PM Brown Announces "Marshall Plan" on Climate

UNCLAS SECTION 01 OF 02 LONDON 004297 SIPDIS SENSITIVE SIPDIS E.O. 12958: N/A TAGS: SENV KGHG UK SUBJECT: PM Brown Announces "Marshall Plan" on Climate ¶1. (SBU) Summary: In a November 19 speech, Prime Minister Gordon Brown reaffirmed the UK's commitment to 60% cuts in carbon emissions by 2050 and 20% of energy in the EU from renewable sources by 2020, and called for a "Marshall Plan" on climate to assist developing countries. He pledged $2.74 billion for R&D in offshore wind, wave and tidal energy and for bringing those technologies to market. He also announced a competition for a coal-fired power plant on a commercial scale with carbon capture and storage (CCS) technology and that the EU and UK will begin a Near Zero Emission Coal Initiative in China. Finding the money for these plans, however, may be a problem. End summary. "Developed Countries Have Historic Responsibility" -------------- -------------- ¶2. (U) Speaking two weeks before the UN Climate Change conference begins in Bali, Brown said that although the goal of Bali was to launch negotiations for a post-2012 climate change agreement, the long- term goal is to build a global low-carbon economy. He said climate change is a challenge for this century on a "comparable financial scale" to the post WW-II Marshall Plan. In a separate statement on November 18, Brown said that "developed countries have historic responsibility for causing climate change, and have the greatest capacity for reducing emissions. So we must show leadership and take the first and largest responsibility." New Clean Energy Investment Framework Under World Bank -------------- -------------- ¶3. (U) Brown said the UK would work with the United States, Japan, the G-8 and other European donors on new funding mechanisms to assist developing countries reduce carbon emissions and adapt to climate change. The mechanisms include the World Bank-led Clean Energy Investment Framework and the UK's $1.6 billion Environmental Transformation Fund. Sticking with Commitment on Renewable Energy -------------- ¶4. (SBU) Brown's speech was based on the Climate Change Bill published on November 15. The bill legally binds the UK to reducing its emissions of carbon dioxide by a minimum of sixty percent from the 1990 benchmark by 2050. While much of Brown's speech reiterated standard UK points on climate, one surprising note was his re-commitment to the EU's agreement to have 20% of its energy generated from renewable sources by 2020. Media accounts, including an article in the October 23 Guardian, have been speculating for weeks that the 20% figure was unreachable and that Brown would back off. Note: The 20% figure covers Europe as a whole, and Brown has only committed the UK to "meeting our share," not to a specific amount or percentage. Brown said in his speech that the European Commission will make a proposal in January 2008 about how the 20% figure would be apportioned among different member states. End note. $2 Billion for Wind, Wave and Tidal Energy R&D -------------- - ¶5. (SBU) In his speech, Brown announced a $2 billion public-private Energy Technologies Institute that will focus on R&D in offshore wind energy, wave energy and tidal energy. A separate $740 million domestic Environmental Transformation Fund will focus on bringing those technologies to market. Brown noted that the new planning bill will help reduce the obstacles to building local power, especially in LONDON 00004297 002 OF 002 renewables. Brown referred as well to a host of other energy efficiency programs including promotion of building insulation, a phase-out of standard filament light bulbs starting in 2008, and smart metering of electricity. He also announced a competition for building a coal-fired power plant on a commercial scale with carbon capture and storage (CCS) technology. In a similar vein, he said that the EU and the UK will begin a Near Zero Emission Coal Initiative in China. Brown was more circumspect on nuclear, saying only that nuclear was a "potential" energy source, "subject to the outcome of our consultation" with the public. ¶6. (SBU) Comment: Brown is trying to position the UK on the moral high ground on climate by making clear domestic commitments, investing in technology, and offering financial support to developing economies. Delivering on the promises may be tough, however. On November 17, the Guardian newspaper reported that DEFRA, the UK's lead agency on climate change, is facing $600 million in budget cuts to compensate for a string of unexpected expenses resulting from floods, foot-and-mouth disease, and other unexpected costs. TUTTLE