EMISSIONS CONSENSUS WITH A GMO KICKER CLAIMED FOR EU ENERGY/ENVIRONMENT MEETING

UNCLAS PARIS 001315



SENSITIVE

SIPDIS



WHITE HOUSE FOR NEC, CEQ and USTR



E.O.12958: N/A

TAGS: ENRG, SENV, EAGR, EU, FR

SUBJ: EMISSIONS CONSENSUS WITH A GMO KICKER CLAIMED FOR EU

ENERGY/ENVIRONMENT MEETING



1. (SBU) French Minister of State Jean Louis Borloo hosted

back-to-back informal meetings of EU Energy and Environment

Ministers July 3-5 to begin implementation of Council decisions on

carbon emissions reduction. Pascal Shuster (protect),who runs this

portfolio in the Ministry of Ecology, Energy, Sustainable

Development and Planning (MEEDDAT),told us that the results

exceeded the GOF's expectations. The meetings considered three

draft directives prepared by the Commission in January (Improving

the EU Emissions Trading System, Promoting Renewables, Carbon

Capture and Storage) and a draft decision allocating non-ETS covered

emissions quotas. They reportedly agreed in principle on the

allocation of burden sharing (at both 20 percent and 30 percent

overall 2020 reduction goals) in the sectors covered by the

Emissions Trading System and in sectors outside of the ETS, as well

as burden sharing to reach the renewable target and burden sharing

in CCS goals. Member states also agreed on the rate of renewable

targeted in transportation and agreed that aviation emissions would

be covered by the ETS with a rising proportion of carbon credits

from aviation to be auctioned rather than allocated. Regarding the

ETS, Shuster reported agreement on auctioning all carbon permits for

the power generation sector, with other sectors to be subjected to a

combination of auctioned and allocated credits with the proportion

of auctioned credits rising over time Member states also reportedly

agreed to a division among Member States of 90 percent auction

proceeds in proportion to 2005 ETS emissions levels while the

remaining 10 percent would constitute a solidarity fund for

redistribution from richer to poorer member states.



2. (SBU) In addition to a general agreement on the directives and

decision, Shuster said that the Ministers also reached some level of

agreement on the principle of a "Carbon Inclusion Mechanism."

Under the CIM, imports of products in specified sectors from

producer countries that are not party to a post-Kyoto arrangement

(presumably to be reached at the 2009 Copenhagen Conference) would

require a European carbon permit. At the same time, European

producers in the specified sectors would receive a quota of free or

discounted carbon credits (presumably to "level the playing field by

either facilitating European exports or allowing them to capture the

carbon value of competing imports.)



3. (U) According to press reports, an additional outcome of the

environment ministers meeting was agreement in principle on French

proposals to address the EU mechanism for evaluation of genetically

modified organisms. State Secretary for Environment Nathalie

Kosciusko-Morizet proposed that the current procedures to evaluate

imports and cultivation of GMO's should be modified to incorporate

not just scientific analysis but also an evaluation by civil

society. In addition, she proposed that the subsidiarity principle

be applied to allow regions to opt out of permitting cultivation of

approved GM varieties.



4. (SBU) Comment: The above represents one insider account of the

outcomes of last week's meetings and we will continue to follow up.

It seems clear, however that the French got further than they

expected on this key priority of the Presidency. The

super-Ministry, created by Sarkozy after his election last year

spent much of its first six months on the "Grenelle de

l'Environment", France's domestic national debate on sustainable

development. The Ministry spent the last six months on internal

reform fusing its diverse divisions and responsibilities into a

coherent organization. Ministry staff is now consolidated in new

highrise offices and a large and powerful Minister's cabinet is

under one historic roof downtown. The temperamental, unpredictable

but charismatic Jean-Louis Borloo remains popular and is reportedly

the only cabinet member whose European Presidency agenda and

portfolio connects for average French citoyen.



Stapleton