COMPREHENSIVE GERMAN CLIMATE CHANGE PROPOSAL

UNCLAS SECTION 01 OF 02 BERLIN 002177 SIPDIS SENSITIVE SIPDIS E.O. 12958: N/A TAGS: PGOV PREL SENV KGHG ENRG GM SUBJECT: COMPREHENSIVE GERMAN CLIMATE CHANGE PROPOSAL BEFORE PARLIAMENT REF: BERLIN 2152 BERLIN 00002177 001.2 OF 002 ¶1. (SBU) Summary: The coalition government presented a series of far-reaching and ambitious environmental legislative measures to the German Parliament for consideration on December 5 (Reftel). The 14 points of this proposal are not new, but rather stem directly from the 29-point "Meseberg Plan", which was approved by the German Cabinet in August 2007. Nonetheless, the media has seized upon Berlin's determination to cut greenhouse gas emissions by 40%. The German government planned the announcement of this draft legislation to provide momentum for the current UNFCCC Conference in Bali. Our German interlocutors generally believe that the climate change goals embodied in these proposals are achievable. End Summary. ¶2. (SBU) The current proposals were first elaborated in the summer of 2007. On August 23, Minister Gabriel and Economic Minister Michael Glos jointly presented their 47-page climate proposal (available from Embassy Berlin upon request) to the German Cabinet for a decision during the Christan Democratic/Social Democratic coalition government's mid-term summer working retreat. On September 24, the German Economic Ministry published a three-page summary report in English (available from Embassy Berlin upon request),in which they noted that the draft legislative package would be introduced to the parliament before the climate change conference in Bali. The draft legislation introduced on December 5th covers the first 14 points of the so-called Meseberg Plan. The government plans to present the draft legislation for the other 15 points to the parliament in May 2008. ¶3. (SBU) Although the coalition government is in agreement on these measures, they have not yet become law. The timing of Environment Minister Sigmar Gabriel's proposal was likely aimed at showing that the Germans are taking something of significance to the UNFCCC conference in Bali. Had this announcement not fallen during the Bali conference, this story may not have been picked up by international media outlets -- which have tended to overstate the novelty of the proposals. ¶4. (SBU) Our German interlocutors generally believe that the climate change goals embodied in these proposals are achievable. However, it is too early to make a definitive assessment. To date, Germany has reduced its greenhouse gas emissions nearly 19% from 1990 levels. It is accordingly well on its way to meeting its 21% Kyoto target for the 2008-2012 period. However, according to Dr. Heidemarie Apel-Schmelter, the senior staffer for the SPD environmental caucus working group, nearly 9% of this drop came from the dismantling of dirty industries in the former East Germany (still, this was a very costly measure). After reunification, the German government worked to clean up highly polluting factories there. Additionally, on November 28th, Environment Minister Gabriel admitted that, if Germany has a particularly tough winter, it might not achieve the 21% target by the beginning of 2008. ¶6. (SBU) The four most important points of the Meseberg Plan require that Germany: -- expand its share of renewable energy; -- substantively expand the environmentally friendly and particularly efficient generation of electricity and heat in combined heat and power plants (CHP); -- adopt more stringent requirements for energy efficiency in buildings; -- work to develop a stable legal framework for carbon capture and storage at the European level. ¶7. (SBU) The 14 specific points of the legislative proposal include the following areas: -- increase the share of CHP in electricity generation by 2020 to 25 percent -- smart metering -- raise energy requirements for buildings an average of 30 percent in 2009 and another 30 percent for 2012 -- increase the renewable energy share of heat consumption to 14 percent by 2020 BERLIN 00002177 002.3 OF 002 -- make federal buildings more energy efficient -- promote electricity generation from biomass and wind; increase the share of renewables in electricity generation to 30 percent by 2020 -- improve clean coal technology / power station technology -- improve the feed-in of bio-gas to natural gas grids -- expand the biofuels market by 20% in 2020 -- sustainability and biomass -- increase the use of bioethanol -- refine the processing of plant oils -- tax vehicles based on carbon dioxide emissions as of May 2008 -- reduce emissions of fluorinated greenhouse gases. TIMKEN JR