THE INTERNATIONAL RENEWABLE ENERGY AGENCY

UNCLAS SECTION 01 OF 02 STATE 134385 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: SENV KGHG ENRG PGOV EUN GM SUBJECT: THE INTERNATIONAL RENEWABLE ENERGY AGENCY REF: BERLIN 493 ¶1. (U) Summary: According to the German government, the German-proposed International Renewable Energy Agency (IRENA),which will launch on January 26 - 27, 2009 in Bonn, Germany, is intended to promote increased use of renewable energy. While the USG strongly supports renewable energy, the USG opposes IRENA on the grounds that it will duplicate existing work in the renewable energy field and the USG does not plan to attend the launch of the organization. Additionally, IRENA's mission and objectives remain unclear. This cable provides guidance, for use as needed. The Department requests (see paragraph seven) post reporting on host government position when the occasion to discuss IRENA presents itself. End Summary. BACKGROUND ¶2. (SBU) Germany began promoting its IRENA proposal in 2004, at which time the idea was dismissed by the USG, Japan, Canada and others. Initially, the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety was pushing for IRENA, and the German Economic Ministry (which represents Germany at the International Energy Agency (IEA)) was not supportive. Germany resurrected the proposal following the G8 Summit in Heiligendamm, and decided in spring 2008 to press ahead, regardless of support from other major developed nations. The USG, Australia, Canada, Japan, and the UK sent embassy representatives as unofficial observers to an April 2008 IRENA preparation conference. Several developing countries, including Colombia, China, India, Indonesia, Mexico, and South Africa, expressed support for IRENA. At an IEA Governing Board meeting December 17, the Danish representative stated that in addition to his country and Germany, the following European countries had agreed to join IRENA: Spain, Poland, Romania, Austria, Iceland, and Finland. According to the Danes, Sweden and Norway were actively reviewing the issue. ¶3. (U) As we understand it, IRENA's initial annual budget would be 25 million Euro per year. Germany projects the budget will gradually increase to E125 million. [Note: the International Energy Agency's annual budget is about E25 million (approximately $36.5 million) per year, of which about E1 million is for work on renewables. End note.] At IEA meetings the week of December 15, representatives of Spain, Denmark and Germany noted that other countries might also contribute funding (perhaps to a total E50 million) and that IRENA HQ would be in one of the three countries. ¶4. (SBU) IEA Executive Director Tanaka met with German Environment Ministry officials in the fall to review the IEA's existing work on renewable energy. Tanaka wants to develop an MOU with Germany so that the IEA's work and the projected work of IRENA are not duplicative. According to Tanaka, the Germans have indicated they do not want IRENA to overlap with the IEA's work, which is focused on integration of renewables into the power grid. ¶5. (U) TALKING POINTS: Posts may draw upon the points below as needed. -- The U.S. is committed to increasing renewable energy domestically and around the world. The USG has demonstrated its commitment to the vast potential of renewable energy in programs ranging from increased renewable energy R&D to enhanced commercialization and innovative financing mechanisms for these technologies. This commitment was manifested in the USG-hosted Washington International Renewable Energy Conference (WIREC) in March, 2008. -- A new international institution is not the optimal means for encouraging the expanded use of renewable energy. -- A new international institution would duplicate multilateral cooperation on renewable energy. Strengthening the work of existing networks and institutions, as appropriate, is the most efficient way to encourage broader use of renewable energy. -- For those developing countries seeking to expand their use of renewable energy, there are a range of STATE 00134385 002 OF 002 bilateral and multilateral sources for technical and policy assistance. Rather than creating a new international agency, existing efforts should be strengthened. -- Appropriate vehicles to achieve greater implementation and integration of renewable energy technologies into the global energy economy include international organizations such as the International Energy Agency (IEA),which recently increased its engagement in renewable energy analysis, coupled with agile public-private partnerships, such as the German-created Renewable Energy Policy Network of the 21st Century (REN21),the Renewable Energy and Energy Efficiency Partnership (REEEP),and the Asia-Pacific Partnership on Clean Development and Climate?s (APP) Renewable Energy Task Force. -- Since renewable energy technologies are becoming mainstream in energy economies worldwide, now is not the time to isolate these technologies from others with which they compete and complement. Isolating renewable energy with its own international agency runs the risk of isolating these technologies and marginalizing their fit in the variegated energy profiles of all countries. -- IRENA organizers are uncertain as to precisely what the IRENA work plan would entail beyond the generalities of promoting increased use of renewable energy technologies through ?enhanced policy advice, sustained capacity building and effective transfer of technology and know-how.? -- Developing countries that are planning to join IRENA clearly are attracted by IRENA backers advertising it as a way to promote technology transfer. But we have not received a clear response as to how IRENA would transfer technology that is for the most part controlled by the private sector. -- IF ASKED: The USG does not plan to participate in the January launch of the IRENA. (6) (U) ACTION REQUEST: The Department appreciates post reporting on host government?s position on IRENA. Please slug responses for EEB/ESC Danielle Monosson and OES/EGC Griff Thompson. (7) (U) Minimize considered. RICE