INTERNATIONAL CLIMATE CHANGE PARTNERSHIP

COP5 WORKSHOP“BALANCING SHORT AND LONG

TERM CLIMATE CHANGE OBJECTIVES”

JUDITH BAYERDIRECTOR, ENVIRONMENTAL GOVERNMENT AFFAIRSUNITED TECHNOLOGIES CORPORATIONBayerj@corpdc.utc.com

OCTOBER 30, 1999

LONG TERM ASPECTS OF CLIMATE CHANGE

• PROBLEM – ATMOSPHERIC LIFETIMES– CONCENTRATION BUILDUP– SCIENTIFIC UNDERSTANDING

• SOLUTIONS– LARGE INSTALLED BASE OF EQUIPMENT– R&D

SHORT TERM ASPECTS OF CLIMATE CHANGE

• POLITICAL EXPEDIENCY• “WAIT & SEE” MENTALITY• ACTION NOW CAN GENERATE

ENVIRONMENTAL & ECONOMIC BENEFITS

UNITED TECHNOLOGIES CORPORATION

UTC CORPORATE

UTC STATISTICS

• 43RD LARGEST U.S. CORPORATION• $25.7 BILLION IN 1998 REVENUES• 1,900 LOCATIONS IN 183 COUNTRIES• $1 BILLION R&D INVESTMENT PER

YEAR

UTC PRODUCT LIFE

• GENERALLY MEASURED IN DECADES• 104 YEAR OLD OTIS ELEVATOR STILL IN

SERVICE• PRATT & WHITNEY JT8D JET ENGINES

INTRODUCED IN EARLY 1960s STILL SAFELY FLYING

UTC INSTALLED BASE

• CARRIER -- 15 MILLION RESIDENTIAL AIR CONDITIONING UNITS IN THE USA

• OTIS -- 1 MILLION ELEVATORS & ESCALATORS WORLD-WIDE

• PRATT & WHITNEY -- MORE THAN 20,000 COMMERCIAL JET ENGINES

UTC SHORT TERM STRATEGIES

• CORPORATE-WIDE NATURAL RESOURCE CONSERVATION POLICY COMMITMENT

• WORLD-WIDE ENERGY BASELINE FOR OPERATIONS AND TRAVEL

• 25% REDUCTION GOAL FOR ENERGY & WATER USE NORMALIZED BY SALES

• IDENTIFICATION & PURSUIT OF REDUCTION OPPORTUNITIES

UTC LONGER TERM STRATEGIES

• CO-GENERATION • PRODUCT DESIGN• RESEARCH & DEVELOPMENT• PUBLIC POLICY DEBATE

UTC CO2 REDUCTION OPPORTUNITIES

0

20

40

60

80

100

120

MIL

LIO

N M

ETR

IC

TO

NS

OF C

O2

UTCOPERATIONS &TRAVEL

P&W JET ENGINEFLEET

CARRIER USARESIDENTIALAIRCONDITIONERS

CONCLUSIONS

• INDUSTRY AND GOVERNMENT NEED TO DEVELOP SHORT AS WELL AS LONG TERM STRATEGIES

• TARGETS AND TIMETABLES NEED TO BE REALISTIC TO AVOID COSTLY PREMATURE CAPITOL STOCK TURNOVER

• MILESTONES ESSENTIAL TO TRACK PROGRESS AND REFLECT LATEST SCIENTIFIC, ECONOMIC & TECHNICAL FINDINGS