ASIA-PACIFIC PARTNERSHIP ON CLEAN DEVELOPMENT AND CLIMATE

UNCLAS SECTION 01 OF 06 NEW DELHI 004815

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TAGS: SENV ECON KGHG KSCA IN

SUBJECT: ASIA-PACIFIC PARTNERSHIP ON CLEAN DEVELOPMENT AND CLIMATE
MINISTERIAL MEETING SHOWCASES PROGRESS, PROJECTS, AND CANADIAN
MEMBERSHIP


Summary
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1. (SBU) Founding Asia-Pacific Partnership on Clean Development and
Climate (APP) Partners Australia, China, India, Japan, Korea, and
the United States officially welcomed Canada as the seventh member
of the Partnership at a productive Ministerial Meeting hosted by the
Government of India in New Delhi on October 15, 2007. Partners
released a Communiqu welcoming Canada, showcasing flagship projects
and a new virtual Energy Technology Cooperation Center, and
highlighted progress made since the last Ministerial meeting in
January 2006. Supportive public and private comments by attending
officials, funding announcements like a USG FY07 $45 million
commitment and an Australian Government commitment of an additional
50 million AUD (bringing its total contribution to 150 million AUD),
and robust government and industry participation in the second APP
Ministerial meeting underscore what Minister of External Affairs
Shri Pranab Mukherjee called the "credibility" and "importance of
[the Asia-Pacific Partnership] in addressing the crucial issue of
clean development and climate for all [Partner] countries."

Ministerial Meeting Deliverables
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2. (U) Communiqu Adopted: The New Delhi Communiqu is available
at www.asiapacificpartnership.org/DelhiCommuniqu e.pdf
The Communiqu highlights the considerable progress made since the
inaugural Sydney Ministerial, welcomes the addition of Canada as a
seventh partner, notes creation of eight Action Plans and
endorsement of more than 100 collaborative projects, highlights the
importance of strong collaboration with and support from the private
sector, and announces the launch of the implementation phase of the
"Asia-Pacific Energy Technology Co-operation Centre."


3. (U) Flagship Projects: Eighteen flagship projects spanning the
work of the eight Task Forces - Aluminum, Buildings and Appliances,
Cement, Cleaner Fossil Energy, Coal Mining, Power Generation and
Transmission, Renewable Energy and Distributed Generation, and Steel
- were announced, exemplifying the different types of cooperative
actions being undertaken by Partners. Full details about the
flagship projects can be found by visiting
www.asiapacificpartnership.org/2ndMinisterial /
Flagship%20brochure%20FINAL.pdf


Grants Awards Launch Event
--------------

4. (U) SciOffs attended and helped organize an October 12, 2007
launch event for State Department-funded grant awards in support of
APP projects in India. The DCM opened this event, announcing that
twelve grants totaling 6.5M USD will be awarded to Indian

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organizations working together with U.S. partners to complete key
projects in India and that an additional 4.15M USD has been awarded
to USAID's New Delhi mission to further support the work of the
Partnership. Prospective grantees presented project summaries,
interacted with key DOS program management contacts, and expressed
interest in using synergies among their individual projects to
multiply overall project results.

Bilateral Conversations
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5. (SBU) Chairman Connaughton had bilateral meetings with Japanese
Senior Vice-Minister Masashi Nakano and Japanese Ambassador for
Global Environmental Affairs Kyoji Komachi. Senior Vice-Minister
Nakano and Ambassador Komachi both highlighted the momentum the APP
has gained since the Sydney Ministerial and expressed a strong
desire to keep the momentum going by holding regular ministerial
meetings. Nakano noted the success of the sector-based approach in
sharing best practices in the Coal Mining and Steel Task Forces and
hoped the United States could tak the lead in accomplishing the
same thing in the Power Generation and Transmission Task Force.
Nakano also expressed his belief that achievements made in the APP
will have a large impact on both the post-Kyoto negotiations and the
Major Economies Meeting (MEM) process. He concluded by stressing
that the upcoming Bali Conference of Parties would be very important
in discussing the future framework of the UNFCCC and that he desired
Japan and the United States to take the lead in Bali.


6. (SBU) Chairman Connaughton responded that the next six months
were very important and that for the United States to participate
effectively in the UN setting all countries need to share
responsibility - including developing countries such as India and
China. He noted the European approach under the Kyoto Protocol was
unworkable and that the likely outcome would be to force the United
States to impose new tariffs as opposed to transferring money to
developing countries. Chairman Connaughton stated that the Bali
conference should be focused on scheduling and not on substance in
order to allow the MEM process time to work noting the MEM was
essential to rapid UN agreement on a post-Kyoto framework.

Evening with Industry Event
--------------

7. (SBU) An "Interactive Industry Evening on Technology and Finance
for Clean Development" event, co-sponsored by two Indian industry
associations and MoEF, was held following the Ministerial and
attended by APP delegates and industry representatives from India.
Presentations from GOI officials emphasized the need for a climate
strategy addressing both mitigation and adaptation. Former MoEF
Secretary Dr. Prodipto Ghosh, now an advisor to the Prime Minister's

SIPDIS
Council on Climate Change, praised the Partnership's cooperative
approach while expressing interest in initiating a new round of

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projects and creating task forces to address agricultural, forestry
and water issues. Executive Director of the International Energy
Agency, Nobuo Tanaka, commented upon the need for increased
information and data sharing within the Aluminum, Cement, and Steel
Task Forces. CEQ Chairman Jim Connaughton recognized the importance
of industry in responding to climate change and emphasized the
government's ability to "help leverage investment."

Partner Country Perspectives
--------------


8. (U) India: Minister of External Affairs Shri Pranab Mukherjee
opened the Ministerial meeting with an inaugural address officially
welcoming Canada and emphasizing that strong meeting attendance and
Canada's interest in joining the APP "underscores the credibility"
and importance of the Partnership. GOI noted that India's national
development goals call for sustained economic growth of 8-10
percent, increased per capita energy consumption, and expanded
access for nearly half of India's population currently living
without electricity. In order to accomplish these goals in a
sustainable manner, national strategy policies focus on promoting
energy efficiency and conservation, using market mechanisms and
deploying advanced clean energy technologies. In addition to
recognizing the importance of technological and financial resources,
GOI suggested pursuing collaborations between developing and
developed country research and development institutions to address
the lack of research and development efforts focused on the
"requirements and resource endowments of developing countries."
Intellectual property rights issues were also raised, with GOI
expressing interest in creating a "fairer" balance between
compensation for innovators and the greater good of society. GOI
reaffirmed their commitment to the APP and to combating climate
change; recognizing the consistency of APP efforts with the
principles of the UN Framework Convention on Climate Change.
Minister of State for Environment and Forests Shri Namo Meena
chaired the meeting.


9. (U) Australia: Government of Australia (GOA) announced a
further funding commitment of 50 million AUD in support of the
Asia-Pacific Partnership, raising Australia's total contribution to
150 million AUD and enabling expanded participation beyond its
current involvement in 63 projects across the eight Task Forces.
Department of Foreign Affairs and Trade Ambassador for Environment
Jan Adams thanked the GOI for hosting the meeting, welcomed Canada
into the APP, and observed that their endorsement of the partnership
reaffirmed the strength of this approach, stating that APP involves
a different type of cooperation focused on "real, practical, and
commercially relevant" actions and on harnessing the potential of
private sector. Adams explained that a call for elections precluded
Foreign Minister Downer, Environment Minister Turnbull, and Industry

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Minister MacFarlane from attending the meeting and conveyed their
regrets.


10. (SBU) China: National Development and Reform Commission
Director-General Gao Guangsheng thanked the host country for
sponsoring the meeting, discussed China's climate change strategy,
and provided substantive recommendations for the direction of the
Partnership. China indicated it utilizes a sustainable development
framework to address climate change, noting that the APP fits this
model and is complementary to the UNFCCC and Kyoto Protocol. He
highlighted that too date, China has hosted three Task Force
meetings and participated in more than twenty APP projects and
recognizes the need for continued "international cooperation on
technology, research and development, transfer and dissemination of
technology." China emphasized that technological advancement is at
the core of a successful climate change solution, noting that "the
price of technology transfer and dissemination" is equally as
important as technology development, creation of a mechanism for
tech transfer, and deployment of advanced clean technologies. Gao
Guangsheng noted that APP projects focus on "soft activities,"
neglecting the potential for joint research and development projects
between developed and developing countries and underscoring the need
for developed countries to provide financial and technical support
to assist developing countries and create a "favorable environment
for private sectors." He added that the Partnership needed to
address the "issue of establishing a financial mechanism" and to
expand climate-friendly investment through policy and financing
instruments. China also stated that financial and technical support
must be provided from developed countries and international
financing institutions to assist developing countries to "import and
absorb advanced clean technologies and improve their capacities of
mitigating and adapting to climate change." DG Gao reminded the
group that Partner countries were welcomed to invest in China's
priority areas of work under the APP, including advanced energy
efficiency technologies, clean coal, renewable energy, methane
recovery and utilization, and energy efficient buildings.


11. (U) Japan: Ministry of Economy, Trade and Industry's Vice
Minister Masashi Nakano expressed gratitude to the host country and
noted Japan's continued commitment to develop, deploy, and
disseminate appropriate and advanced clean technologies. Japan
indicated its private sector and environmental institutions remain
actively involved in and supportive of the Partnership.


12. (U) Korea: Ministry of Commerce, Industry and Energy Vice
Minister Jae Hoon Lee recognized the world's increasing attention to
climate change and discussed Korea's recent APP and other climate
initiatives. Lee announced the launch of the implementation phase
of Korea's proposed "Asia-Pacific Energy Technology Cooperation
Centre" (ETCC) to facilitate exchanges of energy-efficiency

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information and best practices between private and public sectors of
the Partner countries. Details of the ETCC operations will be
discussed at the next Policy and Implementation Committee (PIC)
meeting. Korea stated that it remains actively engaged in the APP
and noted that the Partnership has generated involvement in a
significant number of projects and substantial participation from
both their private and public sectors. Vice Minister Lee indicated
that a key component of Korea's climate strategy is decreasing
energy intensity by using existing fuels more efficiently in the
short run and seeking alternative carbon-free energy sources in the
long run. The Vice Minister highlighted the fact that voluntary and
compulsory national policies include a recently announced goal of
forty percent lower energy intensity by 2030, increased reliance on
renewable energy in the energy supply mix, establishment of a
certified carbon market, compulsory energy auditing for buildings,
and raised Average Fuel Economy Standard.


13. (U) United States: Chairman of the Council on Environmental
Quality (CEQ) Jim Connaughton led the US delegation and delivered
remarks highlighting recent accomplishments of the Partnership. Mr.
Connaughton announced an FY 07 allocation of 45M USD to support APP
projects and activities, noting that these funds are expected to
leverage 120M USD in additional clean energy financing. He noted
that the Department of Commerce was looking forward to increased
investment as an outcome of an upcoming clean energy trade mission
to China and India later this year, building upon a successful
reverse trade mission with India on renewable energy last year that
yielded preliminary clean technology trade and investment
commitments valued at an expected 12M USD. Connaughton cited
identification of eighteen flagship projects as a testament to the
Partnership's significant progress and focus on implementing
concrete, practical actions. He also highlighted recent successes
including the formation of a Health and Safety Steering Committee in
the Coal Mining Task Force and facilitation of technical exchanges
between engineers in the Power Generation and Transmission Task
Force. Mr. Connaughton welcomed Canada into the Partnership and
thanked the host country, conveying the regrets of President Bush
and SecState Rice.


14. (U) Canada: Deputy Minister of Environment Michael Horgan
underscored the value of the APP's approach focusing on cooperation
with the private sector, and expressed appreciation for Partner
countries' support and welcomes of Canada as a seventh member.
Canada indicated it looks forward to actively participating in the
work of the Task Forces; capitalizing on the "considerable resources
and expertise" it was to offer, building upon "positive and very
productive conversations" already held with its private sector in
five of the eight Task Forces areas, and presenting new projects
supporting the goals of the Partnership. The Deputy Minister
highlighted increasing energy efficiency and deploying clean energy

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technologies as high priorities for Canada, as are development of
the related financing and investment schemes and regulatory and
legal frameworks. Additionally, Mr. Horgan noted the government is
investing 1.5 billion USD to increase the use of renewable energy
and is particularly interested in carbon capture and storage
technologies. Horgan also conveyed the regrets of Environment
Minister Baird, who was unable to attend the meeting due to
Parliamentary duties.



15. This cable has been cleared by James Connaughton.

MULFORD