C05887500'IED U S Department of State Case No F-2014-16494 Doe No C05887500 Date 01 09 2018 ORIGIN EUR-OO INFO LOG-OO EEB-OO AGRE-OO AID-OO CIAE-OO INL-OO DNI-OO DOEE-OO WHA-OO DHSE-OO UTED-OO VCI-OO DIAS-OO H-OO TEDE-OO INR-OO 10-00 LAB-01 L-OO ARMY-OO MMP-OO VCIE-OO NRC-OO NSAE-OO ISN-OO OES-OO OIC-OO OMB-OO NIMA-OO EPAU-OO PER-OO ISNE-OO SEEO-OO DOHS-OO SP-OO IRM-OO SSO-OO SS-OO STR-OO' NCTC-OO FMP-OO SCRS-OO DRL-OO G-OO SAS-OO FA-OO 1001 R 033478 SOURCE CBLEXCLS 0031 05 DRAFTED BY EURlERA MBEH -- 04 01 2008 202-647-1820 APPROVED BY G PDOBRIANSKY EUR ELUFTMAN CEQ DBANKS NSC JSHRIER OES HWATSON G DROCHBERG S P DPITTMAN EEB ESC IEC ENR DMONOSSON EUR PGI TCUNNINGHAM EPA JBURNETT DOE SEULE DESIRED DISTRIBUTION EUR EURIERA OES ------------786B16 011903Z 38 P 011852Z APR 08 FM SECSTATE WASHDC TO USEU BRUSSELS PRIORITY INFO PAGE 02 STATE 033478 011857Z EU INTEREST COLLECTIVE PRIORITY EU MEMBER STATES COLLECTIVE PRIORITY WHITE HOUSE WASHINGTON DC PRIORITY 0000 HQ EPA WASHINGTON DC PRIORITY DEPT OF ENERGY WASHINGTON DC PRIORITY IRELEASE IN FULL UNCLAS STATE 033478 SENSITIVE SIPDIS WHITE HOUSE FOR NSC DPRICE JSHRIER LCATIPON WHITE HOUSE FOR CEQlJCONNAUGHTON DBANKS ELADT EPA FOR JBURNETT DOE FOR SEU LE REVIEW AUTHORITY Charles Lahiguera Senior E O 12958 N A L-R_ev_i_ew_er_ _ _ _ _ _ _ _ _ _ _ _ _---' TAGS KGHG SENV ENRG TRGY EUN SUBJECT SECOND U S -EU HIGH LEVEL DIALOGUE ON CLIMATE CHANGE CLEAN ENERGY AND SUSTAINABLE DEVELOPMENT Sensitive but Unclassified - Entire Message 1 SBU SUMMARY In a frank exchange on March 7 U S and European principals reviewed work on climate change under the UNCLASSIFIED U S Department of State Case No F-2014-16494 Doe No C05887500 Date 01 09 2018 CO 5 8 8750 O'IED u s Department of State Case No F-2014-16494 Doc No C05887500 Date 01 09 2018 Major Economies and UNFCCC Processes U S principals secured EU Environment Commissioner Dimas' admission that current EU proposals will permit some EU Member States to record absolute increases in emissions by 2020 Both sides cited questions surrounding biofuels and agreed to cooperate in reviewing them though the Commission also cited the social impacts of biofuels The Commission clarified the proposed flow of proceeds from emissions trading auctions to Member States under the Commission's January 23 2008 Climate Change legislative package The U S delegation summarized recent U S legislation on climate change under which the U S is demonstrably moving forward on the issue as aggressively as the EU Both sides spoke positively of U S efforts on FutureGen carbon capture and storage and near-zero emission coal though the U S del sought clarification as to existence of E U budget resources in these areas Both sides highlighted their efforts to address illegal logging deforestation af' d biodiversity 2 SBU For next steps both sides expressed support in principie for referencing climate change in U S -EU Summit document s Both sides agreed to issue a joint press statement on the day's HLD consultations paragraph 41 3 U The U S delegation was led by Paula Dobriansky Under Secretary of State for Democracy and Global Affairs Jim Connaughton Chairman of the White House Council on Environmental Quality and Dan Price Assistant to the President for Intemational Economic Affairs The EU delegation was led by Janez Podobnik Siovenian Minister of Environment and Spatial Planning for the EU Presidency and Stavros Dimas European Commissioner for the Environment and Pierre Vimont French Ambassador to the U S END SUMMARY The Major Economies Process MEP 4 U Assistant to the President for International Economic Affairs Dan Price restated the U S position that we see the purpose of the Major Economies Process as supporting and assisting the UN negotiations on climate change not launching an alternative negotiating forum 5 SBU Price asked whether the EC would commit to a Leaders' Declaration under the MEP containing these six elements a long-term global goal legally binding nationally determined mid-term goals mid-term defined as approximately the years 2020-2030 backed by national plans sectoral agreements financing mechanisms and elimination of' barriers to trade in clean energy goods and services measurement and accounting at the facility-level addressing deforestation and highlighting adaptation Commissioner Dimas was noncomittal stating that one would have to review each item individually such as what sectoral approaches to UNCLASSIFIED U S Department of State Case No F-2014-16494 Doc No C05887500 Date 01 09 2018 CO 5 8 8750 O'IED U S Department of State Case No F-2014-16494 Doc No C05887500 Date 01 09 2018 pursue and what mid-term targets to commit to Both sides reaffirmed their support for the U S lEU proposal at the INfO to eliminate barriers to trade in environmental goods and services 6 SBU French Ambassador Vi mont stated that all agree on the usefulness of the MEP and said France looked forward to hosting the Third Meeting under the MEP in Paris The program will consist of a workshop April 16 on sectoral approaches and preparations on April 17-18 for the MEP Leaders' Summit in July The agenda still under discussion is likely to include seeking better definition of sectoral approaches road map for technological cooperation work to narrow positions on mid-term goals including common and differentiated responsibility and fi nancing 7 SBU Price added that the next meeting of some of the MEP parties will actually occur at Chiba Japan with work on the draft Leaders' Declaration He said the European Union would be represented on the drafting committee by France and that the committee would also include China Brazil South Africa Japan and the U S The UNFCCC Process 8 SBU CEQ Chairman Jim Connaughton said that to receive Congressional assent to an international agreement on greenhouse gas emissions the U S would need binding commitments from other countries including major developing countries He urged a commitment in principle to this at the Major Economies Leaders' Summit He said a commitment to take on binding commitments from other countries would also send a positive message to Congress as the Administration seeks $2B in spending for the proposed Clean Technology Fund When pressed by Connaughton as to whether the EU supports binding commitments from all major economies Dimas was non-committal 9 SBU Connaughton argued that specific mid-term plans for each country should be left to the UN process but that this summer should see agreement on design of an agreement that provides for national plans and sectoral approaches Dimas argued that that too should be left to the UN process 10 SBU Dimas criticized the U S for failing to ratify and implement the Kyoto Protocol Connaughton noted the problem that Kyoto is not internationally binding in that it is not enforceable Price added that Kyoto is flawed because it fails to recognize that even the EU and the U S together cannot stop global emissions increases unless we draw in China and other major developing countries 11 SBU Siovenian Minister Janez Podobnik suggested that developed countries should lead by example cutting emissions UNCLASSIFIED U S Department of State Case No F-2014-16494 Doc No C05887500 Date 01 09 2018 co 588750 O'IED U S Department of State Case No F-2014-16494 Doc No C05887500 Date 01 09 2018 in absolute terms The Mid-Term Goal 12 SBU Connaughton and Price questioned Dimas as to whether the EU holds that each developed country must achieve an absolute emissions reduction by 2020 They said the U S accepts that many countries such as South Korea Mexico Greece Portugal Spain and Italy would find it impossible to reduce absolute levels of emissions by 2020 Price pOinted out that each EU Member State was a Party to the Convention 13 SBU Dimas argued that each European nation will make its contribution toward one pan-European target But he conceded this means some EU Member States will be permitted under the EU's proposals to record an absolute increase in emissions by 2020 14 SBU Connaughton said that if it was unacceptable for the EU that the U S will not achieve absolute emissions reductions by 2020 he would urge that the EC's experts review our recently-enacted Energy Independence and Security Act of 2007 EISA and explain how our requirements could reasonably be increased He also noted that if the EU presses the U S on absolute emissions reductions by 2020 we will insist that Austria France Ireland and other EU Member States with energy profiles similar to that of the U S also take on these absolute emissions reductions Biofuels Challenges and Criticisms 15 SBU Connaughton urged that the U S and Europe avoid a situation in which shipments of biofuels must be checked at the border to review for provenance Although the U S currently imports a small amount of biofuels the amount of imported biofuels could increase significantly Connaughton urged that rather than analyzing every batch and checking paperwork at ports of entry developed countries need to engage on this potential problem with biofuels-exporting countries 16 SBU Both sides referenced the possible negative aspects of biofuels and agreed it would be good to work together on the topic Dimas said the EU was grappling with the deforestation impacts of increased usage of biofuels Notably he also cited the social impacts including the impact on food price levels 17 SBU Connaughton and EPA Associate Deputy Administrator Jason Bumett said the U S is confronting some of the same issues They said that while the EU has proposed a criterion UNCLASSIFIED U S Department of State Case No F-2014-16494 Doc No C05887500 Date 01 09 2018 co 5 8 8 7 5 0 O'IED U S Department of State Case No F-2014-16494 Doc No C05887500 Date 01 09 2018 of 35% emissions reduction in order for biofuels to qualify under its standard the U S EISA has three greenhouse gas thresholds a 20% reduction is required for any eligible renewable fuel 50% for advanced biofuels and 60% for cellulosics 18 SBU EISA also mandates that the U S review the indirect impact on land-use caused by cultivation of biofuel crops U S Mission to the EU Minister-Counselor for Economic Affairs Peter Chase noted that C Boyden Gray Special Envoy to the European Union has met with the EPA to attempt to get the U S and EU to look at the sustainability question together 19 U Stephen Eule Director of the Climate Change Technology Program in the Office of Policy and International Affairs at the U S Department of Energy DOE said that DOE is currently planning ethanol biorefineries with small-scale cellulosic activities Next Steps 20 SBU EURIERA Director William Lucas said we should give thought to how we wish to reflect our work together on the critical issue of climate change at the U S -EU Summit 21 SBU Minister Podobnik urged that the Summit statement include a forward-looking statement of principles and reference the use of market-based instruments He also urged that the next High Level Dialogue be held in one year in Europe Dimas asked whether the climate and clean energy policy and measures forum might be held in April or May Emissions Trading 22 SBU Connaughton said he agrees that international emissions trading is a useful tool -- for those who choose it Butthe U S does not endorse global carbon markets when not all countries have a cap because it creates an incentive for some nations to avoid making real commitments to reduce emissions as some nations would wish to remain sellers of credits not buyers The system would suffer from moral hazard as key developing nCitions would not aggressively commit so that they could continue to collect Connaughton added that although the EU has had some success in its Clean Development Mechanism CDM it is near-impossible under the U S domestic political process to transfer billions of dollars to China while raising electricity and gas prices for the average working American 23 SBU Chase asked who would receive the money raised by the emissions trading system 13uctions under the January 23 UNCLASSIFIED U S Department of State Case No F-2014-16494 Doc No C05887500 Date 01 09 2018 CO 5 8 8750 O'IED u s Department of State Case No F-2014-16494 Doc No C05887500 Date 01 09 2018 European Commission climate change proposal Dimas said the funds raised would go to the finance ministries of each Member State under a complIcated formula to allow the poorer nations to auction more than their Climate-change needs He said 20% of the resulting funds would be flagged so that it should emphasis added go to such purposes as redistribution education campaigns CCS adaptation and funding for renewable energy However he noted the drafting process had seen shall changed to should u S Energy Reforms and Associated Spending Measures 24 SBU Connaughton said the U S mandatory mid-term commitments on climate change are locked into the recently enacted EISA legislation which he summarized Additionally new U S spending commitments complement the EISA mandates PrelIminary estimates show EISA will prevent 6-10 billion metric tons of greenhouse gas emissions in the U S by 2030 Connaughton noted emissions from the non-OECD countries are projected to be double that of the OECD nations by 2050 highlighting the need to engage developed countries A 38-gigaton reduction in projected 2050 global carbon dioxide C02 emissions is needed to halve global emissions an enormous amount given that one gigaton of C02 equates to the savings from 273 clean zero-emission coal-fired power plants of which we currently have none We are nowhere near tt e scale of what we need to reduce emissions 25 SBU Connaughton added that first-generation biofuels will not significantly-assist in meeting the EISA goals Success of EISA depends on second-generation biofuels fulfilling their promise 26 SBU Under EISA 10% of projected future energy supply will be met by renewables EISA contains a mandate of 20% renewable fuels usage for the U S Government itself ' significant given that the USG alone is a bigger economic entity than most countries 27 SBU EISA rnandates a 40% increase in fuel efficiency by 2020 The U S has in the past relied more on gasoline than diesel compared with the EU because of air quality concerns associated with diesel Connaughton noted the U S will begin to use more diesel now that the we have clean diesel rules This will pose an economic issue for the EU as the EU currently purchases the U S diesel surplus 28 SBU USG is working with localities to develop a model building code to gain a 30% increase in energy efficiency for buildings In appliance efficiency EISA mandates new standards in every major category of appliance EISA mandates a 70% improvement in lighting efficiency by 2020 mostly through phase-out of traditional incandescent bulbs In response to a question from Dimas Burnett said we are UNCLASSIFIED U S Department of State Case No F-2014-16494 Doc No C05887500 Date 01 09 2018 CO 5 8 8 7 5 0 O IED u s Department of State Case No F-2014-16494 Doc No C05887500 Date 01 09 2018 handling the issue of how to dispose of mercury in new high-efficiency light bulbs by working with industry to make the next generation of such bulbs mercury-free and through a campaign to educate the public on disposal 29 SBU Connaughton said that on the spending side the USG proposes to spend this year $7 4 billion on climate change Loan guarantees are being established for advanced coal plants and large-scale renewable power generation We are spending significantly to develop clean coal plant designs which would have benefits worldwide $18B in loan guarantees will be allocated for new nuclear plants 30 SBU Responding Dimas criticized the U S for not achieving the emissions reduction goal for 2000 it had agreed per the U S signing and ratifying the 1992 U N Framework Convention on Climate Change Dimas asserted that although 1990 has been agreed to as the reference year in multiple fora the U S has increased emissions 16% since then while the EU has reduced Emissions have gone below 1990 levels even for the EU15 he pre-2004 set of western European Member States with economies more similar to that of the U S 31 SBU Connaughton replied that the U S and EU are demonstrably moving forward on climate change equally aggressively For example EISA is 50% more aggressive on renewable fuels than what the EU has proposed Connaughton said that under EISA the u S will not get down to 1990 emissions levels by 2020 but will later The EISA legislation and associated budget commitments will however put U S emissions on the downward trajectory for the first time Connaughton said he did not know when the U S will reach 1990 levels He said that for Europe 1990 as a reference year incorporates the early 1990s economic collapse of eastern Europe which no policymaker would recommend be repeated the UK's decision to move away from coal to natural gas long before climate change was a policy issue and the EU's use of diesel fuel at the expense of air quality and human health Price further pointed out that the Framework Convention's reference to reductions by 2000 was cast as a non-binding aim u s Efforts on FutureGen CCS and Clean Coal 32 SBU Dimas asked about the restructuring of the FutureGen clean coal project and suggested that the U S cooperate with the EU and also China on pilot projects Connaughton said the restructuring will ultimately result in a bigger program with more projects 33 SBU Eule noted the Bush Administration has requested an increase in funding for Carbon Capture and Storage CCS research this year Seven large-scale CCS demonstrations are UNCLASSIFIED U S Department of State Case No F-2014-16494 Doc No C05887500 Date 01 09 2018 co 5 8 8 750 O IEI u s Department of State Case No F-2014-16494 Doc No C05887500 Date 01 09 2018 planned including one ethanol plant ethanol production being a source of carbon Chase added there has been one expert-level U S -EU dialogue on CCS and there will be another March 31 in Washington Eule noted the Administration has asked for $622M for clean coal this year the largest amount in over 25 years EU Budget for Clean Coal Research 34 SBU Connaughton expressed concern over reports that there were no EU budget resources dedicated to address this topic through 2013 through the time period of the Seventh Framework Dimas said only that the Seventh Framework has research funds through this period and that the issue was addressed in part by the emissions trading scheme Methane to Markets and Energy Star 35 SBU Reviewing the Work Action Plan from the 2007 U S -EU Summit Artur Runge Metzger Head of Unit Climate Strategy international negotiation and monitoring of EU action DG Environment said the European Commission has acceded to the Methane to Markets Partnership and the work is going well EPA Associate Deputy Administrator Burnett said the U S agreement with the EU on Energy Star for appliance efficiency is bearing fruit Burnett offered to work with Europe to extend Energy Star to consumer electronics products Illegal Logging and Deforestation 36 SBU Dimas said that like the U S the EU is working with developing nations on illegal logging and suggested thaLthe EU and U S could increase their effectiveness by working together 37 SBU Connaughton cautioned that payments for avoided deforestation pose a moral hazard problem one could easily end up paying to prevent deforestation in one region only to push it into the next province This also has potential to spur graft among local officials Connaughton suggested that the problem of deforestation is in part the problem of more food from less land We need to mobilize agricultural experts to convert agriculture in developing countries to our high-yield methods Biodiversity 38 On biodiversity U S Dobriansky highlighted such U S UNCLASSIFIED U S Department of State Case No F-2014-16494 Doc No C05887500 Date 01 09 2018 co 5 8 8750 O'IED U S Department of State Case No F-2014-16494 Doc No C05887500 Date 01 09 2018 efforts as the President's Initiative Against Illegal Logging U S aid to Indonesia to develop a national legality standard for timber harvesting the recent MOU with China to address illegal logging and associated trade our work plan to improve forest law enforcement and address illegal Mahogany exports in the context of our Free Trade Agreement with Peru and the recent Brussels meeting between USTR officials and Commission representatives on this topic 39 SBU Dimas said the EU is working on a global network of marine protected areas given that much marine biodiversity is outside national jurisdiction and urged the U S to work with the EU on this topic U S Dobriansky agreed Note Dimas did not raise the EU's standing proposal for a legally-binding agreement to establish marine protected areas on the high seas End Note Principal Participants 40 U United States Under Secretary Paula Dobriansky Department of State James Connaughton Chairman White House Council on Environmental Quality Daniel Price Assistant to the President for International Economic Affairs Kurt Volker Acting Assistant Secretary of State for European and Eurasian Affairs Jason Burnett Associate Deputy Administrator Environmental Protection Agency Harlan Watson Senior Climate Negotiator and Special Representative U S Department of State Dean Pittman Office of the Secretary of State Policy Planning Staff Steven Eule Director Climate Change Science and Technology Program United States Department of Energy Peter Chase Minister-Counselor for Economic Affairs U S Mission to the European Union William Lucas Director Department of State Office of European Union and Regional Affairs EURIERA European Cornmission and Council Secretariat Stavros Dimas European Commissioner for the Environment Andreas Papaconstantinou Member of Commissioner Dimas' Cabinet Artur Runge-Metzger Head of Unit Climate Strategy international negotiation and monitoring of EU action DG Environment Natalie Pauwels Desk Officer DG Environment Vicky Pollard Desk Officer DG Environment Graerne Preston Desk Officer DG Energy and Transport Ulrich Eckle Desk Officer DG External Relations Luisa Ragher Minister-Counselor for Economic Affairs Delegation ofthe European Commission to the U S A Washington UNCLASSIFIED U S Department of State Case No F-2014-16494 Doc No C05887500 Date 01 09 2018 CO 5 8 8750 O'IED U S Department of State Case No F-2014-16494 Doc No C05887500 Date 01 09 2018 Malachy Hargadon Environment Counselor Delegation ofthe European Commission to the U S A Kerstin Niblaeus Director-General General Secretariat of the Council of the European Union Slovenia Minister Janez Podobnik Minister of Environment and Spatial Planning Govemment of Slovenia Matej Gasperic Secretary for Energy and Climate Change at the Ministry of Environment and Spatial Planning Andrej Kranjc Secretary for International Relations at the Ministry of Environment and Spatial Planning Emil Ferjancic Spokesperson Ministry of Environment and Spatial Planning Tadej Furlan Second Secretary Embassy of Slovenia France Pierre Vimont French Ambassador to the United States Genevieve Chedeville-Murray Political Counselor Embassy of France Joint Press Release 41 U Text of joint U S -EU press release EU and U S advance climate change clean energy and sustainable development dialogue March 7 2008 Joint Press Release The United States and the European Union convened the second meeting of the EU-U S High Level Dialogue on Climate Change Clean Energy and Sustainable Development in Washington D C on March 7 The two sides explored ways to further strengthen energy and climate cooperation and enhance engagement with all international partners including major economies in pursuit of shared goals Areas of discussion included - Recent developments in domestic climate and energy policy legislation - Review of progress on clean energy cooperation - Strengthened international cooperation on climate negotiations -- Measures to stem the loss of biodiversity and illegal logging and associated trade The U S and EU delegations affirmed their commitment to developing a post-2012 agreement on climate change by 2009 UNCLASSIFIED U S Department of State Case No F-2014-16494 Doc No C05887500 Date 01 09 2018 C05 8 8 7 5 0 0 IED u s Department of State Case No F-2014-16494 Doc No C05887500 Date J 01 09 2018 under the UN Framework Convention on Climate Change In order to contribute to the UN negotiations on climate change the two sides will continue their work together and with other partners under the G8 and under the Major Economies Process including at its Third Meeting which will be hosted by the Government of France April 17-18 in Paris Next steps in U S -EU cooperation will include holding the Climate and Clean Energy Policy and Measures Forum in Washington and the EU-U S Summit in Ljubljana The U S delegation was led by Paula Dobriansky Under Secretary of State for Democracy and Global Affairs Jim Connaughton Chairman of the White House Council on Environmental Quality and Dan Price Assistant to the President for Intemational Economic Affairs The EU delegation was led by Janez Podobnik Sloven ian Minister of Environment and Spatial Planning for the EU Presidency and Stavros Dimas European Commissioner for the Environment and Pierre Vimont French Ambassador to the U S Senior officials of the U S Department of Energy the U S Environmental Protection Agency the U S Department of State the European Commission the Government of Slovenia and the Government of France also participated in the meeting The first meeting of the HLD was held in October 2006 in Helsinki EU and U S Leaders established the High-Level Dialogue in 2006 to advance transatlantic initiatives for tackling climate change promoting clean energy and achieving sustainable development globally End joint press release RICE NNNN UNCLASSIFIED U S Department of State Case No F-2014-16494 Doc No C05887500 Date 01 09 2018 This document is from the holdings of The National Security Archive Suite 701 Gelman Library The George Washington University 2130 H Street NW Washington D C 20037 Phone 202 994-7000 Fax 202 994-7005 nsarchiv@gwu edu
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