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Press Gaggle by Dana Perino, Dan Price, Assistant to the President for
International Economic Affairs and Deputy National Security Advisor, and
Jim Connaughton, Chairman of the Council on Environmental Quality
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For Immediate Release Office of the Press Secretary July 8, 2008

Press Gaggle by Dana Perino, Dan Price, Assistant to the President for
International Economic Affairs and Deputy National Security Advisor, and
Jim Connaughton, Chairman of the Council on Environmental Quality Windsor
Hotel Toya Resort and Spa Toyako, Japan

˙˙Press Briefings


2:34 P.M. (Local)

MS. PERINO: We have limited time, but we wanted to make sure that we got
down here to have Dan Price, who's been, obviously, the President's sherpa,
to give you a readout of today's meetings. So far -- he has to get back to
his sherpa duties at 3:00 p.m., so he'll run through this quickly. He'll
take two or three questions, and then if you have additional ones on
climate change we have Jim Connaughton, who's also familiar with the
material. So we'll let Dan give you a readout.

MR. PRICE: Good afternoon. We had two very good sessions today thus far,
the first one on world economy -- that was this morning; and then we had a
lunch discussion on environment and climate change. And I'd like to go
through the highlights of those two. The relevant portions of the text are
out on these two issues. I don't know if you've had a chance to review them
yet, but the G8 declaration on world economy and on environment and climate
change are now released and available.

Let me start with world economy. There were three broad topics, three main
topics of discussion: First, while the economy is generally positive,
leaders are concerned about the rise in food and oil prices. We need to
take concrete steps to address those, and in particular, on oil, we need to
take concrete steps to address supply and demand.

Third key message was on pushing back on protectionism and the need to
advance trade and investment liberalization. There was discussion on how to
enhance energy security both dealing with the current oil situation, but
also the need to move economies from dependence on hydrocarbons. A number
of leaders stressed the importance of nuclear energy. There was broad
agreement that greater transparency in markets, oil markets, would lead to
a better functioning of those energy markets and, hence, better balance
between demand and supply.

The leaders agreed to establish and hold an energy forum to focus on energy
efficiency and new technologies. Leaders reiterated their commitment to the
St. Petersburg energy security principles and welcomed national reports on
implementation; use of principles concerned; pledges to maintain open,
transparent, efficient and competitive markets for energy transparency;
rule of law; stable and effective legal and regulatory frameworks.

Let me shift to Doha. There was wide recognition and support for the
importance of the conclusion of a balanced Doha Round that achieves
positive and tangible results in agriculture, industrial goods and
services. All of the countries in the room shared the view this was not
something developed countries could alone do, but that a successful Doha
Round would depend on the major emerging economies also doing their part to
open their markets. Given the vast amount of trade that is among developing
countries, for the Doha Round to fulfill its mission of lifting millions
out of poverty, we will need market openings and trade liberalization in
the major emerging markets, as well.

There was broad recognition of the importance of international investment
flows, and ensuring nondiscriminatory treatment, and there is also in the
declaration an elaboration of certain core principles on investment
liberalization and protection.

Let me move on to environment and climate change: an excellent discussion
and an excellent declaration. There is significant progress in this G8
declaration in four very important respects. First, in years past, it is
fair to say that the G8 was focused on what the G8 alone would do to
address energy security and emissions, and this declaration represents a
significant advance on prior discussions in these two ways: First there was
agreement among the G8 that they should seek to share with the other
parties to the U.N. Convention a vision of a low-carbon society, and with
all the parties to the U.N. Convention, consider and adopt a goal of
reducing emissions by at least 50 percent by 2050.

Second, there was recognition by the G8 -- and it's reflected in the
declaration -- that all major economies, developed and developing, must
commit to meaningful midterm mitigation actions. And the declaration
reflects the view of the G8 leaders that those actions, those meaningful
mitigation actions, need to be bound in a new international agreement.

The G8 leaders reinforced these points by stating that achieving the
ultimate objective of the Convention, on stabilizing greenhouse gases, will
only be possible "through common determination" of all major economies. The
declaration points out that this global challenge requires a global
response that includes contributions from all major economies. There's also
a strong statement on the importance of working together on adaptation, as
well as mitigation.

The second important point of progress, in years past the issue of
emissions reduction and technology development were often looked at
separately. They were compartmentalized. We had, okay, let's talk about
emission reductions, over here, and let's talk about technology development
over there, as if these were two separate or unrelated efforts. Today the
G8 leaders stated clearly that progress towards ambitious emission
reduction goals can only be achieved through accelerated adoption of
existing technologies, as well as stronger, more urgent commitments by G8
countries to develop and deploy a new generation of technologies.

In that respect, at the President's urging, the leaders collectively have
committed to annually dedicate $10 billion to technology research and
development, and the U.S. will be investing nearly half that amount,
covering a quite broad range of technology needs and opportunities. The G8,
as reflected in this declaration, is also embarking on the most ambitious
energy efficiency agenda to date, seeking to implement in each country the
25 International Energy Agency recommendations, as well as launching an
international partnership for energy efficiency cooperation.

Third, in years past there have been general discussions about helping
developing countries with new technologies. Today, again at the President's
urging, many of the G8 leaders have specifically committed to support the
Clean Technology Fund. And we have commitments of slightly north of $5
billion. This fund will actually lower the cost of financing clean energy
projects in developing countries, and help potentially leverage even
greater amounts of public and private sources of financing.

Linked to the issue of deployment of technologies of course is the
elimination of trade barriers. And in this regard, the G8 leaders have made
their strongest statement to date about the importance and urgency of
reaching agreement in the Doha trade negotiations on the elimination of
trade barriers to the deployment of clean energy technology and services,
particularly in key developing countries.

The fourth item of progress -- and perhaps one of the most important and
overlooked elements of progress since last year -- is that we have now had
four major economies meetings, leading up to tomorrow's meetings of the
leaders of the major economies. And for the first time, leaders of the
countries with the largest energy consumption and the greatest emissions
will be sitting together to pursue common ground in support of a new
climate agreement under the U.N. Framework Convention on Climate Change.

The G8 had endorsed President Bush's proposal last year for such an effort,
and the leaders of the other major economies soon joined in support.
Confidence in the value of this effort was built after the successful U.N.
meetings in Bali. In the space of a short nine months, the major economies
have had a broad agenda in addressing some of the most challenging issues
relating to long-term cooperation, long-term goals, midterm national goals
and plans, as well as tangible near-term opportunities for making progress.

Through this series of major economies meetings we've had focus and really
good discussions at the highest levels, and this has enabled us, we
believe, to move beyond many of the artificial as well as divisive
distinctions of the past. All of the leaders now understand that the
progress we make this year is essential to making possible broad
international agreement in the U.N. at the end of next year.

The G8 declaration is a significant contribution both to the U.N.
negotiations, as well as to the major economies process. Much work lies
ahead, but right now we've got the right countries around the table, not
only around the G8 table, but more importantly, around the broader major
economies table, with an increasingly common sense of purpose and urgency
to support global action.

Let me stop there.

Q Dan, when this declaration was put out, was it with the anticipation on
the part of the G8 members that the major economies tomorrow would follow
suit and support these goals?

MR. PRICE: The G8 declaration makes clear that the G8 is not seeking to
impose its view on anybody. In respect of the goal, the G8 declaration
expressly states, we seek to share with all parties to the U.N. Convention
the vision of, and together with them, to consider and adopt in the U.N.
negotiations the goal of achieving at least a 50 percent reduction of
global emissions by 2050.

So it's very clear that the G8 declaration, both in terms of long-term
goal, in terms of the need for commitments by all major economies, the
elements of financing and R_

Q Was there consultation with representatives from, say, China and India
when this was formed?

MR. PRICE: The major economies declaration? Absolutely. The major economies
--

CHAIRMAN CONNAUGHTON: Not consultation on the G8 text.

Q No, I mean, did the G8 confer ahead of time with some of these major
economies in putting together the G8 thing?

MR. PRICE: Well, the G8 countries sat with the other countries at the major
economies table and worked out the terms of the major economies leaders'
declaration. So -- or at least a draft. Obviously the leaders will discuss
this tomorrow, and they will need to finalize and adopt it.

I think it's fair to say that the G8 declaration was prepared, and the
discussions among the leaders took place fully bearing in mind that the
next day we will have the meeting of the leaders of major economies.

Q On the economic declaration, what steps does it require the United States
to take now that you've agreed to that? Does it require that the United
States take any steps regarding currency or, you know, its energy policy?

MR. PRICE: No, I don't think that the declaration requires the United
States, per se --

Q Right, but you are part of the G8. What do you see the United States
having to do to sort of conform to these goals you set out today?

Q In other words, is the U.S. bound by any --

MR. PRICE: In the world economy declaration?

Q Yes.

MR. PRICE: The world economy declaration does not contain, per se, any
specific commitments. Rather, it expresses the shared view of the G8 on
actions that should be taken, for example, on trade and investment
liberalization, on intensifying dialogue between consumers and producers of
energy, about the need to maintain sound macroeconomic management, the need
for enhanced dialogue with some emerging economies that have large and
growing current account surpluses. So I think as you read this declaration,
what you will see is the expression of a collective view on a number of the
pressing problems, and some suggestions for approaches to those problems.

Q Was there discussion about the dollar in the meetings?

MR. PRICE: The President, of course, reaffirmed the -- his interest in a
strong dollar and his commitment to a strong dollar. There was a general
discussion of exchange rates. I'll leave it at that.

Q Just further on the economic stuff. Can you point to anything concrete in
this -- in the economy document that changes anything as far as, say, the
oil markets are concerned? You provide analysis, but are you providing any
new steps that will, for instance, have a realistic probability of bringing
down the price of oil?

MR. PRICE: I think the fact that the G8 is together addressing issues of
long-term demand and supply, and sharing ideas of how these can be
addressed and about bringing others into the dialogue is itself a very
significant step.

Q Is there anything that changes oil prices or attempts to get at the
change of oil prices?

MR. PRICE: Could you repeat your question?

Q Will oil prices change as a result of anything that's adopted here?

MR. PRICE: I certainly couldn't predict what the reaction of markets would
be to the G8 declaration.

Q But the G8 declaration, does it do anything at all to concretely deal
with the soaring oil prices that have just hurt every economy, basically,
that's in this group?

MR. PRICE: I think what I've tried to say -- and you'll be able to read the
declaration for yourself -- it expresses the view of the G8, the strong
concerns they have about the sharp price of oil prices, identifying the
need for concerted efforts to address the underlying causes. It has some
suggestions for focusing on the supply side, noting that production of
refining capacities should be increased in the short term. It identifies
some of the things that need to be done on the demand side.

So I would say there was a very thorough discussion, and I would refer you
to the relevant passages of the declaration, as well as the Chairman's
summary that will be coming out, I believe, at the end of the day, by Prime
Minister Fukuda.

Q Could I go back to climate change for a moment? So we've got the U.S.
going -- or G8 going from "strongly consider" in '07, to "a
shared vision"
in '08? Is that about the sum and substance of it?

MR. PRICE: No, I think that's a complete mischaracterization --

Q Is there anything binding in this?

MR. PRICE: What it says -- and I'd encourage you to read it -- it not only
talks about sharing the vision of a low-carbon society, it expresses the
view of the G8 that they are seeking -- seeking -- together with the other
parties to the U.N. Convention, to consider and adopt a goal of achieving
at least a 50 percent reduction -- all right? I noted that in our view, and
in the view of the leaders in the room, this represents substantial
progress from last year.

I realize there's a lot of interest in the long-term goal; it's a fairly
detailed declaration that covers topics in addition to the long-term goal.
And as importantly as the elaboration of a long-term goal is the sense of
the G8, one, that the G8 alone cannot effectively address climate change,
cannot effectively achieve this goal, but that contributions from all major
economies are required. One.

Two, it reflects the sense of G8 that achieving that long-term goal,
achieving effective solutions to climate change will depend on the
development and deployment of clean technologies. These are significant
advances over the collective thinking, and I think all leaders were pleased
by this declaration.

MS. PERINO: We have time for one more.

Q Can I ask a follow-up question? Chancellor Merkel came out this morning
and said something about she was optimistic, satisfied that things could be
wrapped up or completed in a couple weeks. Was that -- is that optimism
shared by other members? Or when she said a couple weeks, do you know what
she was talking about, exactly?

MR. PRICE: Yes, I do. She was, I think, anticipating the fact that we will
have a ministerial on July 21. You know, I think all leaders share the view
that they would like a prompt conclusion to the Doha Round, but that the
Doha Round must be balanced and it must cover all three critical areas of
agriculture, industrial goods and services. They also shared the view that
there will need to be meaningful market openings by the major developing
countries in order for this round to succeed. It is not simply a question
of balance and relative contribution of parties in the Doha Round, but if
the mission of the Doha Round -- and we support this mission -- is poverty
alleviation, is development, then the major developing markets need to open
their markets to other developing countries, given the rapid increase in
trade among developing countries themselves.

Okay, thank you. Thank you very much. It was really a great discussion in
both sessions.

MS. PERINO: Any last ones on climate change, or other topics I can handle?

Q On climate change. Can you just -- just to clarify, the structure of this
language around the long-term commitment -- it is in effect saying that you
are not binding yourselves as the United States to a goal unless others
come in with this as well. Is that the basic thinking? You're saying, we
will play -- we would like to get everyone to agree to this, but until
everyone agrees to it, we are not ourselves committed to it.

CHAIRMAN CONNAUGHTON: The concept of a long-term goal was first introduced
at the G8 last year, pushed by Japan as well, and there's been convergence
on the G8 vision as to how that should be carried out. It has always been
the case that a long-term goal is a goal that must be shared. So what the
G8 has offered today is a G8 view of what that goal could be and should be,
but that can only occur with the agreement of all of the other parties to
the U.N. Framework Convention on Climate Change.

So last year was an inwardly looking G8 statement; this year it's an
outwardly looking G8 statement.

On the issue of convergence, by the way, if you look at the work that
Chancellor Merkel did last year in Heiligendamm, and align that with the
President's vision for a way forward on climate change that he gave in his
speech last May, and that he amplified further on in September, at the
major economies, you will see in this G8 text a remarkable convergence on
all of those points. And we're very pleased to see all of the major
elements that the President proposed last year carried forward in this G8
declaration, and we look forward -- we're looking forward tomorrow to
seeing them further advanced among the major economies.

Q Could I just ask you something about conversations between -- that may
take place between the President and Prime Minister Singh of India? What
are you expecting to come out of these discussions? Are you expecting, in
effect, to be told that there's an all clear for the nuclear deal to be
implemented?

MS. PERINO: I think it's a little premature to say, but obviously we've
maintained a strong commitment to carrying through on our side of the deal.
And obviously India has had a lot of discussion amongst its political
parties. It's been a long road, and there's been a healthy debate. And so,
G8 meetings are good for a lot of reasons; one of those is so that all
leaders can get together and have a discussion as a group. But also,
they're wonderful opportunities for bilateral discussions. And so the
President takes advantage of as many opportunities as he can to meet with
leaders on an individual basis.

He'll do that tomorrow with Prime Minister Singh. And we'll have to see
what he's able to bring on the India Civil Nuclear Agreement. I would say
it's premature to say right now, and we'll let him come and present what he
has for the President. And it could be that he's ready to move forward, but
it also could just as likely be that they have a little bit more work to
do. But we obviously recognize, as well, that we have a limited number of
legislative days for our Congress to get a lot of work done. So as soon as
that meeting is over, we'll be able to hopefully provide you a readout.

Q Thanks very much.

Q You know, some people are going to look at the climate change document
and perhaps say that the United States basically got the position that it
had staked out all along, and the other countries who sort of wanted a
firmer 50-by-50 agreement did not. What do you think of that?

CHAIRMAN CONNAUGHTON: If you look, as I indicated, at the five major points
that the President advanced last May, which included the need for agreement
on a long-term global goal, you have convergence among the G8 as to how
that should be pursued, and that is an agreement among the G8. And each G8
country's leader is fully capable of deciding what is advancing the
interests of each of their countries, and they reach agreement in the G8 on
how to accomplish that.

And I also want to underline -- the long-term goal, the success of that is
dependent on all of the other features of this shared G8 text, and the
shared G8 commitment. It's very consequential that the first time the G8
has converged around the principle that all major economies need to take
midterm goals and actions, and those need to be bound in a new agreement --
that's a major step forward in terms of G8 consensus.

Similarly, the G8 has fully endorsed the sectoral approaches that I
discussed yesterday, the idea that we can build up international
cooperation by focusing specifically on key large emitting sectors, and use
that as a basis to build up national strategies. And as you recall, the
President introduced the idea of a clean energy technology fund last year,
with the strong support in particular of the U.K. and Japan. And that is
now producing a donors group that is quite consequential. I mean, we have
pledges I think of $6 billion identified in the declaration -- but we think
it will grow from that -- coupled with the elimination of tariffs, which
nobody was talking about before the President seriously -- before the
President put that on the table last year.

Now, each G8 leader has reflected on the value and importance of each of
those components and how they work together. And that's what makes this a
particularly strong document in setting the stage for agreement next year.
The G8 is giving a lot, but the G8 is also suggesting that others need to
be part of that equation as well. And that's a very important shared
statement by the leaders of the G8.

Q Can I just ask one follow-up on that? When you talk about everyone agrees
the need all major economies have to have medium-term goals and actions, is
there agreement though on that these medium-term goals should be
qualitative the same -- in other words, some are saying industrialized
countries' whole economy emissions targets for the midterm, developing
economies' commitments that fall short of economy-wide emissions targets,
other commitments in terms of sectoral approaches, energy efficiency
promotion, et cetera. Is that your understanding of it, or are you still
pressing for the same type of commitments from both industrialized and
developing countries?

CHAIRMAN CONNAUGHTON: Actually, the U.S. position has been there should be
much greater flexibility in the approaches that each nation can take, as
long as those approaches are comprehensive, has been the U.S. view. Other
countries have expressed that differently. I think you will see in this --
the statement of the leaders a reflection of the need for greater
flexibility, as long as it's accompanied by comprehensive action.

Also, as I mentioned yesterday, the G8 leaders have agreed that these plans
and actions need to be bound in a new agreement; that they should be bound
in an agreement. The content of those commitments, of course, will be
differentiated in accordance with the U.N. principle of common but
differentiated responsibilities. So as the year unfolds, each nation will
be laying out different goals with a different portfolio of strategies to
achieve them. And obviously we'll be looking at each other's approaches, in
terms of the relative levels of ambition.

To remind you again what I said yesterday, the European Commission and the
European Union, Canada and the U.S. currently are the only countries to
have staked out an economy-wide goal for the midterm. But importantly, when
you look at the programs that the EU has proposed, and the programs that
Canada has proposed, and the programs that the U.S. actually has now put
into legislation, they do use a diversity of approaches to achieve that
economy-wide midterm goal. And so the reality of what's occurring even in
the developed countries is that you have clearly stated midterm goals, but
in support of them are a series of mandates, incentive-based programs, and
technology partnerships that collectively work together to achieve the
overall goal. No country has a one-size-fits-all legal construct. No
country has that, and no country is proposing that going forward.

MS. PERINO: Okay? Thanks for sticking around.

END 3:09 P.M. (Local)

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