The Honorable Prime Minister John Howard,

Dear colleagues,

It gives me great pleasure to meet with you again. I wish to express my sincere thanks to you, Prime Minister Howard, and the Australian Government, for your hospitality.

The overall stable international environment, the acceleration of economic globalization and the rapid progress in technological innovation have presented mankind with a rare opportunity for development. In our Asia-Pacific region, the economy is growing steadily; interactions and interdependence among countries are increasing and our common interests are expanding; and various mechanisms on dialogue and cooperation are active. It is a region full of vigor and vitality. As one of the most dynamic regions with great potentials, the Asia-Pacific region has become an important driving force propelling global economic growth.

On the other hand, our region also faces some uncertainties in its development. Global economic imbalances are getting more serious, trade protectionism is resurfacing, pressure on energy resources is growing, and issues related to eco-environment are more acute. Climate change, which concerns the development and the well-being of all the people in our region, has drawn general concern of the Asia-Pacific countries.

Climate change poses a severe challenge to the Asia-Pacific region, but the region also has unique strengths in tackling it. The Asia-Pacific region is highly representative of the world in which we live. It accounts for 42 percent of the world population, 53 percent of global economy, and 46 percent of global trade. It is a region of diversity. The per-capita GDP of a highly developed economy has exceeded $40,000, while that of a developing economy which is in the process of industrialization is just over $600. It is also a region of strong complementarity. Some members have advanced technologies and adequate financial resources in adapting to and mitigating climate change, while others are in urgent need to improve their capacity to address this issue. APEC members have in recent years launched a number of initiatives and taken steps to tackle climate change, and progress has been made. We should build consensus and conduct cooperation on this basis. This will enable us not only to promote sustainable development in our region but also to boost the global efforts to address climate change.

We should act in a highly responsible way for both mankind and the future. We should respect history, address current problems, be future-oriented, carry out practical cooperation and coordinate economic development with environmental protection. To this end, I propose that we take the following steps:

First, tackle climate change through cooperation. Climate change, being a global issue that concerns the interests of all countries, should be addressed through the joint efforts of all countries. In tackling climate change, helping others is helping oneself, and only cooperation can bring about win-win progress. Developed countries should face their historical responsibility and their current high per-capita emissions, strictly abide by their emission reduction targets set forth in the Kyoto Protocol, honor their commitment on making technology transfer and providing financial support to developing countries, and continue to take the lead in reducing emissions after 2012. Developing countries should, in light of their national conditions, take due measures including introducing and applying advanced clean technologies, to improve the capacity to mitigate and adapt to climate change and contribute their share to tackling climate change.

Second, pursue sustainable development. Climate change is ultimately a development issue, and it can only be addressed in the course of sustainable development. Sustainable development requires coordinated progress in economic growth, social development and environmental protection. It is undesirable either to stop development for fear of climate change or seek growth in disregard of climate change. We should ensure that both production and consumption are compatible with sustainable development. We should improve energy mix, upgrade industries, promote low-carbon economy, build an energy-conserving and environment-friendly society and thus address the root cause of climate change.

Third, uphold the United Nations Framework Convention on Climate Change as the core mechanism for addressing climate change. The Convention and its Kyoto Protocol constitute the legal basis of international cooperation on climate change and are the most authoritative, universal and comprehensive international framework for addressing climate change. The principle of “common but differentiated responsibilities” established by the Convention recognizes differences among countries in economic development, historical responsibility and the current level of per-capita emissions. This principle represents the consensus of the international community and forms the basis of international cooperation. The Convention and the Protocol should be