S/CIEA Goldwyn visit to Ottawa - Energy security,

UNCLAS SECTION 01 OF 03 OTTAWA 000771 SENSITIVE SIPDIS S/CIEA for Goldwyn, Hengel and Sullivan EB/ESC for McManus and Duggan WHA/ESPC for Corneille WHA/CAN for Hermann and Fox DOE for Deutsch and Lockwood E.O. 12958: N/A TAGS: ENRG EPET SENV CA SUBJECT: S/CIEA Goldwyn visit to Ottawa - Energy security, cooperation in Haiti, oil sands messaging, positive coverage and lasting impression Sensitive But Unclassified; cleared by S/CIEA Goldwyn. ¶1. (U) Summary: S/CIEA David Goldwyn's September 17-18 trip to Ottawa was immensely successful and has continued to reap positive engagement from Canadian interlocutors. Goldwyn's message of Canada as a pillar of U.S. energy security was embraced by the Government of Canada and by a Canadian public that, at times, fears the U.S. undervalues the important role Canada plays as the USG's primary energy provider. Goldwyn met with a range of Government of Canada officials from the PM's office, Department of Foreign Affair and International Trade (DFAIT),Natural Resources Canada (NRCan), Environment Canada (EC),and the Privy Council Office, as well as with the energy industry, i.e., Canadian Association of Petroleum Producers (CAPP),Canadian Gas Association (CGA),and Canadian Electricity Association (CEA). The first high-level visit to Ottawa by a State Department official since the POTUS visit, Goldwyn received a welcome reception and press coverage of his visit created a positive buzz that continues. ¶2. (U) In addition to reassuring Canadians about their valued role as a reliable and open market provider of energy, Goldwyn's request to cooperate in the spirit of the Energy and Climate Change Partnership of the Americas on an energy project in Haiti was met with enthusiasm, as was his message for continued Canadian progress in lowering the carbon footprint of the oil sands, and better public outreach on this topic. Post-trip interest and engagement remains high. S/CIEA chaired a U.S.-Canada digital video conference (DVC) on September 29 to explore possible cooperation in Haiti, and numerous interlocutors from Minister Raitt to Senator McCoy of Alberta have expressed interest in further discussion on increased oil sands sustainability and public engagement. Groundwork has also been laid on the upcoming U.S.-Canada Energy Consultative Mechanism, tentatively slated for early December. End Summary. -- Energy Security ¶3. (SBU) Goldwyn's primary message that the U.S. views Canada as a valued and reliable energy partner fell upon receptive ears. From the PM's office to NRCan, DFAIT and EC, we heard repeatedly that S/CEIA's message was welcome, 'music to their ears' and eased concerns about polls indicating that Americans are unaware of Canada's status as their primary energy supplier. Goldwyn's visit, in conjunction with the recent decision to permit the Alberta Clipper, alleviated much Government of Canada and industry anxiety about the future of North American energy production and possible exclusion of oil sands product from the U.S. market. Canada is keen to invest and focus on clean energy, but appreciated the reassurance that the U.S. intends to be a partner in this effort. From the Government of Canada perspective, Goldwyn's public announcement that the U.S. relies on Canada for supply and trusts that Canada can be a responsible steward of its own climate-change targets, was immeasurably helpful. -- Energy and Climate Partnership of the Americas ¶4. (SBU) S/CIEA Goldwyn pitched the idea of collaborating on an energy project in Haiti, possibly in partnership with the Brazilians. Deputy Foreign Minister Edwards was particularly taken with the idea and instructed his staff to follow-up immediately. A subsequent joint digital video conference was held on September 29, Qsubsequent joint digital video conference was held on September 29, chaired by Goldwyn. Initial readout from the call was positive and discussions will continue at the working level between S/CIEA, WHA/EPSC, USAID, Canadian International Development Agency (CIDA) and DFAIT to outline a specific project and determine necessary funding. ¶5. (SBU) With NRCan Minister Raitt, Goldwyn also raised the possibility of Canada holding an ECPA working group session on the oil sands, focusing on new technologies, mitigation of land/water effects, and clean fossil fuel extraction. Minister Raitt was very enthusiastic and embraced the idea. -- Oil Sands Messaging ¶6. (SBU) Both industry and the Government of Canada are clearly concerned about the mixed message the oil sands send and difficult headlines Indeed Goldwyn happened to arrive on the heels of a well-publicized shut down of Shell's Albian Sands mine by Greenpeace activists. NRCan and CAPP are both spending considerable time ruminating over the best approach to advocate on behalf of the oil sands. While CAPP is ready to sell the lifecycle 'wells-to-wheels' OTTAWA 00000771 002 OF 003 story, there is a lot of concern on the part of industry, noting this will be an uphill battle, with the NGOs already well ahead and companies not necessarily ready to commit the long-term funding necessary for a sustained PR initiative. NRCan recognizes the need to find advocates outside of industry and have sponsored a two-year Council of Canadian Academies study looking at the technologies needed to continue improvements and reduce emissions at the oil sands beyond 2030. NRCan Minister Raitt and Deputy Minister Doyle greatly appreciated Goldwyn's suggestions regarding the need for additional fact-based, third party research, trends on energy efficiency improvements, and increasing visibility and accessibility of more positive news stories. NRCan is pursuing a study by IEA and will explore other opportunities to engage universities and respected international think tanks. The Government of Canada also took on board the message to reach out to the energy security/national security audience. ¶7. (SBU) Subsequent to his departure, Senator Elaine McCoy of Alberta reached out to ESTH Counselor praising Goldwyn's message and seeking to follow-up with a discussion about a possible CODEL and other initiatives Alberta could take to get out its message DFAIT also reached out on October 1 to note that their Alberta affairs section appreciated the engagement and wanted to follow-up. All parties praised the U.S.' handling of the Alberta Clipper pipeline permit issuance and welcomed the 'sophistication' of the U.S. message. -- Energy Consultative Mechanism ¶8. (SBU) DFAIT and NRCan both responded positively to adding an energy security focus to the agenda. In general, the Government of Canada expressed a view that Canada hasn't taken an active enough role in the international energy security debate, due in large part to their more-than-sufficient resources and mindset that this was a U.S. concern. They are interested in taking a more active role in the future and would consider using Canada's future chair of the G8 to advance the energy security dialogue. NRCan informed ESTCouns on October 1 that they would like to add engagement at multilateral fora as an item to the next ECM agenda. As for the date of the upcoming ECM to be hosted by the Government of Canada in Ottawa, NRCan is awaiting its new Assistant Deputy Minister for Energy, Christine Donoghue, to assume her position next week before formally issuing an invite. However, both DFAIT and NRCan confirmed yesterday that the first week of December looks good. DFAIT ADM Elaine Feldman and NRCan ADM Donoghue will co-chair the meeting. -- Canadian concerns ¶9. (SBU) The concerns most frequently raised during Goldwyn's visit were the implications of possible U.S. legislation and renewable energy standards on the sale of Canadian hydroelectricity to U.S. markets. The Government of Canada and the Canadian Electricity Association would like to see the possible harmonization of differing state regulations vis-`-vis electricity and renewable portfolio standards addressed and would welcome a possible conference and further dialogue on the issue. There was also notable concern about possible border measures proposed in the Waxman-Markey bill, low-carbon fuel standards, and potential consequences for future oil sands development. Qconsequences for future oil sands development. -- Comment ¶10. (SBU) S/CIEA Goldwyn's trip to Ottawa clearly struck a much-needed chord with the Government of Canada. His interview with Globe and Mail Deputy Ottawa Bureau Chief Campbell Clark, printed in the September 23 edition, was hailed by the government and industry, spurring further discussion and debate within key energy circles in Canada. Canada clearly appreciates USG recognition of their development initiatives in Haiti and seem to view collaboration on an energy project in Haiti as a way to further positive U.S.-Canada relations. The upcoming Energy Consultative Mechanism meeting in December will provide an opportunity to flesh out the energy security and oil sands messaging discussions. The Government of Canada extended an open invitation to S/CIEA to visit Alberta and clearly hope that his trip was indicative of USG commitment to pursue emissions reductions and energy security as shared, and not mutually exclusive, goals. End Comment. ¶11. (SBU) The following is a complete list of the Canadian interlocutors with whom S/CIEA Goldwyn met during his trip: OTTAWA 00000771 003 OF 003 Prime Minister Office -- Adam Blinick, Special Assistant, Office of Strategic initiatives and Public Liaison. Department of Foreign Affairs and International Trade (DFAIT) -- Leonard Edwards, Deputy Minister of Foreign Affairs; -- Sheila Riordon, Director General, Environment, Energy and Sustainable Development Bureau; -- Gary Pringle, Chief, Energy Secretariat, Environment, Energy and Sustainable Development Bureau; -- Mark Berman, Director, Climate Change Division, Environment, Energy and Sustainable Development Bureau. Environment Canada (EC) -- Ian Shugart, Deputy Minister of Environment Natural Resources Canada (NRCan) -- Hon. Lisa Raitt, Minister of Natural Resources; -- Robert Klager, Chief of Staff to Minister Raitt; -- Cassie Doyle, Deputy Minister of Natural Resources; -- Kevin Stringer, Director General, Petroleum Resources Branch; Privy Council Office (PCO) -- Jacques Paquette, Assistant Secretary to Cabinet; Economic and Regional Development Policy Canadian Association of Petroleum Producers (CAPP) (by phone) -- David Collyer, President; -- Tom Huffaker, Vice President, Environment and Policy. Canadian Gas Association -- Michael Cleland, President & CEO; -- Brendan Hawley, Government Relations Consultant to the CGA. Canadian Electricity Association -- Pierre Guimond, President & CEO -- Eli Turk, Vice President; -- Elisabeth Majeau, Senior Advisor, Electricity & Economic Policy; -- Geoff Smith, Senior Advisor, Government Relations. Globe and Mail Newspaper -- Campbell Clark, Deputy Ottawa Bureau Chief. ¶12. (SBU) The following is a list of the Canadian participants in the September 29, 2009 DVC: PM's Office Adam Blinick, Special Assistant, Office of the Prime Minister DFAIT Andre Dormehl, Senior Policy Analyst, Energy Secretariat Denis Robert, Director, Haiti Task Force Louis Saint-Arnaud, Deputy Director, Haiti Task Force CIDA Keith Fountain, Director of Policy, Office of the Minister of International Cooperation Elizabeth Cabrera, Office of the Minister of International Cooperation Isabelle Brard, Director General, Haiti and Dominican Republic Chantal Boucher, Program Manager (Economic Development),Haiti Program Philip Schubert, Energy Specialist Jacobson