EU BIOFUEL SUSTAINABILITY CRITERIA DEMARCHE

UNCLAS BUDAPEST 001145 SENSITIVE SIPDIS STATE FOR EUR/ERA MATTHEW BEH, OES/EGC DREW NELSON/BEN ZALTCHIK, AND EUR/CE JAMIE LAMORE E.O. 12958: N/A TAGS: EAGR KGHG SENV ENRG TRGY EUN HU SUBJECT: EU BIOFUEL SUSTAINABILITY CRITERIA DEMARCHE DELIVERED REF: A. STATE 123492 ¶B. BUDAPEST 963 ¶1. (SBU) EconOff delivered the talking points received in Ref A to Zsuzsanna Bibok, head of the Air, Noise and Transport Unit at the Ministry of Environment and Water, and to her assistant, Mate Kovacs. Bibok seemed generally receptive to U.S. views concerning biofuel sustainability criteria, but Hungary does not appear to be planning to take a leading role on this issue at the upcoming European Council meeting. According to Bibok, Hungary is in accord with the current Council recommendation for a 35 percent reduction in greenhouse gas emissions by 2017 and is willing to discuss a recent proposal by Germany, the Netherlands, and the UK to raise this target to 45 percent and account for changes in land use. Although she expects Hungary to become virtually self-sufficient in biofuel production based on the capacity of its domestic agricultural sector, Bibok agreed that the EU's biofuels framework should ensure market access for U.S. corn-based ethanol, provided it meets EU standards. Bibok and Kovacs reiterated many of the points contained in Ref B regarding the need for second generation biofuels and improved technology if Hungary is to succeed in achieving the proposed targets. Foley