Identifier
Created
Classification
Origin
08TOKYO34
2008-01-07 07:01:00
CONFIDENTIAL
Embassy Tokyo
Cable title:  

CLIMATE CHANGE: JAPANESE MINISTRIES READY TO MOVE

Tags:  ENRG KGHG SENV JA 
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PP RUEHHM RUEHPB
DE RUEHKO #0034/01 0070701
ZNY CCCCC ZZH
P 070701Z JAN 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 0766
INFO RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE PRIORITY
RUEHFK/AMCONSUL FUKUOKA PRIORITY 5315
RUEHNH/AMCONSUL NAHA PRIORITY 7711
RUEHOK/AMCONSUL OSAKA KOBE PRIORITY 8980
RUEHKSO/AMCONSUL SAPPORO PRIORITY 5933
RHEHAAA/NSC WASHDC PRIORITY
C O N F I D E N T I A L SECTION 01 OF 03 TOKYO 000034 

SIPDIS

SIPDIS

STATE PASS CEQ

E.O. 12958: DECL: 01/06/2018
TAGS: ENRG KGHG SENV JA
SUBJECT: CLIMATE CHANGE: JAPANESE MINISTRIES READY TO MOVE
FORWARD

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Classified By: CDA Joseph R. Donovan for reasons 1.4 (b)(d)

C O N F I D E N T I A L SECTION 01 OF 03 TOKYO 000034

SIPDIS

SIPDIS

STATE PASS CEQ

E.O. 12958: DECL: 01/06/2018
TAGS: ENRG KGHG SENV JA
SUBJECT: CLIMATE CHANGE: JAPANESE MINISTRIES READY TO MOVE
FORWARD

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Classified By: CDA Joseph R. Donovan for reasons 1.4 (b)(d)


1. (C) Summary: High level climate players at MOFA, METI,
and MOE remain positive on close cooperation with the U.S. in
the Major Economies Process (MEP) and initiatives to address
climate change. Those who attended the Bali meetings
expressed exhaustion and concern over future challenges, with
some suggesting there needs to be some time for tempers to
cool. Special Advisor to the Cabinet for Climate Change
Nishimura insisted many governments will want to retain the
basic structure of Kyoto in any post-2012 framework and asked
if the U.S. is not opposed to other governments continuing to
have such targets, that we make that position clear. It is
important, he said to make clear to other governments and the
international public that the MEP is not an attempt to
undercut the work being done in other fora. MOFA Director
General Tsuruoka spoke at length about Japan's proposed clean
technology fund, which he implied could be helpful in winning
developing countries away from the EU, China and India. METI
Director General Ito and his team appeared ready to forge
ahead with the MEP and the Japan-led Energy Technology
Working Group. MOE Director General Minamikawa and Counselor
Yatsu detailed their efforts to promote the sectoral
approach. End summary.


2. (C) Emboffs, CEQ Deputy Associate Director of
International Affairs Landon Van Dyke, and CEQ Associate
Coordinator for Energy Security and Climate, Michael Mills,
met with officials in the Japanese Cabinet Office,
Environment Ministry, METI, and MOFA December 18 to discuss
Japanese reactions to the Bali UN Climate Meeting and to get
their sense of the next steps needed.

--------------
Nishimura: Kyoto Structure Must Remain
--------------


3. (C) Special Advisor to the Cabinet for Climate Change
Mutsuyoshi Nishimura, who is the PM's personal representative
on climate change and claimed a leading role in Japan's G8
strategy on climate issues, was the most pro-Kyoto of the
interlocutors. He warned repeatedly that any structural

change to the existing Kyoto Protocol would be a non-starter
for developing countries and the EU when negotiating the
post-Kyoto framework. "The U.S. must be clear (the MEP) is
building on top of what we have or people will be confused."
He asked if the U.S. had a hidden agenda to "revolutionize
the whole scheme."


4. (C) Van Dyke assured him the U.S. sees the MEP as
complementing existing structures and feeding into the UN
process on climate. He explained the U.S. vision of the MEP
as providing "tools" to tackle climate change that would be
fed into the United Nations Framework Convention on Climate
Change (UNFCCC) both during the "Bali-Roadmap" discussions in
2008 and at COP 14 in Poland. The Kyoto Protocol approach
was one tool, but one that might not be right for every
country. It is important for the international community to
develop a fuller range of tools to tackle climate change and
the issues accompanying it. Nishimura replied that "may be
okay," but the question of binding vs. non-binding
commitments would be a big element. Such elements will be
debated over the next two years in the UNFCCC and the MEP
should concentrate on near term deliverables.


5. (C) Nishimura repeated several times the need for
developed countries to unite and the importance of the U.S.
building trust with the EU. He cited the White House press
release of December 15 in agreeing on the need to
differentiate responsibilities among developing countries.
He asked at what point would India and China be ready to move
to annex 1 and binding commitments.


6. (C) Regarding near term actions, Nishimura advocates
forming a "rapid action squadron" first aimed at achieving a
stabilization in GHG emission. He said there is an urgent
need for China to create a national plan to replace all its
coal-fired power plants with those using advanced technology
such as IGCC within five to seven years. In his vision,
China would develop a plan, with the cost being shared among
China and the international donor community. Along the way,
the international community would work to solve problems such
as technology transfer and financing mechanisms.


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7. (C) Highlighting what he called the "huge confusion
within the GOJ," Nishimura complained "one segment (METI)
tries to create something new without first consulting within
the government." In another indication of diverging views
within Japan, Nishimura said the Japanese business community
was "enamored" with the President's May 31 speech and hoped
the U.S. would come "rescue them from the dreadful Kyoto."

--------------
MOE: On Board with Sectoral Approach
--------------


8. (C) MOE officials Director General for Global Environment
Hideki Minamikawa and Counselor for Global Environment Dr.
Ryutaro Yatsu shared similar concerns regarding bringing
developing countries on board. Minamikawa said MOE advocates
dividing developing countries into those with emerging
economies and the "real" less developed countries. He
expressed concern with the EU's advocacy of a per capita
indicator and the EU's implied exclusion of India from the
other BRICS. Japan, on the other hand, advocates sectoral
carbon intensity indicators cutting across national lines.
Yatsu said the MOE's advocacy of the sectoral approach is a
concession to Japanese industry, which is concerned about
international competitiveness. Minamikawa added that the
sectoral approach and national caps are not mutually
exclusive.

--------------
METI: Ready to Engage
--------------


9. (C) METI Director General for Global Environmental
Affairs Hajime Ito brought the entire METI climate and energy
team to the meeting. The METI officials were quite positive
toward the MEP. Ito mentioned the "synchronization" of the
MEP and G8, and the idea of a "MEP sherpa" to handle G8
environment issues. Following Mr. Mills sketch of U.S.
thoughts on the MEP working groups, METI officials expressed
agreement with the "bottom-up" approach and advise saving
debate on the long-term goal for the final MEM. As for the
Clean Energy Technology Working Group meeting on January 29
in Honolulu, the GOJ wants to concentrate on innovative,
transformative technology rather than on near term
deliverables. However, in Honolulu they want to avoid
getting into details and instead come up with a list of
technology areas and an agenda for future meetings. This
outcome would then be reported to the MEM plenary. Since the
Working Group would only meet a few times, members should be
carefully selected. Attendees would have to be able to
discuss a broad range of technologies.

--------------
MOFA: Funding with A Purpose
--------------


10. (C) MOFA Director General for Global Affairs, Ambassador
Koji Tsuruoka focused on Japan's proposal for a clean
technology fund. The Japanese fund will have two objectives:
1) currently available technology to address climate change
mitigation and 2) funding for adaptation to climate change.
To ensure the fund had an effective strategy, both in its
actual application and how it was used geopolitically, it
would have to be under control "other than the Ministry of
Finance." Tsuruoka also noted, however, the MOF needed to
create the fund in order for the money not to come out of
MOFA's ODA budget. Funding for mitigation would go mostly to
emerging economies he thought, and would fill the gap between
commercial funding and actual cost. He also listed the
deficiencies of the Global Environment Fund including the
fact that GEF funding is not linked to any ongoing
negotiation.


11. (C) Japan's fund would link funding to a country's
international and national climate change policies. He was
insistent the fund keep decision making power in the hands of
donor countries. He allowed setting up such a fund would be
difficult, but saw value in starting with the UK, the U.S.,
and Japan. Japan will draft terms of reference including a
policy making platform and simple decision making process.
The policy platform must be finished by the 2008 G8 Summit
and have a "sweetener" for the smallest developing states.
Countries applying to the fund would be required to have a
national program to address climate change. The fund would

TOKYO 00000034 003.2 OF 003


hold detailed consultations with the applicant to determine
what projects to fund.


12. (C) Tsuruoka also emphasized the divide he sees between
emerging market and small developing countries. The
developing countries know China and India will be the major
sources of GHG emissions, he said, and are "fed up" with the
emerging economies leadership of the G77. While these
countries, especially small island states, favor numerical
targets, he thinks there is an opportunity to win them away
from China, India, and the EU. This thinking is a factor in
Japan's intention to do more funding for adaptation to
climate change, since such funding would directly benefit
many of these small countries.


13. (U) CEQ Deputy Associate Director Van Dyke cleared this
cable subsequent to his return to Washington.
DONOVAN