AMBASSADOR AND ENVIRONMENT MINISTER DISCUSS U.S.-CHILE

UNCLAS SANTIAGO 000074

SENSITIVE
SIPDIS

STATE FOR WHA/BSC AND WHA/EPSC

E.O. 12958: N/A
TAGS: ECON SENV ENRG PGOV TRGY CI

SUBJECT: AMBASSADOR AND ENVIRONMENT MINISTER DISCUSS U.S.-CHILE
CLEAN ENERGY COOPERATION

REF: (A) 08 SANTIAGO 1096; (B) 08 SANTIAGO 1087; (C) 08 SANTIAGO
670


1. (SBU) Summary: In a January 21 meeting, Environment Minister Ana
Lya Uriarte and Ambassador Simons discussed the timing of the
formation of the Ministry of Environment, priorities for Chile's
National Action Plan on Climate Change and the Minister's specific
interest in collaboration on technical capacity building. Minister
Uriarte noted that the environment, particularly climate change, is
a key issue for Chile's current administration and noted the need to
conserve water resources and increase energy efficiency in specific
sectors, particularly agriculture and mining. She is optimistic
that Chile will pass the law needed to create a Ministry of
Environment by June and the ministry will be formed by the end of

2009. End Summary.


2. (U) Ambassador Simons met July 21 with Minister of Environment
Ana Lye Uriarte and her advisor, Raul Campusano, Head of the
Department of International Affairs in the Executive Directorate of
the National Environmental Commission (CONAMA) and a note taker.
ESTH officer accompanied the Ambassador.

Chile Focused on Environment-Energy Nexus
--------------


3. (SBU) The Ambassador opened the meeting by mentioning the new
U.S. administration's concern with climate change and its interest
in collaborating with Latin American countries on alternative and
renewable energy. Minister Uriarte responded positively, citing
Chile's new National Action Plan on Climate Change (ref a) and
noting interest in water issues, including creating a water
investigation center in Atacama in the north and the construction of
a desalinization plant in Arica. She emphasized that energy is a
key issue for the environment and gave the examples of a renewable
energy center, cooperation with Germany on renewable energy projects
(ref b),and Chile-California cooperation.


4. (SBU) Uriarte emphasized Chile's focus on energy efficiency. She
said they would like to target specific sectors to improve, e.g.,
mining and agriculture. She noted that water use is not generally
considered in evaluating the environmental impact of agricultural
projects. In discussing hydroelectric power generation, Uriarte
highlighted the need to implement best practices, but recognized
that Chile lacks sufficient technical capacity to do so. She
emphasized interest in energy generation by smaller producers (less
than 3MW) and direct discussions with cities and municipalities on
this issue. COMMENT: It is possible that the concentration on
smaller generators is because the Ministry of Energy will not
relinquish authority for regulating larger generators. END
COMMENT.


5. (SBU) According to meeting participants, Chile's potential for
using solar energy in the north is of continued interest. The
Ambassador noted President Obama's choice of Steven Chu for Energy
Secretary was a good connection for Chile given Chu's experience at
Lawrence Berkeley Laboratory, which has developed close relations
with Chile under the new Chile-California partnership.

Innovative Plan to Improve Air Quality in Santiago
-------------- --------------


6. (SBU) The Ambassador mentioned the Embassy's efforts to support
work on improving indoor and outdoor air quality in Santiago. The
Minister suggested that the economic crisis and declining gas prices
have negatively impacted investment in green technologies. They
discussed the large investment necessary to reduce sulfur emissions
from diesel. Uriarte acknowledged the need to continue to retrofit
diesel transit buses with filters (ref c),but complained that
additional government funding was only a remote possibility. She
outlined an alternative mechanism that would request that projects
producing particulate pollution to offset their emissions with the
purchase of filters for the buses. This would be a voluntary
program, and it is still in the formative stages. Uriarte
recognized both the benefits of public-private partnerships and the
need to outline economic and environmental benefits to encourage
participation. She acknowledged this type of program is only a
partial solution to Santiago's air pollution and expressed strong
interest in learning about other voluntary mechanisms to address the
situation.


7. (SBU) Uriarte identified indoor air pollution from paraffin
stoves as an even greater health risk than outdoor air pollution.
She said that Chile's national petroleum company, ENAP, needs to
invest in cleaner fuels for indoor use but did not provide a
proposed standard or details of any plan to do so.


New Ministry of Environment by December 2009
--------------


8. (SBU) When asked about the status of new Ministry of Environment,
Uriarte joked that she is working on nothing else. She predicted it
would likely be passed into law this coming June and all the
necessary institutions for the ministry would be in place by
December (ref c).

COMMENT: Perfect Time to Include Chile in Policy Evolution
-------------- --------------


9. (SBU) Comment: It is clear from this exchange that Chile views
the advent of a new U.S. administration as an opportunity to
increase cooperation on environmental and renewable energy issues.
Chile has a particular interest in capacity building in order to
implement innovative policies and technologies, and has expressed a
keen desire to improve water usage, promote energy efficiency, and
voluntary measures to improve air quality, and increase the use of
solar energy. Post strongly recommends that Chile be included as a
willing partner in the discussions of opportunities to engage Latin
America on the environment, including climate change, and energy
issues. End comment.

SIMONS