Climate Change Working Groups Hosts Assistant Secretary Claudia A. McMurray

Washington, DC – On January 29, 2008, the Climate Change Working Group hosted an event to update clients on the recent progress in international climate change initiatives with the Honorable Claudia A. McMurray, Assistant Secretary for oceans, Environment and Science at the U.S. Department of State.

A primary goal of the Climate Change Working Group at BKSH & Associates, Burson-Marsteller and Penn, Schoen & Berland Associates is to better inform clients about climate change progress and to include them in the ongoing debate.  

The event was especially timely given it was set in between the international conference in Bali, Indonesia and the President’s Major Economies Meeting (MEM) in Honolulu, Hawaii during January 30 and 31.

According to McMurray, since the U.S. withdrawal from the Kyoto Protocol in 2002, the Administration has focused on building public/private partnerships, including the Asia Pacific Partnership. Concerns include India and China who require initial aid to ensure their ability to receive environmentally friendly technology and put funding for technology development to use.

Efforts of the last few energy bills have led to an emerging focus on hydrogen-powered cars, methane-to-market, carbon capture and sequestration and other areas. The President’s goal of reducing gasoline use by 20 percent in 10 years was also highlighted.

Following the Bali conference, the Administration was satisfied that it produced what the U.S. was seeking: a launch for negotiations, a roadmap and a schedule with an end point.  

The process, rather than the substance, needed to reach agreement with both developed and developing countries was negotiated.  Other short term priorities projects were identified as adaptation, deforestation, and improved weather forecasting. 

Going into the MEM in Hawaii, the Administration’s goals include finding a consensus within a smaller forum of nations to assist the larger UN discussion, potentially with a focus on targeted goals within certain sectors. Although this group intended to conclude its meetings at the end of 2008, the President will seek to conclude the MEM’s work at a leader’s summit this summer. Vocal skepticism over the MEM process from the Europeans was acknowledged, and results from the MEM meeting in Hawaii this week will determine whether the MEM can assist the larger UN process.

At the event, we also discussed the Administration’s recent creation of a technology fund, which UNFCCC Secretary Yvo de Boer has called the “New Marshall Plan,” to be administered within the U.S. Department of the Treasury. The U.S. has pledged $2 billion over three years for a total fund expected to raise $30 to $40 billion for climate change technology. The UK, Japan and the World Bank are also likely to be involved. Developing nations will be influential in how the technology fund is used and the Administration is open to suggestions (through Ken Peel, Deputy Assistant Secretary for International Development Finance and Debt at Treasury) on how the fund should be administered. 

On the issue of trade, it was stated that members of the Administration would like to break down tariff barriers to make technology transfer easier. However, there is nervousness among some U.S. companies that are weary of selling their technology overseas and risking their intellectual property rights. An additional point of contention is within developing countries such as China that prefer to use only internally-produced technology. 

In response to a question on cap and trade, it was said that there may be opportunity this year for related legislation, but that it would be difficult to pass, and that the Administration continues to have concerns regarding a national system. Responses from international contacts signal hesitancy to invest “big money” into a cap and trade market until they are confident of follow through from the U.S.  McMurray also commented that, while certain measures in the Lieberman-Warner bill would punish countries who fail to enact greenhouse gas reduction programs, the threat of punishment has not been an effective international tool in the past. 

On Law of the Sea, the audience was advised that Law of the Sea treaty advocates need to keep working for a sound majority in the Senate and that the next two months will be critical.