BIOFUELS SUSTAINABILITY: AUSTRIA COMMITTED TO

UNCLAS VIENNA 001740

SIPDIS

EU/ERA FOR MATTHEW BEH
OES/EGC FOR DREW NELSON AND BEN ZAITCHIK

E.O. 12958: N/A
TAGS: KGHG EAGR SENV ENRG TRGY EUN AU
SUBJECT: BIOFUELS SUSTAINABILITY: AUSTRIA COMMITTED TO
STRONG CRITERIA, SAYS U.S. CORN ETHANOL IS NOT TARGETED

REF: (A) STATE 123492; (B) VIENNA 1391


1. Post shared ref A guidance points with relevant
leadership in the Austrian Ministry of Agriculture and
Environment (sections dealing with transportation concepts
and fuels, EU coordination, climate change) and the
Ministry of Economy and Labor (MinEcon). We followed up
with MinAg fuels expert Heinz Bach, whose department has
the lead on this issue for the GoA, and with Dr. Gabriela
Habermayer, MinEcon Head of Multilateral Trade Affairs.


2. Bach explained that the GoA in principle supports the
implementation of sustainability criteria for biofuels, as
suggested by the French Presidency (ref B). In his
opinion, sustainability criteria should apply for EU and
third countries alike, but he is aware this may not be
possible due to WTO requirements. If the EU adopts Energy
and Climate legislation under the French presidency, a
transition period of one year or more could be envisaged,
since implementation will not start until at least 2010.


3. With regard to EU emission tables, Bach explained they
are only meant as an example. They are not exclusionary or
depletive, and would not mean that U.S. corn ethanol does
not contribute to Greenhouse Gas Emissions (GHG) savings.
Calculations for GHG savings could be done for any other
region of the world, such as U.S. states. Bach does not
anticipate trade constraints on U.S. corn ethanol; he does
see cheap Brazilian ethanol threatening the European bio-
ethanol industry.


4. Habermayer said the French Presidency was very keen to
implement biofuels sustainability standards during its
mandate. The standards' main target is to halt biofuels-
related deforestation in sensitive countries. Member State
economic ministries would urge that any measure be
economically feasible, not protectionist, and measurably
relevant to EU greenhouse gas reduction goals, she said.
In inter-agency discussions the GOA Agriculture and
Environment Ministry has been very "vigilant" with regard
introducing strong ecological and social goals in the
biofuels sustainability concept. Habermayer underlined
what we heard from MinAg, that the main GOA concern is non-
sustainable production from Brazil, not from the U.S. She
floated including wording in the plan that meets the U.S.
concern about U.S. corn ethanol and promised to raise this
issue within the GOA.

GIRARD-DICARLO