ENERGY PACT CONFERENCE

UNCLAS GENEVA 000252

SIPDIS

STATE FOR IO, OES and EEB

E.O. 12958: N/A
TAGS: ENRG ECON SENV
SUBJECT: ENERGY PACT CONFERENCE


1. SUMMARY: A new foundation, the Energy Pact, hosted a conference
in Geneva March 16-17, featuring Ministers of Oil from Iran, Saudi
Arabia, and Oman; Swiss and Danish Ministers of Environment; and
several academics. Oil Ministers gave assurances about the adequacy
of the supply of oil and argued for demand stability until
alternative energy sources are developed. Other speakers suggested
possible methods to transition to a world that is not quite so
dependent on oil. END SUMMARY.


2. Gerhard Schroder, former Chancellor of Germany chaired an Energy
Pact Conference in Geneva March 16-17. In his opening remarks,
Schroder argued the world needs a reliable energy supply, but also
needs results at the Copenhagen Climate Change Conference. He
suggested the USA needs to talk directly with Iran and Syria, and
establish a true partnership with Russia.

PETROLEUM MINISTERS: OIL IS GOOD FOR YOU
--------------

3. Ali Al-Naimi, Saudi Arabia's Minister of Petroleum, pointed out
that the petroleum industry needs investment, but argued that the
world need not yet worry about alternative energies. He said the
Kingdom plans to become the world's largest supplier of solar
energy, and is working on climate change, emissions control, and
carbon capture technologies.


4. Gholam Hossein Nozari, Minister of Petroleum for Iran, read from
a prepared statement, arguing the world needs to help poor countries
develop energy resources. He said Iran is developing nuclear power
for civilian electricity generation, and urged European countries to
invest in Iran to secure energy for Europe.


5. Mohammed Hamed Al Rumhy, Misiter of Oil for Oman, suggested the
hype about energy security could be protectionism in disguise. He
said the world needs demand-side security so investments can be made
in oil; biofuels development destroys forests; and that a carbon tax
not only is ineffective, but also protectionist.

ENVIRONMENT MINISTERS: NATIONAL PLANS IN PLACE
-------------- -

6. Moritz Leuenberger, Swiss Head of Environment, said greater
government regulation is needed to develop cleaner energy sources,
since the private sector is taking too long. On the replacement to
the Kyoto Protocol, he said the 1992 annexes no longer are relevant.
He mentioned that Switzerland has joined the Extractive Industries
Transparency Initiative. Hans Jorgen Koch, Deputy Secretary of
Climate and Energy of Denmark, said Denmark plans to move to 100
percent renewable sources of energy by 2090, primarily with wind
power. Pierre-Franck Chevet, Director of Climate and Energy for the
French Ministry of Environment, spoke of the EU 20-20-20 climate
package, which aims to cut carbon dioxide emissions by 20 percent by
2020 from 1990 levels, increase energy conservation by 20 percent,
and bring renewable energy sources up 20 percent.


7. Other speakers included Ashok Khosla, President of the
International Union for Conservation of Nature, who spoke of the
need for systemic change to permit developing countries to leapfrog
past polluting industries. Two Nobel Laureate physicists, Jack
Steinberg, US, and Carlo Rubbia, Italy, gave their views on possible
future energy sources, with Rubbia promoting methanol and possibly
thorium fission, and Steinberger advocating thermal solar projects.
More details are available at www.energypact.org.


STORELLA