BALI CLIMATE CHANGE CONFERENCE: AUSTRIAN VIEWS

UNCLAS SECTION 01 OF 02 VIENNA 002914

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: SENV KGHG PREL PGOV ENRG AU
SUBJECT: BALI CLIMATE CHANGE CONFERENCE: AUSTRIAN VIEWS

REF: A) STATE 159374 B) VIENNA 2690

Summary
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1. (SBU) Environment Minister Josef Proell told the Charge
on December 6 that Austria was supportive of U.S. efforts to
develop a Bali roadmap. Proell recognized that any
post-Kyoto agreement needed to include flexibility for
national plans, but he stressed that Austria supported the EU
goal of limiting global warming to less than two degrees
centigrade above pre-industrial levels. Proell said the
developing world must step up environmental assistance and
technology transfers to the emerging economies, but Klaus
Radunsky from the Federal Environment Agency cautioned that
there would certainly be IPR concerns with transfers to
China. Helene Schuberth, the Chancellor's Economic Advisor,
told us that without the world's major emitters, an EU
"go-it-alone" strategy would actually increase global demand
for fossil fuels and concurrently carbon dioxide emissions.
Schuberth acknowledged that many countries, including
Austria, needed "more deeds and less words" in their policies
to reduce global warming. Post's outreach efforts to
Austrian stakeholders included an op-ed by the Charge in the
December 7 edition of Die Presse, one of Austria's two
leading dailies. End Summary.


GoA Supports Bali Roadmap
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2. (SBU) On December 6, Charge and Acting EconPol Counselor
met with Minister of Agriculture and Environment Josef Proell
to lay out USG positions (ref A) on the Bali UN Climate
Change Conference. Charge stressed that the USG was
committed to develop a post-2012 framework that is global in
nature, environmentally effective, and economically
sustainable. Charge underscored that it would be important
to allow for some flexibility in each country's national
plans. Binding targets were one tool, but other measures,
such as market-based incentives, non-voluntary targets, and
technology were equally important to achieve meaningful
reductions that do not limit economic growth. The USG hoped
to work with its partners at Bali to construct a roadmap
leading to a consensus on a new framework by 2009.


3. (SBU) Proell, who will lead the Austrian delegation to
the Bali Ministerial, welcomed the U.S. willingness to strive
for a global commitment to reduce greenhouse gas emissions.
To be effective, a post-2012 framework must include the U.S.,
India, and China. Proell opined that to integrate the large
emerging economies into the process, the developed world
would need to ratchet up assistance and technology transfers
to developing countries. Proell expressed understanding for
flexible national plans, but he added that the EU had made a
firm commitment to binding targets. Moreover, the EU
remained committed to the goal of limiting global warming to
no more than two degrees above the pre-industrial temperature.


Is 2009 Too Ambitious?
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4. (SBU) EconPol Counselor and EconUnit Chief met separately
with Klaus Radunsky from Austria's Federal Environment
Agency. Radunsky also argued for increased technology
transfers to emerging economies, but he cautioned that,
especially in the case of China, there were significant IPR
concerns to overcome. Radunsky expressed concern that the
goal of reaching an agreement by 2009 might be too ambitious,
given the number of preparatory meetings, as well as internal
coordination within governments, that will be necessary. He
also suggested that the scope of the negotiations should be
narrowed. At the same time, however, Radunsky argued that it
would be important to keep all elements of a strategy in one
agreement, e.g., it would be important to deal with
mitigation and adaptation together. Radunsky welcomed U.S.
interest in beginning a sectoral approach, but he also
cautioned that this is a new area, where there is no
precedent on how to proceed.


Chancellery: Post-Kyoto Agreement Must Be Global
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5. (SBU) EconUnit Chief met on December 6 with Helene
Schuberth, the Chancellor's Special Advisor on Economic
Policy. Schuberth, who will represent the Chancellery at
Bali, noted that, while the U.S. and EU have many points of
convergence on global warming, the EU favored a top-down
approach as opposed to a bottom-up approach in the U.S.

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Austria supported the concept of "equitable, global burden
sharing," as well as increased promotion of technology as a
means to fight global warming. Schuberth admitted that many
countries, including Austria, needed "more deeds and less
words" to achieve real reductions. (Note: Austria's 2005
emissions were 18% above 1990 levels and 37% above its own
Kyoto commitment for the 2008-2012 period (ref B). End
Note.)


6. (SBU) Schuberth maintained that, because the EU accounts
for only 16% of global emissions, the EU's efforts would be
in vain unless all major emitters participate in a post-Kyoto
agreement. The EU's binding targets should lead to a
decrease in demand for fossil fuels in Europe. However, with
no corresponding decline in world demand, the additional
world supply (not available to Europe) will drive down the
world price for fossil fuels. A lower world price will lead
to an increased demand from those who have not committed to
reduce their carbon dioxide emissions. In the end, Schuberth
lamented, you will have an even greater increase in global
carbon dioxide output.
Kilner