AMBASSADOR DISCUSSES CLIMATE CHANGE, BIOFUELS,

C O N F I D E N T I A L SECTION 01 OF 02 MADRID 000784

SIPDIS

STATE FOR EEB/ESC, EUR/PGI, EUR/WE, OES/EGC, OES/PCI,
STATE PASS TO USDA, FAS

E.O. 12958: DECL: 07/17/2013
TAGS: EAGR SENV TBIO KGHG SP
SUBJECT: AMBASSADOR DISCUSSES CLIMATE CHANGE, BIOFUELS,
AGRICULTURAL PRODUCTS WITH MINISTER OF ENVIRONMENT, RURAL
DEVELOPMENT AND MARINE AFFAIRS

Classified By: Classified by Ambassador Eduardo Aguirre -- reasons: 1.4
(b) and (d).


1. (C) Summary: On July 16, Ambassador Aguirre met with
Elena Espinosa, GOS Minister of the newly created
Environment, Rural Development and Marine Affairs Ministry.
Ambassador Aguirre discussed the importance of climate
change, emphasizing the shared USG and GOS goal of reducing
greenhouse gas (GHG) emissions and highlighted our
cooperation on renewable energy. The Ambassador also
stressed the importance of including China and India in a
post-2012 framework for emissions reductions, and reinforced
that the importance of climate change to the USG will not
diminish with a new Administration. The Ambassador discussed
the high level of bilateral cooperation between the USG and
GOS on agricultural issues. He noted that Spain is an
important EU ally on agricultural biotechnology and
reinforced the importance of GOS support. Ambassador Aguirre
also raised the relevance of developing the biofuel industry
and investing in research and development, citing the DOE's
grants to Spanish energy company Abengoa to develop second
generation cellulosic technology. The Ambassador also
mentioned positive developments in Spain's agricultural
exports to the U.S., particularly wine. Finally, the two
discussed Spain's infrastructure for combatting wild fires.
Although the meeting was cordial, Minister Espinosa was not
too engaged and did not lead the conversation at any point.
END SUMMARY.


2. (SBU) Ambassador Aguirre, accompanied by ESTOff, paid an
introductory call to the recently named Minister of
Environment, Rural Development and Marine Affairs on July 16.
This new ministry, composed of the combined ministries of
Environment and Agriculture, has created much more
responsibility for Espinosa, who previously served as the
Minister of Agriculture since April 2004. Given GOS
President Zapatero's emphasis on high profile environmental
issues, including reducing emissions and implementing
renewable energy portfolio standards, the Minister will play
an increasingly important role within the GOS. The Minister
now has responsibility for a wide variety of issues including
climate change and emissions, ocean protection and water
issues, food and nutrition, agricultural and biotechnology
policy, biodiversity, fishing and aquaculture, and rural
community improvement.

Climate Change
--------------

3. (SBU) The Ambassador stressed the importance of
addressing climate change and noted that, although GOS and
USG environmental policies and practical approaches differ,
our governments share the goal of reducing GHGs. The
Ambassador also mentioned our important bilateral cooperation
on renewable energy, highlighting a Spanish renewable energy
trade and investment mission in February 2008 in which the
Ambassador, GOS Secretary of State for Climate Change Teresa
Ribera, and several other GOS officials and leaders from
Spain's renewable energy mission participated. Espinosa
acknowledged the strong level of cooperation that has
developed and expressed her support. Ambassador Aguirre
raised the importance of including China and India in a
post-2012 framework for emissions reductions. The Ambassador
also reinforced that the importance of climate change with
the USG will not diminish, regardless of which party wins the
November 2008 elections.

Agricultural Biotechnology and Exports
--------------


4. (SBU) Ambassador Aguirre noted the strong bilateral
relationship that exists between the USG and GOS on
agricultural issues, and stressed the USG's view that
agricultural biotechnology can contribute positively to the
world food crisis and energy security. Spain continues to be
the USG's strongest ally within the European Union on
agricultural biotechnology, and the Ambassador emphasized the
importance of maintaining this favorable stance.



5. (SBU) The Ambassador and Minister Espinosa discussed the
importance of Spain's agricultural exports, particularly from
the wine industry. Espinosa said her ministry works with
Spanish wine producers and the Spanish Embassy in Washington
to promote exports to the U.S., as well as with other
agriculture exporting industries. Ambassador Aguirre said
the U.S. welcomes Spanish wine imports and stressed that
marketing is critical to broaden U.S. consumer awareness of
Spanish wines, similar to French and Italian efforts. The

MADRID 00000784 002 OF 002


Ambassador also noted the USDA's recent approval of jamon
iberico for export from Spain.

Biofuels
--------------


6. (SBU) The need to continue the development of biofuels
was also raised by the Ambassador. He emphasized the USG's
ongoing commitment to research and development, noting the
DOE's recent grant awarded to Abengoa, a diversified Spanish
energy company with biofuel production plants in the U.S., in
support of its effort to develop second generation cellulosic
technology. Spain's biofuel industry, which had promised to
become a booming industry with plans for construction of 50
biodiesel and ethanol plants, has almost completely stopped
production. In addition to competition from imported
biofuel, the industry has stalled due to the GOS' delay in
passing a mandatory biofuel blending requirement and the
significant increase in the price of raw feedstock material.

Wildfires
--------------


7. (SBU) Finally, the Ambassador and Minister Espinosa
discussed the issue of wildfires in California. Espinosa
described the GOS structure for employing resources to combat
wildfires. When dealing with wildfires, each autonomous
community decides whether to ask the GOS for assistance. If
needed, communities alert Espinosa's ministry, who then
deploys resources from the national and regional governments.
Although the Ministry of Environment, Rural Development and
Marine Affairs controls firefighting assets including
aircraft and other equipment, Espinosa said her ministry
relies on the Ministry of Defense for logistics and other
assistance, including air traffic control in the affected
area.

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


8. (C) Espinosa did not provide any insight into why the
GOS has combined so many areas under one ministry, responding
to the Ambassador's question by simply saying that she and
her people are working through the challenges of a new
structure. In fact, the Minister was not very engaged
throughout most of the meeting. Instead, she mostly answered
Ambassador Aguirre's questions and occasionally made gestures
or comments of acknowledgement. Minister Espinosa is viewed
favorably both by President Zapatero and industry in large
part due to her success in fighting in Brussels to protect
Spain's domestic agriculture industry. Espinosa was
successful in insisting that the European Commission (EC)
continue to provide the same or greater level of monetary
support to Spanish farmers. Spain's agricultural indsutry is
particularly sensitive to further tariff reductions under the
EC's Common Agricultural Cap and believes that Spain has
already been over-exposed to competition from imported
commodities. By being named to head this new 'super'
ministry, Zapatero effectively promoted Espinosa. As for
leadership within her ministry, Espinosa has not made any
major changes and has retained her team from the previous
Agriculture Ministry.
Aguirre