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P 021613Z OCT 07
FM AMEMBASSY PARIS
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INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RUEHRC/USDA FAS WASHDC PRIORITY

UNCLAS SECTION 01 OF 02 PARIS 004139 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: SENV ECON PGOV FR
SUBJECT: FRENCH GOVERNMENT FOCUSES INWARDLY ON ENVIRONMENT: 
IMPLICATIONS FOR U.S. 
 
REF: A. PARIS 3967 
     ¶B. 06 PARIS 7584 
 
¶1. (SBU) Summary: While the world debates global climate 
issues, France's environmental attention is inward-focused. 
Sarkozy and State Minister Borloo of the 'mega' Environment 
Ministry - together with a range of stakeholders - are 
shaping environmental policies which will largely determine 
France's planning, energy, and transportation future.  The 
debate also includes whether France should grow GMO crops 
and, if so, under what conditions.  This domestic process, 
called locally the 'Grenelle' process, has regenerated 
interest in the proposal for a carbon tax on imported goods 
from countries not adhering to a Kyoto Protocol-like 
cap-and-trade system.  We are reviewing these proposals for 
content and to determine how best to protect U.S. interests. 
End Summary. 
 
------------------------------------ 
'Grenelle' and Sarkozy's promises... 
------------------------------------ 
 
¶2. (U) Before this year's presidential elections, candidate 
Sarkozy pledged - were he elected - to place environment at 
the center of his government.  This he has done by creating a 
'mega' Ministry for the Environment with authority over 
energy, transportation, and planning, in addition to the 
traditional subject areas of environment and sustainable 
development.  He headed this Ministry with a State Minister, 
ranking third in the government after the president and the 
prime minister.  When Alain Juppe failed to capture a 
legislative seat, Sarkozy promoted popular politician 
Jean-Louis Borloo to the State Minister slot. 
 
¶3. (U) Undergirding this structure, Sarkozy also pledged to 
gather stakeholders across the public, private and 
nongovernmental sectors in a process akin to that which 
created a new social contract in the chaotic year of 1968. 
That latter process gathered labor unions and student 
organizations in Grenelle, on Paris' Left Bank, thus the 
epithet Grenelle for the environment for the current 
undertaking.  The new, environmental Grenelle addresses the 
electorate's broad concern about the environment and the 
future, and is designed to provide the government explicit 
direction for its environmental policies in the coming five 
years, the period of the president's mandate. 
 
------------- 
Procedure key 
------------- 
 
¶4. (U) Government bodies, regional authorities, labor unions, 
business organizations, NGOs are all now immersed in the 
Grenelle process.  By the end of October, eight working 
groups must select 30 concrete measures to put France on 
track to reach its legally mandated goal of a 75% reduction 
in greenhouse gas (GHG) emissions by 2050.  Working group 
priorities include climate, biodiversity, transportation, 
environmental governance, health and the environment, 
agriculture, and promotion of sustainable development.  While 
genetically modified organisms (GMOs) were to be treated 
horizontally as an element within each group, coordinating 
this controversial topic became too unwieldy and a separate 
working group was established to address the GMO issue.  On 
September 27, each group released proposed measures. 
Parliament takes them up on October 3.  Concurrently, debates 
take place throughout France and on the Internet regarding 
these proposals.  A roundtable will decide which ones will be 
retained as government policy by end October. 
 
---------------- 
What's at stake? 
---------------- 
 
¶5. (SBU)  While the Grenelle process has yet to reach its 
climax, some outcomes are taking shape.  We are almost 
certain to see stricter guidelines, for instance, for air 
quality.  Likewise, various proposals are to enhance building 
regulations to promote energy efficiency.  Gasoline taxes may 
be raised to finance renewable investments.  We've even seen 
proposals that would mandate use of new macroeconomic 
indicators to capture environmental externalities. 
 
¶6. (SBU) Other issues we're working to better understand - 
and ones which might most closely affect U.S. interests - 
include: 
 
- Nuclear energy: The government wants a clear mandate to 
proceed with nuclear energy and in particular a green light 
for construction of the European Pressurized Reactor (EPR) in 
 
PARIS 00004139  002 OF 002 
 
 
Normandy.  The EPR would possibly become the reactor model 
for a new fleet of French reactors.  We believe the 
government is committed to this next generation of reactor to 
such an extent that Paris will consider other concessions to 
ensure there will be no objections to the prospect of an 
undimmed nuclear future. 
 
- GMOs: Another central question relates to the Grenelle's 
response to GMO's.  The media widely reported State Minister 
Borloo's intention to call for a moratorium on commercial 
biotech production.  There have been proposals calling for 
the creation of a separate agency to oversee GMO testing. 
(See ref A.) 
 
- Border Carbon Tax: The proposed import tax on goods 
manufactured in countries not party to a 'Kyoto 
Protocol-like' cap-and-trade system has also received 
heightened interest in the Grenelle.  (See ref B for 
background on this proposal.) Where this topic will go 
remains to be seen. 
 
¶7. (SBU) Comment: The Grenelle is Sarkozy's ambitious 
commitment to conduct during the five year presidential 
mandate the "necessary actions to resolve France's 
environmental problems within one generation and two 
generations for climate change."  The Grenelle results are 
also expected to inform France's EU presidency, the second 
half of 2008.  The Embassy is reviewing carefully the 
unfolding Grenelle with a view to interceding to protect U.S. 
interests.  End Comment. 
 
Please visit Paris' Classified Website at: 
http://www.state.sgov.gov/p/eur/paris/index.c fm 
 
 
Stapleton