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P. 20
C. TODAY
The First Stop
on the Road
to Glasgow is
Spelled N-D-C
By DAN BYERS, Vice President, Policy,
U.S. Chamber Global Energy Institute
Washington, DC is famous for its alphabet that will detail post-2020 climate actions in their
soup of government acronyms. Some of country. To date, 44 individual countries and the
them have become quite famous--every gift shop 27-country European Union bloc have submitted
in the city sells “FBI” and “CIA” shirts and hats. revised NDCs, with another 100+ expected to do
But in the coming weeks, there’s a new one that is so prior to the 26th annual meeting of the United
going to permeate discussion inside the Beltway: Nations Framework Convention on Climate
NDC, or Nationally Determined Contribution. Change Conference of the Parties—or UNFCCC
While nobody will be selling “NDC” t-shirts, it will COP-26—in Glasgow, Scotland, later this year.
quickly become an important topic for American
businesses. Let’s take a look at what it means and The Biden Administration has placed these efforts
why it matters so much. on a fast track, with an initial NDC announcement
expected next month. Importantly, the President’s
On January 27, President Biden issued a Executive Order specifies that U.S. NDC
comprehensive Executive Order 14008, titled development should be accompanied by outreach to
Tackling the Climate Crisis at Home and domestic stakeholders. The Chamber applauded the
Abroad, which, among other things, directs his President’s decision to rejoin Paris, ensuring that
Administration to develop a revised NDC for the U.S. has a seat at the table for these important
submission under the Paris Agreement, and to discussions. But we think it is vitally important
do so prior to the U.S.-hosted Climate Leaders’ that the Administration keep its commitment to
Summit planned for April 22nd of this year. engage in meaningful outreach with stakeholders,
and there is no bigger stakeholder than the
Unlike an earlier climate treaty, the 1997 Kyoto businesses that drive our economy. Therefore, in
Protocol, the Paris Agreement is founded on anticipation of forthcoming engagement with the
a “bottoms-up” approach in which individual Administration, we have recently developed a set
countries are empowered to choose the emissions of principles and priorities aimed at informing the
mitigation path that they find most appropriate Administration’s NDC effort.
based on their unique circumstances. Nationally
determined contributions form the heart of this
bottoms-up structure. Upon establishment of the
Agreement in 2015, each of the more than 190
participating countries submitted their initial NDC
(for example, President Obama committed the U.S.
to reduce economy-wide greenhouse gas emissions
by 26-28 percent below 2005 levels by 2025).
Under Paris, countries are expected to submit
updated commitments every five years. While the
COVD-19 pandemic delayed action in 2020, most
of the world is now working to craft renewed NDCs
17 AMCHAM SOUTH CHINA
The First Stop
on the Road
to Glasgow is
Spelled N-D-C
By DAN BYERS, Vice President, Policy,
U.S. Chamber Global Energy Institute
Washington, DC is famous for its alphabet that will detail post-2020 climate actions in their
soup of government acronyms. Some of country. To date, 44 individual countries and the
them have become quite famous--every gift shop 27-country European Union bloc have submitted
in the city sells “FBI” and “CIA” shirts and hats. revised NDCs, with another 100+ expected to do
But in the coming weeks, there’s a new one that is so prior to the 26th annual meeting of the United
going to permeate discussion inside the Beltway: Nations Framework Convention on Climate
NDC, or Nationally Determined Contribution. Change Conference of the Parties—or UNFCCC
While nobody will be selling “NDC” t-shirts, it will COP-26—in Glasgow, Scotland, later this year.
quickly become an important topic for American
businesses. Let’s take a look at what it means and The Biden Administration has placed these efforts
why it matters so much. on a fast track, with an initial NDC announcement
expected next month. Importantly, the President’s
On January 27, President Biden issued a Executive Order specifies that U.S. NDC
comprehensive Executive Order 14008, titled development should be accompanied by outreach to
Tackling the Climate Crisis at Home and domestic stakeholders. The Chamber applauded the
Abroad, which, among other things, directs his President’s decision to rejoin Paris, ensuring that
Administration to develop a revised NDC for the U.S. has a seat at the table for these important
submission under the Paris Agreement, and to discussions. But we think it is vitally important
do so prior to the U.S.-hosted Climate Leaders’ that the Administration keep its commitment to
Summit planned for April 22nd of this year. engage in meaningful outreach with stakeholders,
and there is no bigger stakeholder than the
Unlike an earlier climate treaty, the 1997 Kyoto businesses that drive our economy. Therefore, in
Protocol, the Paris Agreement is founded on anticipation of forthcoming engagement with the
a “bottoms-up” approach in which individual Administration, we have recently developed a set
countries are empowered to choose the emissions of principles and priorities aimed at informing the
mitigation path that they find most appropriate Administration’s NDC effort.
based on their unique circumstances. Nationally
determined contributions form the heart of this
bottoms-up structure. Upon establishment of the
Agreement in 2015, each of the more than 190
participating countries submitted their initial NDC
(for example, President Obama committed the U.S.
to reduce economy-wide greenhouse gas emissions
by 26-28 percent below 2005 levels by 2025).
Under Paris, countries are expected to submit
updated commitments every five years. While the
COVD-19 pandemic delayed action in 2020, most
of the world is now working to craft renewed NDCs
17 AMCHAM SOUTH CHINA
