Mr Jaume Matas, Minister for Environment, Spanish Presidency of the EU 
	
	
 Mrs Margot Wallstrom, Commissioner for Environment, European Commission 
	
	
 It is clear that the proposals for US action on climate change are domestic. But the EU is concerned that they will not even be sufficient to reduce US emissions. The "intensity target" proposed allows for further increases in absolute emissions and is not sufficient to effectively fight climate change. On the contrary, the Kyoto Protocol requires most industrialised countries to achieve absolute emission reductions, while they still foresee to have growing economies. 
	
	
 The Climate Change Convention of 1992, to which the US is a Party, requires industrialised countries to stabilise their greenhouse gas emissions at 1990 levels. Achieving this would only be a first step towards stabilising global greenhouse gas concentrations at a level that would prevent dangerous climate change. This is the ultimate objective of the Convention to which the US has subscribed. However, the new plan does not lead to such a stabilisation, but instead will lead to the increase of absolute emission levels. 
	
	
 Over the past years, greenhouse gas emissions intensity in relation to GDP has been falling in the US. The Bush plan is based on a prolongation of this trend thereby in effect foreseeing little more than continuation on a "business-as-usual" path. Current emission projections for the US indicate an increase of 39% above 1990 levels in 2012. While the intensity improvements may reduce this to around 33%, this is still a very substantial increase in absolute emissions. 
	
	
 The EU is concerned about the purely voluntary nature of the actions proposed. Furthermore, a review of the effectiveness of the measures will not take place before 2012. It is striking that the approach which is considered beneficial for other air pollutants, namely to implement cap-and-trade programmes, is not extended to CO2 emissions from the power sector. The EU is of the opinion that a cap-and-trade system is a cost-effective measure to reduce emissions which combines a guaranteed environmental result with the flexibility to reduce emissions where it is least costly. By 2005, the EU intends to implement a cap-and-trade system covering 46% of all CO2 emissions in 2010. 
	
	
 The EU welcomes the fact that the Bush administration has now completed its policy review and has put forward what the US intends to do in terms of domestic climate change policy. The proposals by President Bush may represent a first step in the right direction, where also economic operators in the US are asked to contribute to emission control. However, mandatory monitoring and reporting of emissions at company level would be necessary to adequately assess whether the proposals by President Bush represent an effort comparable to the ones under the Kyoto Protocol. 
	
	
 The EU is determined to proceed with ratification of the Kyoto Protocol by June 2002 in view of entry into force by the time of the World Summit on Sustainable Development. The EU will continue on its current path of emission reduction and is optimistic that other major players, notably Japan and Russia, will join us in these efforts. 
	
	
 The EU will further examine and assess the proposals by President Bush in the weeks to come and is willing to continue the dialogue with the US on this basis.