JAPAN INTENDS TO JOIN IRENA, CONCERNED ABOUT

C O N F I D E N T I A L TOKYO 001344 SIPDIS EEB/ECS - DANIELLE MONOSSON, OES/EGC - GRIFF THOMPSON, IO/EDA - REBECCA WEBBER, DOE/PI FOR YOSHIDA AND BISCONTI E.O. 12958: DECL: 06/11/2019 TAGS: ENRG KGHG SENV JA SUBJECT: JAPAN INTENDS TO JOIN IRENA, CONCERNED ABOUT BUDGET, ORGANIZATION REF: A. STATE 59971 ¶B. LUCHESSI-MURRAY/SECOR E-MAIL MAY 22 2009 ¶C. TOKYO 290 ¶D. 08 STATE 134385 Classified By: CLASSIFIED BY EMIN ROBERT F. CEKUTA FOR REASONS 1.4(B),( D) ¶1. (SBU) Summary: Japan intends to join the International Renewable Energy Agency (IRENA) at the June 28-30 meeting in Egypt but has not yet finalized legal and financial preparations, Foreign Ministry (MOFA) and Ministry of Economy, Trade and Industry (METI) officials said in response to ref A demarche points. The GOJ is concerned about the organization's scope and budget allocations and is looking at joining in time for the next preparatory session as a way to influence the secretariat's formation. Japan is leaning towards the UAE's proposal to host IRENA, but is not yet in a position to publicly commit. While the GOJ does not have a strong position regarding the Director General selection, METI and MOFA officials both note the qualifications of the Danish candidate. The GOJ seeks permanent membership on the governing council commensurate with the amount of the budget Japan will provide and MOFA officials suggest the U.S. might also be interested in such status. Paragraph nine contains a GOJ non-paper it is using with some governments to set out its concerns with some IRENA budgetary and other organizational issues. End Summary. GOJ PREPARING TO JOIN IRENA -------------- ¶2. (C) The GOJ decided to join IRENA at the upcoming preparatory session in Egypt, MOFA Economic Security Division Director Tamaki Tsukada told econoff June 12. Tsukada said the GOJ intends to resolve any legal and financial hurdles by the last week of June so Japan can vote at the IRENA preparatory session that will shape the future of the organization. Tsukada noted MOFA DG for Economic Affairs Yoichi Suzuki and Deputy Minister for Foreign Affairs Yoichi Otabe have spoken with DNSA Froman to coordinate positions. Tsukada also reported Vice Foreign Minister Mitoji Yabunaka, whom he described as "very keen" on IRENA, had intended to raise the issue with Deputy Secretary Steinberg during his recent visit to Tokyo, but events such as the DPRK missile launch moved it off the agenda. Yabunaka, however, was to brief Prime Minister Aso in the afternoon of June 12 on GOJ preparations for IRENA. ¶3. (C) In addition to the Ministry of Economy, Trade and Industry (METI),Tsukada said MOFA is coordinating with the Ministry of the Environment and the Ministry of Agriculture, Forests and Fisheries, the latter of which has a stake on biofuels policy. MOFA expects to approach the Ministry of Finance the week of June 15 about financing voluntary contributions. Tsukada anticipates a cabinet resolution and formal announcement of Japan's intent to join sometime the week of June 22. Tsukada added a group of parliamentarians headed by former Environment Minister Yoriko Kawaguchi spearheaded a political push for Japan's membership in IRENA. ¶4. (C) In a separate meeting June 12 with the energy attache, METI officials Osamu Onodera, Director, International Cooperation Division, Energy Conservation and Renewable Energy Department, and Yota Ono, Director, International Affairs Division, Agency for Natural Resources and Energy, echoed MOFA's points. Onodera noted the decision had been made at the Vice Minister level, though not yet confirmed by the Cabinet or coordinated with the Diet. Japan's concerns about IRENA are similar to those of the U.S., Onodera said. The GOJ is particularly looking into IRENA's budget decision-making process. Regarding the size of the IRENA budget, the GOJ thinks the core budget should be small, with expansion to be based on voluntary contributions. As for scope, activities undertaken by IRENA should complement those of other organizations, e.g., the International Energy Agency (IEA). SIGNING LOGISTICS AND OPTICS -------------- ¶5. (C) Tsukada said MOFA State Secretary for Foreign Affairs Shintaro Ito would likely lead Japan's delegation to Egypt and sign on Japan's behalf. If Ito is not available, Parliamentary Vice-Minister for Foreign Affairs Yasutoshi Nishimura may travel in his stead. Tsukada added Japan has informally approached Germany and Egypt about arranging a formal signing ceremony shortly before or after the IRENA preparatory session. Tsukada inquired about the potential U.S. delegation and if the USG would favor a similar formal signing ceremony. CONCERNS ABOUT BUDGET, ORGANIZATION -------------- ¶6. (C) Foreign Ministry Vice Minister Otabe told Charge and EMIN June 11 Japan is concerned it will shoulder a disproportionate share of IRENA's financing, which, combined with the U.S. assessment will amount to 40 percent of the organization's budget. In addition, Otabe said Japan would like a permanent seat on IRENA's governing council to ensure its voting authority would reflect its financial contribution. Otabe asked if the USG had similar concerns and thoughts. ¶7. (C) As far as the scale of budget contributions are concerned, Tsukada told econoff June 12 IRENA's statute is currently loosely worded and Japan seeks to formalize the maximum rate of 22 percent. Japan wants to avoid a repeat of its experience in acceding to the International Criminal Court, which initially did not include the specific maximum ceiling. Although the IRENA statute does not include a provision for permanent council membership, Tsukada said this could take the form of a de facto understanding within the organization. He added the "consensus minus two" voting criteria would allow the U.S. and Japan to form a block to prevent decisions that are mutually detrimental. ¶8. (C) Tsukada said the GOJ will demarche IRENA members and key countries considering membership, particularly Australia, to emphasize Japan's concerns about the scope, budget, and structure of the organization. METI officials Ono and Onodera note Japan intends to talk to Germany about the size of the core budget, the need to avoid duplication with other agencies and in particular the IEA, permanent council membership, and the "consensus minus two" decision-making formula. ¶9. (C) Tsukada provided econoff the following paper in English outlining Japan's position: BEGIN PAPER As we consider joining the IRENA, we wish to realize the following points in the budget, organization, policy priorities and overall management of the organization: -- IRENA should focus on capacity building, especially through technical cooperation, rather than engage in building of helping finance renewable energy projects; -- IRENA should adopt a step-by-step approach in developing its work program in the coming years starting from a modest scope and intensity; -- IRENA secretariat should be lean and efficient focusing on functionality and deliverables; -- IRENA should develop a network of partnership (in the form of agreement or memorandum of understanding) with other international organizations that share IRENA's aims in order to avoid duplication and promote synergy; -- IRENA must maintain a maximum rate of 22 percent in its scale of contributions according to UN rules and regulations; -- IRENA should consider a category of permanent council member for those countries which make large financial contribution END PAPER JAPAN SYMPATHETIC BUT NOT COMMITTED TO UAE -------------- ¶10. (C) Japanese officials describe Japan's position on the UAE's proposal to host IRENA as sympathetic, but not yet decided, due to concerns about the potential impact on other matters, in particular the IAEA Director General election. Otabe specifically referred to the IAEA Director General election in his conversation with the Charge. Separately, METI officials Ono and Onodera also explained the GOJ does not yet have a position that can be stated publicly. METI favors the UAE, but MOFA is concerned about the possible impact on the IAEA Director General selection process, they said. MOFA's Tsukada said German Environment Ministry State Secretary Matthias Machnig met with Otabe and senior Japanese environment officials in Tokyo the week of June 8 and lobbied hard for Bonn as host city. Machnig argued hosting IRENA in Dubai would create a North-South divide that would distract from the organization's scientific and technical mandate. According to Tsukada, Otabe said such an argument is an exaggeration as the organization is already heavily-dominated by developing countries. COMMENTS ON POTENTIAL IRENA LEADERSHIP -------------- ¶11. (C) Tsukada said Machnig told Otabe that he expects the race for IRENA Director General to come down to the candidates from Denmark and Spain. Tsukada said Japan has not yet determined who to support and asked about the USG position. He added he worked with Denmark's candidate, Hans Jurgen Koch, in the IEA and described him as "output oriented" and an ideal character to run a compact, efficient organization such as IRENA. Similarly, METI's Onodera said the GOJ has no strong position on the candidates, but noted the Danish candidate, as the head of the IEA's implementing agreement on renewable energy and technology diffusion, might prove an effective bridge between the two agencies. ZUMWALT