deforestation, and identifying policies that improve forest
The Republic of South Africa was recently added as a priority
country in USAID's Climate Change Initiative.
USAID will begin
to identify opportunities to engage South African partners in
reducing greenhouse gas emissions, especially emissions related
to the country's reliance on coal for power generation.
Performance targets will be developed prior to FY 1999.
Asia and the Near East:
India, Indonesia, and the Philippines
are priority countries in USAID's Climate Change Initiative.
Since energy consumption in all three of these countries is
growing rapidly, the thrust of USAID s approach to reducing
greenhouse gas (GHG) emissions is and will continue to be in the
energy sector.
Activities in sustainable forestry management
(such as reduced impact harvesting, fire management,
rehabilitation of degraded lands) also reduce net emissions of
GHGs through the sequestration of carbon, and USAID is continuing
its work in this area.
See the discussion of Natural Resource
Management below.
The main areas targeted by the Agency are
restructuring the power sector, improving electricity generation
efficiency, and expanding renewable energy commercialization.
These efforts are reducing the emissions of carbon dioxide as
well as local pollutants such as
sulphur oxides, and saving
energy due to increased sector efficiency, which also reduces
In India, plans for mitigating global climate change are expected
to result in the direct reduction of four million metric tons of
carbon dioxide emitted per year.
In Indonesia, USAID activities
in energy efficiency are expected to save 140,000 megawatt hours
(MWh) of energy in 1998 and 210,000 MWh in 1999.
Agency plans to
develop the Philippines  extensive natural gas reserves, plus
renewable energy and energy efficiency measures, are expected to
reduce GHG emissions by 1.8 million metric tons in 1998 and 2
million metric tons in 1999.
However, the Agency is reducing its
environmental staff in Indonesia and the Philippines as these
missions prepare for close out around 2005.
Reduced staff to
manage global climate change programs will make it increasingly
difficult to reach the Agency goals for reducing GHG emissions in
these countries.
Europe and the New Independent States:
USAID's Climate Change
Initiative focuses on the Central Asian Republics, Poland,
Russia, and the Ukraine.
The Initiative will use a variety of
tools, including policy reform, institution capacity building,
education, and outreach, information collection and
dissemination, technology cooperation, partnerships with the
private sector, coordination with other donors, and the use of
credit instruments to achieve these objectives.
The ENI and
Global Bureaus are exploring possible application of USAID's new
Development Credit Authority (DCA) to guarantee commercially
financed activities aimed at reducing CO2 emissions in Poland and

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