UNDP MAKES CLIMATE CHANGE RECOMMENDATIONS FOR

UNCLAS ASHGABAT 001301 SIPDIS SENSITIVE SIPDIS STATE FOR SCA/CEN, OES, EEB; STATE PLEASE PASS TO USTDA DAN STEIN ENERGY FOR EKIMOFF/THOMPSON COMMERCE FOR HUEPER E.O. 12958: N/A TAGS: SENV EPET ECON TX SUBJECT: UNDP MAKES CLIMATE CHANGE RECOMMENDATIONS FOR TURKMENISTAN ¶1. (U) Sensitive but unclassified. Not for public Internet. ¶2. (SBU) At the official launch event on November 28 in Turkmenistan for UNDP's 2007/2008 Global Human Development Report entitled "Fighting climate change: Human solidarity in a divided world," UNDP Resident Representative in Turkmenistan Richard Young said that Turkmenistan's carbon emissions are relatively large per capita, due to the common practice of gas flaring in the energy sector. (NOTE: Turkmenistan's emission levels approach that of Egypt. Turkmenistan has an estimated population of five million, while Egypt has over 76 million inhabitants. END NOTE.) Young also outlined recommendations for combating climate change in Turkmenistan: -- Turkmenistan needs a sustainable energy efficiency policy. -- Carbon finance could be an effective tool for reducing emissions in Turkmenistan and boosting Turkmenistan's economic profit. UNDP can provide support in establishing a Designated National Authority for Carbon Finance and support its capacity-building. -- Reducing internal consumption of gas is a priority item. -- Adaptation measures must be considered for the protection of agriculture, water supply, and coastal zone management. -- Perfect conditions for solar and wind power exist in many places in Turkmenistan, and should be developed. ¶3. (SBU) COMMENT: Carbon finance has become a profitable business for international financial organizations such as the World Bank, and a whole sub-industry has bloomed around it in investment banks and consultancies around the world. The Clean Development Mechanism (CDM) -- which Young refers to in his comments about "establishing a Designated National Authority for Carbon Finance" -- is a mechanism under the Kyoto Protocol through which developed countries may finance projects to reduce greenhouse gas emissions in developing countries and receive credits for doing so which they may apply towards meeting mandatory limits on their own emissions. Part of the process of starting a CDM program in any country involves international experts measuring and analyzing emissions on site: in other words, generating what would certainly be considered embarrassing statistics. UNDP is well-positioned to lead Turkmenistan's carbon finance business, and Turkmenistan has indicated several times that it is interested in developing alternative energy sources. Curiously, none of the Turkmen officials attending the presentation asked any questions, and it is doubtful that they understood even the basic concept of carbon finance. Whether or not Turkmenistan is interested in allowing the necessary data collection -- and if it is ready to commit -- is another question altogether. END COMMENT. CURRAN