U.S. VIEWS ON THE INTERNATIONAL RENEWABLE

UNCLAS SECTION 01 OF 03 STATE 061286 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: ENRG KGHG SENV SUBJECT: U.S. VIEWS ON THE INTERNATIONAL RENEWABLE ENERGY AGENCY REF: A. STATE 59969, B. STATE 59971, C. 2008 STATE 134385 ¶1. (SBU) SUMMARY: This is an action request. The USG is considering signing the Statute of the International Renewable Energy Agency (IRENA),the international agreement establishing the organization, in time for the June 28-30 IRENA preparatory meeting in Egypt. Per reftels A and B, the Department has sent an action request to all posts in host countries that have taken the first step toward becoming members of IRENA, by signing the IRENA Statute. At the Egypt meeting, signatory countries will vote for the headquarters (HQ) and Director-General (DG) of IRENA. Additional countries are signing the IRENA Statute daily and will therefore attend and vote at the Egypt meeting. The Department requests that all embassies that were not action addressees in reftels A and B seek to learn the host government's positions on joining IRENA and its HQ and DG, if relevant. The Department requests that embassies relay U.S. views on IRENA's mission and HQ. Post reporting as soon as possible, preferably no later than Thursday, June 17, would be appreciated. End summary. ¶2. (U) The objectives, suggested talkings points and background provided in reftels A (and B) are repeated in paragraphs 5 - 14 below. ¶3. (SBU) The HQ competition is focused on Germany's and the UAE's bids. The Department has been advised that Germany is lobbying in the Caribbean and in EAP to sign the Statute, attend the Egypt meeting and vote for Germany in the HQ competition. ¶4. (U) Please contact EEB/ESC Danielle Monosson, OES/EGC Griff Thompson, and IO/EDA Rebecca Webber with questions or for additional information. The Department appreciates posts' efforts. ¶5. (SBU) OBJECTIVES FOR ALL POSTS All posts should pursue the following objectives when delivering this demarche: -- First, note that after an internal policy review the U.S. is giving serious consideration to signing the IRENA Statute during the June 28-30 IRENA meeting, pending ongoing consultations with Congress. Reinforce that Congressional support is not a given. Congress will review carefully IRENA's mission, cost, and where it will be based. -- Second, highlight that, as potential members of IRENA with responsibility for a large percentage of its budget, we would want to ensure that: a) its mission and action plan identify and fill existing gaps and deficiencies in global activities, rather than duplicate existing programs and b) its operations are aligned with our vision of renewable energy promotion and technology diffusion, consistent with other national, regional and global programs. We also have some technical legal issues with the statute that we will seek to resolve by the Egypt meeting. -- Third, underscore that the U.S. government believes the UAE's bid to host IRENA headquarters is impressive and compelling, and is a factor in the USG's interest in joining IRENA. Urge support for UAE's headquarters bid at the June 28-30 meeting in Egypt. -- Fourth, seek information from host governments on their IRENA position; specifically: a) if they haven't signed the IRENA Statute, do they plan to if so, when? b) if they have signed the Statute, when are they likely to ratify? c) if they are participating in the Egypt meeting, what are their views on the location for the HQ and IRENA DG position? d)what are their views on the mission, purpose, and focus IRENA should take? (Note: See Background section for list of countries that have joined or are moving toward doing so.) BACKGROUND ¶6. (U) German-sponsored IRENA launched in January 2009 And currently has 96 signatory countries. Membership in STATE 00061286 002 OF 003 IRENA requires a two step process. First, a country signs the IRENA Statute, and second, the signatory country obtains domestic ratification of the Statute. The ratification process varies by country. The IRENA Statute enters into force once 25 countries deposit their instruments of ratification. ¶7. (U) The US attended the Founding Conference in January (six days after President Obama,s inauguration) as an observer, but did not have an official Administration position. Following the Founding Conference, the first Preparatory Commission assembled. The Preparatory Commission consists of IRENA's Signatory States and acts as the interim body during the founding period. The Commission discussed the next steps for IRENA and established a Committee for the selection of the Interim Director-General, chaired by Lithuania, and a Committee for the selection of the interim headquarters, chaired by the Republic of Korea. An Administrative Committee was formed as well, chaired by Germany. The second session of the Preparatory Commission will be hosted by Egypt, June 28-30, 2009, at which time the selection of both the interim HQ and DG will be made. The US will attend the Egypt meeting, as an IRENA Statute signatory, if the USG decides to become a member of IRENA. Austria, Denmark, Germany, and the UAE have formally requested to host IRENA, and we support the UAE's candidacy. There are five candidates for the DG position, from Denmark, France, Greece, Spain, and Nigeria; the USG does not have a position on the DG at this time. ¶8. (SBU) Countries that the Department understands will be signing the IRENA Statute prior to the Egypt meeting include Australia, the United Kingdom and possibly Japan and Canada. In addition, we are interested to know the views of Brazil, China, Indonesia, Mexico, Russia, and South Africa on joining IRENA and its mission, HQ and DG. ¶9. (SBU) Following several weeks of interagency deliberation, the U.S. is moving towards joining IRENA and is taking the necessary internal steps to be able to sign the IRENA Statute, if certain internal concerns can be resolved, particularly consultations with Congress as Congressional approval is needed for U.S. membership and funding. ¶10. (SBU) If the USG determines that there is sufficient Congressional support and that other concerns are resolved, we intend to sign the IRENA Statute at the late June IRENA meeting and then ratify at a future date. Diplomatic outreach to convey U.S. preferences for the mission and HQ of IRENA is critical to influencing decisions at the Egypt IRENA meeting. Post reporting will inform Washington's decision process. A formal, final decision on joining IRENA will be reached through the Circular 175 process as early as next week. The Department will transmit a subsequent cable to update posts. ¶11. (SBU) As the USG considers joining IRENA, Washington would encourage IRENA members to support the UAE as the HQ of IRENA. The USG would also urge that IRENA focus on capacity building in developing countries, especially through technical cooperation, rather than engage in building or helping finance renewable energy projects. ¶12. Signatory countries as of June 12, 2009 are listed below. The Department understands that none of these countries has yet ratified the Statute. -- AF: Benin, Burkina Faso, Cape Verde, Central African Republic, Chad, Comoros, Congo (Republic of),Cte d,Ivoire, Democratic Republic of the Congo, Djibouti, Eritrea,Ethiopia, Gambia, Ghana, Guinea, Guinea-Bissau, Kenya,Liberia, Madagascar, Mali, Mauritania, Niger, Nigeria,Republic of Guinea, Rwanda, Sao Tome and Principe, Senegal,Seychelles, Sierra Leone, Somalia, Uganda, Zambia -- EAP: Cambodia, Mongolia, Nepal, Philippines, Republic of Korea -- EUR: Albania, Armenia, Austria, Azerbaijan, Belarus, Bulgaria,Cyprus, Denmark, Finland, Estonia, France, Germany, Greece, Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Macedonia, Monaco, Montenegro, Netherlands, Norway, Poland, Portugal, Republic of Moldova, Romania, Serbia, Slovenia, Spain, Sweden,Switzerland, Turkey, STATE 00061286 003 OF 003 -- NEA: Algeria, Bahrain, Egypt, Iran, Israel, Jordan, Lebanon, Morocco, Oman, Syria, Tunisia, United Arab Emirates, Yemen -- SCA: Afghanistan, India, Pakistan, Tajikistan -- WHA: Argentina, Chile, Dominican Republic, Guatemala, Honduras, Nicaragua, Peru, Uruguay ¶13. (U) Please see reftel C for additional background on IRENA and the evolution of the U.S. position. ¶14. (U) Suggested TALKING POINTS - The U.S. is moving towards joining IRENA and is taking the necessary internal steps to be able to sign the IRENA Statute, if certain concerns can be resolved. Why Does the U.S. Want to Join IRENA? - The U.S. strongly supports renewable energy, both domestically and internationally, and those multilateral institutions promoting its deployment. - IRENA offers the potential - if focused appropriately - to substantially scale up global use of renewable energy through capacity building and networking that do not currently exist in any other multilateral forum on energy. - IRENA can help improve public policy makers, understanding of renewable energy policy requirements and best practices for technology diffusion. Renewable energy technologies address the multiple domestic and international objectives of energy security, climate change mitigation, economic growth and job creation, and cleaner air quality. U.S. Vision of IRENA Mission As a member of IRENA, we would want to ensure that: - its mission and action plan identify and fill existing gaps and deficiencies in global activities, rather than duplicate existing programs - its operations are aligned with our vision of Renewable energy promotion and technology diffusion, and Consistent with other national, regional and global programs. - IRENA's primary function should be capacity building and technical assistance work with developing countries, at both the national and sub-national levels, through the exchange of best practices and a menu of policy options. Why Support the UAE as IRENA Headquarters? - The UAE has submitted a strong bid for hosting IRENA, including a promise of significant funding. - UAE's long-term commitment to transform its energy sector from one reliant on oil and gas to one that thrives on renewable and alternative energies and energy efficient technology should be supported. - The UAE's location facilitates the coordination of global efforts to counter climate change. IRENA would be the first Middle-East headquartered permanent international organization with a focus on clean energy technology. - The selection of an OPEC country to host IRENA would send an important positive message about the global transition to a low-carbon economy. - The bulk of global energy demand growth is expected to come from Asia and the Middle East, making a UAE headquarters a practical choice If Asked, Challenges to U.S. Joining - The USG needs support of the U.S. Congress ) both approval to join and allocation of funding for IRENA. We cannot join IRENA without Congressional support. Consultations with the Congress, to gauge level of support, are ongoing. (Note: There is no existing funding to support U.S. membership in IRENA. The U.S. would be required to contribute 22% of the budget, after the USG ratifies. IRENA's annual budget is $17 million in FY10, growing to at least $48 million over time. End note.) - The USG supports an IRENA whose primary function is capacity building and technical assistance work with developing countries, at both the national and sub- national levels, through the exchange of best practices and a menu of policy options. The USG is concerned that IRENA could duplicate work in several other multilateral organizations. END SUGGESTED TALKING POINTS ¶15. (U) Minimize considered. CLINTON