Identifier
Created
Classification
Origin
08ATHENS1538
2008-11-10 15:12:00
UNCLASSIFIED
Embassy Athens
Cable title:  

THE DEVIL IS IN THE DETAILS: GREECE'S VIEW ON EU

Tags:  ENRG KGHG SENV TRGY GR 
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OO RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV
DE RUEHTH #1538/01 3151512
ZNR UUUUU ZZH
O 101512Z NOV 08
FM AMEMBASSY ATHENS
TO RUEHC/SECSTATE WASHDC IMMEDIATE 2762
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY
RHMFIUU/HQ EPA WASHINGTON DC PRIORITY
RHMFIUU/DEPT OF ENERGY WASHINGTON DC PRIORITY
UNCLAS SECTION 01 OF 02 ATHENS 001538 

SIPDIS

DEPT FOR EUR/ERA FOR BEH/NELSON, EUR/PGI FOR TESSLER,
OES/PCI FOR FITE/HUDAK, OES/EGC FOR FENDLEY

E.O. 12958: N/A
TAGS: ENRG KGHG SENV TRGY GR
SUBJECT: THE DEVIL IS IN THE DETAILS: GREECE'S VIEW ON EU
CLIMATE AND ENERGY PACKAGE

REF: ATHENS 1481

UNCLAS SECTION 01 OF 02 ATHENS 001538

SIPDIS

DEPT FOR EUR/ERA FOR BEH/NELSON, EUR/PGI FOR TESSLER,
OES/PCI FOR FITE/HUDAK, OES/EGC FOR FENDLEY

E.O. 12958: N/A
TAGS: ENRG KGHG SENV TRGY GR
SUBJECT: THE DEVIL IS IN THE DETAILS: GREECE'S VIEW ON EU
CLIMATE AND ENERGY PACKAGE

REF: ATHENS 1481


1. (SBU) Summary: In a November 7 meeting with advisors at
the Secretary General of Energy and Natural Sources to the
Ministry of Development, Greek interlocutors said they were
fully on board with the need for the EU Climate and Energy
Package, but did not think it would get approved by all EU
member states before year-end. If the Package is approved,
they said that Greece will have to revise its already
ambitious national targets. The Ministry of Development
advisors were unable to give concrete details about how they
were going to get industry compliance and how they planned to
build capacity to increase the use of renewables.
Nevertheless, the advisors were optimistic that the
renewables draft law (reftel) would be in place before
year-end and would spur on growth in the sector. In
addition, Greece has approved legislation aimed at
encouraging new building construction to be energy efficient.
End Summary.

On board with EU Climate and Energy Package
--------------


2. (SBU) In meetings to discuss Greece's position on the EU
Climate and Energy Package, advisors to the Ministry of
Development Antony Marinos and Viky Georgakopoulou told
EconOff that Greece was fully on board to set EU member
targets to reduce electricity consumption and improve energy
efficiency. According to present EU directives for renewable
energy sources (RES),Greece has outlined a national
allocation plan (NAP) to meet its medium-term targets.
Marinos said Greece was committed to a "rational use" of
energy through advanced technology and raised awareness.
"Without removing from the equation the rate of development
and without halting the rate of growth, businesses will have
to take into account energy efficient constraints," he said.
When EconOff asked the role that the Greek Government will
play in regulating industry, Marinos responded that they are
guessing that they (industry) will do it by themselves.


3. (SBU) He went on to elaborate on the Emissions Trading
System (ETS),stating that industry will have to improve the
way it is operating to reduce emissions and will probably
have to include the use of renewables. The ETS forces

specific sectors of each country to emit within a certain
level of carbon dioxide; however, Marinos believes this
system is "not effective," and a number of countries have
already exceeded their emissions targets. He said that the
commitments signed on to with the adoption of the Kyoto
Protocol have been incorporated into the framework for EU
directives, but now the Greek Government was looking at how
to meet long-term targets in a post-Kyoto framework.


4. (SBU) Marinos and Georgakopoulou agreed that it was not
likely that the EU Climate and Energy Package would be
ratified by year-end, particularly as Italy was fighting its
ratification on behalf of its industrial sector. Marinos
said that the sectors directly affected by the pollution
targets were those that utilized primary fuels and raw
materials. He stressed, "We can not fight China and keep up
the rate of economic growth." Instead, Greece was focusing
on trying to increase the use of renewables in its sectors.

Renewables as the Fix-All
--------------


5. (SBU) Georgakopoulou said that the draft law on
renewables was close to being passed, and that it had been
signed by two out of the three ministries (Ministry of
Development and Ministry of Environment and Physical Planning
and Public Works (MOE)). The law is currently with the
Ministry of National Economy, and it will then be submitted
to Parliament for debate. Georgakopoulou said the draft law
would go before the Parliament in December and would likely
get ratified before year-end. She reported that the only
substantive change to the draft law, since she last met with
EconOff, was the reduction in the feed-in subsidy, or a fixed
buy-back rate of electricity, which would decrease every
semester (six months). Marinos commented that the rate
originally offered must have been too high, which may have
accounted for the over-subscription of projects. He added
that the Greek Government will honor those contracts that
have been signed at that rate, regardless of whether it is
above market value.


6. (SBU) In a nod to EU directives on renewables, Marinos
and Georgakopoulou said the aggressive targets would be

ATHENS 00001538 002 OF 002


beneficial and encourage Greece to meet specific targets and
would not punish Greece if it did not meet the targets. Both
were hoping that the new and improved draft law on renewables
would assist the Regulatory Authority for Energy (RAE) to
review its project backlog by the end of 2009. They noted
that the projects continued to be "alive" and that there was
ample number of investors, but the investors did not have the
funding. When EconOff asked if there was a match-making
system to match investors with capital, they said they did
not have the human resource capacity for this venture. In
order to meet anticipated investor demand on renewbles,
Georgakopoulou said they were hoping totake people from the
Center for Renewable Enegy Sources (CRES) to ramp up review
of project still in the backlog.

Energy-Efficient Buildings
--------------


7. (SBU) Marinos highlighted legislation that passed in June
that encourages energy conservation in new buildings. He
said changes to the construction of new buildings that
promoted energy conservation has not happened since 1978,
when the Greek Government required heat-protective
installation. The new regulations under the directive would
be posted on the website of the Ministry of Development and
would be in effect by the end of the month. The legislation
puts in place incentives for implementing energy saving
measures in existing buildings (heating, cooling, DHW and
lighting). (Note: According to the Website of the MOE, the
new building regulation is being harmonized with the law for
the protection of the environment and the law for the
promotion of renewable energy sources. End Note.)

Comment
--------------


8. (SBU) Greece is talking the talk on the Climate and
Energy Package, but has yet to demonstrate strong policy and
concrete measures to meet the larger objectives of the EU to
reduce carbon emissions and increase the use of RES. Without
a clear action plan and tough penalties on polluting
enterprises, Greece naively believes that industries will
self-regulate with regard t environmental compliance.
Although Greek officials welcome hard-to-reach targets, they
are banking on renewables to transform their record on the
environment. Finally, Greece is hoping that its new law will
simplify bureaucratic procedures for qualifying for RES
projects, but without additional human resources to meet the
investor backlog of renewable projects, it is unlikely that
their promised brand-new law on renewables will save the day.
The Embassy has already experienced first-hand the impact of
this proposed legislation on its own photo-voltaic project.
As the Embassy no longer qualifies for the feed-in or the
capital subsidy, according to the new legislation, the
Embassy will have to revise its proposal to meet the ten-year
payback period. End Comment.
SPECKHARD