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Environment

Unmet Goals In Climate Change

Government must prod firms to set targets for voluntarily curbing greenhouse gas emissions, GAO says

by Glenn Hess
May 26, 2006

Many companies participating in voluntary federal programs to reduce greenhouse gas emissions linked to climate change have not made satisfactory progress, and the government lacks policies to sanction firms that have not met their goals, congressional auditors say.

In a report released on May 25, the Government Accountability Office examined two programs that encourage corporations to set their own emissions reduction goals: the Environmental Protection Agency’s Climate Leaders Program and the Department of Energy’s Climate VISION (Voluntary Innovative Sector Initiatives: Opportunities Now) program. GAO says that the government should do more.

The report recommends that DOE develop a system for tracking participants’ progress in completing program steps and that both DOE and EPA establish written policies on how to deal with companies that have not established formal goals for cutting their emissions.

In February 2002, President George W. Bush announced a Global Climate Change Initiative to reduce the rate of increase in greenhouse gas emissions in the U.S. Specifically, he established the goal of reducing emissions intensity—a ratio calculated by dividing emissions in a given year by economic output for that year—by 18% between 2002 and 2012.

To accomplish the goal, Bush announced the two voluntary programs aimed at securing private sector agreements to reduce greenhouse gas emissions or emissions intensity.

GAO found that, as of November 2005, only 38 of the 74 companies participating in EPA’s program have set an emissions reduction goal. “EPA is developing a system for tracking firms’ progress in completing these steps, but it has no written policy on what to do about firms that are not progressing as expected,” the report says.

Trade groups participating in the DOE program generally had established goals for curbing emissions before joining Climate VISION, and the department expects them to develop a plan for measuring and reporting emissions within about one year of joining, according to GAO. As of last November, the report says, 11 of the 15 participating groups had such a plan, but two of the groups without a plan joined in 2003, the program’s first year.

“A tracking system would enable the agency to ascertain whether participants are meeting program expectations in a timely manner, thereby helping the program to achieve its goals,” GAO says. “By establishing a written policy on the consequences of not progressing as expected, both agencies could better ensure that participants are actively engaged in the programs, thus helping to achieve the programs’ goals.”

DOE says it agrees with the recommendation for a tracking system and will consider establishing a written policy. EPA says half of the companies that have joined its Climate Leaders Program have completed inventories of their emissions “and have set aggressive public reduction commitments.” The agency also says it “continuously tracks the progress” of participating firms.

But Sen. John F. Kerry (D-Mass.), who, along with Sen. John McCain (R-Ariz.), requested the report, says the findings are disturbing. “Just as President Bush continues to willfully ignore the scientific evidence that tells us we need to reduce greenhouse gas emissions, he also continues to believe that letting companies police their own emissions is good for the environment and our health. It’s wrong.”

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