VZCZCXYZ0006
PP RUEHWEB

DE RUEHFR #3909/01 2611422
ZNR UUUUU ZZH
P 181422Z SEP 07
FM AMEMBASSY PARIS
TO RUEHC/SECSTATE WASHDC PRIORITY 0253
RHEHAAA/WHITE HOUSE WASHDC PRIORITY
INFO RUEHBS/USEU BRUSSELS PRIORITY 2077

UNCLAS PARIS 003909 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT PASS G, OES, EUR; WHITE HOUSE FOR CEQ 
 
E.O. 12958: N/A 
TAGS: SENV FR
SUBJECT: MAJOR ECONOMIES MEETING - AMBASSADOR GRAY ENGAGES 
FRENCH ON OBJECTIVES 
 
 
¶1.  (SBU) SUMMARY: ON SEPTEMBER 17, IN MEETINGS WITH 
PRESIDENT SARKOZY'S PERSONAL REPRESENTATIVE TO THE WASHINGTON 
SEPTEMBER 27-28 MAJOR ECONOMIES MEETING (MEM), AND WITH THE 
MFA'S DEPUTY MINISTER FOR ECONOMICS AND FINANCE, USEU 
AMBASSADOR GRAY ADDRESSED FRENCH CONCERNS AND HIGHLIGHTED 
U.S. MEM OBJECTIVES.  FRENCH OFFICIALS ONCE AGAIN EMPHASIZED 
THAT THERE NEEDS TO BE A DISTINCTION BETWEEN THE EU/EC AND 
FRANCE AT THE MEETING.  GRAY RESPONDED THAT TO BE ABLE TO 
HAVE ANY 'REAL DIALOGUE' AT THE MEM, THE SMALLER THE NUMBER 
OF PLAYERS THE BETTER.  ON SUBSTANCE, FRENCH OFFICIALS SAID 
THEY SUPPORT MEM, YET THEY ALSO CLAIMED THAT IT SHOULD 
INCLUDE DISCUSSION OF 'TOP-DOWN' MEASURES SUCH AS 
CAP-AND-TRADE SYSTEMS FOR GREENHOUSE GASES.  GRAY HIGHLIGHTED 
RECENT REPORTS THAT CAP-AND-TRADE SYSTEMS ARE BETTER AT 
PROMOTING UPTAKE OF EXISTING TECHNOLOGIES AND NOT AS GOOD AT 
FOSTERING THE INNOVATION TO ACHIEVE BREAKTHROUGH 
TECHNOLOGIES.  END SUMMARY. 
 
¶2.  (U) AMBASSADOR BOYDEN GRAY ENGAGED SECRETARY OF STATE FOR 
ECOLOGY AND SUSTAINABLE DEVELOPMENT NATALIE KOSCIUSKO-MORIZET 
("NKM"), PRESIDENT SARKOZY'S PERSONAL REPRESENTATIVE TO THE 
MAJOR ECONOMIES MEETING (MEM), AND CHRISTIAN MASSET, DEPUTY 
FOREIGN MINISTER FOR ECONOMICS AND FINANCE, IN SEPARATE 
MEETINGS ON SEPTEMBER 17 ABOUT U.S. OBJECTIVES FOR THE MEM. 
USEU AND EMBASSY PARIS ESTH OFFICERS ACCOMPANIED HIM. 
COUNSELOR JEAN MICHEL LINOIS AND FRANCE'S AMBASSADOR FOR THE 
ENVIRONMENT LAUREN STEFANINI PARTICIPATED IN GRAY'S MEETINGS 
WITH NKM AND MASSET, RESPECTIVELY.  AMBASSADOR GRAY ALSO 
DISCUSSED THE MEM WITH FRENCH PRESS IN ROUNDTABLE FORMAT. 
 
FRANCE WANTS TO BE FRANCE IN WASHINGTON.... 
------------------------------------------- 
 
¶3.  (SBU) BOTH NKM AND MASSET SPOKE HIGHLY OF THE PRESIDENT'S 
MEM INITIATIVE AND THAT IT NEEDS TO BE AMBITIOUS, "AT THE 
LEVEL OF THE (CLIMATE) CHALLENGE."  BOTH SAID FRANCE LOOKS 
FORWARD TO ATTENDING AND THEY HOPED FOR ITS SUCCESS. 
HOWEVER, BOTH REMARKED THAT FRANCE WOULD ATTEND THE MEM AS AN 
ENTITY DISTINCT FROM THE EU OR THE EC; FRANCE IS AN IMPORTANT 
ACTOR IN ITS OWN RIGHT AND NEEDED ITS OWN VOICE AT THE TABLE. 
 "WE ARE VERY SENSITIVE TO THIS POINT," SAID NKM, AND ADDED 
THAT FRANCE'S AMBASSADOR TO WASHINGTON VIMONT HAD RAISED THIS 
WITH THE DEPARTMENT.  NKM EVEN CLAIMED, "FROM OUR 
PERSPECTIVE, THE MEM IS A G8-BASED PROCESS...."  GRAY 
RESPONDED TO BOTH RELAYING THE HISTORICAL EXAMPLE OF HOW 
PROGRESS WAS MADE TO REACH THE MONTREAL PROTOCOL: A DOZEN KEY 
NATIONS UNDERTOOK TO WORK TOGETHER TO DEVELOP A COHERENT 
FRAMEWORK FOR ADDRESSING OZONE MULTILATERALLY.  HAD THIS 
PROBLEM BEEN TACKLED IN UNENDING PLENARY SESSIONS WITH 
160-ODD DELEGATES PRESENTING SET SPEECHES, CONSENSUS WOULD 
HAVE BEEN LONG IN COMING. GRAY EMPHASIZED THE MEM'S PURPOSE 
IS TO GET THE KEY EMITTERS TO THE TABLE TO ENGAGE IN FRANK 
DISCUSSIONS.  AS THINGS STAND, GRAY SAID, EUROPE WITH 16% OF 
WORLD GHG EMISSIONS WILL HAVE 30% OF THE SEATS AT THE TABLE. 
 
TOP-DOWN OR BOTTOM-UP 
--------------------- 
 
¶4.  (SBU) NKM ALSO WANTED CONFIRMATION THAT THE MEM WOULD 
SUPPORT THE EXISTING UN CLIMATE PROCESS AND THAT IT WOULD 
"BUILD ON KYOTO AND CONVERGE SYSTEMS."  SIMILARLY, MASSET 
SAID THE MEM "SHOULD NOT BE ALL ABOUT PUBLIC PARTNERSHIPS; 
THAT THERE WAS A NEED FOR BOTH 'TOP-DOWN' AND 'BOTTOM-UP' 
APPROACHES."  THE TOP-DOWN OR CAP-AND-TRADE SYSTEM ACCORDING 
TO MASSET WOULD SEND NECESSARY PRICE SIGNALS TO THE MARKET, 
ESSENTIAL TO PROMOTING EFFICIENCIES AND DEVELOPING NEW 
TECHNOLOGIES TO CONTROL EMISSIONS.  GRAY RESPONDED 
UNEQUIVOCALLY THAT THE UPCOMING MEETINGS PURPOSE WOULD BE TO 
ADVANCE THE UN PROCESS.  REGARDING TOP-DOWN MEASURES, GRAY 
DESCRIBED TO NKM AND MASSET WHAT THE U.S. SAW AS THE KEY 
THINGS THAT NEEDED TO BE ACCOMPLISHED AT THE COMING MEETING, 
INCLUDING ENHANCING COLLABORATION ON CARBON CAPTURE AND 
STORAGE AND SECOND GENERATION BIOFUELS, AS WELL AS ENHANCING 
THE METRICS/MEASUREMENTS SURROUNDING REFORESTATION.  NKM SAID 
THAT FRANCE WOULD WELCOME DISCUSSION OF ALL THREE.  GRAY, 
REFERRING TO A RECENTLY PRODUCED CLUB OF MADRID/UNFOUNDATION 
DOCUMENT, UNDERSCORED THAT CAP-AND-TRADE SYSTEMS FOR CARBON 
EMISSIONS WERE PREMATURE.  IMPLEMENTATION OF A CAP-AND-TRADE 
SYSTEM WOULD FORCE ACTORS TO UTILIZE LEAST COST AVAILABLE 
TECHNOLOGIES RATHER THAN TO INNOVATE FOR BREAKTHROUGH 
TECHNOLOGIES.  GRAY EMPHASIZED THAT ADDITIONAL WORK WAS 
REQUIRED TO BRING NEW CLIMATE-FRIENDLY TECHNOLOGIES TO MARKET 
BEFORE IMPLEMENTATION OF CAP-AND-TRADE SYSTEMS TO ADDRESS 
CARBON EMISSIONS. 
 
PROCEEDINGS RECORD 
------------------ 
 
 
¶5. (SBU) NKM'S FINAL MAIN POINT: THERE NEEDS TO BE A RECORD 
OF THE MEM DISCUSSIONS AND CLARITY REGARDING NEXT STEPS. 
AMBASSADOR GRAY REASSURED HER THAT THERE WOULD BE NO 
DECLARATION WHICH WOULD HAVE TO BE NEGOTIATED, BUT THERE 
WOULD BE A DOCUMENT REFLECTING THE NATURE OF THE DISCUSSIONS 
AND A TIMETABLE FOR FUTURE MEETINGS. 
 
 
PLEASE VISIT PARIS' CLASSIFIED WEBSITE AT: 
HTTP://WWW.STATE.SGOV.GOV/P/EUR/PARIS/INDEX.C FM 
 
 
STAPLETON