AUSTRIA FAVORS LESS STRINGENT POST-KYOTO TARGETS

UNCLAS SECTION 01 OF 02 VIENNA 001151

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SUBJECT: AUSTRIA FAVORS LESS STRINGENT POST-KYOTO TARGETS

REFS: A) 04 VIENNA 1106; B) 04 VIENNA 804


SUMMARY
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1. (SBU) At the March 22-23 European Council meeting,
Austria initiated a remarkable about-face, arguing for lower
emission reduction targets after 2012. In the run-up to the
summit, Austria pressed for setting no emission reductions
goals at all. There is an open discussion within the GoA
between the "economic wing" - centered in the Ministry of
Economics - and the "environmental wing" - led by the
Ministry of Agriculture and Environment. Praising the USG's
ability to juggle multi- and bilateral issues, Chancellor
Schuessel said the EU should gauge its economic and
environmental positions vis-a-vis "big players," such as the
U.S. and China. The primary factor behind Austria's "change
of mind" is its inability to achieve current emission
reduction goals. End summary.

AUSTRIA'S CLIMATE CHANGE REDUCTION GOALS OUT OF REACH
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2. (SBU) When Austria signed the Kyoto Protocol in 1997, it
promised to reduce greenhouse gas emissions by 13% by 2012
(using a 1990 base),far above the EU average of 8%. By the
end of 2004, however, emissions were 17% more than in 1990.
The self-proclaimed aim now appears well out of reach. A
tug-of-war has emerged between the "economic" and the
"environmental" wings of the GOA. Minister of Economy
Martin Bartenstein and industry lobby groups have argued
that too strict restrictions on emissions would hamper
economic growth and cost jobs. They were successful in
watering down the Austrian allocation plan for the EU's
emissions trading scheme (refs A and B).

GOA POLICY SHIFT: NO NEW POST-KYOTO GOALS, PLEASE
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3. (SBU) Rhetorically, the GOA continues to brandish its
image as an environmental trendsetter in the EU. However,
recent GoA actions signal a definite change of policy. At
the Foreign Ministers' meeting prior to the European
Council, Austria's Ursula Plassnik was the only foreign
minister to vote against setting post-Kyoto reduction goals,
according to an internal protocol leaked to the Austrian
press. The EU environmental ministers had unanimously
recommended reducing greenhouse gas emissions in industrial
states 15-30% by 2020 and 60-80% by 2050.


4. (U) According to press reports, the GOA opposed any post-
Kyoto greenhouse gas reduction goals at the European Council
meeting, but could not find enough allies. Germany, however,
apparently successfully lobbied to delete any reference to
2050 goals from the Presidency Conclusions. Thus, the
compromise was to retain the 2020 reduction goals, and to
waive the long-term aims.

CHANCELLOR AGAINST MORE TARGETS
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5. (U) Minister Bartenstein claimed that setting specific
goals was "premature" because "climate sinners such as the
U.S. and China" could regard this as "a self-obligation" by
the EU. He added that implementation of current climate
protection measures would lower growth by 0.6% per annum.
Chancellor Wolfgang Schuessel cautioned that the EU should
undertake a study on the impact of the implementation of the
current Kyoto goals on economic growth and job creation,
before setting further binding targets. Schuessel praised
the U.S. for successfully balancing bilateral and
multilateral trade interests. The EU, Schuessel opined,
could learn from the U.S. EU Member States should not gauge
their economic and environmental records towards each other,
but instead towards "big players" like the U.S. and China.

MINISTRY OF ENVIRONMENT DEFENDS AMBITIOUS TARGETS
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6. (U) The Environmental Ministry, which has the lead on
international climate protection issues, continues to
support tougher reduction goals. Minister Josef Proell
publicly defended the environmental ministers' approach to
set goals until 2050, but he downplayed any difference with
the Council's final decision. He countered Bartenstein's
statement by citing the Economics Ministry's own "Energy
Report" from 2003. This report, according to Proell, claims
climate protection measures would fuel economic growth by 1%
and create 85,000 new jobs in the environmental technology
sector.

MFA: GOA REALIZES GOALS ARE TOO AMBITIOUS
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7. (SBU) Aloisia Woergetter, in the MFA's Environmental
Affairs Section told post the MFA coordinated the somewhat
competing positions of the two other ministries on this
issue in international forums. She said the GOA realized
that the EU was now too ambitious with greenhouse gas
reduction goals. She underlined that the GoA adopted a new
policy after careful consideration. She complained the
Environmental Ministry was delaying a draft paper outlining
the changed Austrian position.


8. (SBU) Woergetter insisted, however, on the overall
benefits of the Kyoto Process and the necessity to devise a
follow-up scenario. The upcoming results of a Commission
cost-benefit analysis would confirm the positive impact on
the economy and the job market, she said. Woergetter added
that the GOA and the EU have "registered" and "understood"
the U.S. position on climate change and the serious U.S.
efforts to reduce domestic greenhouse gases.
COMMENT
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9. (SBU) Austria's new position on climate change is indeed
a remarkable shift. Austria realizes that the ever-stricter
emission reduction goals will have consequences for economic
growth. Austria, if it continues on this path, may become a
U.S. "ally" on climate change. Nevertheless, climate change
is only one environmental issue. There remains widespread
support throughout Austrian society for a continued ban on
nuclear power and strong resistance to genetically modified
organisms.

BROWN#