ITALY PROPOSES LOW-CARBON TECHNOLOGY COLLABORATION WITH

UNCLAS SECTION 01 OF 03 ROME 000653

SIPDIS

EUR/PGI FOR D. TESSLER
EUR/WE FOR C. JESTER AND S. HARTMANN
EUR/PPD FOR L. PEREZ
OES FOR J. MIOTKE AND D. NELSON
NSC FOR C. CONNORS
DOE FOR J. SHRIER AND J. SKEER
EPA FOR A. PHILLIPS

E.O. 12958: N/A
TAGS: SENV ENRG KGHG TRGY KSCA KPAO CH IT
SUBJECT: ITALY PROPOSES LOW-CARBON TECHNOLOGY COLLABORATION WITH
U.S. IN CHINA, OTHER COUNTRIES

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1. Summary. At a May 26 low-carbon technology conference organized
by the Embassy and Italian co-sponsors, Environment Director General
Corrado Clini called for Italy-U.S. collaboration in developing and
deploying clean energy technology in China and other countries. He
highlighted three sectors for potential collaboration: energy
efficiency, bioenergy, and green buildings. U.S. Department of
Energy (DOE) PDAS Jonathan Shrier described four key means of moving
low-carbon technology from laboratories to markets: carbon-pricing
and other market mechanisms; innovative financial mechanisms;
public-private partnerships; and trade liberalization, including
creation of business-friendly environments. U.S. and Italian
speakers provided practical examples of these in the bioenergy,
automotive, and solar sectors, and in carbon capture and storage
(CCS). New bilateral research collaboration in bioenergy and CCS
appears likely, resulting from travel by DOE experts in Italy as
well as discussions at the conference. The conference received wide
coverage in economic, scientific and energy-related electronic
journals and news services. End summary.

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Conference goals, partners and participants
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2. As part of Mission Italy's efforts to promote U.S.-Italy
partnership in the areas of energy security and climate change, and
to encourage stronger, innovation-led economic growth in Italy, in
early 2008 the Environment, Science and Technology and Public
Affairs sections proposed to hold a bilateral conference showcasing
successful examples of clean energy technology transfer. The goals
of the conference were to "Promote science and technology
co-operation, innovation and leapfrogging" in low-carbon
technologies, as recommended by the U.S. and Italian academies of
sciences (http://www.nationalacademies.org/includes/
climatechangestatement.pdf),and to "improve international
coordination of energy research and development efforts, including
in collaboration with the private sector, and to build public
support for the significant and sustained investments in clean
energy research that will be needed" worldwide as called for by the
InterAcademy Council study "Lighting the Way - Toward a sustainable
energy future" (http://www.interacademycouncil.net/CMS/
reports/11840/11939.aspx). The conference was held under the
auspices of the U.S.-Italy Climate Change Science and Technology
Partnership.


3. Italian co-sponsors for the conference grew to include the
Ministry of the Environment and Land and Sea Protection (MATTM),the
Italian Foreign Trade Institute (ICE),and the Euro-Mediterranean
Climate Change Center (CMCC),a non-profit research institute. The
conference was held at ICE on May 26, 2009 (the day following the
5/23-25/09 G8 Energy Ministerial),and addressed practical aspects
of the call for low-carbon technology deployment made by both the
Energy Ministers and the G8 Environment Ministers in their
4/22-24/09 ministerial. Titled "Leading Low-carbon Technology in
Italy and the United States: Moving Research from the Laboratory to
the Market," the conference attracted 20 expert speakers and
moderators from universities, the private sector, and government
research centers. It was opened by ICE President Ambassador Umberto
Vattani, MATTM Director General Corrado Clini and DOE PDAS for
Policy and International Affairs Jonathan Shrier. The audience
included 115 participants, ranging from Italian government and Food
and Agriculture Organization experts to financiers, consultants,
researchers, university students and journalists. The agenda,
speakers' powerpoint presentations and biographies, and the
post-event press release are posted in English and Italian on the
conference website, http://www.lct-italyusa.com/en/index.php.

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Key Policy-Level Comments
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4. In his introductory and closing comments, DG Clini confirmed the
Environment Ministry's commitment to bilateral cooperation with the
U.S. in climate science and technology. He proposed that before the
end of the 2009, the U.S. and Italy redefine their joint work,
possibly agreeing to collaborate in third countries such as China.
He noted that this collaboration would fit naturally with the
low-carbon technology dissemination goals discussed in the G8
process and in the Major Economies Forum (MEF). Pointing out with

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pride that the energy-efficient building in China which U.S. Energy
Secretary Chu had cited as a model in the April MEF meeting was
built as part of an Italy-China project supported by his Ministry,
DG Clini suggested that the U.S. and Italy work together in
low-carbon technology development and deployment in China in three
areas: energy efficiency, bioenergy, and green buildings. He noted
that there are similar opportunities for U.S.-Italy collaboration in
other countries as well, mentioning Brazil in particular. (Current
annual funding for GOI bilateral cooperation dealing with climate
change is about 193 million Euros, 125 million from the Foreign
Affairs Ministry and 68 million from the Environment Ministry. A
good part of the Environment Ministry's projects take place in
China.)


5. Noting the Energy Ministers' call the day before for
international coordination of clean energy technology research and
development, PDAS Shrier described the "science and technology
opportunities ahead" in the areas of energy efficiency, CCS,
batteries, and solar and nuclear energy. He also mentioned the
regulatory tools that can promote dissemination of those
technologies. He concluded by focusing on four key means of moving
low-carbon technology from laboratories to markets: carbon-pricing
and other market mechanisms; innovative financial mechanisms;
public-private partnerships; and trade liberalization, including
creation of business-friendly environments.

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New and Strengthened Research Cooperation
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6. Dr. Scott Baker and Dr. Pete McGrail, both of DOE's Pacific
Northwest National Laboratory (PNNL),described the different
mechanisms that they use to work with other researchers, the
government, and with the private sector in their areas of expertise
(bioenergy and carbon capture and storage, respectively). Dr.
McGrail and CCS Session Moderator Dr. Fedora Quattrocchi of Italy's
National Geophysics and Volcanology Institute found strong common
research interest in analyzing the carbon dioxide storage potential
of basalt formations, and anticipate future work together in that
area. Italian para-statal electricity firm ENEL, whose CCS research
program Dr. McGrail visited in Pisa, also expressed interest in
PNNL's research into carbon-grabbing molecules; an ENEL-PNNL
non-disclosure agreement would need to be reached before any
collaboration can occur in that area.


7. Dr. Baker's visit to Bari consolidated a growing joint research
effort to study fungi with potential for converting cellulose into
fuel; two institutes belonging to Italy's National Research Council
(CNR) are now planning, with Dr. Baker, a CNR-PNNL memorandum of
cooperation to cover their joint research. Since this follows
Energy Secretary Chu's May 23 speech at CNR, at which CNR President
Luciano Maiani called for strengthened CNR-USG research
collaboration, it likely will have considerable momentum. Also in
the bioenergy field, Italian conference speaker Tullio Caselli, CEO
of SHAP SpA, described SHAP's joint work with the U.S. Environmental
Protection Agency (under the U.S.-Italy climate partnership) to
develop improved gasification technology for biomass such as wood
chips. The gasifier which SHAP has developed will be tested at EPA
facilities in Chapel Hill, North Carolina in the coming months.

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Press Coverage
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8. The conference was covered widely in Italian economic,
scientific and energy-related electronic journals (DISTI,
IlVelino.it, Tribuna Economica, Quotidiano Energia) and news
services (ANSA, AGI, ASCA). The ASCA article quotes Dr. Quattrocchi
as describing the proposed CCS-basalt research with Dr. McGrail as
the first interaction to take place under the DOE-Italian Economic
Development Ministry cooperation agreement on clean coal and CCS,
signed by Secretary Chu and Economic Development Minister Scajola in
a bilateral meeting on the margins of the G8 Energy Ministerial
(septel; see also http://www.energy.gov/news2009/7419.htm). Dr.
Quattrocchi also is quoted as saying that a U.S.-Italy comparison of
the risks associated with geological CO2 storage could be their next
joint activity. (Dr. Quattrocchi is actively engaged in public
outreach efforts in Italy regarding the safety of underground CO2

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storage.) Recorded interviews with Dr. McGrail and with U.S.
automotive sector speaker Dr. Giorgio Rizzoni of The Ohio State
University are expected to air in the future.


9. DOE PDAS Shrier has cleared this message.

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