I- 10019982 I" 55 \. \ UNITED STATES ^g{!Z? I ENVIRONMENTAL PROTECTION AGENCY NATIONAL COUNCIL OF WORLD AFFAIRS ORGANIZATIONS GLOBAL ENVIRONMENTAL SPEAKERS SERIES COMPILATION OF SPEECHES BY EPA OFFICIALS, 1996-1997 ------- ------- . UNITED STATES I ^&7 | ENVIRONMENTAL PROTECTION AGENCY NATIONAL COUNCIL OF WORLD AFFAIRS ORGANIZATIONS GLOBAL ENVIRONMENTAL SPEAKERS SERIES COMPILATION OF SPEECHES BY EPA OFFICIALS, 1996-1997 ------- ------- EPA's NATIONAL AMBIENT AIR QUALITY STANDARDS 9 Carol M. Browner March 10, 1997 San Francisco, California ENVIRONMENTAL SECURITY 15 Fred Hansen November 15, 1996 Washington, D.C. William Nitze January 16, 1997 Washington, D.C. Alan Hecht April 24-25, 1997 Juneau and Anchorage, Alaska GLOBAL CLIMATE CHANCE 31 Alan Hecht February 17, 1997 Grand Rapids, Michigan INTERNATIONAL ENVIRONMENTAL GOVERNANCE 41 Daniel Magraw February 18, 1997 Detroit, Michigan Daniel Magraw September 11, 1997 Honolulu, Hawaii ENVIRONMENTAL PROTECTION IN EASTERN EUROPE AND THE MIDDLE EAST 50 Valdas Adamkus March 27, 1997 Springfield, Illinois Lee Pasarew October 6, 1997 Asheville, North Carolina U.S./MEXICO BORDER ENVIRONMENTAL COOPERATION 62 JaneSaginaw April 3, 1997 Dallas, Texas Alan Hecht December 3, 1997 San Diego, California Jose Luis Samaniego Leyva December 3, 1997 San Diego, California SUSTAINABLE DEVELOPMENT 75 William Nitze Alan Hecht William Nitze December 5, 1996 September 18, 1997 October 21, 1997 San Francisco, California Atlanta, Georgia Boston, Massachusetts ------- INTRODUCTORY In August, 1996, the National Council of World Affairs and the U.S. Environmental Protection Agency agreed to organize a series of speaking engagements to profile global and domestic environmental issues. Since Deputy Administrator Hansen's inaugural speech in November, 1997, in Washington, D.C., on the topic of Environmental Security, Administrator Carol Browner and eleven other senior EPA officials have been guests of World Affairs Councils across the country. America's environmental interests do not stop at U.S. borders. The protection of U.S. citizens and natural resources requires the cooperation of other countries. EPA's international programs: Protect U.S. citizens from air, water and land pollution along our borders Reduce global environmental threats, such as pollution of the atmosphere and oceans; and Enable the U.S. to benefit from scientific, technological, and environmental management advances in other countries, thereby promoting cleaner, cheaper, and smarter environmental protection in the United States. International cooperation also serves important U.S. economic, foreign policy, and national security interests. EPA's technical assistance programs overseas, for example, have led to commercial opportunities for U.S. environmental businesses thereby improving the U.S. trade balance and creating high-wage jobs for American citizens. The promise of environmental cooperation has been an integral element of the Middle East peace process. Our technical exchange program with Russia also is helping reduce barriers to the decommissioning of the Russian nuclear fleet. The presentations by the WAC were hosted in a variety of fora including speeches, panels, and town meetings, and outlined the scope of global environmental challenges and range of actions required to improve the global environment. Tip O'Neill was only partially correct when he said that all politics is local - so is environmental protection. I believe that a well-informed and engaged public is the most important pre-requisite for the promotion of sustainable development at the local and global level. The World Affairs Council is to be congratulated for helping undertake this very valuable public service. William A. Nitze Assistant Administrator ------- INTRODUCTORY There are 80 world affairs councils around the country. They have 75,000 members and 300,000 participants in the annual foreign policy discussion program called Great Decisions. Councils have outreach impact on about three million people per year. The mission of our councils is to get Americans at the grass-roots interested, informed, and active in international affairs. We do that through local-level speaker's programs, work with school systems, international exchanges, business roundtables, travel programs, publications, newspaper columns, and radio and television programs. We teamed up with the EPA Office of International Activities to put on a series of major local events on international environmental issues. We wanted to explore the argument that environmental security, not military security, could well be our dominant foreign policy paradigm in the 21st century. We also wanted to know what our own government was doing on the world environmental stage and what our role might be locally. Councils try to get to know government officials and programs directly rather than simply relying on the media (or increasingly in international affairs the absence of the media) to tell us what is happening. We believe that this "direct-access" approach grounds us better than the national ideological debates on the environment or anything else. We always strive to be balanced and to hear all sides of an issue. We sponsored fifteen major local events which drew several thousand people and considerable media coverage in San Diego, San Francisco, Washington, Grand Rapids, Detroit, Springfield, Silicon Valley, Dallas, Juneau, Anchorage, Atlanta, Asheville, Honolulu, and Boston. Though environmental security was the overarching theme, local events varied widely: environment and sustainable development, global climate change, resolving environmental conflict, problems in Eastern Europe, Arctic issues, pollution in Russia, environmental issues in Asia, and US environmental relations with Mexico. The format varied from speeches to panels to debates to joint governmental presentations to town meeting-style discussion. The San Diego town meeting was the place where the new US-Mexico environmental agreement under NAFTA, Border 21, was announced and shared with the world. We also delighted that EPA Administrator Carol M. Browner and Deputy Administrator Fred Hansen participated in the series as did most of the senior figures in the EPA's international work. This outreach partnership has been enormously successful for us and we hope to continue it. We are far better grounded in the concept of environmental security and vastly more knowledgeable about the hundreds of world-wide projects that our government is working on. We believe we have helped in a small way produce an American public better educated in international environmental affairs. We also believe that our approach is a far better way to evaluate what our government is doing than the alternatives we are usuallyoffered. jerry W. Leach National Executive Director World Affairs Councils ------- NATIONAL COUNCIL OF WORLD AFFAIRS ORGANIZATIONS MISSION Empower citizens to participate in the national debate on world affairs Build citizen support for American engagement in the world Stimulate communities to interact effectively in the global economy Help people relate their local concerns to global issues Improve international education locally, nationally, and internationally Foster international interests among America's young people Build alliances with counterparts locally, nationally, and internationally Increase professionalism among councils by disseminating best practices. WORLD AFFAIRS COUNCILS World Affairs Councils are non-profit, non-partisan organizations open to all who wish to join. The national system, started in 1918, currently consists of 80 councils and 1 7 affiliated organizations. With 375,000 members and participants, it is the largest non-profit international affairs organization in the world. Councils have about 75,000 dues-paying members. About 300,000 participate annually in the foreign policy discussion and polling program called Great Decisions. Over 3,100 corporations and organizations support world affairs council work. Councils are supported by membership dues, corporate sponsorships, grants, in-kind donations, fund-raising events, and fee-for-service activities. All councils sponsor speaker's programs on international affairs. Many also run business roundtables, school programs, teacher workshops, model UN sessions for high school students, foreign policy discussions, opinion polling, young professionals' programs, international exchanges, festivals, travel programs, town meetings, newspaper columns, publications series, and radio and television programs. The national office organizes an annual conference, international fact-finding missions for council leaders, Washington tours for local council members, a speaker referral system, and national projects. Current projects are World Bank town meetings, EPA symposia on international environmental issues, State Department town meetings, a commemorative series on contemporary Europe and the legacy of the Marshall Plan, and international education workshops. World Affairs Councils annually reach about 2,700,000 people, including 725,000 students, with their programs. Including the national affiliates, the overall outreach figure is 8,000,000 per year. ------- NATIONAL OFFICE Dr. Jerry W. Leach, Executive Director Ms. Cori L. Welbourn, Assistant Executive Director 1726 M Street, NW Suite 800 Washington, DC 20036-4502 Phone: (202) 785-4703 Fax: (202) 833-2369 E-mail: ncwao@aol.com Amb. David J. Fischer Ms. Linda Leuckel Mr. Henri J. Mackor Mr. James Parsons Ms. Yvonne Shilling Dr. Betty Crowder NATIONAL BOARD OF DIRECTORS Dr. William C. Vocke, Jr., President Dr. John E. Rielly, Vice-President Ms. Sue C. Root, Secretary Ms. Barbara W. Chisolm, Treasurer Rep. Alan Wheat Sen. James C. Abourezk Ms. Diane Peters-Nguyen Mr. Noel V. Lateef Ms. Carol E. Byrne Mr. Philip A. Hutchinson COUNCIL LOCATIONS Amb. C. Philip Hughes Mr. Curtis Mack II Mr. Charles Miller Ms. Barbara Schneider Ms. Linda Wuest Mr. Michael C. Maibach Akron Anchorage Asheville Atlanta Boston Buffalo Champaign Charlotte Chicago Cincinnati Cleveland Colorado Spgs. Columbus Columbia Cuernavaca MX Dallas Dayton Denver Detroit Durham NH Fayetteville NC Florence SC Ft. Worth Gary Grand Rapids Greensboro Hartford Honolulu Houston Indianapolis Jacksonville Juneau Kansas City Long Island Los Angeles Louisville Memphis Miami Minneapolis Milwaukee Mobile Montgomery Naples Nashville New Orleans New York Norfolk Norman Orange County Orlando Olympia Palm Springs Pittsburgh Portland ME Portland OR Providence Reading Res. Triangle Richmond Riverside Sacramento San Antonio San Diego San Francisco San Jose Santa Rosa Savannah Scottsdale Seattle Sioux Falls South Bend Springfield IL Springfield MA St. Louis Stamford Tacoma Tryon NC Tyler TX Valley Forge Ventura Co. Washington DC ------- NATIONAL AFFILIATES American Council on Germany Meridian International Center American Forum for Global Education Overseas Development Council American Foreign Service Association Royal Institute of Int'l Affairs Atlantic Council US Committee on Refugees Brookings Institution United States-Indonesia Society Foreign Policy Research Institute United Nations Association (USA) Council on Foreign Relations World Without War Council Center for Strategic and Int'l Studies WorldTimes Korean Economic Institute NCWAO is a member ofCIVICUS, the World Alliance for Citizen Participation. ------- CAROL M. BROWNER ADMINISTRATOR, U.S. ENVIRONMENTAL PROTECTION AGENCY PREPARED FOR DELIVERY THE COMMONWEALTH CLUB SAN JOSE, CALIFORNIA MARCH 10,1997 Thank you, Bill Claggett, for that introduction. It is a special privilege to be back here on the West Coast -this time to discuss EPA's proposal to revise the national ambient air quality standards for particulate matter and ground-level ozone -better known as soot and smog. Let me express my deepest appreciation to the Commonwealth Club and the World Forum of Silicon Valley for organizing this event. I know that the Commonwealth Club, in particular, has a longstanding reputation for informed debate -and for fleshing out both sides of controversial issues. I will tell you, without hesitation, that these proposed air standards are the toughest issue I've had to deal with in my four years as EPA Administrator. This proposal to strengthen the public health protections is under a relentless attack by some industry representatives -an "air assault," if you will. If there was ever a time for both sides to be heard, it is now. So I thank the Commonwealth Club and the World Forum for this opportunity. And I look forward to your questions following my remarks. The day after tomorrow will mark the end of the public comment period for EPA's proposed air standards -and the conclusion of the most extensive scientific review and public outreach process ever conducted by EPA for developing a public health standard. This is the process set forth in the Clean Air Act. Born under President Nixon, amended and strengthened under Presidents Carter and Bush, the Clean Air Act is the embodiment of an ongoing, bipartisan desire to protect all Americans from the harmful effects of breathing polluted air. From the beginning, the Act has contemplated the march of technology and science. It has recognized that science will always come up with better ways to understand the health effects of the air we breathe -and that the standards of the 1970s may not be right for the 21st Century. And, therefore, the Congress set forth this process to ------- ensure that the standards would be set and, if necessary, revised in a manner that puts the public health first and ensures that Americans are protected with an adequate margin of safety. First, it directs EPA to review the public health standards for the six major air pollutants at least every five years, in order to ensure that they reflect the best current science. It also lays out a specific procedure to obtain that science and, if needed, revise the standards. This is to ensure that we never get to the point where the government tells Americans that their air is healthy to breathe, when the scientific community knows that, in fact, it is not. Next, the process requires that EPA's standard-setting work and the underlying So, in keeping with the law-the Clean Air Act-EPA has proposed to strengthen the air standards and expand the public health protections -and thereby reduce the levels of smog and soot in the nation's air. Taken together, these proposed standards would extend protections-cleaner air-to a total of 133 million Americans, including 40 million children. . , . ozone and particulate matter panels, over a health studies -some 250 of them in this case -be independently reviewed by a panel of scientists and technical experts from academia, research institutes, public health organizations and industry. In this case, the four-year period, conducted 11 meetings, all open to the public -a total of 124 hours of public discussion of the scientific data, research and the studies of the health effects of smog and soot. EPA has held further public meetings, at which hundreds of representatives from industry, state and local governments, organizations -as well as members of the public -have offered their views. As I mentioned, the public comment period comes to a close in two days. EPA will then analyze and consider the submitted comments and, after doing so, set a public health standard in July. Congress then has its say and may vote up-or-down on EPA's health standards -obviously subject to the President's veto, as is any Congressional action. And, after a thorough review of all the scientific evidence -all of the published, peer-reviewed and fully debated health studies -literally peer review of peer review of peer review -the conclusion of the independent panel is that the current air standards are not adequately protecting public health and that they should be revised. Serious health effects are occurring in children, the elderly and other sensitive populations at particulate matter and ozone concentrations at and below existing standards. So, in keeping with the law-the Clean Air Act-EPA has proposed to strengthen the air standards and expand the public health protections -and thereby reduce the levels of smog and soot in the nation's air. Taken together, these proposed standards would extend protections-cleaner air-to a total of 133 million Americans, including 40 million children. So I think it's fair to say that we have not taken our responsibility lightly-that we did not, excuse the expression, just pluck these new standards "out of thin air." EPA followed the law, and the science, very carefully. Nor is this a rush to judgment. It has been a decade since the last revision of the PM standards, and nearly two decades since the last revision of the ozone standards. 10 ------- Now, I'm sure you've heard the criticism, voiced by some in industry, that EPA is "changing the rules" and "moving the goal posts" in the middle of the game. Nothing could be further from the truth. Over the history of the Clean Air Act, the goal is -always has been and always will be-clean air. Nothing in that has ever changed. What has changed is the science-which is forever bringing advancements and innovations to improve the quality of our lives. Science now tells us that our air pollution standards are not adequate to protect the public's health-that the current standards leave too many at risk. "Oh, but the science is not fully conclusive," some in industry are saying. "The science cannot show us exactly how smog and soot cause damage to the human body. We should wait for further studies. We must first understand exactly how these pollutants move through the human body-each twist and turn-before we act." My response is simply to ask "why?" We have a cause -air pollution. We have an effect -aggravated asthma, respiratory problems, and premature death. So why wait? We have enough to go on -study after study -again, all thoroughly debated and peer reviewed -showing that stronger standards will protect millions more Americans from adverse health effects. We know from the best, current science that strengthening the ozone standard would protect nearly 50 million more Americans from the adverse health effects of smog -13 million of whom are children. And the new standard for particulate matter would result in 20,000 fewer premature deaths, a quarter-million fewer cases of aggravated asthma, another quarter-million fewer cases of acute respiratory problems in children and 60,000 fewer cases of bronchitis -each year. We don't need to know exactly how ozone and PM, at current levels, cause asthma attacks and other respiratory problems in our children and in other sensitive populations -in order to take real steps to address these problems. We don't need to wait for another generation of Americans to grow up in order to find out exactly how polluted air causes the health problems that we know for certain are afflicting far too many Americans. The best, current science already shows that there is a cause and an effect when it comes to currently-permissible levels of smog and soot. And so we must act to protect millions of American, and especially millions of American children, from harmful air pollution -just as we acted more than 20 years ago when EPA ordered the phase-out of lead in gasoline -and just as the government acted to warn Americans of the dangers of cigarette smoking. And that is precisely what EPA is doing. "But what about the costs to industry and society?" some have asked. "Why shouldn't you have to first prove that the benefits of these new standards outweigh those costs?" Let me say that we do consider costs. We take our responsibility to do that very seriously. But the law does not allow us to consider costs at the public health stage of the 11 ------- process. The Clean Air Act clearly requires levels of smog and soot to be based solely on health, risk, exposure and damage to the environment, as determined by the best available science -and not projected costs for reducing pollution. This is no accident. In the 1970 Clean Air Act debate, Congress deliberated the issue of cost -as well as the technical feasibility of meeting clean air standards. At the time, there was a great deal of frustration that putting cost considerations first was preventing any real progress toward cleaner air. You can dust off the record from 1970 and find no less than Governor Ronald Reagan himself testifying before the Senate that, in his words, "We would favor federal legislation that....sets such air quality standards as relate to human health, as these are common to all people regardless of where they live...." Thus, the decision was made -the public health must come first. The current best science must prevail in determining the level of protection the public will be guaranteed. Nothing else can take precedence. This issue has been revisited each time the Clean Air Act has been amended -in 1977 and again in 1990. And, each time, Congress and the President have come down firmly on the side of the public health first and foremost. Not only does the law forbid us from considering the costs in setting these standards, but history and real experience tell us we'd be foolish to try. Almost every time we have begun the process to set or revise air standards, the costs of doing so have been grossly overstated -by both industry and EPA. Let me take you back for a moment. During the 1990 debate on the Clean Air Act's acid rain program, industry initially projected the cost of an emission allowance to be $1,500 per ton of sulfur dioxide, while the EPA projected it to be as much as $600. Today, those allowances are selling for less than $100. Likewise, the auto industry said a few years ago that the cost of meeting emission standards here in California would amount to $1,500 per car. Again, the actual cost is less than $100. On everything from the CFC phase-out to cleaner gas, the predictions of economic chaos simply have never come to pass. Why? Because industry a/ways rises to the challenge -again and again -finding cheaper, more innovative ways of meeting standards -and lowering their pollution. Can it be done again? Of course it can. Here in California -where you've faced the toughest air pollution challenges in the country - you are leading the way to cleaner air. Innovations are bringing cleaner industries, cleaner cars, cleaner burning gas. You are seeing dramatic improvements -particularly in the Los Angeles basin. So I simply refuse to believe that we have to surrender our effort for cleaner air to cost considerations. When you think of how far Los Angeles has come in this process, to 12 ------- borrow the words of a song about a city on the other coast, "if we can make it there, we can make it anywhere." Like administrations before us, we believe that environmental protection should build upon the ideals that have long made this country great -our creativity, innovation, ingenuity. The system must do more than just seek the minimum -it must demand the best. It must reward those willing to do more than just an adequate job, to go further, to push the envelope, to provide the strongest possible protections, to prevent pollution. That doesn't mean that there is no role for the practicalities of attaining these protections. There is such a role when it comes to implementing the standards. In that case, it certainly is appropriate to weigh the costs, industry by industry, of reducing pollution -allowing us to find the most-effective solution. If these new standards are adopted, EPA will work with all who are affected -state governments, local governments, community leaders, businesses large and small -just as we have done here in California -to find cost-effective and common sense strategies for reducing pollution and providing the public health protections. That is part of the process, too. Clearly, this is a process that has worked and is working for America. It guarantees strong public health protections. It provides for the clean air standards to be periodically reviewed and updated. It ensures that we will always have the best available science, subject to independent review. It enables everyone -businesses, state and local governments, community groups and the public -to participate in the process and have their say. It honors the public's right to know. And it sets out a reasonable and rational procedure for implementing revised standards and assuring that it is done in the most common sense, cost-effective way. Does it challenge us? Yes. But this nation -its industries, its communities, its people -are fully capable of rising to that challenge. Working together, we can have cleaner air and not sacrifice our economic vitality. We've done it before. Since 1970, emissions of the six major air pollutants have dropped by 29 percent while the population has grown by 28 percent and the gross domestic product has nearly doubled. Economic growth and cleaner air. Now that's a level of progress we can all be proud of. You can thank good old American ingenuity for that. Time and time again, American industry and the American people have risen to the challenge of cleaner air. So as the debate over air standards rages on, I would ask that you ask yourselves the following question: "Have we reached the point where we should abandon our commitment to a public health standard for air pollution?" I believe the answer is no. Americans want clean air. They want the public health to come first. They want their children protected. They want EPA to do its job -which is ensuring that the air they breathe is safe and healthy. And they have every right to expect that industry will rise to the occasion, meet the challenges, and once again reduce their pollution of the public's air. Clearly, this is a vital issue of tremendous importance to millions of American families. And I think that, in this debate, we all have a responsibility to stick to the facts. 13 ------- Unfortunately, some opponents have warned about impending lifestyle changes -that these standards would lead to the banning of barbecue grills and Fourth of July fireworks. Let me tell you they are nothing more than scare tactics. They are false. They are wrong. They are manipulative. And, sadly, they detract from what could be and should be a rational, informed debate on an issue of great importance to millions of Americans. This is not about backyard barbeques. This is not about banning fireworks on the Fourth of July. Instead, this is about whether our children will be able to go outside on the Fourth of July.and enjoy those fireworks. It is about finding ways in which we can all work together to ensure that the air we breathe is healthy, and that our standards protect the greatest possible number of Americans. Let us listen to science. Let us respond as we have before. Let us work together toward common ground -not only on this particular issue, but on all environmental and public health issues -to improve the quality of the air we breathe, the water we drink and the land on which we all live. Let us do it for our children. Thank you. Now, to your questions. 14 ------- FRED HANSEN DEPUTY ADMINISTRATOR U.S. ENVIRONMENTAL PROTECTION AGENCY Speech to The World Affairs Council November 15, 1996 I want to thank Jerry Leach for his kind invitation to meet with you today. It's a pleasure - and an honor - to be here. I commend you for your leadership in raising public awareness of international issues that touch the lives of all Americans, whether they realize it or not. Your leadership will be needed even more in the future as international The World Affairs Council environmental issues touch American lives and - indeed - the lives of everyone on earth. That is, in fact, why I am here today - to discuss with you how future environmental quality will affect the health and well-being not just of individuals, or communities, but the health and well-being of the community of nations. The changes in the world economy tell the story most starkly. Economic growth rates in the developing world are averaging nearly twice the growth rates in the developed countries (U.S., Europe, Japan, e.g.) The Economist magazine recently forecast that in the year 2020, roughly 25 years from now: 9 out of the 15 largest economies on the planet will be what we now call "developing countries." India will replace Germany as the 4th largest economy in the world. Indonesia will replace France as the 5th largest. China may well replace the U.S. as the largest economy on the globe. Developing countries will represent 62% of the global GNP. And while all of this change is occurring, we are adding population on the roughly equal to another Tokyo every 40 days, most of it in the developing world. China alone adds another Australia every year. The challenge we face in the century ahead is to ensure that we address the enormous environmental pressures which attach to this kind of economic and population growth . And to meet that challenge we must pay close attention to the environment. A few years ago the EPA Administrator asked our Science Advisory Board, a group of eminent, independent scientists, to look beyond the horizon and - in their best 15 ------- judgment - anticipate environmental problems that may emerge in the 21 st century. Before I came to EPA, I had the pleasure of serving on the SAB as they prepared their report, which was published in January 1995. global environmental quality is a matter of I So I had a hand in the effort as serious and strategic national interest that should be I dedicated environmental scientists and recognized - publicly and formally. I practioners came to their conclusions. And ____^^^^^^^^^_______J| one of the most forceful, unequivocal conclusions has a direct bearing on the work of the World Affairs Council. The SAB said, in a nutshell, that global environmental quality is a matter of strategic national interest that should be recognized - publicly and formally. Why? Because of the enormous potential for environmental and natural resource degradation to strain international relations. I quote from the SAB report: "...international competition for natural resources like ocean fish and potable water may pose as much of a threat to international political stability as an interrupted oil supply does today." Thus the At EPA we are very proud of our work in the international arena, particularly our cooperative role implementing the President's foreign policy and free trade agenda. SAB recommended that the United States develop strategic national policies that link national security, foreign relations, environmental quality, and economic growth. In other words, the SAB recommended a fundamental change in thinking at EPA, and in other parts of the U.S. government as well. At EPA we are very proud of our work in the international arena, particularly our cooperative role implementing the President's foreign policy and free trade agenda. There is another area of EPA international activity that, while relatively new to the Agency, is producing some encouraging results. And that's the area of environmental security. Environmental security is a relatively new concept in the language of international diplomacy. My colleagues at the State Department often refer to it as "environmental diplomacy." In the Defense Department, alleviating environmental problems before they become cause for military conflict is part of the Administration's concept of "Preventive Defense." In a word, environmental security involves minimizing environmental trends and conditions in other countries that could, over time, negatively affect U.S. national security interests and potentially lead to armed conflict. Let me mention one example. For almost two years, American experts have been working with counterparts from Russia and Norway to design the expansion and upgrade of a facility in Murmansk that treats low-level liquid radioactive waste. These improvements will augment Russia's ability to safely dispose of the wastes from decommissioned of nuclear-powered submarines. This cooperative effort was undertaken because Russia was unable to adhere formally to the 1993 amendments to the London Convention banning all ocean disposal of radioactive waste. Because Russia does not have adequate facilities to store nuclear materials, it has unfortunately resorted to dumping radioactive waste into the Arctic Sea and the Sea of Japan. Russia is also currently storing solid radioactive waste on ships and barges in the Arctic and, possibly, the Western Pacific. These floating storage facilities create significant potential risks of radioactive contamination. 16 ------- With the help of the United States and Norway at Murmansk, Russia is now able to cease ocean dumping. President Yeltsin has indicated Russia's intent to sign the London Convention. These examples of EPA's international activity give you a sense of the scope of the challenge we face as an agency, and a nation. As the world shrinks, environmental and natural resource problems cross national borders and give rise to international tensions. EPA is working with other U.S. government agencies, and with foreign agencies, to solve these problems. That is an effort unlikely to diminish in the years ahead. But the Science Advisory Board posed a much larger question. They looked beyond the ad hoc response to international environmental problems as they emerge one-by-one, and noted that "An overall, strategic environmental policy has never been defined for this country. U.S. foreign policy objectives related to the environment have not been articulated, environmental risk contingencies have not been identified, and the criteria for various levels of U.S action in the face of environmental emergencies have not been laid out." We must begin to define a strategic environmental policy for the United States that is linked to, and consistent with, our strategic foreign relations, national defense, and economic polices. I invite you to join in the national dialogue that must precede the development of such a policy. In the 21st century, few issues will affect more Americans more profoundly. We must develop this strategic environmental policy, this strategic environmental vision, not only for the sake of the American people, but for everyone on earth. The United States has long been recognized as the environmental leader of the rest of the world. We enacted national environmental laws before anyone else, and - in fact - our laws are often used as the models by other nations. Our environmental and public health standards are still the toughest in the world. Despite the noises made by the recent Congress, I am confident that the United States will continue to lead the world environmentally in the 21st century. And I can think of no better proof of that leadership than the development of a strategic U.S. environmental policy that defines our international environmental interests in the clearest possible terms. Every American, and every other country, needs to know where we stand. Sometime next spring EPA will host a meeting of environmental representatives from all the G-7 countries. At that meeting the countries will share with their neighbors what they see when they look over the environmental horizon. They also will prepare recommendations for ongoing international cooperation in identifying environmental problems likely to affect every nation in the 21st century. The results and recommendations will become a part of the agenda for the G-7 environmental ministerial which takes place later in the spring, and reinforce the spirit of international cooperation that is essential to the protection of human health and the environment in the future. I am hopeful that discussion will be further evidence that the United States intends to exert its international environmental leadership in the 21st century. I invite your interest in our shared environmental future, and I invite your questions and comments today. Thank you very much. 17 ------- WILLIAM A. NITZE U.S. ENVIRONMENTAL PROTECTION AGENCY THE WORLD AFFAIRS COUNCIL JANUARY 16,1997 Greetings I want to thank you for the kind invitation to speak tonight. The World Affairs Council is an impressive organization devoted to improving American awareness and education in international affairs. I am especially pleased that this year, the WAC and EPA are collaborating on a series of town meetings. EPA senior officials have been visiting local chapters throughout the United States to talk about a number of international issues. Today I want to talk about EPA's international role, and especially to highlight a new direction for EPA into the area of environmental security. EPA is a key player in carrying out U.S. foreign policy. You may not be fully aware of the depth of our involvement in international activities. Let me begin with a story about radioactive waste in Russia. Murmansk Project: At present Russia does not have adequate facilities to store nuclear materials from decommissioned submarines and has, until 1993, resorted to dumping both high and low- level radioactive waste into the Arctic Seas and low-level waste into the Sea of Japan. Russia is currently storing spent and damaged nuclear fuel and other solid radioactive waste materials on ships and barges in the Arctic near Murmansk. Such floating storage facilities create significant risks of radioactive contamination of our environment. The inability of Russia to manage its military nuclear waste (in both the Arctic and Far East) has prevented it from signing the London Convention, an international agreement that bans the dumping of all radioactive waste in the oceans. In addition, Russia has been unable to meet its submarine decommissioning goals under the START agreement due to inadequate liquid-radioactive waste processing capacity. This problem has become urgent as an increasing number of nuclear submarines are being decommissioned. Waste from these subs is being temporarily stored on land and in floating vessels in the Murmansk region of the Kola Peninsula. Waste storage facilities are reported to be 90-95 percent full. 18 ------- In 1993, the Russian Federation made it clear that if interested countries could assist them in solving this problem in both northwest Russia and the Far East, then Russia would be prepared to formally adhere to the ban under the London Convention. In June 1994 under a U.S., Norway, and the Russian Federation initiative EPA Began exploring the possibility of expanding and upgrading the only operational Russian low level liquid radioactive waste processing facility. Located in Murmansk, this facility was designed to process the waste from Russia's nuclear powered icebreakers fleet. The idea of upgrading the Murmansk facility was presented to the Gore- Chernomyrdin Commission in June of 1994 by Administrator Browner. Subsequently, on September 28, 1994, President Clinton and Yeltsin issued a joint U.S.-Russian Summit announcement stating that resolution of this liquid radioactive waste processing problem is an important component of efforts to What pleases me most about these activities is that we have had a real impact on improving the quality of life in Eastern Europe. The drinking water supply in Krakow is now safer because of an EPA program to that supplied technical assistance and American disinfection equipment to that historic city in Poland. protect Arctic environmental quality and natural resources. Today, construction has begun on the new facility; Russia has voluntarily refrained from ocean dumping; and President Yeltsin has indicated Russia's intent to sign the London Convention. I tell this story because it illustrates, quite strikingly, how EPA can help achieve the U.S.Government's international environmental objectives. This initiative was designed and implemented with EPA leadership. Our goal was to enhance U.S. environmental security by protecting the Arctic ecosystem and obtaining Russian compliance with an international treaty to protect the world's oceans. ERA'S international Role Today EPA is interacting with dozens of governments around the world. EPA was and remains a key agency on the ground in Eastern Europe after the fall of communism. We opened the Regional Environmental Center in Budapest in 1990. For the past six years we have sent dozens of missions to countries of Eastern Europe to help them build their capability to deal with environmental problems. What pleases me most about these activities is that we have had a real impact on improving the quality of life in Eastern Europe. The drinking water supply in Krakow is now safer because of an EPA program to that supplied technical assistance and American disinfection equipment to that historic city in Poland. EPA air monitoring equipment and training played a critical role in reducing Krakow's air pollution by 50 percent since 1989. We have been doing the same in Russia and in many other countries. EPA's expertise and experience in dealing with environmental problems are in great demand throughout the world, a demand that far exceeds our limited resources. We are therefore forced to make difficult decisions about where our modest resources will have the largest impact. These decisions are made more difficult by the need to broaden our work with foreign governments well beyond technical assistance. The interaction of environmental, trade and commercial interests in the world today require us to be an integral part of the development and implementation of foreign, trade and economic policies. 19 ------- Environmental Security My Murmansk story demonstrates a new dimension to EPA's international workthe issue of environmental security. Environmental security is a relatively new concept in the language of international diplomacy. My colleagues in the State Department often refer to it as "environmental diplomacy." And in the Defense Department, alleviating environmental problems before they become cause for military conflict is part of Secretary Perry's concept of "Preventive Defense." For EPA, environmental security is the minimization of environmental trends or conditions involving other countries that could, over time, have significant negative impacts on important U.S. national interests. Environmental security is the way that the U.S. will look at international environmental issues in the future. It is the way that our environmental activities abroad will serve our domestic responsibilities. Political borders are not barriers to environmental problems. To protect the health of our citizens, the environment of the U.S. and our foreign policy interests, we must pay attention to what is happening to the environment on a regional and global scale. "EPA should begin working with relevant agencies and organizations to develop strategic national policies that link national security, foreign relations and environmental quality and economic growth." The potential radioactive pollution of the Arctic that I described above, climate change and ozone depletion are just the first three on what may become a long list of environment threats to the U.S. that need to be addressed internationally. Just as we have now integrated economics and trade into most aspects of U.S. foreign policy so must we broaden our concept of national security to include the concepts of preventive defense and environmental security if we are to succeed in protecting the long term health and quality of the life of the American people. In the years ahead, water quality and quantity may be one of the most important environmental and security issues. For example, there are major river systems such as the Euphrates, where there is no existing international framework. In South Africa, five rivers flow into Mozambique without international controls. Growing water problems in the Middle East represent major security issues. EPA is working on these problems and is part of the Middle East Accord working group on the environment. Last year the EPA Science Advisory Board completed a report entitled "Beyond the Horizon." This report urged EPA to think about future risks including threats to the environmental security of the United States and effective response strategies. The report said: " EPA should begin working with relevant agencies and organizations to develop strategic national policies that link national security, foreign relations and environmental quality and economic growth." The report called for an "early-warning" system to identify potential future environmental risks. We have taken this recommendation seriously. 20 ------- Since the end of the cold war, many parts of the world have seen marked improvements in human rights and the spread of democracy and free markets. People who were under totalitarian governments in the former Soviet Union and the countries in Central and Eastern Europe just six years ago are now more free to travel and pursue opportunity. The United States is more secure from military threats then anytime since before the Second World War. Much has been written and said about the global economy and the need for America to take a global approach to business. Problems and opportunities in one region have immediate impacts in another. This globalization accompanied by unchecked population growth in much of the developing world will lead to greater competition for important natural resources and increase the world's capacity to damage the natural environment to a degree that is only now becoming frighteningly clear. At the same time, regional instabilities, terrorism, and international organized crime are all problems that have grown worse since the cold war ended. The epd of the cold war exposed and unleashed many regional problems that had been suppressed by U.S.- Soviet competition. The expanding global economy together with the population explosion have globalized the consequences of these problems. Greenhouses released in a rapidly growing Asia can change the world's, and nuclear accidents in Russia can affect the United States as we saw with the Chernobyl disaster. Reported cases of CFC smuggling from Russia into the U.S., chemical terrorism in japan and desertification in Northern Mexico are but a few of the potential environmental threats around the world that we need to face now. Most governmental efforts to protect the environment are directed at problems of present conditions (e.g., emissions from industrial pollution) and legacies of past "solutions" (e.g., abandoned waste sites). With the notable exception of some major environmental treaties relatively little consideration is given to problems that may arise tomorrow. By explicitly considering the future today, we can make decisions about today's known environmental problems and avoid or manage tomorrow's unknown environmental problems so as to minimize future negative impacts. In some few instances, the international community has been effective in taking a collective long-range view; The Montreal Protocol which limits the production and use of chloroflurocarbons is an outstanding example. If similar technical foresight had been exercised during the early development and use of other materials such as polychlorinated biphenyls or PCBs, significant damage to human health and the environment and the expenditure of vast resources on a clean-up, could have been avoided. These problems point to the need for EPA to play a large role in implementing U.S.Government foreign policy agenda. The World Ahead The Clinton Administration has already formally acknowledged the importance of environmental and natural resource issues for U.S. national security. In the 1996 document "A National Security Strategy of Engagement and Enlargement," the Administration noted that "Even when making the most generous allowance for advances in science and technology, one cannot help but conclude that population growth and environmental pressures will feed into immense social unrest and make the world substantially more vulnerable to serious international frictions." 21 ------- In a speech at Stanford University on April 9, 1996, U.S. Secretary of State Warren Christopher explicitly recognized the need to make environmental security a central dimension of U.S. foreign policy. He said that the environment has a profound impact on our national interests in two ways: first, environmental forces transcend borders and oceans to threaten directly the health, prosperity and jobs of American citizens. Second: addressing natural resource issues is frequently critical to achieving political and economic stability, and to pursuing our strategic goals around the world. As I mentioned earlier, Dr. William Perry, the U.S. Secretary of Defense, has put forward the idea of preventive defense as a central precept of U.S. defense planning. Preventive defense implies that the U.S. military should not only anticipate and respond to threats to U.S. national security if and when they occur, but should play an active role in preventing those threats from arising in the first place. Although implementation plans have not been completed, the U.S. military has made a commitment to minimize any negative environmental impacts of its own operations and to seek ways of improving environmental conditions in the areas where it carries out military and nonmilitary missions. EPA is building new partnerships within the U.S. Government. Recognizing that no single agency can meet the challenges alone EPA has recently entered into a Memorandum of Understanding on environmental security with the Department of Defense and the Department of Energy. This agreement will allow the special expertise in each of the three organizations to be leveraged with support from the State Department and other agencies. The three partners will initially focus on projects in the Baltic countries, Eastern Europe and the countries of the former Soviet Union related to the environmental legacy of the Cold War. Even before the development of this Memorandum of Understanding, EPA at the invitation of the Department of Defense began participating in the Arctic Military Environmental Cooperation (AMEC) process. AMEC is an outgrowth of the trilateral military discussions between the United States, Norway and Russia and is concerned with threats to the Arctic environment related to military-industrial activities in the Arctic region. Currently, EPA is developing a project under AMEC to design and build a transportable storage container to solve the interim storage problem of damaged and spent nuclear fuel from Russian submarines and icebreakers. The existing floating fuel storage situation is viewed by the three countries as posing a serious health and safety risk for the Arctic region. At the request of the Panama Canal Commission, we will also begin training of Panamanians on hazardous waste management. At the same time, EPA is now developing its own strategic plan for environmental security. Our program will draw heavily on EPA's core functions including emergency planning and response, environmental crimes investigation, environmental terrorism, technical assistance and training, hazardous waste management, and monitoring and risk assessment. It will have a new focus on "Futures Planning," including development of an early warning system. Conclusion I believe in the decade ahead that environmental issues will comprise a large and growing element of U.S. foreign policy. America will be faced with many more environmental and natural resource-based security challenges in the future. As a result, 22 ------- global environmental quality issues represent one of the single most important strategic issues that will face the U.S. at the dawn of a new century. Currently the U.S.Government faces these new challenges with limited resources. In recent years, the foreign affairs budget of the United States has been declining, just at a time when significant international environmental issues are growing. One of the great issues Congress and the Administration must resolve is just how much of our national resources should be directed toward foreign engagement. I believe the U.S. has special responsibilities commensurate with our leadership role in the world. Informed citizens like yourself are an important part of the decision making process and I hope you will actively participate in a debate that will shape the future sustainability of the world. Thank You 23 ------- THE ARCTIC AND ENVIRONMENTAL SECURITY DR. ALAN D. HECHT PRINCIPAL DEPUTY ASSISTANT ADMINISTRATOR ENVIRONMENTAL PROTECTION AGENCY WORLD AFFAIRS COUNCILS JUNEAU AND ANCHORAGE, ALASKA APRIL 24-25,1997 Introduction I want to thank you (Joe Sonneman - Juneau) (Barbara Probst - Anchorage) for the kind invitation to speak as an invited guest of the World Affairs Council tonight (today). I am especially pleased to report that this is the tenth of approximately 25 speeches senior EPA officials will present before World Affairs Council audiences across the country this year. These talks offer excellent opportunities for us at EPA to work with the Councils in raising public awareness of international environmental issues - particularly as they affect the quality of our domestic health and environment. Tonight (today) I want to talk about EPA's involvement with the issue of environmental security and about some of its connections with Alaska. I recently returned from Norway where I attended meetings of the Barents Council and reviewed the work of the Arctic Monitoring and Assessment Program (AMAP). On that trip, along with the U.S. Ambassador to Norway, Tom Loftus, and the Deputy Assistant Secretary of State for Europe, Marshall Adair, we drove from Kirkenes, Norway, to Murmansk, Russia. The road from Norway to Murmansk crosses gently rolling tundra. But shortly after crossing the Russian border, we visited the Russian town of Nikel, a small city centered around a large nickel smelting plant. Upon entering Nikel, one is struck immediately by the structural obsolescence of the nickel plant as the smelters belch enormous plumes of poisonous smoke from three towering smokestacks. There appear to be no modern health, environmental or safety systems surrounding the plant. Everywhere one goes, one sees gray snow over the entire area. I was told that in the Summer, when the snow recedes, the earth is barren. It is apparent that things lives with difficulty in the shadow of the nickel plant. Sadly, the residents and workers of Nikel have a life expectancy of only 45 years. As Alaskans, I suspect you are probably familiar with the geography and history of the European Arctic. Murmansk is the largest city north of the Arctic Circle. Its port was constructed in 1915, during World War I, as a port of entry for Allied supplies after Russian ports on the Black and Baltic seas were denied access. During World War II, Murmansk 24 ------- served as a port of entry for allied supply convoys supplying Leningrad during its 900 day siege. Following World War II, the Murmansk region became home to the modern Russian navy, in particular the city of Severomorsk - home to the Russian Northern Fleet. Murmansk and Severomorsk are also home to the largest commercial nuclear ice breaker fleet in the world. Nearly two-thirds of the Russian Navy's resources are dedicated to the Murmansk region. Since the collapse of the Soviet Union, the absence of funds to maintain and support the region's fleets has led to their disrepair. Consequently, the region has suffered from significant economic depression and unemployment. Because Moscow has no funds and the region is still struggling with economic independence, nuclear submarines are being decommissioned rather than constructed, electric power supplies are intermittent and always disrupted, ships cannot leave port because they lack fuel, sailors are unpaid; and in Murmansk ships lie in ruin, rusting away. The combined presence of the Russian Northern Navy and icebreaker fleets gives the Murmansk region the largest concentration of nuclear reactors in the world. In fact, over 18 percent of the world's nuclear reactors are stored here. Spent and damaged nuclear fuel from the nuclear submarines and icebreakers are stored in the hulls of ships docked at the piers. One docked ship that I visited in Murmansk, the Lepse, is the focus of an international assistance project to transport and safely dispose damaged fuel rods stored on the ship. It is agreed that in the absence of any international assistance - these same low- level liquid radioactive waste, fuel rods and nuclear reactors themselves - would have been dumped into the ocean. Dumping of low-level liquid radioactive wastes and spent fuel rods from nuclear reactors was often practiced during the era of the Soviet Union - especially between 1959 and 1992. Today, the Russians have voluntarily refrained from dumping these wastes as a result of pressure from the U.S. and such other Arctic nations as Canada and Norway. Although the present economic outlook in Murmansk is not cheerful, the region has untapped oil and gas fields - particularly north of Murmansk in the Arctic Ocean, and some of the world's most important precious metals. These natural resources are complimented by abundant fish stocks, which represent a source of significant trade today between Norway and Russia. All of these factors indicate an enormous potential for economic viability in the region. We view this economic potential as a challenge to work with the Russians to make it sustainable in order to prevent further degradation to the human health and environmental quality in the region. My trip to Murmansk highlights three main issues which affect all nations of the Arctic Basin and affect the security of the United States. These are the issues I want to talk about today. Protecting the Arctic Environment The Arctic Basin is a unique ecosystem which has been severely stressed by unsustainable economic development. Under the Clinton Administration, U.S. policy toward the Arctic has revolved around six main objectives: 25 ------- Protect the Arctic Environment and conserve its biological resources; Assure that natural resource management and economic development in the region are environmental sustainable; Strengthen institutions for cooperation among the 8 Arctic nations; Involve the Arctic's indigenous peoples in decisions that affect them; Enhance scientific monitoring and research on local, regional, and global environmental issues; Meet national security and defense needs. What I have said about the conditions at Nikel and Murmansk indicate significant stress to the Arctic ecosystem. There can be no question that these cities reflect environmental disaster. The U.S. is not immune from pollution generated from these areas. It also is not immune from pollution generated from northwestern Russia, Europe or China - this has been well established. The Arctic basin is a unique atmospheric sink. Pollution generated in the continental U.S., Europe, China or Russia finds its way to Alaska and Hudson Bay. Heavy metal contaminants have already been detected in Arctic ecosystems and lead, mercury, cadmium and other substances are already concentrating in fish and mammals. EPA has had a long-term involvement with radioactive contamination in the Arctic. We are still concerned, but also are listening to recent studies that have shown that the risk of contamination via marine pathways from existing Russian ocean dumping sites is small. At the same time, there is now growing concern about non-radioactive contamination, including heavy metals and persistent organic pollutants. According to a report published Northwest Russia will be economically developed and this region could be a powerful economic engine for Russia as a whole. However, unless this development follows a sustainable course, the pollution consequences will be disastrous by the Office of Technology Assessment (one of OTA's last reports before being abolished by Congress): ". . .it is clear that industrial discharges and toxic wastes have entered the Arctic and could present problems. Thus, we have concluded that contaminants other that radionuclides could have a significant impact on the Arctic environment." For this reason, we are greatly concerned about the future economic development in this region, especially in northwest Russia. Unless this development proceeds in a sustainable way, the Arctic basin may suffer additional economic crises; and the health of Arctic people and ecological systems will suffer. The link between environment and development is very crucial. Several years ago, William Ruckelshaus, former EPA Administrator and past CEO of Browning-Ferris Industries, gave a talk at West Point on the subject of "National Security and the Environment." Ruckelshaus said: 26 ------- "The Soviet empire collapsed because its economy collapsed and because it tried to operate a modern industrial system without any environmental controls at all, which could have meant that even if it had been able through some more brutal tightening of discipline to prop up its economy, environmental disasters might have overtaken it eventually. The nuclear catastrophe at Chernobyl was only the tip of the iceberg." The pollution legacy in Russia is staggering. As Ruckelshaus points out the Soviet Union is the only nation in history to experience a decline in such basic health indicators as infant mortality and longevity after achieving full industrialization. The smelter at Nikel is operating profitably, but not without significant environmental or human health consequences. Even so, when the Norwegian government offered Russia $30 million funds to modernize the plant, Russia was unable to collaborate by providing matching funds. It was clear that the Northwest Russia will be economically developed and this region could be a powerful economic engine for Russia as a whole. However, unless this development follows a sustainable course, the pollution consequences will be disastrous. This is why it is crucial for the US to work with Russia on economic and environmental policy development and to work with all Arctic nations to ensure sound economic development and environmental stewardship of this region. Link Between Environment and Security The Russian navy has begun the accelerated decommissioning of their nuclear submarines as required under the provisions of START II. This has resulted in a significant increase in the generation of low-level radioactive waste. Russia has been unable to increase their radioactive waste storage and processing capacity to meet the increasing demand. As a result, Russia has now indicated that it will either have to significantly reduce nuclear submarine decommissioning activities or resume dumping the waste into the ocean. Aware of this, the Russians were unwilling to accept and sign the amendments to the London Convention prohibiting the ocean dumping of radioactive waste. As you can see, the interests of the Department of Defense, Department of State, Department of Energy and EPA all converge on Murmansk. From our different perspectives, we developed a common solution. Collectively, we are working with Norway to develop a short term solution to the problem. We first proposed a project to expand and upgrade an existing low-level liquid radioactive waste treatment facility in the region. This project is now 20 percent complete. A team from Brookhaven National Laboratory and EPA is currently visiting Murmansk to assess progress on this project. When completed, the upgraded facility may give the Russians the needed treatment capacity to continue submarine decommissioning as required under START II. This project is only the beginning of a series of initiatives to address the broader problems of liquid and solid radioactive waste in the region. While the U.S. is working with Norway on the radioactive programs in the Arctic, Japan is undertaking a similar effort to address radioactive waste dumping in the Far East. When both projects are completed, we expect Russia will sign the existing international agreements to ban dumping of low level radioactive waste in the oceans. Addressing the problems posed in Murmansk is a perfect example of what we call Environmental Security. That is, solutions to environmental problems with added benefits to U.S. national security and foreign policy. The Murmansk Initiative was an important starting point for the continued collaboration of DOD, DOE and EPA, leading directly to the 27 ------- three agencies signing a Memorandum of Understanding on Cooperation in Environmental Security. One of the major foci for our collaboration is the situation in northwest Russia. Together, we are examining the environment, military activities, and economic development in the region, in order to develop more effective solutions to our common problems. Following Murmansk, we have extended our cooperative efforts to the Baltics region. Within our resources, we will continue expanding our view to other regions as our joint interests are affected and our expertise is needed. Broadly speaking environmental security encompasses unsustainable economic development that has the potential to create national, regional or global instabilities that threaten the U.S. interests. As I mentioned earlier, Bill Ruckleshaus attributed a lack of sustainable development as one factor contributing to the collapse of the Soviet Union. Currently, EPA is working to develop a program in this area. We have come to recognize that our expertise is in great demand and that EPA can make a very significant contribution to enhancing global security. We are working in the Middle East to help Israelis and Palestinians deal with water issues. We are working with Central American and Caribbean nations to improve basic environmental services and eliminate one of the contributing factors to uncontrolled emigration to the United States. We are working around the world to ensure compliance with international treaties, to eliminate illegal shipping of chemical or biological agents, and to protect the U.S. against various environmental threats. This is a part of EPA you might get to read about in your local papers. One of our current activities is the careful monitoring and assessment of environmental trends, to anticipate future environmental problems and their resulting impacts. Under the direction of the Office of Science and Technology Policy (OSTP), EPA is working with other U.S. Government agencies to design a National Environmental Monitoring Initiative. This effort will allow us to better anticipate and manage future environmental trends and problems. What the world will be like in the future is difficult to predict. However, we know enough today to anticipate the increased competition for scarce natural resources throughout many regions of the world. You may not be aware that the word "rival" derives from a Latin term for "those who share the same river." One way to lessen future rivalry is through practices of sustainable development. This is one reason why EPA is so active in assisting many countries around the world. We are clearly protecting our own air and water, as is the case in cooperation with Mexico and Canada, but we are also protecting our future national security as is reflected by our work in the Middle East, Central Asia, Africa, and once again the Arctic and Northwest Russia. Need for International Cooperation in the Arctic. I'd like to return to the Barents Council and AMAP meetings. The United States is one of the eight Arctic nations. In 1989, these nations began discussions to develop an Arctic Environmental Protection Strategy, which was formalized in 1991. One of the four AEPS Implementing Working Groups is AMAP (Arctic Monitoring and Assessment Program). AMAP has been tasked with determining the human health and ecological risks associated with contamination in the Arctic. The U.S. government, with representatives from DOS, DOE, DOD, NOAA and EPA, will participate in the next AEPS Ministerial this June in Alta, Norway. This is an important meeting. Organizationally, this meeting will transfer the work of the AEPS countries to the 28 ------- newly formed Arctic Council. Substantively, the Arctic Council is attempting to enhance focus on the Arctic and to increase member country 's support for projects which address its major concerns. One of these concerns is trans-Arctic contamination. Data shows trans-Arctic contamination that is most likely reaching Alaska. The situation will only become worse if Russian industry expands to its full potential. Probably, the population at greatest risk from this contamination are the indigenous populations in the Arctic, including those in Alaska. As I stated before, concern for and involvement of indigenous people is one of the United States' six principal policy objectives for the Arctic. With this impetus, we have proposed two projects. The first project is to identify the point sources of Arctic contamination along with their regional and trans-Arctic impact. The second will use the results of the first project, to identify and further assess the most critical point sources in order to prioritize possible response strategies. U.S. agencies involved in preparing for this meeting in June have a lot of work to do. EPA is beginning to reassess it role in Arctic research and I personally believe we can do more. As an agency we would want to ensure that the next phase of AMAP is built upon a risk-based strategy with a focus on human health risks as well as ecologic risks. Administrator Carol Browner has made children's health a major priority for EPA. The impact of lead on development in children has been known for many years. This health effect was one of the strong reasons why the U.S. eliminated lead from gasoline as early as we did. Many countries around the world are just now beginning to deal with the issue. A wealth of new scientific data show that children are more susceptible than adults to a variety of other contaminants. These results suggest that current pollution standards may have to be adjusted to ensure fuller protection for children. This issue will be discussed in more detail by Environmental Ministers from the G-7 countries and Russia at a meeting the U.S. will host in Miami next month. Returning to the Arctic, indigenous populations in this region, especially children are being exposed to growing concentrations of lead, PCBs, cadmium and other elements. It is essential that EPA, the State of Alaska and the indigenous peoples of Alaska cooperative on assessing these risks. The solution to reducing the sources of contamination and human exposure lie not in Alaska alone but with all nations of the Arctic region. When I was in Norway for meetings of the Barents Council, I was impressed with the degree of commitment of the Barents nations to address their common problems. The U.S. is only an observer to the Barents Council but our presence is strongly encouraged. While Norway and Sweden have significantly more resources available at present to address Arctic issues, they want the U.S. to be a cooperative partner. These circumstances allow our small resources to leverage a considerably greater amount. For me, the lesson of this meetings was that the US presence in the discussions was more important than our financial contributions. This is my first trip to Alaska and as a successor to my trip to Murmansk, I am beginning to feel somewhat Arctican. I am no Farley Mowat. I grew up in New York City. But while in Norway and Murmansk, two thoughts kept going through my mind. One was the beauty of region and how some parts of it had become so polluted. Future development in this region will occur and we all have a responsibility to ensure that this development is sustainable. 29 ------- The second feeling I had while in Murmansk was sense of history. Beside the significance of this city to the survival of Soviet Union during the Second World War, and the presence of the North Fleet, Murmansk was also the site of the famous Gorbechev speech when he opened the Russian Arctic for international cooperation. This speech began a new era for Russian cooperation. Since then, and more recently under the Core- Chernomdryin Commission we have agreed to greater US-Russia cooperation in the Arctic and to the exchange of important physical data from both civilian and secret archives. A story in the February issue of National Geographic highlights the release of these new data on the Arctic and shows how far we have come in joint collaboration. There is a second opening of the Arctic coming. Now is the time to ensure that this second coming is a welcome sustainable event. 30 ------- WORLD AFFAIRS COUNCIL OF GRAND RAPIDS GLOBAL CLIMATE CHANGE ALAN D. HECHT OFFICE OF INTERNATIONAL ACTIVITIES U.S. ENVIRONMENTAL PROTECTION AGENCY WASHINGTON, D.C. 20460 FEBRUARY 17,1997 "We can say with confidence that climate change is not influenced by the activities of man except locally and transiently." A climatology text book, 1942 "Most of the carbon dioxide released by fuel combustion since the beginning of the industrial revolution must have been absorbed by the oceans." Revelle and Seusss, 1957 "According to data . . . somewhat less than half of the carbon dioxide released by man since the industrial revolution has remained in the atmosphere." National Academy of Science, 1977 "The balances of evidence suggest that there is a discernible human influence on global climate." IPCC Second Assessment, 1996 Introduction Thank you Dixie (Anderson). I am pleased to be in Grand Rapids to participate in your Great Decisions Program. This year, EPA and the World Affairs Council are cooperating in a year-long series of seminars on a number of international topics. At EPA, we are very proud of our work in the international arena, particularly our role in building up the environmental capabilities of governments around the world and in implementing the President's foreign policy agenda. We have a number of important bilateral and multilateral initiatives underway, including: Implementing a comprehensive 5-year program to meet the environmental and public health challenges facing the border communities of the United States and Mexico. 31 ------- Carrying out environmental protection programs with communities in Russia, South Africa, the Ukraine, and Egypt under bilateral commissions led by Vice President Gore. Leading in the development of a clean production and clean technology initiative for Asian Pacific countries. Providing leadership for key international negotiations on chemical safety and elimination of persistent pollutants. Supporting environmental and public health protection programs that are part of the Middle East peace process. Negotiating bilateral agreements with Canada that improve the water quality of the Great Lakes and the air quality along our shared border. Sharing critically needed environmental technologies developed in this country, which helps the world environment and provides tremendous opportunities for U.S. environmental technology companies to expand their exports. Finally, EPA is a vital federal agency involved in assessing climate change. This is the topic I will discuss tonight. Global Warming Let me begin my discussion of global warming with two scientific facts and then turn to areas of scientific uncertainty and policy issues. First, there is no dispute among scientists around the world that greenhouse gases, which include water vapor and carbon dioxide, have the property to trap incoming radiation and consequently warm the surface of the earth. This greenhouse effect is well documented and accounts for significant natural warming of the earth. The effect of water vapor and carbon dioxide on the earth makes the earth's temperature on average about 60° Fahrenheit. Without them, the average temperature would be about 5° Fahrenheit. Thus, there is a natural greenhouse effectand the more carbon dioxide and water vapor in the atmosphere, the warmer the atmosphere becomes. The debate on greenhouse warming is a debate on the effect of a man-induced increase of greenhouse gases (GHG) into the atmosphere. Rise of Greenhouse Gases A second uncontested fact is the increase in the level of carbon dioxide in the atmosphere. A global observing system has been in place since 1958, to collect pristine air and measure its carbon dioxide content. The data from this system have shown that carbon dioxide has risen from about 315 ppm in 1960 to about 350 ppm today. The main source of this change is the burning of fossil fuels, mainly oil, gas and coal. There are other sources as well, such as loss of forests which absorb and store carbon and cement production. Other greenhouse gases include methane from energy production and distribution, and agriculture, as well as nitrous oxides from agricultural soils and some industrial processes. However, the major source of GHG is from energy related activities. 32 ------- Naturally, the contribution of GHGs to the atmosphere varies by country. Clearly the major industrial countries like the U.S., Germany, and Japan have been major contributors of GHGs. Developing countries like China (China is now the second largest emitter and will eventually overtake the U.S.), India and Brazil are already among the top emitters of GHGs and are growing more rapidly than most developed countries, even though their emissions per capita and per GDP are a small fraction of those of the industrialized world. In the next century, developing countries will become the major , contributors of GHGs. This fact, of course, has major political implications as I will share with you in a moment. Climate Modeling In view of these two undeniable realities, namely the existence of a greenhouse effect and the rising concentrations of CMC, the average temperature of the earth should increase. Has this warming been observed and what are its effects? World-wide measurements of land and sea temperatures have been recorded for more than one hundred years. Trends in some of these data are ambiguous because they often were located in urban environments or airports where temperatures were affected by changing local conditions. Over time, extraneous factors in these data have been corrected and there appears to be a steady increase in global surface air and sea temperatures at least since 1960. Several recent years have been especially warm. The year 1995 recorded the warmest surface temperature for both land and sea since 1861. Parts of Siberia averaged more than 3° Celsius warmer than the average temperature for the period 1961-1990. Scientists have done extensive analysis of world temperatures and it is clear that the overall climate system is undergoing noticeable changes. Calculating the overall effect of increasing GHGs on global climate is a major scientific problem. It is not hard to appreciate that the weather system constantly changes. In order to predict tomorrow's weather requires a global observing system of thousands of stations taking measurements at various levels of the atmosphere. These data are analyzed using complex computer models that apply the laws of physics to predict changes of motion, precipitation, and temperature. This system of predicting weather works efficiently for approximately 5-8 days. A weather forecast can be given for a city, town and a community. A climate forecast can only be given for much larger geographic area and over a larger period of time. The field of computer climate modeling has developed rapidly since the early 1960's when the first computer experiments were done. One of the earliest experiments predicted the climate of the world with twice the amount carbon dioxide in the atmosphere. The results showed a general warming of the earth, much larger in higher latitudes than in the tropics, and significant drying in many regions. Over nearly 30 years, the scientific community has undertaken countless modeling experiments, changing assumptions and refining physical equations as new information became available. Today, about 5 major research centers exists to conduct these experiments. The consensus of the scientific community is that manmade GHGS will change the distribution patterns of temperature and precipitation. The world of the future will be very different from the world of the past. Let me note that there are a few scientists who believe that the modeling results are still very unreliable and cannot be used to infer anything about 33 ------- the future. A natural trait of scientific discourse is the presence of diversity and disagreement. However, the majority of the scientific community including approximately 2500 scientists who contributed to the 1995 assessment of the Inter-Governmental Panel on Climate Change, accept the results of climate modeling. At this point you may say, "what's the problem?" A little warming in Grand Rapids in February is fine. Perhaps this is not such a bad idea. Climate Impacts Whether climate change is good or bad depends on the impacts of climate change. Clearly not all regions will suffer-some will get warmer and some will get colder. The real issue is climate changes' effect on global ecosystems, food supply, water availability and human health. Let me give you some examples: There is significant concern about sea level rise due to melting of land glaciers and polar ice. For example, Bangladesh is a densely populated country of about 120 million people locate in the complex delta region of the Ganges, Brahmaputra and Meghna Rivers. Approximately 7 percent of the country's habitable land, with a population of about 6 million people, is less than 1 meter above sea level. Approximately 25 percent of Bangladesh's land, or 30 million people, subsists on a geographic area less than 3 meters above sea level. Estimates of sea level rise in the next century are about between 15 and 95 meters by 2100. It is an understatement to say that sea level rise in The issue of global warming is an issue of environmental risk. We may want to ask ourselves 'How great is the risk and what are appropriate actions?' EPA's Science Advisory Board has ranked global warming in the highest category of ecological risks. In response, the Clinton Administration like the Bush Bangladesh will not be welcomed. Administration has called for no regrets actionsfirst steps to ensure timely and cost effective actions to reduce possible impacts of climate change Additional concerns about the impact of climate change relate to water availability and agriculture. Recent climate modeling results suggest that global warming could result in significant stresses to water systems, making this one of the most politically sensitive consequences of climate change. Water shortages in the Middle East are already a potential source of regional conflict. Future conditions may be worse. A recent report from China warns that country could face serious water shortages in the 21st century. Today, in 640 of China's largest metropolitan centers, approximately 480 cities currently experience water shortages. Any future climate trend that exacerbates this condition will seriously threaten the pace of economic development in that country. Climate change effects on land use, ecology and habitat distribution also have the possible of creating major biological shifts, including changes in the spread of disease vectors. Diseases now confined to the tropics many find new homes in higher latitudes. Prolonged drought or high temperatures in urban centers may also stress large segments of urban populations. The U.S. itself will not be immune to major climate changes. Midwestern agriculture could be significantly affected if predicted drying conditions actually occurred. 34 ------- Reflecting on all these possibilities suggests that the notion of equating warm climate as good and a cold climate as bad is not justified. The earth's natural climate and its biological systems are in a delicate balance. Man-induced changes may have results that benefit no one. The issue of global warming is an issue of environmental risk. We may want to ask ourselves 'How great is the risk and what are appropriate actions?' EPA's Science Advisory Board has ranked global warming in the highest category of ecological risks. In response, the Clinton Administration, like the Bush Administration has called for "no regrets" actions- -first steps to ensure timely and cost effective actions to reduce possible impacts of climate change. Based on current scientific evidence, the Clinton Administration is now considering more aggressive and specific actions to reduce CHCs. The kind and extent of such actions is the key policy decision for the future. Policy Debate Governments around the world have been wrestling with the issue of climate change for nearly 30 years. Between about 1960 and 1985, climate change was largely viewed as a scientific question. Starting around 1985 and extending to the present, climate change has become a significant international policy issue. As I have already mentioned, resolving scientific uncertainty about climate change is a prelude to any policy action. In 1989, a large group of concerned countries organized the Intergovernmental Panel on Climate Change (IPCC) under the auspices of two UN agencies, and directed the group to prepare an international scientific assessment of climate change. The conclusions of the IPCC's first scientific assessment were serious enough to convince governments around the world to start negotiating an international agreement to deal with climate change. These initial negotiations, started in 1990 and concluded in 1992, produced the Framework Convention on Climate Change, which has been signed by over 110 governments. The agreement officially came into force in March 1994, when ratified by 50 governments. The goal of the Agreement is to stabilize atmospheric concentrations of greenhouse gases at levels that will prevent dangerous interference with the global climate. The aim of emission obligations for industrialized countries is to return greenhouse gas emissions to their 1990 levels by the year 2,000. Since 1992, the IPCC, including over 2,000 experts from around the world, has produced a second scientific assessment. The report has raised the sense of urgency of climate change, including that there is a discernable human impact on global climate. The rate of climate warming could probably be greater than any seen in the last 10,000 years. Global warming is one manifestation of climate change. There may be a more serious problem, namely, the change in climate variability, resulting in more severe or extreme events. Weather of the last few years has been anomalous. Extreme weather events such as seen this past December in the Pacific Northwest would have serious economic impacts on that region if these extremes became the norm for that region. Since the original agreement in 1992, governments have met twice, once in Berlin in 1995 and again in Geneva in 1996. The Berlin meeting of signers of the Framework Convention recognized that the original Agreement needed to be strengthened and called 35 ------- for negotiating a new agreements to limit GHCs in the post-2000 period by 1997. The Geneva meeting, one year later, called for specific, legally-binding targets and timetables after the year 2000 for greenhouse gas reductions, but flexibility to countries in how each will achieve its obligations. Politics of Greenhouse Warming There are two basic issues that affect decision-making related to global warming. The first is the cost of any actions and whether the cost is justified against the potential effects. The U.S. is the largest emitter of GHGs. Its release of carbon dioxide per capita is about 8 times the average of the developing countries. Heavy industries such as pulp and paper, primary metals and petroleum account for about 60 percent of total industrial energy consumption. Transportation alone accounts for about 28 percent of U.S. energy consumption. A good example of the political problem facing decision makers in the U.S. is dealing with changes in the transportation sector. Automobile use in the U.S. is similar to the problems facing other developed countries. U.S. auto ownership and travel is rising; people are buying larger vehicles which emit more energy per mile. Trucking is gaining an increasing share of freight transport. The price of gasoline in the U.S. is the lowest among OECD countries. Gasoline prices ranges from about $4.00 per gallon in Germany and Italy, to about $1.50 in the U.S. Prices provide little incentive for U.S. households to be efficient in our transportation patterns and to emit less. To change any of the above factors would require a strong political consensus. Politicians must be convinced that actions taken to mitigate climate change would be in the nation's interest and would not adversely affect the overall U.S. economy. Moreover, any change from current patterns means that there will be winners and losers, and representatives of each side are active in the debates. EPA, the Department of Energy, the National Academy of Sciences, and the former Office of Technology Assessment have all done studies to suggest that the U.S. could achieve significant reductions in GHGs in many economic sectors without cost to the overall U.S. economy. EPA alone has developed dozens of programs to demonstrate and encourage energy conservation and GHGs reductions. Let me give you some examples: Climate Wise: voluntary program with industry and cities to change industry processes to reduce energy use. The Program targets the industrial sector which accounts for about 30 percent of U.S. energy consumption. General Motors is a participating industry and launched several energy savings programs at their Headquarters and also with suppliers. Energy Star Product Labeling: A joint program with the Department of Energy is a consumer product label that identifies products that are energy efficient. The Energy Star was first awarded to energy-efficient computer equipment in 1993. Since then, more than 500 manufacturers, offering 13,000 products are involved. More than 20 million energy star computers are now in use. In the construction market, more than 70 home builders are committed to building 10,000 energy star homes. 1996 benefits have been calculated to be more than $500 million in energy savings. 36 ------- Motor Challenge:, is a voluntary partnership between the Department of Energy and U.S. industry to increase use of energy efficient electrical motor systems. U.S. industry spends more than $30 billion annual on energy for motor systems,. Electric motor and motor driven equipment such as fans, pumps, blowers and compressors account for more than 70 percent of all electricity consumed by industrial facilities. Motor Challenge can help companies identify opportunities for motor-system improvements. Today more than 1,300 companies participate in this program. I mention these examples to show that there are proven economical ways to reduce greenhouse gas emissions. Many other program and technologies exist but have not worked their way into the market place. For these programs to succeed, both industry and the general public must support them and important market barriers must be overcome. The President's 1998 Budget to Congress calls for an increase in funding for these programs. It is clear than even with these partnership programs, stricter long-term measures will be needed to reduce the level of GHCs in the United States. The impact of targeted programs on the U.S. economy is being studied by several government agencies, and of course by industry. Any future action must reflect a consensus among industry and government that such actions will not have a negative affect on the overall U.S. economy or trade relationships. Today, many companies are beginning to consider corporate actions to reduce greenhouse emissions. Monsato, for example, has begun measuring its own CO2 emissions. The issue is being taken seriously by senior managers of that company. Northeast Utilities, the largest electric utility in New England participates in a voluntary program to reduce emissions. The company reported that it had limited CO2 emissions to 11.1 million tons system wide in 1995-lower than the target it had set of 14.7 million tons. Dow Chemical has established a goal of improving energy efficiency at a rate of 2 percent per year. These examples indicate that selected industries are beginning to consider ways to address greenhouse warming. The Insurance Industry, especially is getting increasingly concerned about weather related loses. Climate Change and International Economic Development The second basic policy issue related to global warming is the role of developing countries in reducing GHCs. As I mentioned earlier, countries like China and India are major greenhouse gas producers, and be increasingly important in the next century. What is the perspective of developing countries on this issue? It will come as no surprise to you that developing countries do not view climate change as their most pressing problem. For them, basic economic growth, full employment and improved standard of living and even local environmental problems are key issues. During negotiations of the Framework Convention, developing countries made it clear that any actions they took would be at the expense of developed countries. In fact, the negotiation itself was held hostage to the question of whether industrialized countries would provide financial resources to developing countries to help them understand and respond to global warming. 37 ------- The Climate Convention balanced these differing views on commitments by adopting the phrase "common but differentiated commitments." The U.S. also acknowledged the need to provide financial resources to developing countries to permit their full participation in the Convention. Initially, the U.S. committed $50 million to a global environmental fund and $25 million for developing countries to inventory their greenhouse gas emissions, to conduct impact assessment and to evaluate mitigation options. More than 60 countries have received assistance for these. The relationship between developed and developing countries is crucial to addressing this global program. At the present, developing countries have no formal commitments to reduce GHGs. However, I see four factors operating that in time will push developing countries in this general direction. 1) First, developing countries are worried about the health and environmental effects of energy use. Many developing countries now recognize the need for preventing - as opposed to cleaning up- environmental pollution and for preserving valuable natural resources. This view is being reenforced by new policies of multilateral lending institutions. As the largest producer of greenhouse gases in Asia, China is also taking actions to address internal environmental problems. China has begun to crackdown on more than 70,000 industrial polluters. The enforcement is aimed at "township enterprises," mainly small industries operated for profit by local authorities. These industries account for 42 percent of China's 1995 industrial output. Operations targeted for shutdown include small paper mills, coking and chemical plants, oil refineries, lead and zinc mines and tanneries. All these facilities were cited for "primitive manufacturing techniques." China has recently requested to cooperate on a list of a dozen technologies critical to limiting their GHC emissions. As more and more developing countries begin to address their own pollution problems, the levels of GHGs can be reduced. While we are on the subject of China, let me note that China is about to reach a crucial economic and environmental milestone. China is poised to become the next great market for the family car. The number of passenger vehicles in China is projected to rise from a current 1.8 million to 20 million in 2010. By the size of the potential market, car production along will greatly increase GHG emissions unless China sets strict emissions and fuel economy standards. The Big Three U.S. auto makers are ready and willing to work with China. 2) Second, industries in developing countries are highly inefficient and in the process of modernizing can significantly reduce energy use and greenhouse emissions,. Again, using China as an example, its major industries consume some 30-90 percent more energy than similar industries in developed countries. Improved efficiency of existing coal-fired power plants and technology advances in new plants, could help to considerably reduce greenhouse gas and other pollution. Today, there are approximately 400,000 small industrial boilers in China consuming about 300 million tons of coal per year. Efficiency improvements in these boilers alone could save about 90 million tons of coal per year. This is good news for both the Chinese government, potential private sector investors and the international community concerned with increasing levels of greenhouse gases and global warming. Energy efficiency is the only way to reduce conventional air pollution, acid rain causing pollution and greenhouse gas emissions. 38 ------- 3) Third, private sector investment in developing countries is growing rapidly and now exceeds official government assistance. In the past, infrastructure investment or new technologies in developing countries were largely financed by bilateral government assistance or loans from international lending institutions. Today, the private sector has become the dominate source of capital for development, in 1996, private sector investment in developing countries was estimated to be close to $225 billion, nearly five times more than funds from the World Bank and other official sources. Many of the developing countries around the world, especially China, are big emerging markets for new investment. This investment means more than Coke, Pepsi, and McDonalds; but rather large infrastructure projects, roads, and new factories. A combination of factors are making these new private sector investments energy efficient and cost effective. It is estimated that one trillion dollars will be invested in Asia by 2010, largely for new roads, power plants and modern factories. This investment over time will trend toward greater efficient and consequently less emissions of greenhouse gas emissions. These trends themselves, however, will not b sufficient to curb climate change. 4) Fourth, innovative international programs are being tested, such as joint implementation and emission trading. The U.S. has pioneered a number of policies aimed at bridging differences between the industrial and developing world. The concept of "Joint Implementation" is one such program. The idea of joint implementation is that since climate change is a global problem, it doesn't matter where the emissions occur or where the reductions take place. The most cost effective approach to GHG reductions may be for one government or one company to invest in an emissions reduction program in another country. For example, U.S. companies have invested in cutting edge electricity generation with wind turbines in Costa Rica, for which they may get credit in the new agreement for avoiding emissions from fossil energy - generated electricity. Consider another example. Sweden had serious acid rain problems from sulphur dioxide emissions emanating out of Poland. No amount of Swedish investment in Sweden could address the problem. However, investment in modernizing Polish industries could have the benefit of acid rain reductions in Sweden. When the U.S. first proposed this idea in the negotiations of the Framework Agreement, developing countries were suspicious and not supportive. The Parties did adopt a pilot program which allowed partnering of U.S. industry with host governments. The agreed projects are based on the concept of "additionally," meaning that the project demonstrated emission reductions above and beyond what otherwise would have happened (admittedly, not an easy test to administer!). Several Jl projects are underway between US utility companies, non-governmental organizations, and host governments in Central America and Eastern Europe. The concept is still not widely accepted, but Jl offers significant prospect for creating partnerships between developed and developing countries. In the future, the U.S. envisions a growing number of international investments in developing countries. The World Ahead While the above activities are positive in the sense that they promote energy efficiency, clean production and GHC reductions, it is unlikely that these activities alone will be sufficient to meet the objectives of the present Climate Convention. More specific and stronger actions will be necessary. 39 ------- Despite the scientific complexity and uncertainty of the climate change issue, the U.S. and most other nations are moving towards agreement on binding limits on GHC emissions. I don't think I have to underscore for you that this is one of the most difficult international policy issues we face today. There are simply no simple answers to the question of global warming. The issue involves many stakeholders, both industries and governments, all with different views of the seriousness of the problem and appropriate actions. Frankly, addressing this kind of problem takes real leadership and courage. I am very proud that the U.S. has become a strong advocate of actions to address global warming. I believe the U.S. has a special role to play in international activities. U.S. leadership will be essential to dealing with this problem. For the U.S. to lead in building international consensus on actions requires strong public and private sector support. Each of you has an important voice in this debate. Building international consensus also requires a level of trust and cooperation between industrialized and developing countries. No developing country should feel that the U.S. or any government wants to retard their economic development. U.S. foreign policy must build partnerships between all governments and encourage economic development in a sustainable way. 40 ------- RESOLVING ENVIRONMENTAL CONFLICT: APPROACHES OF THE INTERNATIONAL JOINT COMMISSION, THE NORTH AMERICAN AGREEMENT ON ENVIRONMENTAL COOPERATION, AND THE WORLD TRADE ORGANIZATION REMARKS OF DANIEL MAGRAW DIRECTOR, INTERNATIONAL ENVIRONMENTAL LAW OFFICE U.S. ENVIRONMENTAL PROTECTION AGENCY WAYNE STATE UNIVERSITY FEBRUARY 18,1997 "Nature is the only superpower." Timothy E. Wirth "The parties to any dispute, the continuance of which is likely to endanger the maintenance of international peace and security, shall, first of all, seek a solution by negotiation, enquiry, mediation, conciliation, arbitration, judicial settlement, resort to regional agencies or arrangements, or other peaceful means of their own choice." United Nations Charter, article 33(1) Introduction Thank you very much, Fred (Pearson). I am pleased to be at Wayne State University, to participate in this University's work on conflict resolution. This year, the U.S. Environmental Protection Agency (EPA) and the World Affairs Council are cooperating in a series of seminars on a number of international environmental topics. Because of your close proximity to Canada, you are perhaps more aware than most audiences of the fact that environmental protection efforts often require international cooperation and international solutions. Virtually every one of EPA's program offices-not to mention the Office of International Activities-has an important and indispensable international component. For example, the Air Office must concern itself with transboundary fluxes of sulphur dioxide and climate change due to the emission of greenhouse gasses; the Pesticides Office must regulate the import of food to ensure food 41 ------- safety; the Office of Solid Waste must regulate the export of waste if the United States is to be able to implement the Basel Convention on the Transboundary Movement of Hazardous Wastes; the Office of Emergency Response must work closely with Canada and Mexico to deal with emergencies along our borders; the Office of Enforcement and Compliance Assurance must work with foreign countries and INTERPOL, for example to stop smuggling of ozone-depleting CFCs; the Office of Policy, Planning, and Evaluation must analyze how various policies, e.g., regarding trade and environment, affect EPA's rulemaking; the Office of General Counsel (my office) must defend U.S. health and environmental laws from challenges by other countries under international trade regimes; and the Office of Water must deal with ocean dumping and, of course, pollution of international watercourses such as the Great Lakes. Even though it is said that the United States is the only superpower, we cannot resolve these issues alone. Given the inextricable interconnectedness of EPA's domestic and international activities, there is some merit to the proposition that the terms "domestic" and "international" are anachronistic and somewhat confusing in the context of protecting human health and the environment. That discussion should await another day. It is important to emphasize here that EPA's international activities are founded on protecting health and environment in the United States and cannot be considered in isolation from EPA's domestic activities. Many of EPA's activities are already governed by bilateral, regional or global international agreements; and we are in the process of developing several new international agreements or arrangements. But regardless of whether EPA's activities are subject to a treaty regime, disputes regarding them can, and frequently do, arise between the United States and other countries. How those disputes are resolved has extremely important consequences for health and environment in the United States, and thus merits our close attention. When we begin to examine how international environmental disputes might be resolved, we find a rather untidy and not altogether satisfactory situation. The Charter of the United Nations obligates countries to settle disputes peacefully and contains a litany of preferred approaches to doing so. These run the gamut from negotiation to inquiry, mediation, arbitration, and judicial settlement. The good news is that there is an array of techniques for resolving environmental disputes, and that these techniques are used. For example, the United States and Mexico are now attempting to resolve by negotiations a concern about transboundary air pollution from a power plant in Mexico called Carbon II. We are attempting to deal with possible threats arising from chemicals known as endocrine disrupters, and thus to avoid future disputes, through a form of global scientific inquiry. New Zealand's claim against France for the bombing of Greenpeaces's ship, the Rainbow Warrior, was settled by arbitration. The Slovak Republic and Hungary have submitted their dispute over damming the Danube River to the relatively new environmental chamber of the International Court of Justice. And environmental claims against Iraq arising from the Gulf War, including a claim for $604,000 by EPA, are being heard in the United Nations Compensation Commission. Thus there is good news. But there is also bad news: with the exception of the very rare cases that threaten international peace and security, where the UN Security Council has a role, there is no international dispute settlement mechanism with mandatory jurisdiction over international environmental disputes. For example, a contentious case may be heard by the International Court of Justice only with the permission of the parties to the dispute; there have not been 42 ------- many such cases, though the number appears to be on the rise. Moreover, there are hundreds of international environmental agreements, but very few of them provide for binding dispute settlement. The result is that countries are often left to their own devices. As in other areas of international law, those devises include-at least in theory-unilateral actions such as ceasing to fulfill related reciprocal obligations, retorsion, and reprisal. But in practice, unilateral approaches often are not very helpful when a global obligation or dispute is involved, especially one governed by a multilateral treaty because the benefit of the treaty runs to all countries. I will speak today about environmental disputes involved in three different types of situations: disputes arising under the 1909 Boundary Waters Treaty between the United States and Canada; disputes arising under the North American Agreement on Environmental Cooperation (NAAEC), also referred to as the NAFTA environmental side agreement; and trade disputes under the World Trade Organization (WTO) Agreements. Each of these is complicated, so I will necessarily speak at some level of generality, leaving greater detail for the discussion following my formal remarks. Canada-United States 1909 Boundary Waters Treaty The 1909 Boundary Waters Treaty between the United States and Canada is the centerpiece of the most successful bilateral environmental relationship in the world. As its name suggests, the 1909 Treaty deals with the many lakes and rivers along which the Canada-United States border passes. Article IV of the Treaty provides: ". . . the waters herein defined as boundary waters and waters flowing across the boundary shall not be polluted on either side to the injury of health or property on the other." This is an extremely wonderful, almost poetic (for a treaty) language containing important obligation, but there is no binding dispute settlement process to enforce it. The Treaty established the International Joint Commission (IJC), composed of three members from each country. The IJC is a quasi-judicial body with mandatory jurisdiction and binding authority to approve or disapprove the quantitative-but not the qualitative-aspects of projects such a boundary-water diversions or obstructions. The two countries may also jointly refer environmental matters-i.e., qualitative matters-to the IJC for binding or nonbinding recommendation. No disputes have been referred to the IJC for binding consideration. But more than 100 disputes have been referred to the IJC for nonbinding consideration. Interestingly, although the IJC's considerations in these disputes were nonbinding, almost all of these disputes were satisfactorily resolved, with two noteworthy exceptions-acid rain and the Great Lakes-each of which was later dealt with by a bilateral agreement. Paradoxically, one reason for the IJC's success may be that recommendations are nonbinding. It is quite possible that the two countries would not agree to having the IJC consider a dispute if the only option were a binding decision. If that is the case, one might ask why there are not more disputes that are settled via this route. I would suggest that this reason for the IJC's success may not be highly transferable because it relies at least in part on the unique relationship between Canada and the United States. That relationship is extremely multi-faceted and, in general, positive; the two countries are at the same level of economic development; there is some sharing of language and legal system; and each country is both upstream and downstream from the other, so there is an added incentive to cooperate and be reasonable. Nevertheless, it may be useful to keep in mind that countries may be more willing to act responsibly if they agree to do that rather than are forced to. 43 ------- Another, more transferable reason for the IJC's success is its use of scientific expertise. The IJC typically proceeds by first appointing a joint board of experts to report on the factual aspects of the dispute and often to make a recommendation. The scientific board usually is composed of equal numbers of scientific experts from each country and typically holds public hearings. Transparency and public participation have several benefits in this regard: providing relevant information to the decision makers; educating the public about different review points; paving the way for a cooperative implementation of the IJC's ultimate recommendation; and generally ensuring that the process in politically accountable. Interestingly, the reports of the scientific boards often have been unanimous. This frequently has resulted in eliminating much of the controversy, e.g., by resolving factual disagreements or misunderstandings. The IJC's recommendations normally have been followed, at least in spirit. One take-home lesson here is that environmental disputes characteristically have a central factual component about which there is often is disagreement. Resolving or lessening the scope of such a disagreement, through the use of scientific experts and public participation, can do much to resolve the dispute as a whole. Another lesson has to do with scale and the importance of what I call "inter-local cooperation," that is cooperation between governments and civil society at the local level. I believe this will be increasingly important, and that the IJC process, although initially at the federal level, tends to bring the consideration of an issue to a more-local level. Examples of inter-local cooperation includes the joint Canada-United States management of the High Ross Dam area and the El Paso-Juarez Air Quality Management Basis. North American Agreement on Environmental Cooperation (NAAEC) The NAAEC was negotiated after the North American Free Trade Agreement (NAFTA) had been negotiated in order to better ensure that the NAFTA, which itself contained environmental provisions and which was accompanied by a so-called "parallel track" of cooperative activities designed to deal with existing environmental problems, did not result in harm to health and the environment. It was a difficult set of negotiations. The NAAEC contains unique substantive and institutional elements, such as obligations to maintain high environmental standards, to enforce environmental law, and to allow public participation, and a tripartite Commission for Environmental Cooperation with an unusually independent Secretariat. The NAAEC contains several approaches and mechanisms relevant to dispute settlement. An important starting point is that the fundamental thrust of the NAAEC is to promote trilateral (or bilateral) cooperation as the best means of dealing with international environmental issues and avoiding disputes in the first place. The role of dispute avoidance should not be under-emphasized, here or more generally. The Agreement provides many provisions encouraging this type of cooperation. For example, it encourages joint work to resolve environmental problems such as threats from heavy metals and persistent organic pollutants; the three countries are now engaged in such an effort on several chemicals. Similarly, the agreement encourages developing a regime for transboundary impact assessment; the three countries and the Secretariat are engaged in discussion about that. In addition, the Secretariat is authorized to prepare reports on environmental issues, either at the direction of the tripartite Council or on its own volition 44 ------- unless the Council objects. These reports may lead to identifying problems at an early stage and thereby avoiding disputes from developing. As noted above, the NAAEC obligates countries to effectively enforce their environmental laws. It contains a unique procedure through which a resident of any of the three countries may complain to the Secretariat that any of the three countries is "failing to effectively enforce its environmental law". The Secretariat, depending on the situation, may ask for a response from the country and, in some circumstances, may prepare a factual record regarding the situation. This is not state-to-state dispute settlement, but it is designed to encourage countries to comply with this obligation through the use of factual inquiry and a public spotlight. It may also have the effect of heading off a state-to-state dispute and some of the tensions inherent in such disputes. In addition, any country may institute binding dispute settlement procedures by alleging that another country is engaging in a "persistent pattern of failure to effectively enforce its environmental law". This dispute settlement process in the NAAEC is based on the dispute settlement process in the NAFTA; and it is elaborate and is designed to encourage settlement through consultations. It not only is binding, but it is subject to enforcement either by trade sanctions against Mexico or the United States or in the courts of Canada. The reports of the dispute settlement panels are to be made public. Finally, some of obligations in the NAAEC are not subject to either of the proceedings described above. An example is the obligation to maintain high environmental standards in article 3. For such obligations, there is a general provision, the tone of which is more typical of environmental agreements: "The Parties shall at all times endeavor to agree on the interpretation and application of this Agreement, and shall make every attempt through cooperation and consultations to resolve any matter that might affect its operation." The NAAEC is in its fourth year of operation. Disagreements about interpreting the Agreement have been resolved through consultations. We have yet to decide on model rules of procedure for the binding dispute settlement process, and there have been no disputes brought. There have been several submissions by residents alleging failure to effectively enforce environmental law, three of which -one concerning each country -are now under consideration. It will be very interesting to see how the NAACE's experiment in dispute avoidance and settlement plays out in the future. World Trade Organization (WTO) Agreements Several disputes involving environmental issues arose under the 1947 General Agreement on Tariffs and Trade, probably the most famous being the two Tuna/Dolphin cases and the case concerning the Corporate Average Fuel Economy (CAFE) standards. Several disputes are now pending under the new WTO agreements, were finalized in 1994. In contrast to the cases under the 1947 GATT, the new cases are binding unless there is a consensus to block a panel report. The United States has lost one case, the Reformulated Gasoline case, in the WTO. Several other environment-related cases are pending, and several more are expected to be brought in the near future. I will not discuss the merits of these cases, other than to note the obvious point that the obligations-known as "disciplines" -in the WTO agreements have extremely important implications for our ability to protect health, safety and the environment in the United States. Rather, I will focus on three concerns about the process. 45 ------- The first concern is the absence of transparency and public participation. In spite of United States efforts, these procedures occur in large part out of the view of the public as a whole. A second is that the decisions in WTO disputes are made by panels composed of trade experts. These persons do not share expertise, nomenclature, values, paradigms, or often even a common world view with those engaging in protecting health and the environment. The WTO, like the NAFTA, provides for the ability to include scientific expertise with respect to cases raising certain types of issues. In fact, such a process was used in the beef hormone case, but it does not appear to be have produced useful information. Moreover, even the availability of such procedures does not alter the fact that the ultimate decisionmakers are principally persons with a trade perspective. There is a real question whether health, safety and environmental regulations will get fair treatment in this forum. The third issue is the relationship of WTO dispute resolution procedures to disputes that arise in other agreements that have an environmental component. For example, the Annex to the Law of the Sea Convention provides that disputes about trade in products from the deep seabed shall be decided in the WTO, ever though there is a formal dispute settlement body, the Law of the Sea Tribunnal, for that Convention. What should be the rule with respect to disputes arising under future international environmental agreements such as those under consideration for Prior Informed Consent regarding very dangerous chemicals and Climate Change: should they be decided by dispute settlement bodies specific to those agreements or by WTO bodies specific to those agreements or by WTO dispute settlement bodies? There is a risk of engaging in a process of "trade uber alles"-one that raises serious questions about our ability to protect health, safety and the environment. At issue, in some senses, is the the effectiveness of international environmental agreements. Conclusion The avoidance and resolution of international environmental disputes is essential to protecting health and the environment within the United States. Most such disputes are not subject to binding dispute settlement mechanisms; but there are techniques that can be of assistance in resolving such disputes, including nonbinding approaches, public involvement, and the use of scientific experts. Even when a dispute is subject to a binding mechanism, appropriate public participation and the inclusion of appropriate scientific and other expertise are also often very helpful. Settling disputes at the interface between environment and trade presents special challenges-challenges that we must meet without sacrificing essential interests in either area. An informed and involved public is necessary if the United States is to be effective in avoiding and settling environmental disputes. Each of you has an important voice in setting United States policy in this regard, as you have with respect to helping the United States carry out its international obligations. Thank you again for this opportunity to speak with you about these important issues. 46 ------- PACIFIC AND ASIAN AFFAIRS COUNCIL, HONOLULU, HAWAII ENVIRONMENTAL COOPERATION WITH ASIA: CLIMATE CHANGE AND BIOLOGICAL DIVERSITY PRESENTATION BY DANIEL MAGRAW SEPTEMBER 11,1997 Mahalo. (Thank you.) It is a pleasure to be with you today. I would like to thank the Asia and Pacific Affairs Council and the East-West Center for arranging this presentation. I will speak today on Environmental Cooperation with Asia, using climate change and the loss of biological diversity as examples. I will briefly discuss those two issues before turning to the topic of environmental cooperation with Asia. At the outset, allow me to say a few words about EPA's interest. I am occasionally asked why EPA engages in international activities, since our mission is to protect health and environment in the United States. The answer is quite clear, actually: health and environmental problems do not respect international boundaries. For example, polluted air and water move from country to country, as does hazardous waste and food contaminated with pesticides. Emergency response and enforcement efforts also require cooperation among countries in many instances. EPA thus has no choice but to consider international threats to health and environment in the United States and to participate in efforts to prevent or counter those threats. EPA is proud of its efforts in this regard. The term "climate change" refers to the human-caused (anthropogenic) emission of so-called greenhouse gases into the atmosphere, with the result that the heat-absorbing capacity of the atmosphere grows and global average temperature correspondingly increases. Other effects are also expected to occur, including: a shift in climate zones away from the Equator; melting of polar ice capes; rising sea-level; increased intensity and frequency of storms; changes in amount (probably an overall increase) and timing of precipitation (rainfall, snowfall, etc.); changes in ocean currents; large numbers of climate-change refugees; and increased range (in terms of both latitude and altitude) for tropical diseases such as malaria, cholera and dengue fever. Effects on agriculture may be positive (e.g., the atmosphere will be more conducive to supporting photosynthesis because it contains more carbon dioxide and there will be longer growing seasons in northern latitudes), as well as negative (e.g., more desertification in some areas and increased flooding in others). Although the details of these changes-e.g., how much will occur, how soon changes will occur, and how conditions will be affected in specific localities-are not known precisely, it seems clear that these effects will occur to a significant extent and at a 47 ------- rate that is unusually rapid by historical standards. [For a more detailed discussion of climate change, see Grand Rapids speech by Alan Hecht.] The world community is now attempting to strengthen the international regime for preventing climate change, which currently consists of the 1992 Framework Convention on Climate Change (FCCC) and associated cooperative activities. In 1995, the first Conference of the Parties of the FCCC agreed in the "Berlin Mandate" to strengthen the commitment of the world's industrialized countries to limit the emission of greenhouse gasses. Ideally, this is to culminate in an agreement at the third Conference of the Parties in Kyoto in December 1997. At the present time, countries are sharply divided about many aspects of such an agreement-e.g., what the binding targets and timetables should be, whether to allow emission allowance trading, and how to involve developing countries. Turning briefly to biological diversity, we are witnessing an unprecedented rate of decline in biological diversity-i.e., the variety of living organisms and the ecological communities of which they are a part. This is caused by, among other things, pressure from growing human population, human activities such as destruction of the rain forest, and industrial and agricultural pollution. The rate is unknown precisely, but it is not uncommon to hear references to 100 species lost per day. This loss of biological diversity has serious implications for the well-being of humans. For example, many valuable medicines have their genesis in native plants, industrial processes are sometimes based on esoteric species (e.g., polymerase reactions are based on an organism found in a hot spring in Yellowstone National park) and agriculture depends on biologically diverse seed stocks and insects for pollination. Moreover, humans are part of the web of life-a web that survives in part because of its diversity. The effects of climate change outlined above-considered either separately or jointly-could cause serious stresses to biological diversity. This is especially true of rapid changes in temperature and precipitation, as living conditions change and become incompatible with the species that had evolved to live in the preceding environment. These impacts will be especially felt on oceanic islands, such as those that comprise Hawaii. In a 1990 report, the Intergovernmental Panel on Climate Change (IPCC) examined the impacts of climate change on natural ecosystems, i.e., land areas and associated flora and fauna which are not intensively managed. The IPCC concluded that: Those species which . . . are the most at risk . . . are . . . geographically localized species (e.g., those found on islands. . .) [because they] may not be able to survive or adapt to climatic changes because of the limited number of options available to them. Island ecosystems, because of the barrier provided by surrounding water and with their higher ratio of endemism, are at risk of disruption. . . . Smal oceanic islands are particularly at risk . . . .' This conclusion reflects more general historical experience: of the 94 species of birds known to have become extinct worldwide since contact with European only 9 were continental.2 Hawaii, of course, is composed of small oceanic islands. Moreover, Hawaii already faces a serious situation with respect to biological diversity. It contains one-third of all the species of birds officially listed as threatened or endangered in the United States, and more than one-quarter of all species listed as threatened or endangered in the United States. Taking effective action on international problems such as climate change and the loss of 48 ------- biological diversity thus is essential to the future of Hawaii -and humankind more broadly -whether viewed in health-and-environment, economic, or social terms. Turning now to cooperation, the United States interacts with Asia on environmental issues, such as climate change and biological diversity, on several levels. At a global level, the United States and most or all Asian countries participate in global negotiations on issues like climate change and biological diversity and in the governance and deliberation of international organizations such as the United Nations Environment Programme and the World Bank. At a regional level, we cooperate through the Asia-Pacific Economic Cooperation (APEC) process as well as other regional organizations. On a bilateral level, the United States participates in many cooperative efforts with most, possibly even all, Asian countries. For example, we are engaged in programs with China on coal-bed methane and with Indonesia and Japan on biological diversity. There are many such projects. Cooperation-and progress more generally-on each of these levels has been adversely affected in recent years by cuts in federal funding and by failure by the U.S. Senate to approve ratification of critical international agreements such as the Law of the Sea Convention and the Convention on Biological Diversity. Hopefully, this situation will improve. In closing, I would like to return to one aspect of why we care about these problems and what they imply for our children and future. Consider biological diversity: I mentioned several serious causes of concern earlier. I would now like to play part of a program jointly produced by National Public Radio and the National Geographic Society, titled Radio Expeditions: Life on the Brink. I am using it with permission. [This piece addresses the facts that species have appeared and disappeared since the beginning of life on this planet, and that life, has nevertheless continued in some form. The piece analogizes life to music for this purpose, and demonstrates what would happen if various instruments-woodwinds, percussion instruments, violins, brass instruments, and cellos-became extinct. The music could continue, but less richly and very different.] This program reminds us of the magic of biological diversity. It is hard to imagine any place with more magic than Hawaii-all the more reason to be concerned about threats-from climate change and otherwise-to biological diversity. Thank you. 49 ------- VALDAS V. ADAMKUS, U.S. ENVIRONMENTAL PROTECTION REGIONAL ADMINISTRATOR REGION 5 CHICAGO, ILLINOIS WORLD AFFAIRS COUNCIL OF CENTRAL ILLINOIS UNIVERSITY OF ILLINOIS, SPRINGFIELD, ILLINOIS MARCH 27,1997 When the rusty Iron Curtain began to flake and crumble some eight years ago, all of Eastern Europe became the darling of the media. But today, especially as far as the environment is concerned, that whole area seems to be relegated to the back burner. And that is a shame, because environmental problems of Eastern Europe are the environmental problems of all of Europe. And if those problems are left unchecked, they can quickly become our problems because today all of us are part of the global environment. Pollution crosses all national borders and all oceans and affects all continents. I shall confine my remarks mostly to the three Baltic Republics of Estonia, Latvia, and Lithuania and to the Baltic Sea they all share. The three Baltic Republics reflect on a smaller scale exactly what is happening environmentally in the much larger countries of Eastern Europe: such as Poland, the former East Germany, the Czech Republic, Slovakia, the Ukraine, and even Russia itself. All of Eastern Europe, and especially the hard-hit Baltic Republics, share some 50 years of Soviet domination and the environmental mess in Eastern Europe is a direct consequence of monumental neglect on the part of the former Soviet Union. Ever since the days of Stalin, industrial production in the Soviet Union was god. Every industry and every factory had to meet its production plan or quota which always took precedence over environmental concerns. For decades on end, the word "environment" was not even mentioned. By the 1970's, when Soviets finally began paying attention to ecological concerns, the damage was already done; most rivers were fouled, most lakes were poisoned, most forests were stripped, and every major city was choking under a thick blanket of polluted air. The head of the Soviet environmental protection agency said in 1989, "We have started too late. Our air is not up to the proper mark, our soil is polluted, and our forests are affected." That, ladies and gentlemen, was a gigantic understatement. The Soviets failed to protect their environment primarily for three reasons: they were saddled with an inflexible, centralized economic system; they had an almost paranoid obsession with secrecy, and they totally ignored environmental ethics. 50 ------- I represented the EPA in 1972, when President Nixon stopped in Moscow to sign the first environmental agreement between the United States and the Soviet Union. It called for an exchange of scientific and research data, among other things. But the secret society, for which the Soviet Union was so famous, closed its doors to American scientists. Of course, we would meet regularly and discuss environmental issues, but the real environmental problems remained unsolved - because they were intended to remain that way. Until 1988, one monolithic agency dealt with environmental issues in the Soviet Union. That agency also controlled environmental matters in all 15 Soviet republics, which then included the Soviet-occupied former independent States of Estonia, Latvia, and Lithuania. That agency also had a lot to say about such things as budgets and appointments of key officials. And all major decisions were to be made in Moscow. But that was the ideal picture.- in theory only. In reality, environmental responsibilities were scattered among a dozen different ministries. And formulation of environmental policy and the interpretation of environmental regulations were left to the discretion of individual ministers and other VIPs whose self-interests were paramount. The same chaotic system was imposed upon the Baltic States - even more so. In Estonia, Latvia and Lithuania, the State Committee for Protection of Nature was officially responsible for the environment. But in practice, these agencies were primarily concerned with forestry, fishing and hunting licenses, and other administrative duties - duties that, in the US would normally be assumed by a natural resources department or a similar agency at the state level. The environment, once again, had to take a back seat. Universities and various science academies in the Baltic Republics began monitoring the environment on their own. Water pollution, especially, caused the earliest and most serious concern. In rivers, fish began to appear with hideous tumors. In some smaller lakes fish had disappeared altogether. These Baltic scientists raised alarm. Their warnings went unheeded by the government but served to raise public awareness. In all three Baltic Republics water pollution is widespread. Lithuania, for example, has approximately 10,000 lakes. Almost 90 percent of them are heavily polluted. And the country's two major rivers are awash in what amounts to raw sewage. The pollution stems from two major sources: untreated wastewater from municipal plants and from industrial dischargers such as paper mills and chemical manufacturers. One big problem is that most major cities have no secondary, or biochemical, wastewater treatment facilities. In the entire region, a vast majority of the wastewater goes only through primary treatment in settling tanks. This primitive process simply cannot do the job. It cannot remove the truly dangerous pollutants. And at the handful of plants that are supposed to have secondary treatment, things are not going well either. Often these plants are down because of antiquated equipment or because they just do not have the necessary chemicals for secondary treatment. The first order of business in all three Baltic Republics is the urgent need to build modern municipal sewage treatment plants. This will not solve all water pollution problems, but it will solve most of them. A good example can be seen right here at home, where in the Great Lakes region alone we invested more than $12 billion to build or upgrade over 1,000 sewage treatment plants. The result: Lake Erie was saved from an impending ecological disaster, and the other four Great Lakes are much cleaner, too. 51 ------- In all three Baltic Republics there is also an urgent need to neutralize toxic wastes which threaten ground w ater supplies in many areas. The situation is especially acute in and around former Soviet military bases, where contamination ranges from spilled rocket fuel to old, unwanted pesticides. Several options for the disposal of pesticides are being looked into. This includes the use of cement kilns for incineration, modeled after U.S. incineration and compliance monitoring standards. In some areas, toxic contamination by radioactive materials has been documented. In Estonia, numerous water samples from Lake Maardu, for instance, have shown that radioactive materials such as thorium, uranium, and radium have been slowly increasing over the years. Here, too, the potential risk to human health by way of contaminated water is clearly present. In all three Baltic Republics, air pollution is a serious problem. Increased auto emissions have accelerated the formation of ground-level ozone and the incidence of related health problems. This ground-level ozone, or smog, is especially apparent on hot summer days in large cities where breathing often becomes labored even for a healthy person. The prevalence of leaded gasoline, the lack of catalytic converters, the absence of mandatory auto inspections, and poor auto maintenance are mainly responsible for this surge in air pollution. Eastern European countries have become dumping grounds for old, polluting cars from Germany. Some of these cars find their way as far east as the Ukraine and Russia. But the vast majority wind up in the Baltic States, increasing air pollution that much more. People try to fix up these cars the best they can, but the vital job here - installing a catalytic converter - is beyond their capability, even if catalytic converters were available. In this situation, only drastic government measures against old cars will allow people to literally breathe easier. Ironically, manufacturing plants - the big, bad polluters of years past - are only secondary contributors to air pollution today. And it's not because they have the latest electrostatic precipitators and scrubbers or other emissions-control technology. It's because some 50 percent of them are so badly outdated that they have been shut down. All three Baltic Republics suffer similar environmental problems. One problem they all share, however, is the severe contamination of the Baltic Sea. No environmental assessment of Eastern Europe - or all of Europe, for that matter - is complete without a sober look at the Baltic. In addition to Estonia, Latvia, and Lithuania six other countries border the Baltic Sea: Denmark, Sweden, Finland, Russia, Poland, and Germany. They, too, contribute to its pollution - some more than others. But all nine countries must share the responsibility of cleaning up the Baltic and restoring it to ecological health. Ten major rivers from all these countries empty into the Baltic Sea, dumping millions of tons of pollutants every year. They consist of everything from raw sewage and pesticides to toxic chemicals and radioactive wastes. There are also heavy metals such as mercury and lead as well as petroleum products and just plain shipboard garbage being dumped overboard. It all adds up to a very nasty toxic brew affecting some areas more than others. The Gulf of Finland, for example, was saturated with raw sewage dumped directly into the sea by the City of Leningrad, now St. Petersburg. Only three years ago did this indefensible practice stop. 52 ------- The Bay of Gdansk in Poland is even worse. There, the Vistula River dumps almost 67 percent of 131,000 metric tons of nitrogen into the Baltic each year. The Vistula also deposits 5,000 tons of phosphorus and 3 tons of highly toxic phenol and lead, not to mention undocumented amounts of cadmium and other toxic pollutants. These figures, released by the Polish Government, suggest that the Vistula river is the largest polluter in the Baltic Basin. Coliform and other bacteria found in untreated or raw sewage pose a specific threat to human health and the tourist industry. A few years ago, I happened to be at a famous Lithuanian resort on the Baltic Sea. It was July, the height of the tourist season. The temperature was in the high 80's. Thousands of vacationers were in the water; thousands were on the beaches -all ostensibly enjoying themselves. But the water was so polluted that you could see with your naked eye the slowly decaying algae, the oil slicks, and other organic matter bobbing about. I had a long talk with the mayor of the resort and with local health officials. The next day the beaches were closed. At another resort on the Baltic, on the shores of the Couriand Lagoon, (also in Lithuania) the situation was even worse. There, the widespread decay of organic matter in the sea had already produced a suffocating stench - strong enough to drive away even the most determined vacationer. Regrettably, the same situation existed at a first-class resort near Riga, Latvia. The Baltic Sea is highly vulnerable to all forms of pollution for several unique reasons. First, it's the fourth smallest sea in the world. Only the Yellow Sea, the Persian Gulf, and the Gulf of California are smaller. The Baltic's 160,000 square miles can absorb only so much pollution. Second, the Baltic Sea, like the Great Lakes, is basically a closed ecosystem. Only four percent of the water from the Baltic flows out into the North Sea every year, as compared with less than one percent outflow for the Great Lakes. Once pollutants get into the Baltic, they tend to stay there a very long time. Even if all pollution to the Baltic were stopped today it would still take about 25 years for the sea to clean itself. And this pertains to the more conventional pollutants like organic matter. Toxic pollutants such as PCBs, last virtually forever. Third, the Baltic is a relatively shallow sea, with an average depth of only 180 ft. Given the same amount of pollutants, oxygen loss is much faster in a shallow body of water than in a deep sea or a huge ocean. Fourth, the Baltic Sea has a relatively low salt content; only five to 15 parts per thousand. The sea water is kept diluted by fresh water from the 10 major rivers emptying into the Baltic. This, in turn, has a direct bearing on the retention of contaminants. Normally, fresh-water bacteria die after a few minutes in salt water. But because the salinity in the Baltic is low, salmonella bacteria, for example, take about 40 days to die. For dysentery bacteria, it's roughly 15 days. And coliform bacteria in raw sewage, which can cause severe intestinal problems, have been found 100 miles from shore. Which means that they, too, must have survived for days on end. And fifth, the interaction of wind, waves, tides, precipitation, ice melt, and evaporation in the Baltic tends to concentrate pollutants in certain areas. Prevailing winds, for instance, favor the Swedish coast, where pollutants are dispersed and driven far out to 53 ------- sea. On the other hand, raw sewage dumped by the Oder and the Vistula Rivers on the south shore of the Baltic tends to drift along to the northeast, making already serious pollution on the coastlines of Lithuania, Latvia, and Estonia that much worse. All in all, the environmental situation in Eastern Europe is pretty grim. The people of the Baltic Republics and the former Eastern Bloc countries have just recently emerged from a 50-year Soviet nightmare. During that time, they were deprived not only of all political and human rights but also deprived of the basic, everyday necessities that the Western world has been taking for granted. In a race between improving the standard of living and cleaning up the environment, I'm afraid the environment will come in second best. There's a strong psychological tug-of-war going on there. It's not that people don't appreciate clean beaches and clean air and a green countryside, it's just that bread-and- butter issues come first. While we have a long way to go in Eastern Europe - environmentally speaking- something is being done. The international community is rallying, if ever so slowly, to protect and resurrect the Baltic ecosystem that 300 million people depend on for commerce, transportation, fishing, and recreation. As soon as the three Baltic Republics regained their independence in the early 1990's, Finland, Norway and Denmark were first to lend a helping hand. They signed environmental agreements with the newly independent republics that dealt with environmental education, clean energy supplies, protection of underground water sources and other problems. There was also a little seed money for modest, specific environmental projects. The EPA was not far behind. At the very outset, tons and tons of technical manuals were delivered to the three information-starved Baltic Republics. These were not some outdated discards, but the latest information available. Next came advanced computer technology, including high speed modems which allowed the three Baltic Republics to quickly assess and exchange environmental data and to develop efficient environmental management systems. Then came environmental education and technical training. Right at the start, the Metropolitan Water Reclamation District of Greater Chicago made a generous offer to train sanitary engineers from less-developed countries in the latest wastewater treatment methods. The first two graduates in 1992 were two young engineers from Lithuania. Since then, the pace has picked up considerably. Workshops were set up in all three Baltic Republics to train teachers and to help them develop their own environmental programs, from kindergarten through college. Specific technical courses were also made available; everything from air pollution monitoring and groundwater sampling to pesticides disposal and environmental risk assessment for bankers. For courses not available locally, key environmental personnel were brought to the United States for training. Numerous demonstration projects in the field were undertaken as well. They included hydrogeologic assessment of certain lakes in Estonia, a harbor environmental study in Latvia, and a hazardous materials emergency exercise in Lithuania. We have set up a number of centers for environmental literature and computer software consisting of technical information packages and complete courses on a variety of environmental topics. Above and beyond these specific projects, we have thoroughly evaluated their organizational structures, examined their environmental monitoring capabilities, and assessed their needs in order of priority. Interestingly enough, most of our recommendations have not only been accepted but also carried out. One result of such implementation will be the new Latvian 54 ------- Environmental Protection Agency, now in the process of being formed and scheduled to make its debut next year. EPA is the lead coordinating agency in these efforts but we would never even have gotten off the ground if it weren't for the help of many unselfish partners. Help has been coming from all quarters. Our most important American partner, in terms of funding, is the U.S. Agency for International Development. Other Federal agencies such as the U.S. Geological Survey and the U.S. Air Force helped us too. State agencies, such as Illinois EPA and Wisconsin Department of Natural Resources have also lent a helping hand. Academic institutions including the Universities of Illinois, Wisconsin, and Montana, and Purdue University have been extremely helpful as well. In addition, private sector corporations such as LaSalle National Bank and Science Application International pitched in without reservations. In Europe, our partners include the Scandinavian countries, Germany and Holland. The European Environmental Agency and the Baltic Forum have also joined us to help restore the ravaged environment in Eastern Europe -especially in the Baltic region. Despite the best efforts on everybody's part, we may not see tangible results in Eastern Europe, including the Baltic region, for years to come. Nobody can undo long standing gross environmental damage overnight. My best guess is that we shall not see any visible signs of environmental improvement in Eastern Europe until about the year 2010 - provided they start now. Each EPA partner here in the United States and abroad contributed whatever it could to the three Baltic Republics in funds, in equipment, or in training and sometimes in all three. The trouble is that neither the European Union nor the individual national governments have made environmental protection a priority. Economic prosperity remains their number one goal. But this is a shortsighted view that will only worsen the environmental situation in Eastern Europe. As President Clinton has said: "You can't have a healthy economy without a healthy environment. Gaylord Nelson, former U.S. senator and governor of Wisconsin and founder of Earth Day, echoed the same sentiments when he said that a healthy environment and a prosperous economy are inextricably tied to one another." This is what Eastern Europe must firmly understand and act upon. They must make environmental protection a top priority and they must make prevention a keystone of environmental policy everywhere. Dr. Barry Commoner, university professor, environmentalist and author, has been telling us for years: "Environmental pollution is an incurable disease. The only thing you can do is to prevent it." And so, pollution prevention means, above all, not to create pollutants to begin with; instead eliminate them at their source. This may mean substituting raw materials, replacing old equipment, or perhaps modifying the manufacturing process. It also means recycling and developing a corporate as well as a national environmental ethic. Again, as the far-sighted Dr. Commoner put it: "Problems originate in the decisions - what people produce and how they produce it - not in the environment." This, too, Eastern Europe must firmly understand and act upon. Despite the best efforts on everybody's part, we may not see tangible results in Eastern Europe, including the Baltic region, for years to come. Nobody an undo long standing gross environmental damage overnight. My best guess is that we shall not see any visible signs of environmental improvement in Eastern Europe until about the year 2010 - provided they start now. 55 ------- Ultimately, whether in Eastern Europe or elsewhere, what happens to the environment in the 21st century depends on some fundamental choices that the global society will have to make in the next decade or so. Will we pursue economic growth and selfish sociopolitical gains at all costs? Or will we factor sustained economic development and environmental protection into our formula for survival? A lot is at stake. I hope we shall make the right choices. 56 ------- LEE PASAREW WORLD AFFAIRS COUNCIL OCTOBER 6,1997 ASHEVILLE, NORTH CAROLINA "ENVIRONMENTAL PROTECTION IN EASTERN EUROPE AND GLOBAL ENVIRONMENTAL SECURITY" I want to thank Tom Sanders and the UNCA Seminar on Environmental Studies for the kind invitation to speak as an invited guest of the World Affairs Council today. I am especially pleased to report that this is one of approximately 20 speeches senior EPA officials will present before World Affairs Council audiences across the country this year. These talks offer excellent opportunities for us at EPA to work with the Councils in raising public awareness of international environmental issues -particularly as they affect the quality of our domestic health and environment. I had originally planned to center this talk on the Middle East and the role of environment in the Peace Process. The lack of any progress in the region has been accompanied by a virtual halt in the environmental activities. I will describe the way environment might play a positive role in the peace process later in my talk, but I think that the experience in Central and Eastern Europe and the former Soviet Union is much more interesting and illuminating. It also offers the advantage of being near completion. So, this afternoon, I want to talk about EPA's involvement with the environmental problems of the countries of Central and Eastern Europe and the former Soviet Union and the role of environment in the major political changes that took place. In January 1990, I flew to Krakow, Poland, to represent EPA on one of the first U.S. Government missions to address that region's environmental problems. The day I arrived, the Communist Party in Poland took the historic step of voting itself out of existence. Although Poland's struggle to be free from communist rule goes back to the 1980's, that day would be seen as an important step in the downfall of the Soviet Union and the end of the Cold War. By the end of 1992, Germany had already been united for two years and Poland, Hungary, Czechoslovakia, Yugoslavia, Bulgaria, Romania were long free from Soviet hegemony. Moreover, Estonia, Latvia, Lithuania, Ukraine, Belarus, Moldova, Russia, Armenia, Georgia, Kazakhstan, Tajikistan, Turkmenistan, Uzbekistan, Kyrgystan, and Azerbaijan all became independent countries. All had moved away from communism, embraced democracy, and with varying levels of commitment free market principles. As the reality of life in these former communist countries came into focus, the most shocking and tragic discovery was the self-inflicted environmental damage on their air, water and land resources. 57 ------- The Black Triangle region in southern Germany, southwest Poland and northwest Czech Republic was considered by many as the most polluted area in the Central and Eastern Europe. The air quality was so poor that children were sent away to other parts of the country because the rate of respiratory and other illnesses was five times the rest of the Czech Republic which was itself much higher than other western countries. Lead levels in the soil were 50 times the acceptable levels. This was due primarily to leaded gas, and untuned cars. One study I came across revealed that children in an areas found to have high lead concentration, had an average drop in IQ of 13 points. In Hungary, the average man died ten years earlier than in Japan. Today, Russian male life expectancy is 60 years old and still dropping. In the Russian town of Nikel, a small city centered around a large nickel smelting plant, the residents and workers have a life expectancy of 45 years. Anybody entering the town is struck immediately by the structural obsolescence of the nickel plant as the smelters belch enormous plumes of poisonous smoke from three towering smokestacks. There appears to be no modern health, environmental or safety systems surrounding the plant. Grey snow covers the entire area. In the summer, when the snow recedes, the earth is barren. It is apparent that things live with difficulty in the shadows of the nickel plant. Unfortunately, I could go on with examples of environmental horror stories for hours. Let me return to Krakow. Krakow had been the Capital of Poland in 1038 and the King's castle still is an important historical site. Krakow has been and still is Poland's religious center. It is the city where Pope John Paul presided as Bishop. The country's oldest university -the Jagellonian -is located in Krakow. Although still a city of great architectural beauty and historical significance, Krakow was literally being dissolved by the pollution from the enormous Nowa Huta steel mill that had been located almost in the center of town. It was not uncommon for all of Krakow to be annually covered with soot. Natually, the incidents of respiratory disease among children was very high. Buildings that had withstood Tarter attacks and Nazi occupations were rapidly being destroyed by the air pollution. . Krakow is located on the banks of the Vistula River, Poland's equivalent of our Mississippi. Eighty percent of the water in the Vistula was so polluted that it was rated as unfit even for industrial use. Needless to say, it had long ceased to be a source of safe drinking water. The main cause of the Vistula pollution was the runoff from coal and other mines in Southern Poland. Sixty thousand cubic-meters of saline water containing 7,000 metric tons of salt were being pumped in the Vistula every day. Why had the Poles let this happen? For that matter, why had all of the countries in Central and Eastern Europe and the former Soviet Union let this kind of tragedy happen to their environment? The Krakow story was replicated in virtually every city and town in the region. To understand why the situation had grown so bad, we need to see why the environment was spoiled in the first place. Poland, the other countries of Central and Eastern Europe and the former Soviet Union relied too much on heavy industry as their engine of economic and military development. The centralized and political nature of almost all decisions led to repeated environmental messes. 58 ------- The Nowa Hut steel mill was located in the center of Krakow despite the fact that Krakow was not near iron ore, coal, or industries that used steel. It was placed just up wind from the historic parts of the city to punish and overwhelm the academic and anticommunist residents who has resisted the communist takeover. Production was planned in a manner that rewarded waste and inefficiency. Under the centrally planned economy factory managers were given an allotment of raw materials and production quotas. Managers were rewarded for meeting output. The more you produced, the more you were recognized and rewarded. It did not matter if you did it efficiently or not. This lead to terribly inefficient use of raw materials and energy -which was usually provided cheaply. The political nature of laws, regulations and standards were unrealistic and unenforceable. Communist governments often passed tough but unenforced laws and regulations. Permit standards which told polluters the amount of each pollutant they could discharge into the environment were set unrealistically high and then ignored. We were told that Russia issued individual factory discharge permits that regulated over 2,000 pollutants. This was done even though the covered pollutants might not be present in the factory, might be impossible to detect at the concentrations set forth in the permits and, even if present and detectable, might not be controllable with current. Notwithstanding the ineffectual ness of their system, these governments could boast at international meetings that they had better environmental standards than the west. They could not or would not enforce environmental laws and regulations because the polluters were the government. It is hard to sue yourself. What if you refused to clean up? Nothing had a real cost and therefore nothing had a true value. Most things were subsidized by the government so that important inputs like energy and water were used in great quantities. There were no incentives to be efficient, to reuse, or to look for less valuable substitutes. Their education system did not produce environmental professionals. Environmental scientists, engineers, economist, and managers require multi-disciplined training and this was absent in Eastern Europe. Higher education in communist countries was very focused and compartmentalized. Lack of democracy might have been the most important reason for the environmental disaster that occurred in Central and Eastern Europe and the former Soviet Union. Although they could see the foul air and knew that the rivers were unusable, they did not have access to the kind of information necessary to know the nature and extent of the environmental problem they faced. And even if they did, they had no way to influence their governments to change. Or did they? Two significant events took place in the late eighties that dramatically demonstrated the importance of environment to the people of Central and Eastern Europe and the former Soviet Union and to the political changes that changed the region. The proposal to build a dam on the Danube and the explosion and fire at the nuclear power plant in Chernobyl. In the late 1980s, the governments of Hungary and the former Czechoslovakia agreed to build a series of impoundments on the Danube River at Nagymoros/Gaboikova -a site on their border between Budapest and Bratislava. These dams were to produce hydroelectric power which would be sold to the west for hard currency. The project would result in the flooding of large areas of wetlands. The resulting destruction of these wetlands would ruin a major stop on the path of migratory water fowl in Europe. It would also would eliminate the invaluable water filtering role these wetlands play, thereby seriously putting at risk the water quality of the Danube River and other fresh water resources on the area. 59 ------- As knowledge of the negative impacts of the project became known a small group of scientists and citizens, mainly in Hungary, started to meet and discuss the project. These discussions led to the formation of the Danube Circle - an organization developed to oppose the dams. Why this organization was allowed to exist and openly oppose the dams is not clear. Maybe it was because the government of Hungary was preoccupied with other problems or maybe it was because they did not take an environmental protest seriously and felt that it diverted the attention of any meaningful apposition away from the more serious problem of life under the communists. In any case, the organization grew strong enough to stop the construction of the Hungarian portion of the project. More importantly, in its work to combat the dam the Danube Circle developed a network of people who were in place to take advantage of the growing weakness of the Communist government at the end of the 1980's. Many of the leaders of the Danube Circle became the leaders in the transition from communism and democracy. Some of these heroes are still fighting to improve the environment in Hungary but many have gone on to take leadership roles in other sectors of their new democracy. Although environmental discontent among the people of Hungary was not the reason for the downfall of communism, it is interesting to note that an environmental issue did act as the catalyst for the formation of an organization that was important to the political change in the country. My second example, Chernobyl, is well known to everybody. Located north of Kiev in what was then part of the Soviet Union, the nuclear power plant at Chernobyl experienced a catastrophic explosion and fire in April 1986, that resulted in the loss of life and the contamination of large areas of Ukraine and neighboring Soviet Union. For weeks after the accident, Soviet officials in what we now recognize as standard operating procedure, attempted to hide the magnitude of the tragedy from their people. The importance of the failure of this clumsy official attempt to "cover up" an event that was being reported by every newspaper and radio in the free world was greater than the tragedy itself. As the facts of the disaster came out the people of Ukraine and the other Soviet territories were confronted with the inescapable evidence that the Soviet government was incapable of even the most basic protection of public health and safety. Many Russian and Ukrainian observers feel that for large numbers of people in the former Soviet Union, the Chernobyl accident provided the final push towards their acceptance of the fact that their membership in the Soviet Union had to end. Both of these examples illustrate the importance environment played in the politics and change of regimes. After the transition to democracy, polling data showed that environment remained a high priority for most people. Unfortunately and understandably, as the economies of the region collapsed, jobs, pensions, health care and inflation overtook environment as the overriding concern of most people and therefore environment slipped down on the government's priority list. Returning to the regional subject of my talk, I am sorry to say that in the fall of 1997, progress in the Middle East Peace Process is stalled. It is interesting to remember, however, that before the current lull, environmental issues were an important feature of the process. Two multilateral working groups were established to address environment and water concerns. There were at least two strong reasons for including environment in what were fundamentally security negotiations. .First, there were environmental issues that had to be addressed sooner or later and starting now would signify that the process was meaningful and comprehensive. Second and, I think, more importantly, was the use of environment to begin to bring together technical representatives from the four main parties -Israel, Egypt, Jordan and the Palestinian Authority to address issues they had in common rather than issues that divided them. Desalinization, oil spills, water reuse, environmental training, safe use of pesticides, environmental inventories, biodiversity, and protection of endangered species were just some of the mutual concerns that were discussed by engineers and scientists and for which progress was made before the most current halt in the main 60 . . ------- peace talks. It is important to note that for some environmental issues sufficient progress had been made so that technical work continues even though the political talks have stopped. The contribution that environment has begun to make in the region is to bring together people from the different sides to get to know each other through the positive process of tackling problems of common concern. These and many other examples can be sited to argue quite effectively that environment represents a potentially valuable tool for use in U.S. foreign policy. The U.S. and its technical agencies including EPA are still perceived around the world as the experts in environment protection. Our technologies and knowhow are sought after in every developing country. The State Department has begun to recognize the value of "environmental diplomacy." The recent establishment of "Environmental Hubs" in the Middle East, Africa, Central Asia, Latin America and Europe, show a real commitment to the idea that environment is a basic ingredient in our relationships with other nations and that respecting this issue will achieve a better global environment as well as more successful diplomacy. 61 ------- JANESAGINAW REGIONAL ADMINISTRATOR, U.S. ENVIRONMENTAL PROTECTION AGENCY, REGION 6, DALLAS, TX SPEECH FOR THE WORLD AFFAIRS (BORDER) TOWN COUNCIL MEETING PREPARED FOR DELIVERY APRILS, 1997 SAN ANTONIO, TX Thank you, Jerry Leach. It is a very special privilege to be here today. I am especially proud to have this meeting held in EPA Region 6. We share a 1,200 mile border with Mexico, the longest common border of any of the EPA's local offices. Today's meeting is a good example of our efforts to exchange information about important environmental issues facing this Nation and Mexico. Only a few weeks ago, Peter Emerson and I attended the De Lange Woodlands Conference at Rice University on Sustainable Development. We listened to some of the best minds available, like Nobel Laureate and Harvard economics professor Dr. Robert Solow, talk about the economics of the future. Dr. Solow asserted this: "Sustainable development is an equity issue between current society and future societies." And, he is right. Sustainable development means providing for the day-to-day needs of our communities, yet not forfeiting the ability of future communities to thrive. Moreover, sustainable development means long term economic prosperity. Sustainable development requires us to achieve a variety of interdependent goals. The U.S./Mexico border is a significant cultural and economic resource to us all. A tremendous number of people cross the border each day to visit and work. In 1994, the average was about 850,000 people a day. As we all know, over the past three decades, the entire border region has seen a tremendous surge in population. From 1990 to 1995, the border region's population increased by approximately 2.2 million. This makes the total population more than 10.5 million: 6.2 million in the U.S. and 4.3 million in Mexico. A healthy bilateral relationship with Mexico is essential to Texas' prosperity. Since early 1992, Texas has been a key player in building this relationship by working to negotiate trade agreements leading to NAFTA. In 1993 before NAFTA, U.S./Mexico trade 62 ------- The Border XXI Program is an unprecedented binational effort to address the environmental and public health challenges facing communities on both sides of the border. The program will help to ensure a commitment to sustainable development along the border, so that economic growth and environmental protection will go hand-in-hand continues to experience tremendous export growth, showing the third quarter of 1996. was about $40 billion. In 1996, U.S./Mexico trade rose to $140 billion: a 60 percent increase. And, more than 200,000 U.S. jobs were related to trading with Mexico. Mexico is the third largest trading partner of the U.S. accordingly. Furthermore, between 18 to 20 percent of all goods originating or traveling through the Dallas/Fort Worth metroplex are traded with Mexico. As a border state, Texas an increase of nearly 23 percent in Two weeks ago, I had the opportunity to visit with the U.S. Ambassador to Mexico, Jim R. Jones, at the Dallas Council of World Affairs luncheon. Ambassador Jones underscored that one of our major objectives with Mexico is environmental clean up and preservation. He emphasized, that in many ways, Mexico is experiencing the United States' environmental movement of the 1970's which led to the creation of the EPA. Mexico is demonstrating both the political will and public awareness needed to protect the environment. He estimated that 90 percent, if not more, of letters from Mexico's children and students call for environmental clean up and preservation. Mexico is now experiencing real economic recovery and resources are being targeted to address its environmental problems. The ambassador remains very optimistic. As a Nation, the U.S. has made significant progress over the past 25 years of protecting human health and the environment. We are a world leader in environmental stewardship. We must work with others to help them in meeting and understanding their current and future environmental challenges. That is what leadership is all about: cooperation and mutual respect; and looking at the broad view of history 10 to 20 years from now. That is the premise upon which our Nation's environmental cooperation with Mexico is based. Today, I would like to tell you about EPA's programs and some of our accomplishments. The Border XXI Program is an unprecedented binational effort to address the environmental and public health challenges facing communities on both sides of the border. The program will help to ensure a commitment to sustainable development along the border, so that economic growth and environmental protection will go hand-in-hand. Border XXI is a cooperative effort between the U.S. and Mexico, and represents an important milestone in the long history of cooperation among numerous environmental, health, and natural resource agencies in the U.S. and Mexico. Yet, it is flexible enough to allow different approaches for different communities. Border XXI demonstrates our Nation's's long term commitment to environmental stewardship in Mexico. The broad goals are to achieve a clean environment, protect the public health and natural resources, and encourage sustainable development in the border area. However, the document also is very specific regarding the goals for each region of the border. And, we are making progress. In 1994 when I first came to this job, I visited the border area for the first time and saw the environmental challenges facing communities such as Laredo and Nueveo Lardeo first hand. While Laredo had drinking water standards, Nuevo Lardeo did not. Pollution knows no boundaries so raw sewage was dumped into a river that both communities shared. Nevertheless two years later, I went back to Nuevo Laredo for the dedication ceremony of a new wastewater treatment plant for the community. That same year, I participated with New 63 ------- Mexico governor Gary Johnson in a ground breaking ceremony of a $2.6 million waste water treatment and collection system for the 850 people who live in Mesquite, New Mexico. We are building the long needed intrastructure to address the environment long term. I want to highlight five significant accomplishments along the border that I think further exemplify the type of progress we are making and set the stage for future activities: colonias; the Joint Advisory Committee for Air Quality Improvement; Sister City Contingency plans; Supplemental Environmental Projects; and HazTraks. We are working with more than 200 colonias, over 130,000 people, to provide waste water treatment and collection systems. Much of the work done at colonias is conducted in partnership with our States. Both the States of Texas and New Mexico, under the leadership of Commissioner Marquez and Secretary Weidler, have demonstrated outstanding leadership in preserving our environmental resources along the border. Our border program staff estimates EPA's budget to date has included about $225 million to address waste water treatment needs of colonias along the border. Our commitment continues. Last year, the U.S. and Mexico formed the Nation's first Joint Advisory Committee for Air Quality Improvement. This committee is working to improve air quality along the border in the El Paso/Ciudad Juarez air shed in a more holistic way, studying the impacts that communities have on one another and working together with them to develop plans to solve their air pollution problems. The committee includes 20 people (10 from the U.S. and 10 from Mexico) from city, county and State governments, and interested citizens, community leaders and environmental groups from Ciudad Juarez (Chihuahua, Mexico), El Paso (TX), and Dona Ana County (NM). I would like to take a minute to thank Pete Emerson for his contributions and leadership over the past several years. Pete has been tireless in his efforts to improve air quality along the border. Early on, Pete was instrumental in urging the Texas' Air Control Board Paso del Norte Air Quality Task force to focus on air pollution problems facing border communities. Without his dedication, the U.S./Mexico agreement forming the Air Quality Management Basin would not have been possible. Today, we are even looking at experimental steps in international air emissions trading due to this effort. We are preparing for another first called Sister City Contingency plans. Knowing that chemical spills, fires and other accidents do not recognize international borders; local, county, and State governments, businesses and community leaders worked with us to develop integrated emergency response plans. These emergency response plans will help communities on both sides of the border to be better prepared in responding to chemical spills or accidents, resulting in better protection of public health. Today, Sister City plans are being developed for Brownsville and Matamoros, Laredo and Nuevo Laredo, and Del Rio and Ciudad Acuna. We are working to use innovative and common sense approaches to improve environmental conditions along the border. In our enforcement efforts, we have proposed the first-of-its-kind international Supplemental Environmental Projects. In addition to collecting fines for violations of our health-based environmental standards, we are putting dollars back into the community and finding real solutions to environmental pollution. U.S. companies violating our standards are working with us to develop projects which, when completed, will bring about real benefits to the community and the environment on both sides of the border. No longer will just paying fines be enough: we encourage violators to take action by solving their problems, working to help the community, and bringing about a better environment. 64 ------- Groundwork has started for a bilateral hazardous waste tracking system called HazTraks. HazTraks allow both Nations to track the amounts and types of chemicals shipped between the U.S. and Mexico. The system helps us to ensure that transboundary shipments of chemicals meet the laws of both countries. In closing, I will remind you that the U.S. must continue to provide world leadership as an environmental steward. At home, we are continuing to take part to protect human health and the environment. EPA just released a strategic plan titled "Environmental Goals for America and Milestones for the Year 2005" which lays out our plan. Likewise, we are far from done along the U.S./Mexico border. Here, Border XXI outlines our strategic plan to improve, and protect the environment along the U.S./Mexico border. At EPA, we are committed to the success of Border XXI and to the protection of our most valuable resources: our people and our environment. The U.S. and Mexico are working to promote free trade, legal system reform, democracy, and a cleaner environment. Economic improvement is allowing Mexico to begin resource building which, coupled with its political will and public support, I believe will benefit the environment and our two countries. We are inextricably linked! I know you will join me in building a sustainable U.S./Mexico border to seek economic prosperity and environmental protection for our two countries. Thank you. 65 ------- U.S.-MEXICO ENVIRONMENTAL COOPERATION REMARKS BY DR. ALAN D. HECHT To WORLD AFFAIRS COUNCIL SAN DIEGO, CALIFORNIA DECEMBERS, 1996 Thank you, Lowell Blankfort, and ladies and gentleman. This year EPA and the World Affair Council (WAC) are cooperating on a series of seminar and public meetings on international activities. The kick-off event for this year-long series was given by EPA Deputy Administrator, Fred Hansen, at the annual meeting of the WAC in Washington, DC on November 15. Fred talked about EPA's emerging work in the area of environmental security. Today's topic is U.S.-Mexico environmental cooperation, and I am happy to share the program with rny colleague from SEMARNAP, Jose Luis Samaniego. Later this week in San Francisco, EPA Assistant Administrator William Nitze will speak about U.S.-Asia relations, with a special focus on China. This winter and next spring, EPA officials will discuss a number of other international issues at WAC chapters throughout the United States. In the days ahead, the U.S. and Mexico will issue a new 5 year border program-Border XXI. Border XXI is a joint effort of the EPA and the Departments of Interior and Health and Human Services in the United States and our counterpart agencies in Mexico. The Border Program builds on a long history of bilateral cooperation beginning with the 1983 La Paz Agreement. The mission of Border XXI is to achieve a clean environment, protect public health and natural resources and encourage sustainable development in the border area. These are not easy goals to achieve, But I believe we are in a better position today to achieve them, than an any time in the post. Over the past 5 years I have witnessed the significant changes in the environmental policies and programs in Mexico, especially related to the U.S.-Mexico Border. My perspective has been as both a U.S. negotiator for bilateral agreements and an EPA official involved with protecting the environment and health of U.S. citizens'living on the border. I think the past 5 years has been an historic period for many reasons, some of which I will mention in my discussion. More importantly, I think this 5 year period has resulted in tangible benefits to the people living on both sides of the border. Between 1991 and 1995, EPA has spent more than 50 million on border projects. I believe our new Program, with federal and state cooperation and support will address many of the serious environmental problems that plague this region. As background to the new border program, let me touch briefly on four significant events over the past 5 years: first, the original U.S. Mexico Border Plan, second, the negotiations of the NAFTA 66 ------- side agreements on environment, BECC and NADBank, and finally the publication of the new border program, called Border XXI. . The Integrated Border Environmental Plan was launched by President Bush and Salinas at their 1990 Summit meeting in Monterrey. The joint communique said: "Both Presidents instruct the authorities responsible for environmental affairs of their countries to prepare a comprehensive plan designed to periodically examine ways and means to reenforce border cooperation...." IBEP, published in 1992, was important in a number of ways: The Plan for the first time focused serious Congressional attention on Border needs. Despite enormous health and environmental problems along the U.S.-Mexico Border, this region had not been given high level attention in Washington. IBEP was the first fedeal attempt to develop a comprehensive environmental action plan for the border region. The Plan attempted to outline in a systematic way infrastructure and environment needs and joint responsibilities between the U.S.a nd Mexico along the 2000 mile border. The U.S.-Mexico border is a significant geopolitical, cultural and economic boundarya boundary between a developed and developing country. Yet the border is porous to culture and families, and of course , to pollution., Every year, 3000 million people cross the border in both directions. The Border is a major industrial center and region for rapid economic development. Negotiating the Border Plan was not easy. I am sure Mexico felt pressured by the U.S. on many issues. One hundred years of U.S.-Mexico history was being tested by this new negotiations. Although painful in getting final agreement, the end product was a good start in addressing border needs. The Plan did result in the training of many more Mexican inspectors, the strengthening of the enforcement of environmental laws, and the closing of many highly-polluting Mexican industrial facilities. IBEP began the groundwork for a hazardous waste tracking system and for additional water infrastructure projects along the border. The development of IBEP was intimately tied to negotiations of the NATFA which served to focus more public attention on border environmental issues and on Mexican environmental laws. EPA did an analysis of Mexican environmental laws and concluded that their environmental laws, regulations and standards were in many respects similar to those in the U.S. There were some aspects of the U.S. regulatory system which were not included in Mexican laws, such as Superfund and the regulations of underground storage tanks. And, in the Mexican system, public participation in the development of environmental laws was minimum. In the U.S. view, the weakness of the Mexican regime was in enforcement of the existing environmental laws. Reflecting these concerns for enforcement, President Clinton, as a candidate, announced conditional support for the NAFTA, dependent on negotiations of satisfactory side agreements on both environment and labor. I was EPA's Chief negotiator for the environmental side agreement. As you know from historic accounts, 1993 was a very difficult year negotiations were very intense and confrontational. The strongest point of contention was the introduction of "sanctions" in the environmental agreement, a penalty for persistent non-enforcement of environmental laws, which was strongly resisted by Mexico and Canada . 67 ------- Trade Ministers began the negotiations of the Side Agreements on labor and environment in February, 1993. In May, many headlines read that negotiations were deadlocked on the issue of sanctions. Many NGOs rallied against the NAFTA, although 6 of the larger NGOs did support it. The Mexican stock market went up and down with each bit of good and bad news. I fact, I was plotting the Mexican stock market daily and I could almost reach a point of predicting when it would go up or down. In fairness to Mexico, let me tell you that the U.S. had difficulties on many issues with Canada as well. By August, 1993, the trade negotiations wanted final agreement and they themselves resolved the question of how sanctions would be defined in the side agreements. The final negotiation session lasted for 13 straight day at the Madison Hotel in Washington in August, 1993. My Mexican counterpart in the negotiations was Santiago Onate, who later served as Chairman of the PRE party. I have the highest regard to Onate, who represented Mexico with great skill and great humor. Onate, a distinguished international lawyer, believed that the environmental side agreement was one of the best international agreements he had seen. The key success of the agreement was a balanced program of cooperation on environmental issues and-mechanism for enforcement of environmental laws, with sanctions in case of proven violations. We created a mechanism for the public to petition to each government in cases where citizens believed there was a "persistent pattern of non-enforcement of environmental laws." In the Agreement, we created a new Commission for Environmental Cooperation (CEC) with a secretariat with considerable independent authority to monitor and implement the Agreement. The Environmental Side Agreement strongly reenforced the principles of public participation, transparent of government and strong enforcement of environmental laws. The NAFTA was passed by the U.S. Congress in November 1993. In addition to the negotiations of the environmental side agreement, negotiations also were undertaken for the creation of the BECC and NADBank. These institutions were designed to complement the IBWC and to play a critical role in meeting infrastructure needs along the border. As you know, the BECC is responsible for certifying water infrastructure projects and the NADBank for facilitating their financing. While all of these negotiations were complete by the end of 1993, it took another year to negotiate the legal framework, operating guidelines and staffing of the CEC, BECC, NADBank. This second round of NAFTA negotiations proved especially difficult. We spent months and months constructing the rules and oeprating procdures for the CEC, BECC and NadBank. We were close to agreement in March 1994 when the trilateral environmental ministers were meeting in Vancouver- Carol Browner for EPA, Minister Rojas and Shelia Kopps. Also present was Julia Carabias, a member of the SEDESOL staff, a woman with a strong background in ecology and social activism. -It-was during this meeting, that we heard of the assassination of Colosio in Mexico. Donaldo Colosio had been the head of SEDESOL, before running for President of Mexico. Santiago Onate had become one of his chief advisors. There were now new Mexican negotiations and we were conducting business during a backdrop of serious and political and social changes in Mexico. This was a tragic day and I remember comforting Julia Carabias as she urgently prepared to return to Mexico. Months later, Julia would become the new President of the national Institute of Ecology and then later the Environment Minister for Mexico. 68 ------- By the end of 1994, the CEC, BECC and NAD.Bank were all established. EPA has also set up Border Offices in El Paso and San Diego to enhance communications and public outreach on border issues at local levels. 1. Mexican elections in late 1994 changed the political landscape. On the environment side, a new Ministry was created, SEMARNAP, and Julia Carabias was appointed the environmental Minister. Carabias launched a new set of environmental goals. These goals reflected many principles of the first IBEP, the NAFTA side agreement and the existing general ecological laws of Mexico. Her new goals include decentralization of federal authority, more openness and transparency in government decisions making, strengthening, the legal framework and compliance with laws, standards and programs, and emphasis on sustainable development. All of these events are background to Border XXI. In 1995, with the new in Mexico, we began negotiations of a new border program. . team in place Naturally, despite the hard work of the past 18 months several difficult issues remain. But we have worked hard in all areas to respond to public comments on major issues and to find some reasonable way to make progress in addressing border needs, including health and natural resource management. Border XXI will for the first time coordinate the work of EPA, HHS and DOI and corresponding Mexican agencies to systematically address enviornment, health and natural resources issues. . The Plan also integrates the work of the BECC and NADBANK in dealing with border infrastructure. I am pleased by the progress of the BECC. BECC has developed an adopted a set of criteria for project selection and today has certified 12 projects, 6 in each country, for a total of about $92 million. The NADBank also has approved funding for two of these projects. the success of developing Border XXI is a direct result of the positive cooperation that has characterized U.S.-Mexico environmental work. Over the past five years, there has been significant movement in Mexico toward more transparency and public involvement and greater compliance with environmental laws EPA is working very closely with both BECC and NADBank. We have given the BECC $10 Million to establish a technical assistance fund to help communities prepare proposals. For the San-Diego Tijuana area, I look to the Plan to address some of the major air, water and health problems in the San Diego and Tijuana area. I expect the International Water Treatment Plant in San Ysidro to start operations in March 1997. The Plant operating in union with the plant in Tijuana will process 42 million gallons of water/day. This is an area of rapid populations and economic growth. Population growth in Tijuana region is estimated at 7percent/year. Just last month the San Diego -Tijuana Economic Review reported a strong economic outlook for this region in 1997 with positive growth in retail, employment and exports. This report sees a 14% increase in permits for construction of new housing units in San Diego/Tijuana region All future growth her in San Diego and anywhere along the border must be in the context of sustainable development. The natural resources of the border region are already stressed. Better long range planning is essential to maintain strong economic base. I believe the success of developing Border XXI is a direct result of the positive cooperation that has characterized U.S.-Mexico environmental work. Over the past five years, there has been 69 ------- significant movement in Mexico toward more transparency and public involvement and greater compliance with environmental laws. Border XXI begins a new era of cooperation with Mexico. Our border region represents some of the poorest communities in the United States. From the viewpoint of environmental justice and equality, our communities deserve greater attention. At the Federal level, we will do what we can, but we are looking to closer Federal-State cooperation to address health, environment and natural resource issues. Next year, we will devote considerable attention to getting industry at the plant level to endorse the goals of Border XXI and make voluntary commitments to reduce border pollution through pollution prevention practices. I am looking at every Maquiladora facility along the border to operationalize pollution prevention practices at the plant level. I've shared with you four of my experiences in working with Mexico over a five year period. My experiences are also shared by Carlos Fuente in his new book A New Time For Mexico. He has a wonderful chapter in which he writes about US-Mexico relations. Much of our history is captured by the old adage attributed for President Porfirio Diaz. The original 1910 adage is: "Poor Mexico! - so far from God and so close to the U.S. During the debate on the NAFTA, many would have modified this expression to read: "Poor Mexico - Poor U.S. - so far from God and so close to each other. Fuentes has a better vision for the future, which I share: "Mexico and the U.S. - so close to each other and so close to God" Thank you. 70 ------- MINISTRY OF THE ENVIRONMENT, NATURAL RESOURCES AND FISHERIES. OFFICE OF INTERNATIONAL AFFAIRS PRESENTATION ON BORDER 21 FOR THE WORLD AFFAIRS COUNCIL JOSE Luis SAMANIEGO LEYVA SAN DIEGO, CALIFORNIA DECEMBERS, 1996 Good morning to all of you assembled at this event. I would like to start by thanking the World Affairs Council (WAC) for their kind invitation to attend this forum, Dr. Alan Hecht, my counterpart as national co-president of the working groups of Border 21, and all of you participating for your attention. Alan, Dr. Hecht, has already given you the background of how Border 21 came to be. Let me say a few words on the structure of the program and how it will work. Border 21 is built on the working groups that originated in the La Paz agreement of 1983, which established six groups to address the issues of air quality, water infrastructure, law enforcement cooperation, emergency responses, hazardous waste, and pollution prevention. Due to the new institutional framework and lessons learned in the implementation of the IBEP, three additional groups were created: human health, to introduce quality life objectives; natural resources, to deal with wildlife and natural protected areas; and environmental information, to systematize and make available the information generated by the working groups and other institutions operating at the border. The principles governing Border 21 are: public participation, descentralization and the strengthening of state and local environmental management, and coordination among all agencies participating, in an increasingly complex institutional setting. Since March 1995, environmental authorities of both the United States and Mexico, initiated negotiations to start a new phase of colaboration for environmental improvement at the border. Border 21 is the result of an extensive consultation process which started in June last year, with more than 10 public meetings, both national and binational, in which local and state authorities, academics, NGOs and representatives of private business participated to discuss the contents of the program. In regard to the participating institutions, at the level of federal environmental authorities, coordination between Semarnap and the EPA was the basis for the construction of the Program; moreover, the border projects from the Development Ministry and the Health Ministry in Mexico, 71 ------- together with their American counterparts, the Department of the Interior and the Department of Human Health, have been brought on board to work towards sustainable development. This program also takes into account the new institutional framework that stemmed from NAFTA in 1993, which implies close coordination among the sister institutions of the Border Environmental Cooperation Commission and the North American Development Bank and the Commission for Environmental Cooperation based in Montreal. To enhance public participation in designing the program, both countries sought the support of the Good Neighbour Environmental Board in the U.S. and the Advisory Council for Sustainable Development, Region 1, on the Mexican side which led to a more open relationship between the government and society by establishing clear participation channels in the design of the program and in its followup. Planning and Supervision Once public consultation was over in September I 996, both countries drafted a version that was offered for comment, and after a 45-day period, the final version was finally completed, just a few weeks ago. As Dr. Hecht pointed out, the printed version of Border 21 will be made available in the coming days, and in Mexico, President Zedillo will make its presentation in Nogales, Sonora on December 19, 1996, with the presence of American guests, emphasizing the importance that both countries place on improved environmental conditions at the border. Public participation, and its impact on the planning process has two components: on one hand, the government initiatives that make information accesible to society; and on the other, the way society organizes itself and takes advantage of such information to help guide the implementation process. I. In relation to the information resources that have been built into the program, a key element is a biannual report and a biannual public meeting that will also be reported. These two elements, combined, will allow for a more accurate followup and for the redefinition of goals, if neccessary, as environmental conditions change. 2. In order to reinforce contacts between the public and the authorities, a directory of co-chairs, key persons within the work groups, as well as of the regional or state offices of the participating institutions, has been included in the published version of the program. 3. The nine workgroups have been opened to the formation of mixed subgroups to address specific issues, such as the Dona Ana-El Paso Ciudad Juarez binational advisory group on air quality within the binational air group. Both countries will carefully follow the results of this initiative to assess whether this can be a useful model to address transboundary issues in a coordinated manner, such as those related to natural protected areas. 4. At least once a year the Good Neighbour Board and the Advisory Council Region 1 will meet to evaluate progress of Border 21. 5. In response to the demand from the public to gain access to border information, which is one of the most recurring needs throughout the consultation process, SEMARNAP will establish a number of public workstations along the border equipped with computers that have access to the Internet. EPA will similarly connect its servers to other environment servers and to Internet, as well, keeping an 800 line for its border offices with Border 21 information. These 72 ------- initiatives will be supported by a directory with environmental information sources generated by the Program's working groups. 6. As part of a strategic planning process, both governments agreed to elaborate indicators and quantitative goals that will allow for a more precise and meaningful evaluation of the Program ' s performance and then report on those results to the public. The objective of such indicators and goals is to measure the impact of government action on the environment and on quality of life at the border; not in terms of administrative goals, but in terms of real achievements. To design their respective sets of instruments, both governments will have to put together high level groups that can take the responsibility for the political content of such decisions. We have agreed to review the progress achieved in this field by February 1997, and it is our hope that this evaluation capacity also will help maintain the needed federal funding levels for each year. We are convinced that Border 21 will open new opportunities for private investment flows to this region. In the first place, the development of more efficient coordination mechanisms among the various agencies that define objectives and standards, and thus provide access to the funds, is essential to facilitate private investment associated with a variety of infrastructure and equipment medium-term planning scope required for the achievement Operating Plans of each of the working groups will also be Promotion Implementation Every year, depending on available funding, the nine working groups will develop an Annual Operating Plan, with a precise record of monetary resources, including the description of the projects and objectives to be attained. These operating plans will allow the groups to keep a tight link between the budgetary short-term reality and the of Border 21 goals. The annual available to the public. Let me make reference to the promotional aspect of Border 21. The program has to do mainly with government responsibilities, but it will only be partially successful if it does not count on a distinct and strong participation from the private sector. As Dr. Hecht has already mentioned, a commitment to voluntary pollution prevention goals from the border industry is absolutely necessary, as well as broader action from a wide span of social actors, in order to tackle air quality issues. We are convinced that Border 21 will open new opportunities for private investment flows to this region. In the first place, the development of more efficient coordination mechanisms among the various agencies that define objectives and standards, and thus provide access to the funds, is essential to facilitate private investment associated with a variety of infrastructure and equipment. One example is the infrastructure for water, where we expect the concentration of major funding. This will also make priorities clearer, and therefore will translate into a more straightforward message to investors. A second promotional aspect is the development of new instruments. In the case of hazardous wastes, the working group has strengthened its capacity to track the flows of hazardous waste across the border through the haztrack system. It also pinpoints losses in the system which indicate the need for remedial action. More importantly, the goal of creating what is called the vulnerability atlas for the border will accurately map the places with a potential to house infrastructure for the recycling, treatment and final disposal of hazardous wastes. 73 ------- Such an instrument will signify a 180 degree turn in the Mexican government's relation with private sector investors. For the first time, it will be possible beforehand, to know where investment can be applied without this gravitating on the investors costs, measured in time or money. With the atlas serving as a guiding instrument, the investment decision will be free of the heavy burden of lengthy prospecting, potentially subject to rejections by the government. An approach of national policy in territorial planning, the atlas for the central part of Mexico has recently been completed. In a similar manner, a strong effort toward the territorial planning of the border can promote other economic activities such as acuaculture or forest plantations. In the case of biodiversity, it is worth mentioning that for the first time, and recently reviewed in the legal reform previously referred to, there will be productive units with private investment in Mexico for wildlife species in general. With particular emphasis on species that have a hunting value, the land owners will be able to profit legally from those numbers raised over a censused baseline population. This means that a completely new economic sector would develop in places where only illegal poaching existed. We are also aiming at developing binational cooperation in the management of natural protected areas along the border. Mexico now has decreed four areas, and is soon to decree another. These are comprised of the Alto Colfo de California, where the Colorado River meets the Sea of Cortes; El Pinacate, which borders with the Organ Pipe National Monument; Canon de Santa Elena and Maderas del Carmen, both continuing into the Big Bend and Laguna Madre, which belongs to the same system as the Atascosa Lagoon on the side of the Gulf of Mexico. Along with their conservation purpose, these areas have a great potential for ecotourism. One of the objectives for the information working group involves keeping record of the development of these events so that the opportunities can be tracked by the rest of the groups, both governments and the general public. So, to round up, and reaffirming Dr. Hecht's message, we hope that the private sector, including maquiladoras and other firms, will help us reach the Program's objectives by means of voluntary goals for pollution reduction and control. Furthermore, we hope it will participate as an investing partner in the opportunities opened by Border 21, fulfilling a concept of cooperation brilliantly posed by writer Carlos Fuentes. "It is a unique situation: the border of encounter between the developed world and the developing world, between the United States and ... Mexico. And between two cultures susceptible to permeability, to useful exchanges, to inevitable integrations, but with the condition that they be ruled by a relation of mutual respect and a shared effort (of) northamericans toward Mexico and mexicans toward the United States, ...of mutual consent."' iCarlos Fuentes, Nuevo Tienlpo Mexicano, (Mexico: Aguilar, Altea, Taurus, Alfaguara, S.A. de C.V., 199, page 200-201. 74 ------- SPEECH BY WILLIAM A. NITZE TO THE WORLD AFFAIRS COUNCIL OF SAN FRANCISCO DECEMBERS, 1996 Thank you Vic (Grey) I am very pleased to be in San Francisco to speak to this distinguished group. This year, EPA and the World Affairs Council are collaborating on a series of seminars on international activities. Deputy Administrator Fred Hansen launched this program in November when he addressed the annual meeting of the WAC in Washington. This winter and spring, EPA staff will be speaking to WACs thoughout the United States. Your leadership in issues of international concern is very important. The United States cannot be a world leader without international engagement. The American public needs to understand the importance and value of this international engagement. I am reminded of the recent heading in the Financial Times that said, "It's the World, Stupid." EPA's international activities are vital to our national interests. In addition to our work advancing bilateral and regional cooperation on environmental issues of global concern, EPA plays a strong supporting role in implementing U.S. foreign policy and free trade objectives. Some of our important initiatives currently underway include: 4 Implementing the environmental provisions of the North American Free Trade Agreement. * Putting in place a 5-year program to address environmental and public health challenges facing communities on the US-Mexican border. In fact, today, Mexico and the United States jointly released our new border plan- Border XXI. This morning, President Zedillo participated in a ceremony in Juarez, Mexico, announcing this program. 4 Addressing critical air and water pollution problems jointly with Canada. * Providing technical and policy leadership in international negotiations on chemical safety and elimination of persistent organic pollutants. 4 Working with other nations to find economically and socially viable strategies to address global warming, sharing the burden of solving this critical problem. 4 Leading the development of a cleaner production strategy under the Asia Pacific Economic Cooperation group. I will be happy to discuss these and other initiatives further during the discussion period or break, but I would like to focus my remarks today on the environmental issues facing Asia, and what the U.S. is doing about them. 75 ------- The Pacific Rim, as you from the West Coast know first-hand, has been the most economically and socially dynamic region of the world during the post-war era. The achievements of Japan, China and other Asian nations in economic development and poverty reduction are unparalleled in human history. This dynamism will continue throughout the region, accompanied by the spread of democracy and the strengthening of regional cooperation. Asia is the region to watch leading up to the 21st century. The environmental challenges posed by this growth are, likewise, unparalleled. Dealing with the local, regional, and global dimensions of Asia's environmental problems is a tremendous challenge - and if done in the right way, a tremendous opportunity for US leadership, diplomatically, economically, and environmentally. We fieec/ to help Asia fashion a workable brand of sustainable development which takes advantage of new investment, requiring all new investment to meet tough, enforced environmental standards and even to go beyond that, avoiding the mistakes that we have made in the US and leapfrogging to highly resource efficient, clean technologies and processes The President's trip to the APEC Summit in Manila, his meeting with Chinese leaders and their agreement to exchange visits in the spring indicate growing political interest in Asia and especially China. I fully expect to see an expanded U.S.-China environment bilateral program by this spring. Asian governments could continue on a path of rapid development without regard to environmental sustainability - but they have chosen not to take that path. Asian governments are among the most aggressive in attempting to implement pledges made at the Earth Summit back in 1992; witness China's Agenda 21, the first national document of its kind, and President Jiang Zemin's address to a national environmental protection conference earlier this year. The Asian countries have come to realize that their economic dreams will not come to pass if their resource bases and their citizens' health are mortgaged. Asian leaders are reinforcing this message time and time again in recent APEC meetings. Obviously, national pledges are often at variance with what goes on at the local level, and financing, implementing and enforcing environmental protection measures remains a tremendous challenge. That is where the international community, including the U.S., fits in. We need to help Asia fashion a workable brand of sustainable development which takes advantage of new investment, requiring all new investment to meet tough, enforced environmental standards and even to go beyond that, avoiding the mistakes that we have made in the US and leapfrogging to highly resource efficient, clean technologies and processes. Achieving sustainable development in Asia requires a different strategy and a different set of tools than we have used in the past. What are the characteristics of Asia that play into this? Asia's population may increase from 2.8 billion to 4.3 billion by 2025 Urban populations in Asia tripled since 1960 and are expected to triple again by 2025 China alone will be the world's largest emitter of greenhouse gases by that time Asian economies are expected to grow an average of 7% per year throughout this century. 76 ------- Quite a challenge. Now, how can we turn this challenge to opportunity? What is in it for the U.S.? More than 40% of U.S. trade is with Asia More than 1/3 of our exports are destined for Asia U.S. exports to APEC economies increased 266 percent in the last decade APEC investment in the US has increased 40 percent since 1989 The Asian market for environmental technologies and services is estimated at $14.3 billion. (1994 data from Environmental Business International, Inc.) Let's use China as an example. Ambient air and water quality readings far exceed WHO standards in most cities. According to the Chinese government's own reports, lung cancer mortality rates for Beijing have increased 200 percent over the last 20 years, primarily due to air pollution, and in Shenyang birth defects are twice as frequent where irrigation water is severely polluted. The death rate from chronic obstructive pulmonary disease is five times higher than in the U.S. Reliance on coal for over 70 percent of its power needs creates not only respiratory illnesses and lung cancer, but also severe acid rain damage to crops and infrastructure. In large cities, air pollution from coal burning is quickly being surpassed by that from vehicle usage. The number of passenger vehicles in China is projected to rise from a current 1.8 million to 20 million by 2010. Water shortages are severe and worsened by extremely high loads of industrial and municipal waste into water sources used for industrial processes, crop irrigation, and drinking. While China has made impressive achievements in reducing energy intensity per unit GDP, Chinese industry remains highly inefficient. Its major industries consume some 30-90 percent more energy than similar industries in developed countries. 400,000 small industrial boilers consume about 300 million tons of coal per year, which could be reduced by about 90 million tons per year using current, efficient technology. The town and village enterprises which have fueled much of the recent economic growth use inexpensively-acquired, outmoded technologies which are by definition inefficient in terms of both energy and resource inputs. China has made a commitment to cleaning up a highly polluted river, the Huai River, by the year 2000. The Huai River provides drinking, irrigation, industrial process water to a population of 110 million. Last year, when we visited the river in the dry season, it was a brown trickle, with BOD levels equivalent to that of sewage. In the past year, Chinese authorities have closed down 20,000 small plants, primarily pulp and paper plants, along the river and required that all plants producing less than 5000 tons per year of pulp be closed by September 30 of this year, leaving only large, efficient plants which will be required to employ clean technology. This draconian method is not without social costs, but it exemplifies China's determination. It took the U.S. 20 years to clean up the Delaware River. Increasing the environmental sustainability of new private and public investment in Asia is the best step we can take to alleviate these conditions. Clean up, remediation will be required in some cases to improve public health and ecosystem vitality. But if we can find the formula to ensure that all new investment in Asia meets the test of environmental sustainability, we will be far along the path of achieving sustainable development in Asia. 77 ------- The U.S. must heed the call. We will not remain competitive unless we step up to the plate and offer innovative solutions to Asia's sustainable development challenges. Companies in Japan are beginning to put into practice zero emissions, closed-loop industrial processes. They are doing this not because some authority told them to - they are doing it to be one giant step ahead of the inevitably growing demand for such innovations. We must, as a nation, continue to invest in research and development for sustainable development solutions. US companies succeed with flying colors when given the tools, the regulatory flexibility, and the incentive to provide solutions. We must lay down the markers for the US private sector to stay in the lead in providing innovative solutions for Asia. What is the U.S. government's role in this picture? Worldwide, governmental aid flows are being dwarfed by private investment flows. That is glaringly so in the US, where per capita ODA is about at the bottom of the ranks of industrialized countries, and we have zero ODA going to China. So, we need to focus on "greasing the skids" with Asian governments to create the entrees for U.S. private sector involvement in sustainable industrial development. At EPA we have a very active Asia program, run on a shoestring. We have been working cooperatively with China since 1980, continuously through periods of diplomatic strife. In other parts of Asia we are active through the USAID-funded US-Asia Environmental Partnership program. Asian governments (and increasingly industries) are asking EPA for far more advice and involvement than we can provide. We also place a strong emphasis on partnerships with the private sector. In 1995 we were able to fund about $3.5 million worth of technology diffusion projects in China under the President's Environmental Technology Initiative. These projects leveraged about $10 million and have already begun to pay off handsomely in terms of increasing U.S. private sector involvement there. Unfortunately that program did not survive the 1996 Congress. We are about to launch a small technology seed fund program for China through the National Association of State Development Agencies, taking the model of their highly successful Asia tech fund managed through the US-Asia Environmental Partnership. The first round of proposals will be evaluated in January and we should then get seven to ten small- to medium-sized US companies engaged. In addition, we have introduced a proposal for a Cleaner Production Initiative which was endorsed by Asia Pacific Economic Cooperation (APEC) ministers in Manila this past July, and we are working hard now to develop an implementation strategy in concert with other APEC members. Through our efforts, EPA is trying to: Build capacity within Asian governments to develop, implement, and enforce sound and transparent environmental regulations, thus creating predictable, viable markets for environmental/clean production technologies. Demonstrate that technologies available on the US market can work under Asian country conditions, providing cost and benefit data so that Asian policy makers will drop their reluctance to sink limited capital into these technologies. (We need to do this without recommending particular technologies or companies, so it is difficult.) (We are beginning to work more closely with the MDBs to achieve this.) With the Department of Commerce, provide information to the US private sector about market opportunities for environmental technologies in Asia. 78 ------- But we need to do more. We simply do not have the resources to get a place at the table compared with our competitors, or to achieve the vision of sustainable development. The Clinton Administration, including the President's Council on Sustainable Development, is taking action at high levels to promote sustainable development with China, and that is a very important step. Here is what I believe needs to be done: 1. We need to rationalize our trade policy with China. Sanctions imposed after Tiananmen Square are not effective at achieving our human rights objectives and are simply tying the hands of U.S. businesses. 2. We need to achieve a minimal increase in bilateral assistance in order to effectively leverage and influence multilateral and private sector investment flows. TDA, OPIC, and AID should once again be allowed to operate in China so that we can promote the kinds of public-private partnerships and sustainable investments I have discussed. International roles of the technical agencies (EPA, DOE, etc.) should be recognized and mandated. 3. We need to work with Asian countries on a regional vision for sustainable development. We need to see APEC economies really take up the challenge, on the ground, of the Cleaner Production Initiative in addition to initiatives on sustainable cities and clean oceans, and we need to see APEC in the forefront of achieving free trade goals with environmental responsibility. We in the U.S. need to back up our ideas with resources. Let me now very briefly present another way to characterize US interests in Asia's environment, and that is from the standpoint of "environmental security." Environmental security is a relatively new term and is not yet fully defined, but for the moment we can define it as the minimization of environmental conditions or trends involving other countries that could over time have significant negative impacts on important national interests. The Clinton Administration has formally acknowledged the importance of transboundary impacts for US national security and has pledged to take a leadership role in protecting the global environment. Environmental security challenges in Asia are numerous. First, local and regional pollution problems increasingly threaten the health and livelihood of citizens of densely populated areas. Insufficient drinking water, lost fishery resources, and degraded agricultural land could conceivably create local unrest, instability and increased uncontrolled migration. Second, changing consumption patterns combined with Asia's growing population will result in sharply rising consumption of scarce resources - including grain, fishstocks, and oil - which could cause significant impacts on global markets before technological advances ease the strain. (China alone must feed 14 million additional mouths per year from extremely low, and shrinking, levels of arable land.) Finally, Asia's contribution to greenhouse gas emissions is of clear concern to the health of the global environment, and it is unquestionably in our national interest to ensure that all nations take steps to curb this threat - and to show them ways to do so. To see that local environmental issues are addressed before they become national or international security problems, the best approach is to give citizens a voice in managing their resources and protecting their children's health. In the U.S., we have a vibrant network of non-governmental environmental organizations which advocate on behalf of citizens. We also have transparent laws and regulations, regularized enforcement, and strong public information and education programs. In Asia, we are seeing grass- 79 ------- roots environmental movements taking hold, sometimes with governmental blessing, sometimes in an opposition role. These fledgling organizations are in the front lines of democracy building. Environmental issues are often the first concerns which impel citizens to work together to make their voices heard. It was a massive citizens' outcry which impelled the Chinese authorities to start cleaning up the Huai River. That is the kind of democracy building that our nation should support. Thank you 80 ------- SUSTAINABLE DEVELOPMENT EVERYTHING I LEARNED ABOUT SUSTAINABILITY I LEARNED IN HARRIS COUNTY, GEORGIA ALAN D. HECHT U.S. ENVIRONMENTAL PROTECTION AGENCY PRINCIPAL DEPUTY ASSISTANT ADMINISTRATOR, OFFICE OF INTERNATIONAL ACTIVITIES WASHINGTON DC 20460 SEPTEMBER 18,1997 Introduction I always welcome an opportunity to return to Georgia. I spent six very happy years here from 1970 to 1976, as a professor of geology at West Georgia College (now University). While at West Georgia, a young history professor and I organized West Georgia's first program on environmental studies. My history colleague was quite interested in the "future" and was an avid read of Alvin Tofler. I was interested in issues affecting the environment. Our interests crossed in a discussion with the educational director of Callaway Gardens about future urban development in Harris County. At that time, the Lower Chattahoochee Area Planning and Development Commission also was studying land use issues. We had the idea of conducting a land use study for Harris County that applied new 'systematic' methodologies of land use analysis. Like all good professors, I offered my class as the work force to conduct this study. The Callaway Foundation agreed to support it and the study was completed in 1973. In 1973, we foresaw the need for long-term planning in which current decisions did not comprise future resources. Back then, we expressed it differently than we would today. At the conclusion of the 1973 Harris County report, we wrote: "The most urgent recommendation in this report is that public officials take specific action to plan for the future. All of the warning signs are up: they indicate that a failure to engage in active planning for Harris Country will result in a the gradual extension of urban sprawl first from Columbus and later from Atlanta. If this is permitted to happen, in a few years we will look back with nostalgia and sadness on the opportunity we missed for creating the highest quality of life the Harris County citizens." 81 ------- The report said its recommendations were not a stand against development, but rather a proposal for land utilization that is compatible with its resources. The report placed considerable emphasis on public participation in planning the future of Harris County. The report also talked about a "guidance system" wherein government officials "can act and enforce regulations, incentive systems, codes, standards and permits systems that guide or direct development in a way consistent with the philosophy that has been adopted." Now, almost 25 years later, I appreciate some of the remarkable insights of this report. In simple terms, the report said: think about the future, seek public input on future land use strategies, recognize resource limitations and best uses, establish a 'systematic' philosophical management approach (today we might call this sustainable development), and develop a combination of incentives, standards and regulations to achieve these objectives. Not bad for 1973. Kudos to West Georgia College and the Callaway Foundation. In 1976, I went to Washington, and a few years later that young professor followed. Today you know him as the speaker of the House of Representatives, Newt Gingrich. One of us has done exceptionally well in Washington; but, I think there is still time for Newt to prove himself. Sustainable Development Today, we have a deeper understanding of sustainable development. The experience of the Rio Earth Summit in 1992, the preparation of Agenda 21, and countless meetings since then have all served to redefine, reshape, and add greater nuance to its meaning. I think of sustainable development as a 'systemic' process aimed at achieving a balance between current and future societal needs. In simple terms, this means it makes no sense to overfish a lake and thus destroy its productivity for the future. Similarly, it makes no sense to destroy entire forests or large ecosystems, thus denying their productivity in the future. Achieving balance between the needs of current and future generation also recognizes the need for strong public policy support for social investment, such as in education and training. It also recognizes the need of sound economic policies policies that account for the full cost of natural resource consumption as well as for developing and using efficient and clean industrial processes. In today's world, it makes no sense to manufacture any product in an inefficient and costly manner, especially when more efficient and approaches may be available. Sustainable development is a process, achievable only in stages and requiring a number of essential building blocks. These include: Public concern, awareness and education about environmental issues; Public participation in government decision-making; Market economic policies, combined with sound environmental policies and regulations which assure that development activities do not destroy the natural capital necessary to support continued life and economic activity; Corporate responsibility, and Political consensus and leadership; 82 ------- These building blocks are essential for both industrial and developing countries. Even the most industrialized countries, like the United States, have a difficult time with the concept of sustainable development and with its implementation. Implementation of this concept in developing countries is far more difficult, especially in the absence of the'building blocks mentioned above. U.S. Achievements Overall, quite candidly, the U.S. scores well in establishing these building blocks and in moving toward overall sustainable management philosophy. The U.S. public is probably one of the best informed in the world on environmental issues. For example, the U.S. Toxic Release Inventory, pioneered by EPA, is an important source of information on the releases of pollutants from industrial facilities in the United States. The Toxic Release Inventory (TRI) is a data base of emissions of toxic substances from over 22, 000 facilities in the United States that will this year include reports on 600 chemicals. The TRI has become a tool widely used in the United States by industry, governments, and environmental groups to monitor progress in reducing toxic emissions. Industrial countries have begun to duplicate this concept through the Pollution Release Toxic Inventory. The U.S. is also the most advanced country in the world in terms of including public participation in decision making. Through public hearings and community level involvement, environmental decision-making involves stakeholders and communities at all levels. Two important and successful EPA-led programs that rely heavily upon stakeholder and community involvement are its Brownfields and Community Based Environmental Protection Programs (CBEP). Brownfields are abandoned, idled, or under-used industrial and commercial properties where redevelopment is complicated by real or perceived environmental contamination. In the past, such places were ignored by developers who wished to stay clear of the stigma and legal barriers to redevelopment of these sites. As a result most "development" in the United States - fueled by enormous government subsidies for roads, highways, sewerage extensions and other infrastructure - was taking place in "greenfields." These sprawl development patterns have been stealing the life from U.S. urban centers. EPA's Brownfields program is an effort to promote partnerships between the federal government, states, communities and other stakeholders to remove the environmental and economic barriers confronting sustainable brownfields redevelopment. With leadership of an interdepartmental group of approximately 1 7 federal agencies, and $20,000,000 in pilot grants to over 115 U.S. communities (since 1995) including one to Atlanta, brownfields represents one of EPA's largest place-based opportunities to demonstrate this country's commitment to Agenda 21 and the principles of sustainable development. Under its Community Based Environmental Protection Programs, EPA works with citizens, businesses and local authorities to actively support efforts by local communities to address local environmental problems. EPA supports the local efforts through actions such as: flexible grants; environmental information, tools and monitoring systems; science and economics, and technical assistance and training. In the area of economic policy and regulations, the U.S. is also a world leader in developing market incentives and pollution prevention practices. It is the national policy of the United States that whenever feasible, pollution should be prevented or reduced at the source Pollution which cannot be prevented should be recycled in an environmentally safe manner. 83 ------- And the U.S. has also been innovative in developing new approach in working with industry to achieve full compliance with existing laws at minimum cost. EPA's Common Sense Initiative (CSI) is a program created to find "cleaner, cheaper, and smarter" approaches to environmental protection through a collaborative decision-making process. The CSI brings together representatives of industry, Federal, state and local governments, environmental groups, environmental justice and community groups, and labor to create holistic, industry-by-industry solutions to environmental problems. CSI does this by focusing on six industries - automobile manufacturing; - computers and electronics; - iron and steel; - metal finishing; - petroleum refining; - printing. CSI reflects the EPA's commitment to setting strong environmental standards while encouraging common sense, innovative, and flexibility in how they are met. EPA's Project XL is a program promoting flexibility in how environmental results are achieved. The XL program supports initiatives by responsible companies, state and local governments, communities, federal agencies and other regulated parties to demonstrate excellence and Leadership by reducing costs of environmental protection and management and achieving better results than required by existing regulations. Under XL, parties that can demonstrate that environmental strategies different from those initially required by regulations will achieve better results. Progress in all of these areas is slow, but noticeable. This Administration is pushing hard to set examples for sustainable development both domestically and internationally and is trying to foster a political consensus to make major policy changes. For example, through a number of executive orders, the President is promoting series of activities aimed at the "greening of government." One of these activities calls for the Federal government to reduce the release of toxic chemicals into the environment from Federal facilities by 50% by the year 2000. Sixteen Federal agencies, including the Department of Defense, have prepared pollution prevention strategies. Another example are the 'environmentally preferable' guidelines and policies regulating purchases and acquisitions of the U.S. Government. But despite these positive steps, we have a long way to go to achieve sustainable policies in all areas of our lives: - transportation; - land use; - and especially energy consumption. Major policy shifts toward influencing sustainable development require more than government regulation and executive orders. In this context, EPA is seeking an $1.3 billion in support of non-polluting transportation activities under the Intermodal Surface Transportation 84 ------- Efficiency Act (ISTEA) negotiations. This money provides grants for, among other things, traffic related projects such as car pools. Corporate Responsibility I would like to return to one element I referred to earlier as a critical building block for sustainable development - corporate responsibility. Corporate responsibility is important for two reasons. First, most innovation in industrial processes is generated within the industries themselves. Many in the private sector have taken the lead in developing eco-efficiency and pollution prevention practices as integral parts of industrial management. The term "industrial ecology" has become very popular as an approach toward achieving zero industrial waste. Many U.S. and multinational companies, largely driven by costs are looking for ways to produce their products with minimum or zero waste. The U.S. National Academy of Sciences, Department of Energy, EPA and other agencies have all supported industry in these activities. A recent report of the National Academy says: " Phrases such as 'sustainable development' will remain little more than slogans unless disciplines such as industrial ecology can provide operational concepts that improve the economy and the environment." The second reason why corporate responsibility is essential for sustainable development is that the private sector is becoming the dominate source of capital for development in emerging markets and developing countries. For example, in 1996, private sector investment in developing countries was estimated to be close to $225 billion - nearly five times more than the cumulative financial support of public multilateral lending institutions such as the World Bank. In order to encourage investment that is sustainable, bilateral and multilateral foreign assistance programs are incorporating sustainable development into their funding policies and guidelines. For the U.S., sustainable development is not a threat to our economic development - in fact quite the contrary. The same holds true for the developing world, where development or environmental protection should not be seen as mutually exclusive. Emerging market countries, like China and India have an opportunity to promote environmentally friendly investment through their own sustainable development policies. Such policies, when combined with a free market system and sound legal framework can go a long way toward improving economic return on investment and ensuring environmental protection. In the United States as well as around the world, sustainable development depends on political support at all levels. This includes the local, regional, national and international. Local communities are doing a great deal to deal with matters within their jurisdiction, but must learn to overcome the destructive consequences of inter-governmental and inter-regional competition. National policies must have bipartisan congressional support and acceptance of local/regional governing bodies. Far too often this bipartisan support is difficult to achieve. No change is easy. But this Administration has a commitment to pursue this new agenda. Climate change is a good example where the Administration is committed to positive actions. This summer, at the United Nations Special Session on Rio +5, held in New York City, President Clinton said: 85 ------- "In the U.S., in order to do our part, we have to first convince the American people and the Congress that the climate change problem is real and imminent." The President pledged to undertake this educational effort and asserted that "We will work with our people and we will bring to the Kyoto Conference a strong American commitment to realistic and binding limits that will significantly reduce our emissions of greenhouse gases." The Developing World If you accept the premise that sustainable development is the end result of a long social and political process, based in part on the building blocks I have identified, you can see why it has been so difficult to achieve, especially in the developing world. In many countries of the developing world, the essential building blocks are absent or not well developed. In particular, achieving public access to information, public participation in decision making, public release of information, and having a sound legal and enforcement regime are all crucial steps. For the U.S., sustainable development is not a threat to our economic development - in fact quite the contrary. The same holds true for the developing world, where development or environmental protection should not be seen as mutually exclusive. Sustainable development means sound and intelligent resource management; it is management-based on real public input to decision making; it is management with an historic perspective and a future vision; and it is management where social and human resources are as important as capital flow. There is no question in my mind that technical assistance and financial aid from the U.S. and other developed countries to developing countries is necessary to help support these fundamental building blocks. Technical and financial assistance, properly spent to foster free society, education, democratic processes and capacity building, will help developing countries move more rapidly into a sustainable 21st century. The Challenge Today, we have two challenges. The first is to take occasions like this to foster thinking and action on promoting sound economic and environmental policies for our local communities. Atlanta is one of the great cities of the world. Will it be that way five or ten years from now. Will the economy be strong and the air clean to breathe and water safe to drink and the land wisely managed? Officials at local, city and state governments will decide. But they must also recognize that short-term competition between governments at the local and national level is one of the great barriers toward a more sustainable societies. It will only be through more emphasis on regional cooperation that the complex challenges of economic growth, habitat protection, wise land use, energy consumption, or transportation policy can be sustainably addressed. Agenda 21 recognizes the important role of local governments: "Local authorities construct, operate and maintain economic, social and environmental infrastructure, oversee planning processes, establish local environmental policies and regulations, and...as the level of government closest to the people, they play a vital role in educating, mobilizing and responding to the public to promote sustainable development." 86 ------- The second challenge is global. The world really is interconnected in ways difficult to imagine just a generation ago. We now appreciate that what occurs in northwest Russia will invariably affect life in Alaska. Pollution from China is already detected in the Arctic circle and the fuel we are burning today, here in Atlanta, or Chicago, or Los Angeles, or anywhere else contributes to the overall warming of the global atmosphere. The National Security Strategy of the United States (1966) makes clear the extent of the future challenge. "The environmental consequences of ill-designed economic growth are clear. Environmental damage will ultimately block economic growth. Rapid urbanization is outstripping the ability of nations to provide jobs, education and other services to new citizens. The continuing poverty of a quarter of the world's people leads to hunger, malnutrition, economic migration and political unrest. Widespread illiteracy and lack of technical skills hinder employment opportunities and rive entire populations to support themselves on increasingly fragile and damaged resources bases. New diseases, such as AIDS, and other epidemics which can be spread through environmental degradation, threaten to overwhelm the health facilities of developing countries, disrupt societies and stop economy growth. Developing countries must address these realities with national sustainable development policies that offer viable alternatives. U.S. leadership is of the essence to facilitate this process. If such alternatives are not developed, the consequences for the planet's future will be grave indeed." In this regard, I take the view that the U.S. has a special obligation as the largest economy in the world and as a world leader to provide far more assistance that it currently does. I recognize that this view is not shared by the U.S. Congress. But I believe that U.S. assistance is crucial to foster a sustainable world. 87 ------- U.S. LEADERSHIP IN THE 21si CENTURY: A VIEW FROM THE EPA WILLIAM A NITZE ASSISTANT ADMINISTRATOR FOR INTERNATIONAL ACTIVITIES WORLD AFFAIRS COUNCIL OF BOSTON OCTOBER 21,1997 Welcome Thank you Joyce Shems. It's a pleasure and honor to be here as the last EPA speaker wrapping-up a year-long speaking series launched last November between EPA the World Affairs Council. I want to congratulate the World Affairs Council for taking the initiative to raise the level of public awareness of the seriousness of international environmental issues. Now, more than ever, the public needs to be well informed and engaged if the United States is to deal effectively with the very complex global environmental challenges that confront us all. Introduction Today, several major environmental issues dominate our newspapers and television and radio broadcast. Global warming and climate change are hotly debated issues. An international agreement to reduce greenhouse gases will be negotiated in Kyoto, Japan this December. Extensive fires in southeast Asia due to agricultural burning have resulted in unprecedented smog and air quality alerts throughout the region. U.S. assistance to Indonesia and Malaysia is underway. In Washington, the Congress and the President are debating the form of additional international trade agreements and how they should address environment and labor concerns. This is the so-called fast track debate. Finally, last June, the UN General Assembly reviewed progress since the Rio Earth Summit in 1992 on achieving sustainable development. Most observers of the UN special session agreed that progress since 1992 on sustainable development has been minimal. All of these situations present important environmental issues with significant potential impacts on all Americans. EPA is directly involved in all of them. Several other issues are also center stage, but their environmental aspects may not be so apparent. The President of China will visit Washington at the end of October for the first State visit since Tiennanmen Square. This is an extremely important meeting. Our relations with China are stressed because of human rights, nuclear proliferation and economic issues. President Jiang Zemin's visit is a major event for the environment as well. In the next decades China will become ------- the world's largest producer of greenhouse gases. Since China relies on coal for 75 percent of their energy, it is important to move Chinese energy policy toward clean coal production, more use of natural gas and alternate energy sources and greater efficiency in the production and use of all forms of energy. Meeting China's current and future energy needs is also a major investment opportunity for U.S. industries. Another important development with environmental implications is the increasing importance of private capital flows relative to foreign direct assistance. Over the past five years, there has been an unprecedented flow in private capital into emerging overseas markets. Foreign investment in developing countries and countries with economies in transition is growing in nearly all economic sectors, including energy and environmental services and technologies. China alone receives nearly $30 billion per year in foreign investment compared with approximately $3 billion in government-to-government assistance. Providing incentives for private investors tend to deploy environmentally friendly technologies has therefore become more important than foreign aid per se. To most of you, EPA is a domestic regulatory agency. It may come as a surprise that we have a large international role as well. Internationally, the EPA has three key responsibilities: Protecting Health and Safety of U.S. Citizens First, we are charged with protecting the health and safety of U.S. citizens from trans- boundary and global environmental threats^ To achieve this goal, EPA has the lead on U.S.-Mexico Border issues and has primary responsibility for implementing the environmental side agreement to the NAFTA. Along the U.S./Mexico Border, EPA has been working with its federal, state and local partners on both sides of the border to develop a five-year program called Border XXI to address environmental and public health challenges facing communities in the border region and to improve water-related infrastructure. We are proud of the progress we have made in improving environmental conditions along with the U.S./Mexico Border and in implementing the NAFTA Side Agreement. The Border Environment Cooperation Commission has already certified 17 water infrastructure projects on both sides of the border, a number of which have approved financing and several of which are under construction. Border XXI has already led to better enforcement coordination, sharing of information about hazardous materials crossing the border and measurement of public health impacts. The North American Commission on Environmental Cooperation, established under the side agreement, has implemented a broad range of environmental cooperation projects, successfully carried out its responsibility to respond to citizen complaints about failure to enforce environmental laws, and made an initial round of grants to support sustainable development at the community level. At the same time, EPA is actively involved in global issues such as climate change, protection of stratospheric zone and protection of world's oceans which have long-term impacts on the U.S. Since the climate issue was first debated, EPA has been one of the key agencies in undertaking technical studies, negotiating elements of the existing framework agreement and in cooperating with developing countries in seeking ways to reduce greenhouse gas emissions. EPA was also the lead agency in identifying problem of stratospheric ozone depletion and working with industries and governments to find substitutes to ozone-depleting chemicals. 89 ------- While EPA is predominately a domestic agency, nearly all of our statutory authorities provide for international engagement, especially where such engagement is necessary to protect health and safety of U.S. citizens. Providing Technical Assistance to and Cooperating with Foreign Countries Our second international role is providing assistance to and cooperating with foreign countries on domestic, trans-boundary and global issues. EPA provides technical assistance to many countries in different parts of the world. We are helping countries in Eastern Europe and the former Soviet Union develop regulatory systems that create a demand for investment in environmental goods and services. EPA legal and technical experts also are assisting developing countries to formulate appropriate environmental laws and regulations and are demonstrating clean technologies and pollution prevention methods. These activities create new opportunities for exports of U.S. environmental technologies. Over the past year, the important role of EPA in enhancing the export of U.S. technologies has been recognized by the Congress. The EPA Regional Office in Boston has been one of our strongest allies in promoting the export of U.S. services and technologies. We also have worked closely with the Environmental Business Council of New England. In Krakow, Poland, under the Krakow Air Monitoring Project, EPA cooperated with local Polish environmental experts in the identification and quantification of the major nearby sources of industrial, low-level residential and mobile emissions. An air monitoring network, containing continuous air monitoring and meteorological instruments, was purchased and installed through funding from the 1989 SEED Act. The network provides real-time assessments of the air quality and its impact on population health in Krakow. As a result of this enhanced monitoring, several major industries in the area were required to redesign their processes, install controls, or shut down. Moreover, the current Krakow air monitoring network is a design and implementation prototype for other cities in Poland and CEE. More recently, the focus of the air project in Krakow has expanded from the initial large, stationary sources of pollution to the more elusive non-point and mobile sources. Another example of how EPA's technical assistance can promote U.S. exports is our work in Thailand under the U.S.-Asia Environmental Partnership. Residents of the Thai city Mae Moh suffered from serious respiratory ailments after a coal-fired power plant was brought on line. The Thai government asked for our assistance in dealing with this problem. Working with our Thai counterparts over a period of nine months, EPA officials identified the major structural and environmental health problems affecting the region. EPA's assessment identified short and long- term as well as high and low-tech options for addressing these problems. Thailand was able to take immediate steps to prevent the acute exposures occurring during the winter inversions as well as steps to address chronic long-term exposures. As part of their response to EPA's Assessment, Thai authorities subsequently purchased nearly $200 million in monitoring and pollution control equipment from the United States. EPA also seeks to benefit from the experience of other countries in developing new approaches to environmental protection here in the U.S. A leading example of this reverse flow of environmental expertise is the work related to the restoration of abandoned urban sites called Brownfields. 90 ------- EPA's brownfields program is an effort to environmentally and economically revitalize the nation's 500,000 contaminated urban properties. EPA is working to form partnerships between 'model' foreign brownfields practitioners - exclusively OECD member countries such as Canada, the Netherlands, Germany and UK - and 'model' U.S. brownfields communities that are confronting similar challenges. The intent is for the U.S. brownfields communities to share, and ideally integrate, some of the 'systematic' and 'holistic' approaches commonly followed in their foreign counterparts. These approaches could include long-term regional land use planning, mixed-use urban zoning, transit-oriented design, urban growth zones, long-term investment in labor re-training, eco-system protection, and interconnected greenspaces. The choice of countries such as the Netherlands, Denmark, Germany and the United Kingdom is easy to understand. These countries possess dense populations, confined geographic areas, and industrial and environmental legacies which have forced them to come up with approaches that are just now being tested in the U.S. But it also is the combination of their unique environmental and social systems, such as Germany's technical training program for teenagers (which has already been implemented in the state of Wisconsin), or Dutch landuse and urban planning (already studied by brownfields practitioners in New York) that we want brownfields practitioners to study and absorb. It never ceases to amaze me that in these very densely populated countries, there are very seldom signs of sprawl and even fewer signs of urban blight so characteristic in cities within our country. This is a result of good planning and the merger of environmental policies with spatial development policies. In November, with support from EPA, U.S. Department of Housing and Urban Development, and the German Marshall Fund, approximately 20 brownfields practitioners from New York will travel to Germany to study the International Building Exhibition Project 'Emscher Park.' Founded in 1989 within the framework of an international building exhibition, Emscher Park is a 20-year regional plan created by the state government of North-Rhine Westphalia to environmentally and economically revitalize the Ruhr industrial region. Seventeen cities of the region (such as Duisburg, Essen, Bochum, Gladbeck, Gelsenkjrchen) are working together within the framework of a regional planning body to harmonize regional environmental, landuse, transportation, and economic development. Under five principal themes, over 100 projects have been undertaken to environmentally and economically redevelop the Ruhr: 1) The Emscher Landscape Park - formed to protect and expand 200 square kilometers of interconnected greenspace; 2) The Ecological Regeneration of the Emscher River System - developed to promote construction and management of new sewage and wastewater plants as well as remove concrete channels to permit the natural flow of surface waterbodies; 3) Working in the Park - a Trust Fund established to cleanup former industrial sites through the promotion of joint ventures between public and private investors; 4) Housing Construction and Integrated Urban Development - 26 housing projects to reuse vacant sites and create mixed-use urban areas accessible by foot or bike next to the high- tech parks. 91 ------- 5) New Uses for Industrial Buildings - the reconversion of 'industrial monuments' to preserve the social and cultural history of the region. Implementing U.S. Foreign Policy Third, EPA has an important role in implementing U.S. foreign policy. This role is easiest to understand in cases where pollution from other countries reached the U.S. or vice versa. The U.S. has an active environmental diplomacy with our neighbors Mexico and Canada. The acid rain issue, for example, remained a contentious issue in U.S.-Canada relations until the substantial reductions in S02 emissions mandated by the 1990 amendments to the Clean Air Act brought U.S. policy in line with Canada's. Another example of direct diplomacy to deal with transboundary impacts is our cooperation with other countries to limit the imports into the U.S. of CFCs banned under the Montreal Protocol. A second type of environmental diplomacy involves harmonization of chemical testing, registration, labeling and control regulations. EPA is almost continuously involved in discussions on these topics within UNEP, the OECD and other international fora and in bilateral contacts with our major trading partners. These discussions are critical to minimizing potential trade barriers and protecting public health and safety. The third type of environmental diplomacy is assisting other countries on environmental projects that may not directly effect the environmental or health conditions in the U.S., but serve broader U.S. foreign policy interests ranging from supporting nuclear disarmament to strengthening democratic institutions. It is this type of environmental diplomacy that is hardest to justify to the public and the Congress. Cooperation on the environment is often a means of bilateral exchange which in other areas is stalled or impeded. For many years in the waning days of the Soviet Union, the only productive U.S.-Russia bilateral exchange was on the environment. U.S. and China have had a bilateral cooperation on environmental issues since the mid 1970's. In many parts of the world and at many times, the State Department has looked to EPA for assistance. You may not know that under the Middle East Peace Accord, there is even an environmental working group and EPA is involved. Beyond strengthening bilateral relationships, our international work contributes to our national security by directly reducing military related environmental threats. Working in cooperation with the Department of Defense, the Department of Energy, and other agencies, we have developed an environmental security initiative that is initially focussed on addressing the environmental legacy of the cold war. The cornerstone of this initiative is our work in Northwest Russia. The former Soviet Union developed an extensive military industrial complex in the Russian Northwest centered in the Murmansk Oblast. This complex relied on nuclear energy for generation of electrical power (the Kola power plant), and the operation of nuclear powered icebreakers and the nuclear fleet of the North Navy, both of which are stationed in the Murmansk region. Unfortunately, the Soviet Union never developed the necessary radioactive waste management infrastructure to support these operations. They relied instead on ocean dumping of low and high level waste and or on otherwise unsafe ground land disposal in the North, thus creating a threat to the Arctic environment. 92 ------- With the end of the Cold War and the START II Treaty, the Russian Federation inherited the additional burden of handling the radioactive waste management problems associated with the decommissioning and dismantlement of large numbers of the North Navy nuclear submarines. The Russian Federation stopped dumping high level waste sea (which the Soviet Union had done in violation of the London Convention to which it was a signatory), but continued to dump the low- level liquid radioactive waste produced in the decommissioning of nuclear submarines. Although the dumping of low level waste has since been banned under the London Convention, Russia refused formally to adhere to the ban until it had alternate means for disposing of this waste. EPA technical experts, working closely with Norway, found a way out of this dilemma. EPA proposed that the only known existing plant in Russia capable of processing low-level liquid radioactive waste be upgraded and expanded to handle the large volumes of liquid waste produced in the submarine decommissioning process. Much to everyone's surprise, Russia liked the idea and a cooperative project was developed involving the U.S., Russia and Norway. This project has now become referred to as the Murmansk Project. It was the subject of a Summit statement by President's Clinton and Yeltsin. Vice-President Core and Russian Minister Chernomyrdin regularly receive reports on the status of the project within the framework of the Gore-Chernomyrdin Commission. The Murmansk project, now nearing completion, has led to a parallel project financed by the Japanese, to build a barge-mounted processing facility in the Russian Far East. Our trilateral cooperation on managing radioactive waste in Northwest Russia has been extended through the Arctic Military Cooperation Initiative (AMEC), which is led by the U.S., Norwegian and Russian defense ministers. An EPA designed project to develop a transportable interim storage cask for military fuel became the first trilateral project approved by AMEC. These casks, which will be manufactured in Russia, may also be used to store spent fuel from civilian reactors. We are hopeful that this project will become the first foundation of a broader trilateral initiative to improve radioactive waste management in Northwest Russia. A Vision of the 21st Century I am pleased by the contribution EPA has made in addressing international problems and achieving U.S. foreign policy objectives. Like many other technical agencies, EPA quietly works in the vineyard, crushing the grapes and preparing the wine from which diplomats drink. I have personally played both roles-as a diplomat negotiating international environmental agreements and as an EPA official responsible for turning agreements into real improvements on the ground. Nevertheless, I am worried about the future. Achieving sustainable growth in the decades ahead, and dealing with the environmental and social consequences of rapid industrialization in developing countries, will require expanded international cooperation. Yet neither the public nor the Congress appears willing to provide the resources necessary to make this cooperation a reality. It is our hope that by continuing our dialogue with concerned citizens such as yourselves, we can build support for the level of commitment required. One of the most exciting aspects of being on American in the post-Cold War era is the unparalleled opportunity the U.S. has to change the world for the better. This opportunity will not last forever and it would be a pity if we let is slip between our fingers. 93 ------- ------- ------- ------- |