VZCZCXRO7497
PP RUEHCN RUEHGH RUEHVC
DE RUEHBJ #2535/01 1070622
ZNR UUUUU ZZH
P 170622Z APR 07
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC PRIORITY 6944
RUEHOO/CHINA POSTS COLLECTIVE
RUEAEPA/HQ EPA WASHDC
RHMFIUU/DEPT OF ENERGY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUCPDC/NOAA NMFS WASHDC
RHEHNSC/NSC WASHDC

UNCLAS SECTION 01 OF 03 BEIJING 002535 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR OES/WATSON, OES/EGC-DEROSA-JOYNT AND OES/PCI 
STATE FOR APP/GTHOMPSON 
STATE FOR EAP/CM - WARD 
STATE PASS TO CEQ CONNAUGHTON AND BANKS 
NSC FOR HUNTER, SHRIER, TONG 
USDOE FOR INTERNATIONAL/HARBERT, FREDRICKSEN AND GEBERT 
USDOE FOR S-1 MWILLIAMSON AND JKUPFER 
USDOE FOR EERE PDICKERSON, JMIZROCH, AND MGINSBERG 
EPA FOR INTERNATIONAL/MCASKILL AND AYRIS 
USDOC FOR JNEUHOFF 
 
E.O.  12958: N/A 
TAGS: ENRG TRGY PREL PGOV SENV CH
SUBJECT:  ENERGY EFFICIENCY AND RENEWABLE ENERGY TECHNOLOGY 
COOPERATION - MINISTRY OF SCIENCE AND TECHNOLOGY DESIGNATES MINISTRY 
OF CONTRUCTION TO LEAD GREEN BUILDING TECHNOLOGY 
 
REF. (A) Beijing 00346 
 
¶1.   (SBU) Summary:   At a meeting on March 28, 2007, the Ministry 
of Science and Technology (MOST) informed Mark Ginsberg, Member of 
the Board of Directors, DOE Office of Energy Efficiency and 
Renewable Energy (Ginsberg), that the Ministry of Construction (MOC) 
has the lead in negotiating the Energy Efficient Buildings Annex 
(the EE Annex) to the "Protocol between the Department of Energy and 
the Ministry of Science and Technology of the People's Republic of 
China for Cooperation in the Fields of Energy Efficiency and 
Renewable Energy Technology (EERE Protocol)".  Ginsberg discussed 
the DOE EERE proposal to build a Center of Excellence on the second 
floor of the Agenda 21 Building and discussed details for its 
implementation with Zhou Yuan, the new Director General of the MOST 
National Research Center for Science and Technology for Development 
(NRCSTD) and Yang Guoxiong, NRCSTD's former Director General.  Since 
the second floor has been vacant since March 2006, Yang would like 
to see the Center of Excellence project completed by September, 
¶2007. According to Yang, participation of United States companies 
without violating rules against private advertising will require a 
marketing plan and a memorandum of understanding which could serve 
as a model for the future U.S.-China cooperation. 
 
Background:  The Agenda 21 Building 
------------------------------------ 
 
¶2.  (U) The Agenda 21 Building (the Building) is the first building 
in Beijing to be rated by the U.S. Green Building Council at a 
Leadership in Energy and Environmental Design (LEED) Gold level s 
use of energy conservation building technologies.  The Department of 
Energy funded building technology for the Agenda 21 Building through 
in-kind contributions from private industry and technical assistance 
provided by the Lawrence Berkeley National Laboratory and the 
Natural Resources Defense Council during the building planning and 
design stage. 
 
¶3.   (U) The Agenda 21 Building is 13,000 square meters; it achieves 
over 70 per cent energy efficient operations, using 51.3KW-hour per 
square meter per year, which constitutes 1/3 the consumption of the 
typical Beijing building.  Although the Building is occupied by more 
than 500 people, it achieves 10,000 cubic meters of water saving per 
year, yielding a water consumption rate of 64 per cent, per year 
when compared to a building of similar size using standard 
construction.  If one were to convert the energy saving to Carbon 
Dioxide reduction, the Building accounts for a carbon dioxide 
emission reduction of 1560 tonnes per year over the 70-year life of 
a building. The Building saves the owner 710,000 RMB year in energy 
cost per year over a building's life span.  If the cost of energy 
rises 1 per cent, per year, the total saving over the life of the 
building can fund another energy saving building. 
 
¶4. (U) Four hundred twenty-two officials from 28 countries have 
visited the Building, a large number considering that it is not open 
to the public.  The Building has hosted 5,000 architects and 
development officials from China and other countries, and has been 
the subject of media attention in China, the United States, Japan, 
Canada, and Europe.  It serves as a national demonstration project 
for the China construction industry. 
 
MOST Designates the MOC as the Lead for EE Annex Negotiation and 
Project Implementation 
--------------------------------------------- --- 
 
¶5. (SBU) Ginsberg met with Zhou Yuan, Deputy Director General, and 
Yang Guoxiong, Deputy Director, NRCSTD, MOST to discuss the process 
for negotiating the Energy Efficient Buildings Annex to the EERE 
Protocol and the creation of a Center of Excellence on the second 
floor of the Agenda 21 building.  Zhou highlighted the success of 
the Building, citing it as a good example of cooperation with the 
United States.  NRCSTD is responsible for China's Agenda 21 program. 
 The MOST Department of High and New Technology and 
Industrialization is in charge of policy and projects related to 
green and energy efficient building technology, while the MOST 
 
BEIJING 00002535  002 OF 003 
 
 
Department of Social Development works on the environmental 
protection aspects.  Zhou was recently appointed Deputy Director 
General.  At the time of the meeting, he was in the midst of a 
transition period with Yang, the former Deputy Director-General. 
 
¶6.   (SBU) Li Xin, Program Officer at MOST emphasized that his 
Ministry did not operate programs; rather it funds programs at 
research institutes and universities.  Li stated that MOST has 
special grants for international cooperation projects to fund joint 
cooperation projects with a Chinese ministry and the United States, 
as an example.  Applications for joint international projects are 
made to the MOST Department of International Cooperation.  Li 
elaborated that, while MOST and MOC jointly develop research and 
development plans, the MOC is charged with organizing the research 
effort for green buildings; that the MOC is in charge of the EERE 
Protocol; and that the MOC will lead negotiations of the EE Annex 
negotiations.  Li requested that DOE contact the MOC directly 
through the MOC Department of Science and Technology's Division of 
International Cooperation. 
 
DOE Proposal for a Center of Excellence - Revenue Generation a 
Sticking Point 
--------------------------------------------- ----- 
 
¶7.   (SBU) Ginsberg presented the proposal for the joint development 
of the second floor of the Agenda 21 Building as a Center of 
Excellence to show-case United States energy efficient building 
technology.  Funding would come through direct DOE funds as well as 
contributions, monetary and in-kind, from private industry, Ginsberg 
stated.  DOE would like to establish a 6-8 member steering committee 
to oversee Center of Excellence operations.  DOE would be actively 
engaged in the board through its representatives.  Yang stated that 
there are many interested parties, and he needs to confer with 
higher level officials. 
 
¶8.   (SBU) Since MOST moved into its own building in March 2006, the 
second floor has been unoccupied, and the Center is anxious to move 
forward with the DOE proposal and generate revenue again, Yang 
emphasized.  Discussions then centered on the 5-year draft budget 
for Center of Excellence operations that MOST prepared at DOE's 
request.  Generally, Ginsberg noted that the budget was in the 
ballpark, but he reserved further comment until he could complete 
further study in Washington. 
 
¶9.   (SBU) Ginsberg suggested that the long-term goal would be to 
make the Center of Excellence self-sustaining.  Ginsberg elaborated 
that the plan is to seek participation by United States companies 
willing to pay to exhibit in the space.  Ginsberg stated DOE is 
considering whether to include the Center of Excellence as a 
Flagship project under the Asia Pacific Partnership cooperation, 
thus using the Center of Excellence as a regional resource on high 
performance buildings for other countries in the region.  The Center 
of Excellence could also serve as a training facility, educating 
officials and design professionals on the benefits and techniques of 
green and efficient building design. 
 
¶10.   (SBU) Yang had concerns about the corporate funding concept. 
Yang stated that the biggest challenge is to identify funding to 
implement the demonstration center, since the U.S.-China Agenda 21 
Building project had experienced several set backs as a result of 
cutbacks to the original level of private sector financial 
commitment made by the United States. Moreover, stating several 
times that the building is a government building, and that the 
Center of Excellence would be designed to promote the public welfare 
and not to promote private enterprise, he had concerns about the 
form of corporate participation. Yang cautioned that demonstration 
of technologies would be in the public interest, but blatant 
advertising would not. 
 
¶11.   (SBU) Yang will readily acknowledge corporate contributors 
through wall plaques, brochures, and the like, but stated that it 
was not appropriate for a company to advertise in the space. 
However, Yang remained open to discuss ways in which United States 
 
BEIJING 00002535  003 OF 003 
 
 
companies can participate in the building without violating the 
rules against private advertising.  Yang agreed to develop a 
marketing plan that would look at ways private companies could 
participate, and to develop a project schedule.  Yang stated he 
would like to see budget worked out in time to finish construction 
in September. Yang requested that a new Memorandum of Understanding 
to cover the agreement on the Center for Excellence be developed as 
a model for U.S.-China technical cooperation.  Yang will serve as 
the point of contact for the Center for Excellence. 
 
¶12.   (SBU) Ginsberg agreed that further discussions are needed to 
define the benefits that would accrue to a company willing to 
participate in the project and what form participation will take. 
Ginsberg requested that MOST provide the marketing plan as quickly 
as possible. Ginsberg will convey to DOE the request for a quick 
resolution of the budget issues and a written agreement to govern 
the cooperation, promising to provide a prompt response, he added. 
 
 
¶13.   (SBU) Participants: 
 
Ministry of Science and Technology, Peoples Republic of China: 
 
Zhou Yuan, Deputy Director-General, National Research Center for 
Science and Technology for Development (NRCSTD, 
 
Yang Guoxiong, Deputy Director, NRCSTD 
 
Peng Sizhen, Director, Division of Clean Technology Development, The 
Administrative Centre for China's Agenda 21 
 
Jin Ruidong, Green Buildings Project Manager, Natural Resources 
Defense Council 
 
United States: 
 
Mark Ginsberg, Member of the Board of Directors, DOE Office of 
Energy Efficiency and Renewable Energy 
 
Maria Holleran Rivera, DOE Attach, Embassy of the United States 
 
Randt