CLIMATE CHANGE: FRENCH PREPARE FOR

UNCLAS SECTION 01 OF 03 PARIS 008016

SIPDIS

SENSITIVE

STATE FOR G, OES, OES/GC, EUR/WE
WHITE HOUSE FOR COUNCIL ON ENVIRONMENTAL QUALITY
DOE FOR OFFICE OF CLIMATE TECHNOLOGY
EPA FOR INTERNATIONAL

E.O. 12958: N/A
TAGS: SENV TPHY TSPA TSPL KSCA FR
SUBJECT: CLIMATE CHANGE: FRENCH PREPARE FOR
MONTREAL

REF: 04 Paris 5567


1. (SBU) Summary: In the run-up to the
UNFCCC/Kyoto meetings in Montreal, Embassy
officers visited French environment officials to
learn what was on their minds. All expressed
praise for USG climate science and climate
technology work, something of a change from
mostly negative comments toward U.S. climate
policy heretofore. They also said they "hope"
that "meaningful discussions" with the U.S.
delegation can take place in Montreal on the post-
2012 (`post-Kyoto') period. In addition to our
talks, Prime Minister de Villepin made recent
comments about France's emissions reductions and
its long-term Kyoto commitment. End Summary.

Sooner or later views will mesh
--------------


2. (SBU) A senior official at the Ecology
Ministry expressed to ESTH officers "his belief"
that, while the French and U.S. approaches to the
climate currently fail to coincide, they will
eventually draw closer. He repeatedly
acknowledged the "considerable" and "exemplary"
efforts made by the U.S. to advance climate
research and promote transformational energy
technologies. He further highlighted that,
within the European framework, France
participates in almost all G-8 initiatives, is
active in joint initiatives, including those with
the U.S. These include partnerships on carbon
sequestration, hydrogen economy, Generation IV,
ITER, and will soon, if it hasn't already, sign
on to the Methane-to-Markets Partnership. ESTH
officers underscored that U.S. efforts are
succeeding in reducing emissions of greenhouse
gases in the U.S.

Mandatory emissions controls remain key.
--------------


3. (SBU) Summarizing the French position, the
Ecology Ministry official thought the
establishment of "a price for carbon" was key
under Kyoto and was necessary to create an
incentive system for the reduction of greenhouse
gases. He expressed his belief that France, the
EU, and the U.S. will eventually agree on what he
sees as the "more economic approach" to
addressing the climate change problem. He said
the U.S. had pioneered reducing sulfur emissions,
and possesses much know-how to share on market
mechanisms. He claimed the industrial sector,
including in the U.S., seeks greenhouse gas
emissions regulations and insisted that clear and
strong signals must be provided now to long-term
investors for the post-2012 period.

"Get the market incentives working"
--------------


4. (SBU) A representative of the French
Interministerial Task Force on Climate Change
similarly told ESTH officers:

-- Kyoto creates a carbon price necessary to
define market incentives. The European carbon-
trading scheme permits the implementation of
Kyoto CDM and joint implementation mechanisms,
and one of the French/EU expectations for COP 11
is to persuade the industry sector to make better
use of these mechanisms.

-- Existing/new energy technologies help address
global emissions, but will not by themselves be
sufficient. The Montreal meetings present an
opportunity to explore ways of moving forward
with non-Annex 1 countries.

Everybody should be "onboard"
--------------


5. (SBU) In a separate meeting with a senior
environment official at the Foreign Affairs
Ministry, ESTH officers heard additional views
re France's expectations:

-- The GOF seeks official action on the
`Marakech agreements' so that the Kyoto Protocol
and its tools can come into force immediately.

-- The GOF seeks to launch open discussions on
the post-2012 regime (texts stipulate that
commitments for the second period are to be
examined seven years before the start of the
second period, she said).


6. (SBU) She also said that "everybody" should
be onboard the same basic approach to dealing
with greenhouse gases, to include not only the
U.S., but also major emerging countries. But
her words contained large `loopholes.' She
added, "Everybody should be part of the regime,
although some of the modalities might not
necessarily be binding and in some cases remain
to be defined." On the other hand, if the U.S.
remains outside (an extension of the Kyoto-like
regime in the post-2012 period),it will be
"impossible" to persuade emerging countries to
play their part and to plan to reduce greenhouse
gas emissions beyond 2012.

Maintain the market mechanism
--------------


7. (SBU) Our MFA interlocutor also noted that
France wants to maintain beyond 2012 a number of
Kyoto mechanisms/tools (e.g., CDM and `joint
implementation'),but "with possible
adaptations." Concerning the mandatory reduction
issue, the MFA repeated that to have a carbon
price there must be some offer and some
constraint - without constraint, no market for
carbon will develop. Additionally, she thought
that for France, the energy debate in the U.S.
remains "too focused on energy supply and not on
the regulation of energy demand." She also
thought France needs to work harder on energy
efficiency (e.g., regulations, incentives, and
the development of new technologies). France
does not believe in the "tout technologie" - the
all technology approach, the rubric often used
in France to describe the U.S. system.

Prime Minister speaks up, too
--------------


8. (U) On November 14, at a meeting to follow up
on the French climate plan launched in July 2004
(reftel),Prime Minister de Villepin commented
on France's recent efforts to reduce greenhouse
gases. While acknowledging the importance of
international cooperation, he also stressed the
actions necessary at the national level, as well
as the responsibility of the public. He
announced new measures to encourage research on
low-energy housing and development of renewable
energy sources, including solar, and an increase
in the tariff at which EDF [the national
electricity company] buys photovoltaic solar
energy. He highlighted measures aimed at
developing bio-fuels and listed new requirements
for cars, e.g., mandatory labeling of CO2
emissions on all new vehicles, as well as the
funding of a research program to design a family
car which would consume less than three liters
for fuel per one hundred kilometers.


9. (U) On Kyoto, de Villepin stated that France
"will pursue (its) efforts to convince
industrialized countries and key emerging
countries to join in. Beyond this Protocol,
(the GOF) wishes to negotiate new commitments
right away on CO2 emissions as it is not
possible to rely only on new techniques to reach
environmental objectives."


10. (SBU) Comment: ESTH officers let French
interlocutors talk and what we got in return was
a mix of private views and French policy.
Nonetheless, we sensed a softer tone in French
comments, especially as they acknowledged the
U.S. leadership role in climate science and in
developing climate friendly energy technologies.
(As we have mentioned in other reporting, the
French public sees the U.S. stereotypically as
"the great polluter," lagging behind the more
enlightened government understanding we gives
the U.S. some credit for its efforts.) The
bottom line aspiration of French environmental
officials for COP 11 is that somehow the talks
be "more constructive (from their perspective)."
They hold the view that without "the U.S.
onboard," there will be no "viable" post-Kyoto
GHG emissions regime. French officials would be
overjoyed were they (and others of like mind) to
reach an understanding with the U.S. on a
framework for future discussions. ESTH officers
provided no encouragement in this regard. They
highlighted U.S. climate efforts and noted that
they are working. End Comment.


STAPLETON