PROGRESS MADE WITH THE INTERNATIONAL RENEWABLE ENERGY

C O N F I D E N T I A L SECTION 01 OF 08 ABU DHABI 000089

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E.O. 12958: DECL: 2020/02/21
TAGS: SENV KGHG ENRG PGOV AE
SUBJECT: PROGRESS MADE WITH THE INTERNATIONAL RENEWABLE ENERGY
AGENCY, BUT LONG ROAD AHEAD

REF: 09 STATE 73217; 08 BERLIN 493

CLASSIFIED BY: Richard G. Olson, Ambassador; REASON: 1.4(B),(D)


1. (SBU) Summary: At the third Preparatory Commission (Prep Com) of
the International Renewable Energy Agency (IRENA) in Abu Dhabi,
critical progress was achieved on a number of programmatic,
administrative and legal fronts related to establishing a
transparent, progressive and efficient international organization.
A compromise between the United Arab Emirates (UAE) and Germany
regarding the work and timing of the launch of the Bonn Innovation
Center was struck. Important steps regarding Israeli participation
in the UAE-hosted international organization were also made.
However, the nascent IRENA has been slow in establishing itself, in
part due to an unimpressive and problematic Secretariat. The United
States must remain actively engaged on multiple fronts to help
guarantee IRENA's relevancy and success. End Summary.


2. (SBU) The IRENA Prep Com on January 17 in Abu Dhabi was attended
by 120 of 141 member states (signatories to the IRENA Statute) and
26 observer countries, including Brazil, Canada, China and Saudi
Arabia. Three countries, including South Africa, signed the IRENA
Statute. [Note: Please see paragraphs 22 and 13 respectively for
complete lists of member and observer countries. End note.] The
IRENA Administrative Committee (Admin Com),held January 16,
consisted of mostly working level participants from member states
only. Bureau of Oceans and International Environmental and Science
Affairs (OES) Assistant Secretary Dr. Kerri-Ann Jones led the U.S.
delegation, which also included representatives from the Bureau of
Economic, Energy and Business Affairs, the Bureau of International
Organization Affairs, the Bureau of Legal Affairs, and OES. Nearly
all discussion at the Admin Com and the Prep Com centered on
institutional matters, such as rules and regulations for staff,
finances, secondments, governance, etc; discussion on the
programmatic details of renewable energy in the formal proceedings
was very limited. A/S Jones had bilateral meetings with UAE
Foreign Minister Sheikh Abdullah bin Zayed, Israeli Minister of
National Infrastructures Uzi Landau, and German State Secretary of
Environment Juergen Becker, and the Japanese and Greek delegations.
The U.S. delegation cooperated closely with the delegations from
Australia, Israel, Japan, the United Arab Emirates, and the United
Kingdom.

Significant Progress in Abu Dhabi-Bonn Compromise


3. (SBU) A hard won agreement between the UAE and Germany regarding
the work and timing of the launch of Bonn's Innovation Technology
Center (ITC) was finally struck, in part due to pressure from the
U.S. and Japan, and in part due to concerns about bad public
relations. An opening ceremony for the Abu Dhabi headquarters will
take place in early spring 2010, with German Environment Minister
Norbert Roettgen in attendance. Bonn will launch the ITC in
May/June, on the margins of the UN climate negotiations hosted in
Bonn, May 31-June 11. A senior UAE official will attend. The
agreement between the UAE and Germany paved the way for the
important Prep Com formal decision to accept the 2010 Work Program
and Budget.

The IRENA Secretariat


4. (C/NF) Helene Pelosse of France was elected Interim Director
General (IDG) at the June 2009 Prep Com. Several member states,
including Australia, Germany, Japan, Spain, Tonga, the UAE, and the
UK, voiced concerns to the U.S. delegation about the IDG's handling

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of several issues, including failure to manage the Abu Dhabi-Bonn
problem, failure to appreciate the sensitivity of member states in
handling Taiwan's desire to participate in the Prep Com as an
observer, and unwillingness to find time to interview two Argentine
secondment candidates (sent as part of the Argentine delegation
specifically to be interviewed). In addition, Pelosse largely
avoided the U.S. delegation, and her staff responded with
indifference, at best, to a request for a meeting between A/S Jones
and the IDG. We also have growing concern over Pelosse's lack of
sensitivity to the need to respect governance processes of the
organization (she accorded special access to members of the French
delegation to sensitive negotiations between the Secretariat and
the UAE over headquarters arrangements, and has habitually failed
to meet process deadlines or consult with key member states when it
would be in the interest of the Secretariat to do so).


5. (C/NF) The Secretariat and the UAE have a strained relationship.
In part, this is due to lack of capacity within the UAE to quickly
and nimbly handle all the institutional and administrative tasks
necessary to stand up IRENA. At the same time, the Secretariat has
not demonstrated sufficient flexibility on outstanding issues such
as housing for the IDG and staff and expectations for UAE-funded
per diem and gym membership. [Comment: IDG Pelosse's limited
English language ability likely does not help Secretariat
communications with the UAE. End comment.]


6. (SBU) IRENA will transition from interim authority under the
Preparatory Commission to permanent governance under the IRENA
Statute once the Statute is ratified by 25 countries and enters
into force. The U.S. will be actively engaged on a host of
transition-related matters, including the selection of a permanent
DG.

High Level UAE Engagement


7. (C/NF) During a meeting between UAE Foreign Minister Sheikh
Abdullah bin Zayed (AbZ) and A/S Jones and Deputy Chief of Mission
Douglas Greene, AbZ expressed strong gratitude for U.S. support of
the UAE's bid to host IRENA. AbZ noted his desire to elevate
IRENA's profile, but lamented that IDG Pelosse "is not the wisest
choice for IRENA" and recommended that efforts be made to assist
with her departure from the organization. AbZ proposed the
creation of a fund that combines US-UAE financing and expertise to
help countries in South America, Sub-Saharan Africa and the
Caribbean to develop renewable energy programs. A/S Jones noted
that IRENA needs to look at how to transition the management of
IRENA and look at the convergence of ideas and activities that the
US and the UAE share.


8. (C/NF) In response to A/S Jones' comment about equal treatment
for all members, AbZ admitted that the issue of an Israeli
permanent mission in Abu Dhabi presents sensitive security
questions. AbZ prefers to house the office in IRENA's own
facilities in order to provide security that he does not feel would
be possible in a commercial building. A/S Jones advised that there
are a number of sensitivities with Israel and that often things
could be misread even if the UAE's motives were in the interest of
security. AbZ offered assurances that all IRENA members would be
treated equally in the UAE. [Comment: AbZ's comments were
significant because it reconfirmed the UAE's commitment to allow,
eventually, for the Israelis to have an IRENA permanent mission in
Abu Dhabi, a commitment made previously by AbZ to the National
Security Council and the Office of the Vice President in spring

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2009.] AbZ advised A/S Jones that he had rejected a bilateral
meeting with the Israeli delegation, pointing out that the
conference was about IRENA not about UAE-Israel relations and that
this was not the time to enter into talks with Israel.

Israeli Participation


9. (C/NF) The Israeli delegation, led by Minister of National
Infrastructures Uzi Landau, with representatives from the Ministry
of Foreign Affairs and the Ministry of National Infrastructures,
was relatively large (seven or eight individuals). The delegation
was under instruction from capital to be assertive and aggressive
in pursuit of its objectives, which largely centered on the goal of
a permanent mission. Israel was one of the countries that presented
an opening statement. Several steps taken as "security" measures
heightened Israeli sensitivities. UAE officials did not admit
Israeli representatives through normal immigration channels,
instructed them not to move beyond the hotel or the conference
venue (including disinviting them from an IRENA dinner outside the
hotel),and took other steps to limit the profile of their
participation, such as instructing them not to speak Hebrew or
display Hebrew reading material. None were issued visas. The
delegation did sit behind their flag in the negotiating room and
otherwise participated alongside other member states. Also, the
Israeli head of delegation was only displayed in close-up on the
video monitors for a limited time at the end of his opening
statement.


10. (C/NF) During A/S Jones bilateral meeting with Minister Landau,
the Israelis sought reassurance of strong US support for an Israeli
permanent mission in Abu Dhabi. A/S Jones assured him that the US
strongly supports equal rights and privileges for all IRENA member
states. Minister Landau cautioned that the interim headquarters
agreement (HQA) (which is established between the UAE and the IRENA
Secretariat, with technical input from several member states,
including the US) should have language about future establishment
of permanent missions because postponing the issue to the permanent
HQA negotiations will only lead to more political difficulties.
A/S Jones underscored the US commitment to help advance Israeli
interests, as an IRENA signatory, in the ongoing negotiations for
both the interim and permanent HQAs. She also noted the UAE's
commitment to making IRENA a successful international organization.


11. (SBU) Minister Landau expressed Israel's desire to add water
and climate change to IRENA's mandate, as well as Israeli interest
in technical cooperation on these issues with its neighboring
countries. A/S Jones suggested limiting IRENA's focus, during this
early stage of its establishment, to renewable energy to ensure its
success and focus; she indicated the natural link to climate
change.

Headquarters Agreement


12. (C/NF) A HQA Working Group with participation from France,
Germany, Austria, Argentina, Tonga, the UAE, and the US made
important progress on the interim HQA. Prior to the negotiations
on the HQA, UAE officials approached the US delegation and signaled
their willingness to confirm equal treatment for all members under
the HQA, but an objection to providing for permanent missions when
the IRENA structures were not yet permanent. The UAE further
signaled an intent to address the issue in the permanent agreement
when the IRENA Statute enters into force and a permanent
Secretariat is established. The US delegation discussed this issue

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with members of the Israeli delegation, who noted that such an
outcome presented a practical way forward. During the Working
Group negotiations it was agreed that the interim HQA will not
provide for the establishment of permanent missions, but, at the
insistence of the US delegation, will include language noting that
all members will be accorded benefits under the agreement,
notwithstanding any lack of diplomatic relations between the UAE.
[Note: This issue is not an Israel-specific issue, as we understand
there are seven other countries that are signatories to the IRENA
statute but do not have diplomatic relations with the UAE. End
note.] The US delegation, along with several others, re-emphasized
a collective understanding that permanent arrangements will provide
for permanent missions. It is anticipated that the interim HQA
will be finalized in the next month, and then negotiations on the
permanent HQA will begin immediately thereafter.

Observer Countries and Organizations


13. (SBU) The following countries attended the Prep Com as
observers: Belgium, Belize, Bolivia, Botswana, Brazil, Burundi,
Canada, China, Colombia, Hungary, Indonesia, Kyrgyz Republic,
Malaysia, Mexico, Mozambique, New Zealand, Qatar, Saint Vincent and
the Grenadines, Saudi Arabia, Singapore, South Africa, Suriname,
Thailand, Tuvalu, Ukraine, and Vietnam. The Kyrgyz Republic, Saint
Vincent and the Grenadines, and South Africa signed the IRENA
Statute, the first step toward membership. During Foreign Minister
Sheikh Abdullah bin Zayed's remarks at the Prep Com, he noted Saudi
Arabia's intention to join IRENA. The Canadian representative,
from the local embassy, stated Canada is very likely to join IRENA
in one to two years.


14. (SBU) Working level members of the Chinese delegation, from the
National Development Resource Council and the National Energy
Agency, informed the US delegation that they would be reporting to
NDRC for a decision about whether or not to join. They intended to
recommend participation, but noted the lack of capacity within the
Chinese government to participate in all multilateral energy fora,
including the lack of government representatives with fluent
English language skills. According to the United Kingdom, it was
Taiwan's interest in attending IRENA as an observer that prompted
China's participation, not a keen interest in IRENA itself.


15. (SBU) Weeks in advance, Taiwan had expressed interest in
participating in the Prep Com as an observer. A Taiwanese
delegation was scheduled to attend, with UAE visas already issued,
however Taiwan did not attend and was not listed on the document of
observing parties. Our understanding is that the IRENA Secretariat
mishandled Taiwanese participation either by disinviting the
delegation when China confirmed its attendance as an observer
and/or by disinviting the delegation once realizing that the
Secretariat had incorrectly registered Taiwan as a country, rather
than usual protocol, and was unable to fix the problem in a timely
fashion. Regardless of the exact details, the Secretariat did not
act in the best interests of IRENA or member states.


16. (U) Among the 43 observing organizations were the American
Council on Renewable Energy, the Asian Development Bank, the Arab
League, the International Solar Energy Society, the Palestinian
Energy Authority, the Palestinian Energy and Environment Research
Center, and the World Future Council.

IRENA's 2010 Work Program and Budget

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17. (SBU) The 2010 Work Program and Budget was formally approved
based on the agreement between Abu Dhabi and Bonn. The Work
Program seeks to reconcile the need to acknowledge the current
state of institutional actions occurring in this field thereby
avoiding duplication, with the need to demonstrate early success
and added value. More details will be needed regarding the
implementation of the specific tasks that are now shared by the Abu
Dhabi Headquarters and the Bonn Innovation Center.

Important Progress on Several Institutional Arrangements


18. (SBU) Financial Rules and Regulations, Staff Rules and
Regulations, Staff Provident Fund, and Secondment Rules and
Regulations: The package of administrative and financial
regulations manifested a significant area of USG and other
signatory state disagreement with IDG Pelosse. She has espoused a
vision of an institutional trajectory for IRENA that would have it
replicate UN administrative financial structures, facilitating its
absorption (in some way) into the UN system. The regulations
advanced by the Secretariat, and approved before the US was
substantively engaged in the organization, reflect that vision. At
this meeting member states were asked to approve amendments to the
existing regulations, though the US delegation took the opportunity
to open the full package of regulations and consider them anew.
Not much progress was made on revisions to these regulations at
this session, though the US delegation expressed its desire to take
advantage of IRENA's structure as an organization independent from
the UN to secure a level of openness and transparency not currently
provided for under UN financial regulations. In particular, the US
delegation noted its desire to have the regulations allow for IRENA
to be audited by an independent, third party auditor (such as a big
four accounting firm),allow it to develop its own administration
of justice system (current regulations require that it participate
in the UN system). The US secured significant support for this
approach from several member States (in particular, the UK, the
UAE, and Japan) and identified France and Germany, in particular,
as countries that will be difficult on these issues going forward.

The US delegation encountered particular problems with Germany over
changes needed to the Secondment Regulations prior to the
secondment of any US officials to the Secretariat. Current
regulations require that the seconding state retain liability for
most all acts of its seconded officials while working in the
Secretariat. This is a structure which exists in the EU, but is
virtually unknown in the realm of international organizations. All
countries in the working group assigned to this issue agreed to
make adjustments on this issue but for Germany, who stood as the
lone hold out blocking consensus reached among 10 other member
states (including EU counterparts France and the UK). The US
delegation expects to continue discussions with Germany over this
key issue.


19. (SBU) Governance: The Prep Com adopted a hard-fought decision
to formalize three working groups to address overarching issues
pertaining to governance, legal, and the work program. Over the
course of the preparatory process, the Admin Com and IRENA
secretariat had established a number of ad hoc working groups to
aid in the work of establishing the organization. The composition,
process, and purpose of these working groups was unclear.
Formalizing three groups will allow Signatories an official and
transparent process for communicating input on important
foundational issues to the secretariat, as well as improve
communication between Signatories on difficult issues. The

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decision on working groups should not have been contentious, but
both France and Germany expressed concerns over "constricting" the
role of the Secretariat in IRENA's development. The US delegation
argued that it is the purview of Signatories to take the decisions
needed to establish IRENA, not the Secretariat. An impending issue
is the question, pushed by Spain, of the respective rights of
participation for signatories, signatories that contribute
voluntarily, and ratified members. The working group on Governance
will address this in the coming months.


20. (SBU) Executive Management Selection Committee: The Prep Com
agreed to the creation of an Executive Management Selection
Committee, composed of member states, which will hire an executive
search firm to identify and screen qualified candidates for IRENA's
senior positions. Then, a small team (IDG Pelosse and 2 member
states on the committee) will interview and select candidates. The
UAE asked the US and Japan to introduce this proposal in order to
increase transparency within the Secretariat and expedite the
hiring process. The US has already volunteered to serve on the
committee. This step is viewed as a very positive and necessary
step to heighten the professionalism of the organization.

2010 IRENA Calendar


21. (U) The Admin Com will meet at least two times during 2010 in
Abu Dhabi, with preliminary dates of late May and October/November.
Germany will maintain the role of Chair of the Admin Com, and the
appointments of Vice-Chairs remain to be determined. The timing of
the next Prep Com also remains in question, though it was agreed it
will take place the day following the second Admin Com. The IRENA
Secretariat has proposed October 25, to precede DIREC, the
International Renewable Energy Conference in New Delhi, which
begins October 26. Spain will assume the Chair of the fourth Prep
Com. Should the IRENA Statute enter into force by mid-2010, the
October meeting may be an IRENA Assembly rather than a gathering of
the Preparatory Commission.

IRENA Signatory and Member States


22. (U) As of the conclusion of the Prep Com on January 17,
membership in IRENA consists of the following countries:

AF: Angola, Burkina Faso, Cameroon, Cape Verde, Central African
Republic, Chad, Comoros, CC4te d'Ivoire, Democratic Republic of the
Congo, Djibouti, Eritrea, Ethiopia, Gabon, Gambia, Ghana, Guinea,
Guinea-Bissau, Kenya, Lesotho, Liberia, Madagascar, Mali,
Mauritania, Mauritius, Niger, Nigeria, Rwanda, Republic of Congo,
Sao Tome and Principe, Senegal, Seychelles, Sierra Leon, Somalia,
South Africa, Sudan, Swaziland, Tanzania, Togo, Uganda, Zambia,
Zimbabwe

EAP: Australia, Brunei Darussalam, Cambodia, Fiji, Japan,
Kiribati, Mongolia, Nauru, Nepal, Palau, Papua New Guinea,
Philippines, Republic of Korea, Samoa, Timor-Leste, Tonga, Vanuatu

EUR: Albania, Armenia, Austria, Azerbaijan, Belarus, Bosnia and
Herzegovina, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia,
European Union, Finland, France, Georgia, Germany, Greece, Iceland,
Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg,
Macedonia, Malta, Moldova, Monaco, Montenegro, Netherlands, Norway,
Poland, Portugal, Romania, Serbia, Slovakia, Slovenia, Spain,
Sweden, Switzerland, Turkey, United Kingdom

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NEA: Algeria, Bahrain, Benin, Egypt, Iran, Iraq, Israel, Jordan,
Kuwait, Lebanon, Libya, Morocco, Oman, Syria, Tunisia, United Arab
Emirates, Yemen

SCA: Afghanistan, Bangladesh, India, Kazakhstan, Kyrgyz Republic,
Maldives, Pakistan, Sri Lanka, Tajikistan, Uzbekistan

WHA: Antigua and Barbuda, Argentina, Chile, Costa Rica, Dominican
Republic, Ecuador, Grenada, Guatemala, Honduras, Nicaragua, Panama,
Peru, United States, Uruguay, Saint Vincent and the Grenadines

The following eight countries have ratified and thus are members,
as opposed to signatories, of IRENA: Germany, Kenya, Liechtenstein,
Maldives, Norway, Palau, Sweden, and the UAE.

Comments:


23. (SBU) While progress on a suite of issues was achieved during
the Prep Com, IRENA's progress overall remains frustratingly slow.
This is due in part because representatives to IRENA are often
renewable energy policy experts with little knowledge of the IO
institutional, legal, and administrative experience that is
critical during this early stage of development. Dogged US
engagement in the coming several months will continue to be
necessary to help guarantee that IRENA becomes an international
organization that the Department and the US Congress deem worthy of
US membership. Since IRENA is the first international organization
in an NEA country, the US has a vested interest in ensuring that
the UAE creates an IRENA with rules, regulations and procedures
that will be a good model for the region. Increased US involvement
will help to spur progress on key elements of IRENA's
establishment, such as the creation of a permanent headquarters
agreement and rules of procedure governing the IRENA Assembly and
Council. Other longer-term issues such as the question of whether
IRENA should become a specialized agency within the UN System will
be held in abeyance. IRENA is a critical issue for the UAE, with
engagement at senior-most levels; in turn, IRENA is a priority
issue in our bilateral relationship with the UAE.


24. (SBU) The US remains firmly committed to the principal
objectives of IRENA and continues to support the critical need for
its operations. Despite its uneven administrative start, the 2010
Work Program reflects US policy on renewable energy deployment and
addresses the very reasons why IRENA was created and why we are so
aggressively supporting its successful formation: the need to
programmatically respond to the global deficiencies in policy and
regulatory structures to foment the widespread deployment of
renewable energy technologies.


25. (C/NF) The US will need to maintain vigilance to safeguard
against any backsliding by the UAE on the issue of permanent
missions. Though there had been prior agreement by UAE officials
on Israeli participation and the establishment of missions, there
was a clear sense of discomfort among several levels of UAE
representatives on the practical implications of this
participation. However, UAE statement both at the opening of the
Prep Com and in A/S Jones' bilateral meeting with the Foreign
Minister made it clear that they fully intended to comply with
their obligations. Though the US (and others) provided some
maneuvering room to the UAE officials to come to terms with these
issues at this first meeting, we also made our expectations for
future engagement quite clear. The UAE resolve to make good on its
commitment will manifest itself in negotiations over the HQA.

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Should there be any hedge on the issue of equal treatment or the
establishment of permanent missions, the US delegation will not
hesitate to quickly elevate the issue to the level necessary to
ensure an outcome consistent with the commitments made by the UAE
when it was selected as host country of IRENA. End Comment.
OLSON