KEY BUNDESTAG MEMBER INTERESTED IN WORKING WITH

UNCLAS BERLIN 001292 SIPDIS SENSITIVE SIPDIS PLEASE PASS TO EEB/TRA (WALKLETT-TIGHE),EUR/ERA AND EUR/AGS (O'KEEFFE) E.O. 12958: N/A TAGS: EAIR EINV SENV PREL GM EU SUBJECT: KEY BUNDESTAG MEMBER INTERESTED IN WORKING WITH USG ON AVIATION EMISSIONS REF: A. A. SECSTATE 83246 ¶B. B. 06 BERLIN 3519 ¶1. Please note action request contained in paragraph 6. ¶2. (SBU) Summary: Bundestag Transportation Committee Chairman Klaus Lippold (CDU),in a meeting with emboffs, offered to assist us in building a consensus in favor of tackling aviation emissions in a manner that would overcome U.S. objections and win broad international acceptance. Lippold is specifically looking for input on whether the Emissions Trading Scheme (ETS) is a complete non-starter with the USG and what alternate solutions the USG would be receptive to at the International Civil Aviation Organization (ICAO) Conference in September. Further information beyond that outlined in Reftel would help him to press for greater flexibility in the European Union position and increase the likelihood of a mutually satisfying conclusion at ICAO. End summary. ¶3. (SBU) Responding to emboffs' presentation on USG concerns that the European Commission's proposal contradicts ICAO's decision in 2004 to include such emissions only on the basis of mutual consent among states, Lippold stated his preference for global consensus on whatever approach the international community adopted. Growing impatience within the EU over the lack of progress in ICAO in reducing such emissions, Lippold noted, is strengthening the position of those in the EU who argue the EU should act on its own to include civil aviation in the ETS. An important ally who helped defeat a proposed airfare tax last year, Lippold also expressed concern that EU-based airlines would suffer a competitive disadvantage if the ETS did not apply to non-EU airlines as well. He was particularly concerned about the ability of non-EU members such as Switzerland to attract business away from the EU. ¶4. (SBU) Lippold, who keeps in close contact with his party colleagues in the European Parliament Transportation Committee, said that he did not expect the Committee to approve any initiatives for a resolution before the September ICAO Conference. He and his colleagues were not aware of any such plans in other EU parliamentary committees. He said the EU Parliament's Environment Committee will begin looking at the proposal on June 25. ¶5. (SBU) Lippold, who first met with EMIN in December 2006 to discuss USG concerns (see reftel B),asked if the USG had shifted its position at all due to G8 Summit announcements on climate change and whether the USG regarded ETS as "the wrong instrument" to deal with aviation emissions. He particularly sought to clarify whether the USG would accept any solution involving ETS or would reject ETS out of hand as a way to deal with greenhouse gas emissions resulting from civil aviation. He also asked if the USG had any alternate solution that would achieve comparable reductions in lieu of incorporating non-EU airlines in the ETS. Lippold said a timely response to such inquiries, ideally prior to the July 6 start of the Bundestag July recess, could assist him to shape his party's stance ahead of the ICAO Conference. ¶6. (SBU) Action Request: Request guidance for use in responding to Lippold's request for further information to assist our consensus building efforts and his inquiries regarding approaches to emissions reductions that are acceptable to the USG. TIMKEN JR