PRESIDENT BARROSO CALLS FOR STRONG COPENHAGEN AGREEMENT

UNCLAS BRUSSELS 001470 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: ECON EIND ENRG EWWT KGHG SENV TRGY SUBJECT: PRESIDENT BARROSO CALLS FOR STRONG COPENHAGEN AGREEMENT REF: USEU BRUSSELS 1391 ¶1. (SBU) Summary. In an October 28 speech, President Barroso, said that climate change is "the defining issue of our generation" and called for a strong international agreement in Copenhagen. He expressed that strong support from European business is essential to success, and Copenhagen represents a business opportunity to secure investment in green technology and the development of green jobs. He added that developed countries must put money on the table for success in Copenhagen, and that 100 billion euros per year will be necessary, from all sources, in 2020 to address climate change in developing countries. The speech came a day ahead of the European Council, when leaders will address final preparations for Copenhagen and the EU's negotiating strategy. End Summary. ¶2. (SBU) President Barroso gave the closing address at a conference sponsored by BusinessEurope entitled "Can Copenhagen Show a Way Out?" In his speech, he focused both on the role of industry in tackling climate change and his perspectives on what is necessary out of Copenhagen. He began his speech by stating that strong support from European business is essential to ensure that companies have the predictability and certainty necessary to move forward in a low-carbon economy. Copenhagen represents a business opportunity, as a strong agreement will ensure a surge of investment in green technologies as well as the creation of green collar jobs. ¶3. (SUB) Turning to Copenhagen, Barroso said that climate change is "the defining issue of our generation," and that although there are differing responsibilities for the past, there is a common responsibility for the future. The world must come to an agreement based on science. The agreement should limit global temperature rise to two degrees C from pre-industrial levels, establish a global emissions peak by 2020, and cut global emissions at least 50% by ¶2050. To reach these goals, he stated that developed countries must be willing to put money on the table to assist developing countries. He cited the Commission's estimate of 100 billion euros per year and said funds should come from developed and developing countries and private sources. He argued that advanced developing economies have a huge potential to contribute, and that we need to recognize the difference between those countries and least developed countries: "there is a difference between China and Guinea-Bissau" he said. ¶4. (SBU) Highlighting Commission actions over the coming months, the President announced that he will create a Commissioner for Climate Action. (Note: Other Commission officials told USEU EconOffs that it remains unclear in the new Commission if climate change will remain under DG Environment or if it will be removed and combined with DG Energy or given its own DG. The new Commissioner for Climate Action, they explained, will have a more intensive engagement with industry than does the Commissioner for Environment. End note.) Barroso also announced that the Commission will release an energy efficiency action plan early in 2010 (see reftel). Finally, the Commission will address how to decarbonize the energy mix through development of carbon free energies, reducing emissions, and reducing energy needs. As part of this, Barroso proposed the concept of a European Super Grid, one that will require smart grid technologies. ¶5. (SBU) The President's speech came a day before the European Council, where European Heads of State and Government will convene to discuss climate change and the EU's final negotiating framework heading to Copenhagen. An early draft of the Council conclusions indicated that the leaders will reaffirm the commitment to limiting global temperature rise to two degrees C. Additionally, they plan to agree that developed country emissions should be reduced by 80-95% from 1990 levels by 2050 with global emissions halved in the same time frame. Financing, however, is more contentious, and although it is expected that the leaders will agree with the President that 100 billion euros per year will be necessary in 2020, exact figures from the EU may not be forthcoming. Poland and other Member States are contesting the EU's internal burden sharing rules for financing, arguing that financial support should be based on ability to pay and not on emissions. One Member State representative said that Poland will not allow progress on EU financing figures until the burden sharing issue is resolved. Separately however, leaders appear prepared to conclude that international public financing will be in the range of 22-50 billion euros per year in 2050, and that 5-7 billion euros per year beginning in 2010 is necessary for fast start financing to assist the poorest countries to adapt to climate change now. MURRAY