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