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FM AMEMBASSY PARIS
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UNCLAS SECTION 01 OF 03 PARIS 004364 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
WHITE HOUSE FOR CEQ, USTR 
 
E.O. 12958: N/A 
TAGS: SENV ECON PGOV FR
SUBJECT: SARKOZY ANNOUNCES MARSHALL PLAN FOR THE ENVIRONMENT 
 
REF: PARIS 4139 (NOTAL) AND PREVIOUS 
 
¶1. (SBU) Summary: On October 25, Nicolas Sarkozy, flanked by Al 
Gore, Wangari Maathai and Manuel Barroso, concluded the 
four-month French 'Grenelle' environment process calling for a 
series of measures to reduce greenhouse gas emissions, cut 
pesticide use, and implement a "freeze" on planting GMOs.  He 
suggested imposing additional taxes on fossil fuels and urged 
the European Union to study levying a carbon tax on imports from 
countries not part of the Kyoto Protocol system.  The Grenelle 
process and Sarkozy's presentation have received wide acclaim in 
France.  Legislation to implement some of these measures comes 
next. The public success of the process gives France the boost 
it sought before it assumes the EU presidency in the second half 
of 2008 when it will put climate and the environment at the top 
of its agenda.  A septel will follow containing policy 
recommendations in response to measures affecting U.S. 
interests.  End summary. 
 
Environment Front & Center 
-------------------------- 
 
¶2.  (SBU) Sarkozy has put the environment at center stage from 
the outset of his presidency.  He created a 'mega' environment 
ministry with responsibilities not only for traditional ecology 
and sustainable development, but also for transportation, energy 
and regional planning.  He deemed the new minister to be the 
third ranking official in the government.  But the most 
ambitious environment-centered effort was a process bringing 
together the government, business, farmers, NGOs and 
international environmental activists to develop concrete 
measures to reduce greenhouse gases, preserve biodiversity, and 
limit pollution.  The 'Grenelle', named after a similar type of 
estates-general held following the turmoil of 1968, was called 
to develop a new social contract based on the environment 
(www.legrenelle-environnement.fr). Over the last several months, 
six working groups have met and considered issues relating to: 
climate change, biodiversity, health, sustainable production and 
consumption, governance, employment and competitiveness.  Two 
inter-sectoral groups considered GMOs and pollution. Preliminary 
group reports were followed by regional consultations, leading 
up to a two day national meeting that concluded at the Elysee 
yesterday.  While various groups criticized the process along 
the way - especially when Sarkozy ruled out any reconsideration 
of French reliance on nuclear power, overall the process 
received rave reviews across the political spectrum.  The 
environment is popular in France and Sarkozy's 'green team' of 
State Minister Borloo and Ecology and Sustainable Development 
Secretary of State Kosciusko-Morizet largely succeeded in 
 
SIPDIS 
capturing the public's and interest groups' attention and 
imaginations during these past several months. 
 
France's 'Environmental New Deal' 
--------------------------------- 
 
¶3. (U) Measures of significance summed up by Sarkozy in his 
October 25 speech include those related to the climate and 
energy, agriculture, and health. 
 
Carbon Taxes - Sarkozy has committed to studying the imposition 
of "climate-energy taxes."  The idea is not to increase taxes 
domestically, but rather to increase taxes related to greenhouse 
gas emissions and lower those associated with labor.  He 
emphasized he does not want to "penalize" French competitiveness 
nor the buying power of the French through the imposition of new 
net taxes.  By way of example, he suggested the reduction of 
value added taxes on 'green' products.  This matter is now 
referred to the French Parliament for further consideration. 
Sarkozy also proposed the "study" at the EU level within the 
next six months of an import tax on goods manufactured in 
countries not subject to a cap-and-trade system along the lines 
of the European Emissions Trading System.  ( This proposal was 
first advanced in the de Villepin government, but Sarkozy's 
speech was the first formal GOF endorsement.) 
 
GMO Moratorium - As expected, Sarkozy announced the suspension 
of the commercial production of "pesticide GMOs" pending review 
by a new competent authority on biotech, which is to be 
established by year's end.  Sarkozy also announced that France 
would adopt a national biotech law in the spring of 2008, 
transposing the EU directive on coexistence between biotech and 
 
PARIS 00004364  002 OF 003 
 
 
conventional crops, as legally required.  Sarkozy invoked the 
precautionary principle (which is incorporated in the French 
constitution) both in justifying this decision and in guiding 
future actions.  While stating that France would live up to its 
EU and international commitments, he put the burden of proof on 
biotech advocates to prove the environmental and health benefits 
of biotech varieties stating that decisions would be founded on 
the "general interest" not individual commercial benefit.  Open 
field research will be allowed to continue.  The President 
condemned biotech crop destruction.  (Comment: This announcement 
clearly jeopardizes MON 810 corn production, the only biotech 
crop commercially produced in France, and is likely to greatly 
reduce if not eliminate the possibility for 2008 planting.  End 
comment.) 
 
Energy - Sarkozy did not totally skirt the nuclear issue.  He 
gave a nod to the environment community by proposing a freeze on 
"new sites" for nuclear reactors, leaving open building on 
existing nuclear sites.  (The new European Pressurized Reactor 
under construction in Normandy is, for example, being built on 
an existing nuclear site and would, therefore, be exempted from 
this freeze.)  Sarkozy also endorsed a 20% reduction in energy 
consumption by 2020 and declared that France would increase the 
content of renewable energy in its mix to 20% by 2020.  The sale 
of incandescent bulbs will be banned after 2010.  The GOF 
proposes a major program to reduce energy consumption in 
buildings by enhancing the building codes for new and renovated 
buildings substantially by 2008 and 2012. 
 
Transportation - Sarkozy also articulated an ambitious proposal 
to freeze construction of new roads and airport infrastructure 
with certain exceptions.  On the other hand, he proposed the 
extension of the system of public tramways and encouraged 
increasing by an additional 2,000 kms high speed trains.  He 
gave the green light to new efficient maritime routes between 
Spain and France and Portugal and France.  He proposed an 'eco' 
tax on heavy trucks.  Interestingly, a proposal by one of the 
Grenelle working groups to cut automobile speed limits did not 
make it into the President's speech. 
 
Pesticide reduction - Under the new proposals, French 
agriculture could be subject to considerable change: targeting a 
great increase in organic farming and drastically reducing the 
use of pesticides (subject to the identification of viable 
alternatives).  The Agriculture Minister is to submit within one 
year a plan to reduce the use of pesticides by 50% "if possible" 
within 10 years.  Targeted pesticides are to be withdrawn from 
the French market. 
 
Other - A number of other significant measures were reported by 
Sarkozy including those related to air quality and the recycling 
of household waste and packaging. 
 
Next Steps 
---------- 
 
¶4. (SBU) In a preview earlier this week, Kosciusko-Morizet's 
chief of staff told us that the outcomes of the Grenelle would 
include a number of immediate operational decisions; a set of 
targets and timetables for future action, for which concrete 
mechanisms would be defined over the next several months; and, a 
set of medium term proposals that would require either domestic 
legislation or action at the level of the European Community. 
The former would be submitted to the National Assembly in early 
2008 while the latter would become the centerpiece of France's 
EU presidency in the second half of the year.  An advisor to 
Agriculture Minister Barnier stressed to us that French fear of 
GMOs was widely shared in Europe and the Grenelle process would 
lead to a broader European reconsideration of agricultural 
biotechnology.  What France decides at the national level, he 
said, it would seek to expand to the Community, with expected 
broad popular support. 
 
Not there yet.... 
----------------- 
 
¶5.  (SBU) There has been relatively little discussion of costs 
and financing in the Grenelle discussions thus far. Sarkozy 
stressed the need for France to set the example on sustainable 
development which will require annual investment of up to one 
percent of GDP.  More specifically, Sarkozy announced that the 
 
PARIS 00004364  003 OF 003 
 
 
GOF would invest one billion euros over the next four years in 
R&D as well as in incentives to change behavior.  There appears 
to be a general belief that most of the conservation measures 
mooted will pay for themselves and in turn enhance growth.  A 
full accounting of projected costs has not been presented. 
 
¶6. (SBU) Comment: Despite the skeptics, Sarkozy pulled off a 
domestic environmental (and political) coup.  He has put France 
at the forefront of European environmentalism (at least 
according to the French).  Jean-Louis Borloo and Natalie 
Kosciusko-Morizet, the State Minister and State Secretary for 
environment have proven themselves (to the French electorate) as 
environmental custodians for having shepherded the Grenelle 
process.  And, of course, the process succeeded in bringing 
varied French stakeholders together.  End Comment. 
 
Please visit Paris' Classified Website at: 
http://www.state.sgov.gov/p/eur/paris/index.c fm 
 
 
Stapleton