INTERNATIONAL CLIMATE CHANGE PARTNERSHIP COP5 WORKSHOP BALANCING SHORT AND LONG TERM CLIMATE CHANGE OBJECTIVES JUDITH BAYER DIRECTOR, ENVIRONMENTAL GOVERNMENT AFFAIRS UNITED TECHNOLOGIES CORPORATION 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 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 CO 2 REDUCTION OPPORTUNITIES

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