CLIMATE CHANGE: JAPAN SUPPORTIVE OF U.S. STANCE IN

C O N F I D E N T I A L SECTION 01 OF 02 TOKYO 000830

SIPDIS

SIPDIS

E.O. 12958: DECL: 03/19/2018
TAGS: SENV KGHG ENRG JA
SUBJECT: CLIMATE CHANGE: JAPAN SUPPORTIVE OF U.S. STANCE IN
MEETINGS WITH DNSA PRICE


TOKYO 00000830 001.2 OF 002


Classified By: Ambassador J. Thomas Schieffer, reasons 1.4 (b) and (d)


1. (C) Summary: High-level Japanese officials reiterated
strong support for the Major Economies Process and the U.S.
approach on climate change in meetings with Deputy National
Security Advisor Daniel Price in Tokyo March 19. All agreed
on the need for each of the major economies to agree upon
goals; it would be a mistake to follow the approach called
for by European countries: setting agreements among the
developed industrialized countries only and hoping China,
India, and the other large emerging market countries later
follow suit. Assistant Chief Cabinet Secretary Ando said
Japan would use Hu Jintao's upcoming visit to urge China's
active cooperation on climate change and advocated an
inclusive clean technology fund that financed both mitigation
and adaptation efforts. METI Vice Minister Toyoda reaffirmed
Japan's support for a bottom-up, sectoral approach and said
he would encourage China and India to be more flexible in the
Major Economies discussions. Cabinet Special Advisor Okuda
championed the benefits of technology transfer, but noted IPR
concerns. End summary.

MEP and G8 Messaging
--------------


2. (C) In a series of meetings with senior GOJ officials in
Tokyo March 19, Assistant to the President for International
Economics and DNSA Price reviewed developments in the Major
Economies Process (MEP) and explained USG priorities for the
MEP and next steps. He emphasized the importance of focusing
discussions on medium term goals in the MEP, rather than the
G8. While we do not see the G8 being silent on climate, he
explained, it is not the forum for countries to set goals.
The G8 does not include all the major economies, creating the
risk of letting China sit back on energy/greenhouse gas
commitments while the EU, U.S., and Japan fight among
themselves. Instead, we need to work through the MEP to
include China, India, and other emerging market economies to
agree on the elements of a post-Kyoto framework that would be
finalized in the UNFCCC.


3. (C) DNSA Price discouraged his Japanese interlocutors
from proposing a follow-on to the G20 Gleneagles Dialogue.
The MEP has proven its value and should continue after the
Major Economies Leaders' Meeting as a jointly owned forum to
flesh out details of the Leaders' Statement. DNSA Price also
reviewed the six elements of a possible leaders' declaration,
explained steps the U.S. has taken through the 2007 Energy
Independence and Security Act (EISA),and noted the need for
more public outreach on what the U.S., Japan, and other
countries are doing to meet the challenges of energy security
and climate change. (NOTE: DNSA Price's discussions on Doha
Development Round, beef, and investment in Japan are reported
septel. End Note.)

Japanese Views
--------------


4. (C) Assistant Chief Cabinet Secretary Hiroyasu Ando told
DNSA Price the Prime Minister wants to use Chinese President
Hu Jintao's upcoming visit to put pressure on the Chinese to
be more flexible on climate change. DNSA Price agreed and
noted China already has a national emissions plan. What the
U.S. is asking China to do is make a similar commitment and
subject it to international scrutiny. In regard to the Clean
Technology Fund (CTF),Ando said 1) as many countries as
possible should be invited to participate; 2) the formal
announcement should come at the Lake Toya G8 Summit or the ME
Leaders' Meeting; and 3) adaptation should also be financed
by the fund. DNSA Price said the U.S. would focus on clean
technologies, but he envisioned participating countries
targeting funds via different "windows."


5. (C) Ministry of Economy Trade and Industry (METI) Vice
Minister for International Affairs Masakazu Toyoda stressed
the need for a bottom-up, sectoral approach to a post-Kyoto
framework. Providing copies of a new METI report on
long-term energy usage, Toyoda noted the importance of the
base year when calculating emissions reductions and said 1990
may not be appropriate. He thought developing countries
understand the value of the sectoral approach, which stems
from work undertaken in the Asia Pacific Partnership (APP).
Following the March 15 - 16 meeting of the Gleneagles
Dialogue, Toyoda had met with Chinese delegate Xie Zhenhua,
who agreed the sectoral approach might be a means to improve
energy intensity. Xie said China could not accept use of the

TOKYO 00000830 002.2 OF 002


sectoral approach to set targets, but was willing to continue
discussions. Toyoda was uncertain whether part of the
difficulties were due to translations used and if other
terminology would be acceptable to China. Toyoda said he
would meet Indian officials in early April, before continuing
his discussions with Xie. Japan is looking at having some
sort of arrangement for bilateral cooperation ready for
Chinese President Hu Jintao's expected visit later this
spring.


6. (C) Turning to the Major Economies Leaders' Meeting at
Lake Toya, Toyoda said a sufficient outcome could be to agree
to continue study of the sectoral approach. After DNSA Price
explained USG priorities for the ME Leaders' Meeting
(long-term goal, mid-term goals, sectoral approach, etc.) and
the dangers of overemphasizing the sectoral approach, Toyoda
recalibrated and agreed the framing of the message was
important. Right now the only approach on the table is the
EU's cap and trade methodology. Having the sectoral approach
on the table as well will allow for a meaningful discussion
in the UNFCCC. Regarding the ME Leaders' Statement, Toyoda
said the GOJ would like to get a long-term goal in July and
worries the MEP may deadlock on that issue. Toyoda said the
GOJ, particularly METI and MOFA, could help find the needed
outcome by encouraging China and India to be more flexible in
the ME discussions.


7. (C) Toyoda also stated the GOJ is trying to build
European private sector support for the sectoral approach
through the G8 Business Leaders Summit in Tokyo April 17. He
said many European businesses are not happy with the European
Emissions Trading Scheme; using the bottom-up approach could
make the ETS fairer. Regarding press reports of GOJ plans
for a workshop in May on the sectoral approach, Toyoda said
it was Environment Minister Kamoshita's idea and would be a
technical, not policy-oriented, workshop.


8. (C) Hiroshi Okuda, former Chairman of Toyota Motors and
the Japan Business Federation (Keidanren),was recently
appointed Special Advisor to the Cabinet to ensure business
views are represented in climate change discussions. During
his meeting with DNSA Price, Okuda suggested technologies
developed by Toyota and other Japanese companies could make
considerable contributions if they were utilized in China and
elsewhere, but intellectual property rights concerns limit
such sales/transfers. DNSA Price explained it is possible to
deploy energy-saving or emissions-cutting technologies while
still safeguarding IPR; the U.S., Japan, and the U.K. should
explore this possibility through using the Clean Technology
Fund. Okuda also suggested the Japanese Prime Minister would
discuss climate and energy issues with the Korean and Chinese
presidents when they visit Tokyo.


9. (U) DNSA Price cleared this cable subsequent to departing
Japan.
SCHIEFFER