CLIMATE -- SWEDEN A BIT DISAPPOINTED IN SECOND MEF; AND

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OES FOR TODD STERN AND CLIMATE TEAM

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SUBJECT: CLIMATE -- SWEDEN A BIT DISAPPOINTED IN SECOND MEF; AND
RECOMMENDATIONS FROM FORMER CHIEF CLIMATE NEGOTIATOR


1. (SBU) Summary: The natural instinct of Sweden's climate
negotiators, past and present, is to act as honest brokers - between
the U.S. and Europe; between the U.S. and China; between the
developed and developing world. Holding the EU Presidency will
only reinforce this tendency. It is to the USG's advantage to
maintain close contact with the GOS, via Embassy Stockholm as well
as through direct contact such as, for example, the recent DVC
between S/E Stern and Environment Minister Carlgren. End summary.


2. (SBU) We spoke to Lars-Erik Liljelund, PM Reinfeldt's Climate
Czar, a few days after the second MEF meeting. He expressed
disappointment with the Paris-MEF, noting that the first meeting in
Washington in April was more useful and more productive. It was
particularly the first day, he said, where the harsh tone at the
outset of the discussions resulted in a division between developing
and developed countries that hampered discussions. We understood,
for example, that the Indian delegation had reacted poorly to S/E
Stern's opening statements, which according to Liljelund were
delivered in what seemed to be a somewhat hard and uncompromising
tone -- setting limits to what the U.S. could discuss and agree to.



3. (SBU) Liljelund said that the divisions between developing and
developed countries were particularly hard in the mitigation
discussions. On a positive note, he described the sessions on
technology transfer and also financing as useful and productive.
Overall, he said the second day was better.


4. (SBU) Another concern expressed by Liljelund is that it is
difficult to agree on what to make of the Leader's meeting in July,
in conjunction with the G8 Summit. Delegations struggled with what
to make of the opportunity.


5. (SBU) Embassy Stockholm attended a seminar on the Swedish EU
Presidency May 28-29, where Sweden's former chief climate negotiator
Bo Kjellen participated in a panel. His recommendations for GOS
climate aspirations during its Presidency are as follows:
-- The GOS needs close contact with the U.S.,
-- Sweden needs to work on flexibility to implement the EU's
commitments,
-- Some innovative thinking is required, to move the mid-term target
year to 2030 instead of 2020,
-- Both flexibility and firmness needed vis-a-vis the G-77; need to
consider Millennium Development Goal commitments for 2015 and
Biodiversity Convention, for example,


6. (SBU) Kjellen predicted that agreements on technology transfer
and financial commitments will be negotiated the last night at
COP-15. He urged the GOS to see the financial crisis as an
opportunity to develop new industries/technologies, citing solar
panels in Africa as an example. The present situation is an immense
possibility, a window of opportunity, Kjellen opined, arguing that a
carbon market at the OECD level, for example, would be a huge step
forward. In closing, he noted that we are beyond the point of no
return, so he called on the GOS and the EU to use the opportunity of
having the new Obama Administration in place, to succeed in
Copenhagen.


7. (SBU) Comment: Sweden plans to use its EU Presidency to push for
an agreement at COP-15. A key part of this effort will be trying to
broker differences between the U.S. and EU, and between developed
and developing countries. Post recommends the USG take maintain
close contact with the GOS, via Embassy Stockholm as well as through
direct contact such as, for example, the recent DVC between S/E
Stern and Environment Minister Carlgren. End comment.

HILTON