C THE THE WHITE WHITE HOUSE HOUSE WASHINGTON WASH I NGTON May May 23 23 1998 1998 MEMORANDUM FOR T IDENT THE PRESIDENT FROM FROM TODDSTER'Njn TODD STER SUBJECT SUBJECT ClimateChange ChangeWeekly Weekly Report Report Climate Domestic Policy ■ d8 MH9 22PHK Ha c q itd vn CP CJOh ■PjtETTLhcs-TA t4 t-n 0--' ' '- v · f convened an interagency economic group this week to work up a proposal on how credit could be 3e awarded to companies that take action early This is a matter of considerable importance to ' many in business who worry that government will encourage them to act but then fail to provide adequate adequate emissions emissions credit credit Diplomatic Diplomatic fa Japan and the European Union agreed today to join efforts to convince the United States to sign the countries to to reduce reduce greenhouse greenhouse gas gas emissions emissions the Kyoto Kyoto Protocol Protocol and and to to encourage encourage developing developing countries The The agreement agreement came came after after two two days days of of annual annual high-level high-level consultations More than 35 countries have signed the Kyoto Protocol including Canada Australia Japan and all members of the EU We have said we will sign within the one-year signing period March 1998 - March 1999 when most appropriate in light of the overall diplomatic situation Congressional This Defense Authorization Authorization bill bill that that would would prevent prevent This week week the the House House passed passed an an amendment amendment to to the the Defense regulations issued under the Kyoto Protocol from restricting operations of the U S military The Wendment endment is broadly consistent with policy guidance you approved on this topic several months ago We did not oppose the amendment although we have technical concerns with the provision that we will work address as the bill proceeds to the Senate and conference If et Ja et Yell en again testified about the Administration's assessment of the economic impact of the Yellen - 1ry to Kyoto Protocol Cong McIntosh R-IN a vocal opponent of Kyoto quizzed Janet extensively w and chided her for not producing more documents in support of our position Cong Dennis y KucmichjD-OH cinich D-OH was an equally vocal defender of our policies and processes We also continued this week pushing for our climate change - related budget initiatives ' Outreach We ental group at the AFL-CIO We had had aa useful useful meeting on Thursday with a joint labor environm labor environmental The two communities have tended to come at this issue from The — the enviros opposite directions -have have argued that our approach should be more aggressive and labor has argued that our approach ·s too aggressive If they can find some common ground that would be all to the good At our is meeting labor made it clear as they had in previous meetings that they want a chance to articipate articipate with respect to our industry consultations We have assured labor that we will consult w1 em about our industry industiy talks and that we will encourage industries to include labor in formulati heir plans for cutting greenhouse gases formulatihs4 ir cc cc ---------- Vice Vice President President Erskine Erskine Bowles John John Podesta Ron Ron Klain Klain Katie Katie McGinty Gene Gene Sperling Sperling Jim Jim Steinberg Janet en Janet Yell Yellen - r I H