No about-face: GM still opposes Kyoto treaty

By Harry Stoffer, staff reporter Copyright 1998 Automotive News November 23, 1998

WASHINGTON - General Motors says it wants a reasoned and gradual change of course on the treacherous issue of global warming. By saying that, it has created a mammoth wave of reaction that is washing back over the giant automaker.

GM's cautious acknowledgment, for example, that greenhouse gases are "cause for concern" is being cited as proof that resistance to an international climate treaty is breaking down.

Said Alden Meyer, director of governmental relations for the Union of Concerned Scientists: "Clearly, there is a splintering of business community opposition on this issue."

But Dennis Minano, GM's vice president for public policy and chief environmental officer, said in an interview, "That would be a wrong characterization."

Minano, who voiced the "cause for concern" on Oct. 27 at a Washington news conference, contended there has been little change in GM's position and certainly not an about-face.

Others suggest the carmaker is at least guilty of speaking out of both sides of its mouth.

GM'S NOT ALONE

Minano maintained that a consistent company position has evolved from careful analysis of scientific reports and intense internal discussion during the six years he has held GM's top environmental post.

The position is this: The buildup of greenhouse gases in the atmosphere is a concern, to be addressed with advanced technology over time, but the science of climate change remains uncertain, and, if there is a danger, the global-warming treaty negotiated last year in Kyoto, Japan, is not the remedy.

GM Chairman Jack Smith recently made similar statements to Automotive News and revived the idea of a gasoline tax increase as a way to encourage customers to show more interest in fuel-efficient vehicles.

Minano noted that GM Vice Chairman Harry Pearce used the same "cause for concern" phrase in a speech at the Automotive News World Congress last January and caused hardly a ripple.

In fact, other automakers do hold similar positions, saying they believe global warming could be a problem, and if it is, advanced technology, not government controls, is the answer.

FOR OR AGAINST?

Still, some automobile industry representatives in Washington say privately that GM deserves the controversy it has generated for itself.

While continuing to belong to anti-Kyoto coalitions, it has teamed up on projects with environmental organizations that favor the treaty, such as World Resources Institute. After the Oct. 27 news conference, company officials attended a White House function and received accolades from Vice President Al Gore, a top treaty proponent.

"That's GM trying to have it both ways," said an industry lobbyist.

Moreover, some members of Congress who thought they had been representing industry interests by taking a hard line against the treaty were blindsided by GM's expression of concern and high-profile appearances. The events came in the immediate prelude to congressional elections Nov. 3 and to further international treaty talks in Buenos Aires, Argentina, Nov. 2-13.

"That sends a horrible signal to the Hill," said another automaker official, referring to lawmakers.

WORKING WITH BOTH SIDES

Even some of GM's environmental collaborators, while grateful for the company's interest in climate change, are skeptical about willingness throughout the automobile industry to do the difficult things they say need to be done.

"The rhetoric is certainly changing, starting to change, but we need to see some real change, real commitment," said Ashok Gupta, senior energy economist with the Natural Resources Defense Council. "Doing nothing doesn't solve the problem."

GM and the Natural Resources Defense Council have worked together on the Climate Change Task Force of the President's Council on Sustainable Development, a broad coalition that recently called for immediate voluntary actions to stem the growth of greenhouse gases - in advance of any treaty or mandatory controls.

While Gupta charges that GM has developed "different messages for different audiences," he also thinks Minano is sincere about climate change but is part of a big company with competing factions and its own particular culture.

"He tries to make the case. He probably knows when not to make the case. He's got to do it in a way that works for him," Gupta said.

Minano denied GM is sending mixed messages or using the climate change issue to gain a marketing advantage with environmentally conscious consumers.

Minano, a 27-year veteran of the company, said GM has a long history of working with outside groups to learn more about issues and to develop its public policy positions. He said GM will continue to be involved in coalitions that include both proponents and opponents of the Kyoto treaty.

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