CONGRESSMAN MARKEY SHOWS OPTIMISM IN VIDEO CONFERENCE WITH

UNCLAS SECTION 01 OF 02 BRUSSELS 001330 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: ECON EIND ENRG EUN EWWT KGHG SENV TPHY TRGY TSPL SUBJECT: CONGRESSMAN MARKEY SHOWS OPTIMISM IN VIDEO CONFERENCE WITH EUROPEAN COMMISSION BRUSSELS 00001330 001.6 OF 002 ////////////////ZFR///////////ZFR///////////Z FR//////////// telegram has been resent (both sections) under new numbers. Please update your logs and delete this message. ///////////////ZFR///////////ZFR///////////ZF R//////////// BRUSSELS 00001330 002.5 OF 002 several officials at the top of the Chinese leadership to demonstrate U.S. intent to pass legislation. Additionally, Waxman-Markey contains several key provisions focusing exclusively on international climate efforts. He explained that the legislation allots approximately $5 billion/year to address international deforestation, as well as up to $4 billion/year each for international clean technology development and international adaptation. Addressing outcomes in Copenhagen, the Chairman expressed that ultimately, all countries must have a common plan by which everyone is bound. Carbon Markets Remain Commission Priority -------------- ¶7. (SBU) Beyond Copenhagen, a key message from the Commission is the aim of a global carbon market, ideally to be led by the creation of a transatlantic carbon market. Falkenberg said that the United States and the EU need to look now at how to link the markets. However, he identified what he saw as two problems with Waxman-Markey: the inclusion of border adjustment measures and the existence of carbon price floors and ceilings. (Note: In separate meetings with Commission officials, the size and scope of the two systems has also been cited as a potential problem. The EU's Emissions Trading Scheme (ETS) makes up only 40-45% of the EU's economy, while Waxman-Markey covers 85% of the U.S. economy, incorporating both road transport and agriculture. It is the inclusion of agriculture that is most often noted as the larger problem. The Commission has indicated that illy maind exiQal regime, in which case hind. That is a key message that needs to be sent to elicit Senate attention and drive traditional U.S. echnology optimism to solve a problem, so hat ultimately, the United States will exportQtechnologies to China, and not the other way arund. Comment -------------- ¶10. (SBU) The DVC was an effective method of delivering the message from Washington to influential EU policymaQers and press. All in attendance were apprecQative of the Chairman's time and left the meeting with a better feeling of the situation in th United States than when they arrived. Falkenberg even mentioned that "it is not everyday I have the opportunity to speak to an influential Congressman." USEU strongly supports engagement of this nature and invites additional policymakers to take part in similar video conferences. MURRAY