,' greenhouSe gas emissions
that would nO~lally attcnd strong ~co­
nomic growth. In addition, much of the
economic growth in the United States
has occurred, in lc:ss energy:intel1slve
sectors (e.g., computer technologieS).
Cons~quently, in thei 1990s the direct
and proportionate correlation betwecn
economic. growth and greenhouse gas
emissions WilS 011 tel-cd. '
':ijhlle the United States is'thc world's
is
largest consUmer of encrgy. it als'o the
world', largest producer of encr!,'Y, with
vast reserves of cOlli, natural gas, and
crude oil. Nevertheless, our energy use
per unit of output-i.e~, the energy
intensity of our economy-comparcs
relative!y well with the rest of the world.
Th.e PreSident's new Nalio,,~1 Ottrgy Policy
(NEP) 'includes recommendations that
would reduce grecnhouse gas emissions
by expanded use of both existing and
developing technologies (NEPD Croup
2001), The NEP's recommeooations
address cxpanded nuet'ear power genera-
tion; improved energy efficiency for
vehicles, bUildings, appliances, and
industry I development of hydrollen fuels
and renewable technologies, increased
~ccesS to federal lands and expedited
licensing practices; and expanded usc of
cleaner fuels, including initiatives for
coal and natural gas. Tax Incentives rec-
ommended in the NEP and the Presi·
dent's, FY 2003 Budget will promote: use
of rerie'wable energy forms artd com·
bined heat-and.power systems and will
encourage technology development.
The nation's response to climate
change-our vulnerability and our
CEQ 009584

ability to adapt-Is also influenced by
U.S. governmenlal. economic, and
social structures, as well as by the con·
cerns of U.S. Citizens. TIle political and
institutional systems participating in the
development and prote~lion of environ-
mental and natural resourees in' the
United States are as diverse as the
resources themselves.
President Bush said last year that
'technology offer; .great promise to
signiFicantly and cost·effectively reduce
emissions < in the long term. Our
national circumstances-our prospe~ty
and our diversity-may shape our
response to climate change, but our
commitment to invest In innovative
ll:chnolo/lles and researeh will ensure
the success of our response.
GREENHOUSE GAS INVENTORY
This report presents U.S. anthro-
pogenic greenhouse gas emission trends
from 1990'through 1999 and fulfills the
U.S. commitment for 100 I for an
annual inventory report to the
UNFCCC. To ensure that the U.S.
emissions Inventory 1" comparable to
those of other U NFCCC signatory
cfJuntrh:s, the emission estimates were
caJc:ulated using methodologIes consis·
tent with those recommended In the
Rroisrd f 996 [pee GuiJclilftS Jar Nll/io~lal
Grrmboust .cas Int1trllorits (IPCaUNEPI
OECDIlEA J997).
Naturally occurring greenhouse
gases-that Is, gases that trap heat-
Indude water vapor, carbon diolCide
(CO)}, methane (CH~}, nitrous oxide
(NJO), and ozone (03)' Severiil classes
of halogenated substances that contain
fluorine, chlorine, or bromine are also
greenhouse gasts, but for the most part,
they are solely a product of industrial
activities. 'Chlorofluorocarbons (CFCs).
hydrochloroIluorocarbons (HCFCs).
and bromoAuorocarbons (llalons) are
stratospheric ozone-depleting sub·
stances covered under the tvlo/lfrrlll Pro.
tocol 0/1 Sllbs/allctS Thnt Drplttt lilt OZOHt
lAytr and, hence, arc not included in
national greenhouse gas inventories.
Some ot\1cr halogenated substances-
hydrolluorocarbons (HFCs), perfluoro.
carbons (PFCs), and sulfur hexaAuoridc
(SF6)-do not deplete stratospheric
ozone but are potent greenhouse gases
and are accounted for in national green·
housl: gas inventories.
Although COI , CH~, and N10OC:OJr
ffilturally in the annosphere, their atmos·
pheric concentrations have btt~ affected
by humanaeUvlt'ics. Since pre.indUstrial
time (i.e., since about 1750), cOll~entra·
tions of thcse greenhouse gases have
increased by 31, lSI, and 17 percent,
respectively (fPeC 1001 d). This
increas~ has altered thl: chemical com·
position' 01 the Eanh'satmosphere and
hOI. likely affected the Global ,climate
systcm.
In J999,tolill U.S. greenhousc gas
emissions were about 12 percent above
emissions.in 1990. A somewhat lowl:r
(0.9 percent) than average (1.1 percent)
annua!' Increase in emissions, especially
given [he robus~ economic growth
during this period, was primarily attrib·
utable to the follOWing factors: warmer
than average summer and wimer condi.
tlons, increased output from nuclear
power plants,. reduced CH, emissions
from coalmincs, and reduced HFC·13
by·produet.emissions from' the chemical
manufactUre of HCFC·12;
As the largcst source of US. green-
house gllS emissions, CO) accounted for
82 percent of total U.S. greenhouse gas
elT!issions in' i 999. Carbon dioxide from
fossil fuel combustion was the dominant
contributor. Emissions from this source
category grew bY' 13 percent beiween
1990 and 1999.
Methane accounted for 9 percent of
total U,S. grCenhousc gas emissions in
1999. Landfills, livestock operations, and
natural gas systems were the source of 75
pereent ollOtal CH, emissions. Nitrous
oxide, accounted for 6 pereentof total
U.S. greenhouse gas emissions in 1999,
and agricultural 5011 management repre-
sented 69 percent of total N,O emis·
slons. The main anthropogenic activities
producing N,O in the United States
WC)"C agricultural soil management, fuel
combustion in motor vehicles, and
adipic and nitric acid production
processes. HFC~, PFCs, and, SF6
ac:c:ounted for':l percent of .total U.S.
greenhouse gas emissions in 1999, and
IlItIlIductiOD Ind Overview I 5
substitutes for ozone-depleting sub·
stances comprised, 42 perCe~t of all
HFC, PFC, andSF6 emlssiom.
Evidence Is alsoe01ersinll that black
camonaerosols (sooi);whkhare fanned
bylnc:omplett con;bu~t1on/nl~Y be a sig.
nifjCarit anthropog~nic agent. Although
theu.s. greenhoUse g3SlnventorY does
nOI' eovere~i$sioris of
thl:se partld6;
we anticipate' thaI U.S.' research will
focus-more 00 them in com'ingyears.
POLICIES AND· MEASURES
U.S. ,dim'ate' change programs
redul:ed thegmwth' of greenhouse Ras
emissions by an eslimated.240 teragrams
(million metric tons) of COi equivaient
In 2000 alone. This reduCtion helped 10
sigitifieantly lower (17 percent since
1990) Rrcenhousc IJ3SCS emitted pCr unit
01 gross domestic product (CDP), and
thus ranks as a step fotward in addressing
climale change.
However, the U.S. e1fortwas given a
potentially grealer booslin June 200t,
when Presichrrit Bush announCed major
new initiatives to advance climate
chanae science and technology. These
initiatives came about after governmem
consultation with industry leaders, the
scientific commutilty, and environmen-
tal advocacy groups indicated that marl:
could and should be done to address
scientific uncertainties and encourage
technological Innovation.
In February 2002, the President
announced a new U.S. approach to the
challenge of, 'global climate change.
This approach contains policies that
will harness thc power of markets and
technology to reduce greenhouse gas
emissions.. It will also create new part·
nerships with the' developing world to
reduce the greenhouse gas intensity of
both the U.s. economy and I:conomies
worldWide through policies that sup-
port the economic: growth that makl:s
technologiol progress possible.
The U.S. plan will reduce the green-
house gas intensity of the Us. econ·
omy by 18 percenl in ten years. This
reduction exceeds the 14 percenr pro·
jected reduction in greenhouse gas
intensity in the absence of the addi·
tional proposed policies and measures.
CEQ 009585
6 I U.S. CLIMATE ACTllIN REPORT ZOOZ
111e new measures include an enhanced
emission reduction registry; creation of
transferable credits for emission reduc·
tlon/ tax tncentivcs for investment in
low·emlssion energy eqUipment, sup·
pon for research for energy efficiency
and sequestration technolollY; emission
reduction agreements· with specific
industrial sectors, with particular
allcntion to reducing transportation
emlssionsl international outreach, in
tandem with funding, to promOte
climate research globally, carbon
sequeslrationon farms lind forests; lind,
most important, review of progms: in
1012 to detennine if additional steps
may be needed-as the science justi-
fies-to achieve further reductions In
our national greenhouse gas emission
inlensity.
The above slrategies are expected 10
achieve emission reductions campara'
ble to Ihe average reduclions pre·
scribed by the Kyoto agreement, but
without the threats 10 economic
Ilrowth that riSid nallonal emission lim'
its would bring. The registry structure
for voluntary participation of U.S.
Industry in reducing emissions will seek
compatibility with emerging. domestic
andintemational approaches and prac·
tices, afld will include provisions to
ensure that early responders are not
penalized in future climate actions. Fur·
thennore, the President's approach pro-
vides a model for developing nations,
setting targets that reduce gTeenhquse
gas emissions without compromising
economic. growth.
PROJECTED GREENHOUSE
GAS EMISSIONS
Forecasts of economic growth,
enerllY prices, program funding, and
regulatory developments were inte·
gratcd to project greenhouse gas emis·
sions levels in· 2005, 2010, 2015, and
2020. When·sequestration is ·accountcd
for, totDI U.S. greenhousl: gas·emissions
a~ projected to increas.e by -13 percent
belween 2000 and 2020. This increased
growth ·in· absolute emissions wili be
accompanied by a decline in emissions
per unit of cDP. Note that the·se fore·
ems exclude the impacl of lhe
PreSident's climate chanlle Initiative
announced in February 2001.
Despite best efforts, thi: uncertain·
ties aS5~ciated with the proJected levels
ofgreerihouse gas emissions are p~ima.
rtlyassociatcd with forecastmeth·odo)·
OlD', mete~roloBicaL vanatlons, and
rates of economic growthalid techno·
logical development. In addition, ·slnce
the model used to generate these
proJeclions does not completely incor·
porate all current and future policies
and measures to address greenhouse gas
emissir;ms, these measures, as well. as
legis! ative or i'c:·GUJa tory actions not yct
in Force,. add another layer ofuncer·
talnty to Ihese projectl~ns.
IMPACTSANDADAPTATIO.N
One 01 the weakest links in our
knowledge is the connection between
global and regional projections of cli-
mate change. The National Research
Council's response to the President's
request for a review of climate change
policy specifically noted that funda~
mental scientific questions remain
regardinR the specifics of regional and
local projections (NRC 2001a). Pre·
dicting the; potential impacts of climate
change is compounded by a lack of
underst~nding of the' sensitivity of
many environmental systems and
resource~both managed and unman·
aged-to climate chanse.
Chapter 6 provldes.an overview of
potential negative and positive impacts
and possible rcsponSI: options, based
primarily on C1imalr Cba"gr Impa,/s on 'be
Unitrlf Siales: Tbr Poinilial Co,isrcjllmcrs oj
Clin/lllt Variability i/lld Cbitll9t (NASi"
2000). This3ssessmcnt lIsed historical
records, model simulations, and sensi·
tivity analyscs· to explore our ·potential
vulnerability to climate chanlle and
highlighted gaps in our knowledge.
The United States is engaged in
many eHorts that will help our nat/on
and the rest of the world-particularly
the developing .....orld-reduce vulnera-
bility and adapt to climate change. By
and large these efforts address public
health ·andenvironmental problems
that are of urgent concern today and
that may be exacerbated by climate
change. Examples include reducing the
spread of malariil/ inCreaSing agrlcul.
turaLa'nd forest productivitY. reducing
the dama~ froril: extreme we3ther
ev~Jits; and"inlProving triethodst~rore.
cast their timings and lOCations. Besides
benefitingsocictY1nthc:: short tc~,
these efforts will· ~nhance~ur ability to
adapt to climate chan8ei~·the longer
tenn.
Challenges associated with climate
ChilOSC will most likely Increasedurin8
the·2ht·century,.Although chanues in
the environment. Will surely occur, our
nati~n'~· economy ·should .continue to
prOVide the means fOTsuccesswllidap-
latlon to climate chang~s.
FINANCIAL RESOURCES AND
TRANSFER OF TECHNOLOGY
To· adcl"r1:ss . ~Iimate. change effec·
tively, developed and developing coun·
trics must meet environmental
challenges together. The United States
Is commined to hefping developing
countries and countries with economies
in transition meet these challenges in
ways that promote economic well-
being and protect natural resources.
This commitment has involved many
players, ranging lrom government to
the private sector, who havc con·
tributed significant resources to devel-
oping countries, As recognized in the
UNFCCC guidelines, this assl~tance
can take the fonn of hard and/or soft
technology transfer.
Projects targeting hard technology
transfer, such as equipment 10 control
emissions and increase energy effi·
ciency, can be particularly effective in
reducing emissions. And projects that
target the transfer of soft technologies,
such as capacity building and institu·
tion ~trengthening through the sharing
of technical expertise, can help coun-
tries reduce their vulnerability to the
Impacts of climate change. Hut whether
hard or soft, technology transfer pro-
grams are most effective when they are
approached collaborativc:ly and are
congruent with the devc:lop01cnt objec.
tives and established legal framework of
the tuget country. To this end, the
United States works closely with
CEQ 009586

benefidary countries to ensure a good
fit between the re:sourees it provides
and the country's needs.
RESEARCH AND SYSTEMATIC
OBSERVATION . long·term VIsion embraced by ~lie new
The United States leads the world
in research on climate and other
global environmental changes, fundi rig
approximately half of the' world's
climate chanse re:search expenditures.
We intend to continue funding research
in order to ensure: vigorous, origoirig
programs aimed at narroWing the uneer·
talnties in our knowledge of climate
change. These research programs will
help advance the understanding ofcll·
male change.
The PrCj;ldcnt's major new initiatives
direcled at addressing. climate change
are:' informed by a' wealth' of Input ana
are: intcnd~d to re:nil! in signifi~nt
Improvements 'In -;limate'modeling,
observation, and researCh efforts. ·The
initiatives 1510 htlp go;';'emment, the
pri';"ie ;ector,'and' communities .make
iriformed management decisions re:gard.
ing climate change intisht of pcrsliteill
uncertainties. . popul~ce.:fheUnit~d Statesl~ commit-
EDUCATION. TRAINING.
AND OUTREACH'
The UnitedStatt-5 undertakes and
supports a bro~d range of activities
aimed at enhanCing public understand·
ing and awareness of climate change.
These actiVities range from educational
latiDdvclionnd DviIY18w • 7
inltlalives sponsored by federalagen'
des to cooperation ",lih independent
re:seareh .and:llca'dcmic organizations.
~~n8t!Vemmeflt~lof8a~i%ilthms; In-
dustiY:.. and'ihe' p~s'jli$Q.·p·lay active
roi~li lilincreaslng p~bilc a~V.1rcnes5
ahd Inl~ri:sh~i:iiina~change." ' ,
':'Th~'go"of all.offhesc endeavors-
,edtC:atioo•.. ·trainlng;~:~nd'ptbiic. aware:-
neSS-is t~' crcati ;i~info~mcd
ted to pro;;/dinlrdtizens whh access to
the Information' necessary. to critically
evaiuate: the dinsequences,of policY
options to addressdin1atechanlie iri a
cost-effective man~enhatissustainable
anddfc:etive in. achieving the Frame.
work Conventlcin'~ long-term goar.
CEQ 009587