[Congressional Record Volume 146, Number 100 (Thursday, July 27, 2000)]
[Senate]
[Pages S7896-S7897]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BROWNBACK (for himself, Mr. Daschle, Mr. DeWine, Mr. 
        Kerrey, Mr. Grassley, Mr. Byrd, and Mr. Lugar):
  S. 2982. A bill to enhance international conservation, to promote the 
role of carbon sequestration as a means of slowing the building of 
greenhouse gases in the atmosphere, and to reward and encourage 
voluntary, pro-active environmental efforts on the issue of global 
climate change; to the Committee on Finance.


            International Carbon Sequestration Incentive Act

  Mr. BROWNBACK. Mr. President, I rise today to introduce the 
International Carbon Sequestration Incentive Act. I am joined by 
Senators Daschle, DeWine, Bob Kerrey, Grassley and Byrd.
  Environmental issues have traditionally been filled with 
controversy--pitting beneficial environmental measures against hard-
working small business and state interests. It is unfortunate that the 
atmosphere surrounding environmental debate is filled with accusations 
of blame rather than basic problem-solving.
  From listening to the public discourse concerning environmental 
issues, one would thing there is no other choice but to handicap our 
booming economy in order to have a clean environment, despite the fact 
that pollution is often, unfortunately, an unavoidable consequence of 
meeting public needs.
  Mr. President, I stand here today to illustrate that there is a 
better way to deal with important environmental concerns. There is a 
way to encourage the best rather than expecting the worst. There is a 
way to create environmental incentives and environmental markets, 
rather than only environmental regulations. There is a way to chip away 
at environmental challenges, rather than demagoging an ``all or 
nothing'' stance.
  This bill--the International Carbon Sequestration Incentive Act, 
takes a pro-active, incentive-driven approach to one of the most 
difficult environmental issues of our time--global climate change.
  Specifically, this bill provides investment tax credits for groups 
who invest in international carbon sequestration projects--including 
investments which prevent rainforest destruction and projects which 
reforest abandoned native forest areas. These projects will reduce the 
amount of carbon dioxide emitted into the air--helping to offset 
climate change since carbon dioxide is one of the main greenhouse 
gases.
  This bill achieves these environmental benefits by promoting carbon 
sequestration--the process of converting carbon dioxide in the 
atmosphere into carbon which is stored in plants, trees and soils.
  Under this bill, eligible projects can receive funding at a rate of 
$2.50 per verified ton of carbon stored or sequestered--up to 50% of 
the total project cost. The minimum length of these projects is 30 
years and the Implementing Panel can only approve $200 million in tax 
credits each year.
  Why do this? Carbon dioxide is a greenhouse gas believed to 
contribute to global warming. While there is debate over the role in 
which human activity plays in speeding up the warming process, there is 
broad consensus that there are increased carbon levels in the 
atmosphere today.
  Until now, the only real approach seriously considered to address 
climate change was an international treaty which calls for emission 
limits on carbon dioxide--which would mean limiting the amount that 
comes from your car, your business and your farm. This treaty--the 
Kyoto treaty, also favored exempting developing nations from emission 
limits--putting the U.S. economy at a distinct disadvantage. 
Approaching the issue of climate change in this fashion would be very 
costly and would not respond to the global nature of this problem.
  Instead, my approach encourages offsetting greenhouse gases through 
improved land management and conservation--and by engaging developing 
nations rather than cutting them out of the process.
  In addition to reducing greenhouse gas emissions, sponsored projects 
under this bill will also help to preserve the irreplaceable 
biodiversity that flourishes in the Earth's tropical rain forests and 
other sensitive eco-systems. In addition to diverse plant life, these 
projects will be protecting countless endangered and rare species.
  This bill requires investors to work closely with foreign 
governments, non-governmental organizations and indigenous peoples to 
find the capital necessary to set aside some of the last great 
resources of the planet. Rain forests have been called the lungs of the 
Earth--helping to filter out pollution and provide sanctuary for 
numerous pharmaceutical finds which may one day cure many of our human 
diseases.
  This bill rewards the partnership and pro-active vision of companies 
that want to be part of the solution to climate change. We are lucky in 
the fact that private industry is already looking at this issue and 
working to find a way to contribute. An example of what this bill would 
promote can be seen by looking at the Noel Kempff Mercado National Park 
in Bolivia.
  As you can see by looking at these photos [DISPLAY FOREST SCENES], 
Noel Kempff is a beautiful, biodiverse part of the world. This park 
spans nearly 4 million acres in Bolivia, hosts several hundred species 
of rare and endangered wildlife--including 130 species of mammals, 620 
species of birds and 70 species of reptiles--not to mention 110 
different species of orchids and grasses.

[[Page S7897]]

  This park was in direct danger of deforestation. The land would have 
been cleared and eventually turned into large commercial farming 
operations. The loss of this park would have led to carbon dioxide 
emissions of between 25-36 million tons as well as increased commercial 
agricultural competition.
  Instead, the Bolivian government came together with The Nature 
Conservancy, American Electric Power and other investors to preserve 
the park and conduct extensive verification of the carbon being stored 
in trees and soils of the now protected area.
  Companies like American Electric Power, BP Amoco and PacifiCorp want 
to invest in projects like Noel Kempff because they want to promote the 
role of carbon sequestration as a means to combat climate change. These 
companies have taken a big step in contributing to the solution--think 
how much more good they, and other companies, could do if there were 
incentives to encourage this activity.
  In the U.S., we are lucky enough to have programs like the 
Conservation Reserve Program and federal parks--which help preserve 
some of the natural resources of this great nation. Unfortunately, 
developing countries do not have access to the kind of capital it takes 
to make similar investments in their own countries. It is therefore, a 
worthy investment in the world environment--since climate change is a 
global problem, to chip away at this problem by doing what we know 
helps reduce pollution and greenhouse gases: planting and preserving 
trees.
  This bill is designed to encourage more participation in projects 
like the Noel Kempff Park. By using limited and very targeted tax 
credits, we have an opportunity as a nation--to take a leadership role 
on climate change without crushing our own economy. This bill also 
furthers the goal of including developing countries in the climate 
change issue--since any agreement to reduce greenhouse gases must 
ultimately include these areas which will become the largest emitters.
  Mr. President, I do not pretend that this bill will resolve the 
climate change issue. That is not my intent. Rather, this bill takes 
the view that where we do agree that good can be achieved--we should 
move forward. It is my hope that this bill will contribute to the 
solution on climate change and help to re-shape the way we view 
environmental problems.
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