Opportunities and Challenges in Forestry and Agriculture Climate Change Mitigation Jean-Mari Peltier Counselor to the Administrator on Agriculture Policy U.S. Environmental Protection Agency at Forestry and Agriculture Greenhouse Gas Modeling Forum 2, Shepardstown, WV, Oct. 9-11, 2002

The Administration’s New Approach to Climate Change The President’s plan commits US to slow, stop, and then, as science justifies, reverse GHG emissions growth. Plan commits US to cut GHG emissions per Gross Domestic Product: by 18% over next 10 years, by 2012. President’s goal would lower emissions: from 183 million tonnes of carbon equivalent per million $ of GDP in 2002, to 151 MT/million $ in 2012. Review progress in 2012.

The Administration’s New Approach: 2 President also announced Global Climate Change Initiatives: Increase of $700 million in FY03 budget for global climate change activities including: $4.6 billion commitment to tax credits for renewable energy sources. Expanded R&D of climate-related science and technology enhanced support for climate observation and mitigation in developing world, Incentives for sequestration.

Sequestration Contributes to the President’s Climate Policy Goal Farm Bill of 2002 includes: enhanced EQIP, pilot programs that may include sequestration projects, increased Conservation Reserve Program set-aside acreage (now capped at 40 million acres, up from 34 million now). The President directed Secretary of Energy (in consultation w/ Commerce, Agriculture, and EPA) to propose improvements to current voluntary greenhouse gas emissions reduction registry program (titled “1605b”). 1605b registry allows companies to voluntarily report reductions. Interagency process has started to hold public hearings & revise the program by mid-2003, to enhance its credibility.

EPA Forest and Agriculture Activities in Support of U. S EPA Forest and Agriculture Activities in Support of U.S. Climate Change Policy Consultation on Farm Bill process Compiles official U.S. GHG inventory for all sectors Cooperation w/ USDA on agriculture and forest emissions EPA voluntary programs: methane reduction, Climate Leaders: private sector companies, launched in 2002

EPA Forest and Agriculture Activities: part 2 Mitigation analysis of energy, non-CO2 gases, and ag and forests: modeling project-level, US, and international options, costs, and policies. Improve handling of sequestration options in major integrated assessment models for policy analysis

The Challenge for EPA and the Sequestration Community: How Can We Identify and Mobilize Cost-Effective, Credible Sequestration Activities in the U.S. and Internationally? 1) Assemble the necessary data at the appropriate scales: national-level & project-level. 2) Identify promising sequestration options and regions: find the best opportunities, and see if we can target activities to them.

The Challenge: part 2 3) Assess co-benefits and co-effects of options: How do they affect: farmers? Air quality? Water quality? Wildlife? 4) Assess methods to address the key technical issues re sequestration: additionality, baseline setting, leakage, monitoring, and duration of the greenhouse benefits 5) Assess policy and program options to deliver the best options.

Summary This Forum can contribute to evaluating sequestration options. Cooperation between EPA and USDA in convening this Forum is yet another demonstration of our commitment to work toward enhancing our management of croplands and forests in the U.S. EPA committed to deepening this cooperation.