VZCZCXRO8639
RR RUEHCHI RUEHCN RUEHDT RUEHHM
DE RUEHJA #3274/01 3330941
ZNR UUUUU ZZH
R 290941Z NOV 07
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 7207
RUEATRS/DEPT OF TREASURY WASHDC
RUCNDT/USMISSION USUN NEW YORK 0753
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHKO/AMEMBASSY TOKYO 1205
RUEHBJ/AMEMBASSY BEIJING 4535
RUEHBY/AMEMBASSY CANBERRA 1659
RUEHUL/AMEMBASSY SEOUL 4314
RUEAIIA/CIA WASHDC
RHEHNSC/NSC WASHDC

UNCLAS SECTION 01 OF 02 JAKARTA 003274 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR IO, OES/EGC, OES/IET 
DEPT FOR EAP/MTS, EAP/RSP AND EB/IFD/OMA 
DEPT FOR EAP DAS MARCIEL, EEB DAS DIBBLE 
TREASURY FOR TFCA - BERG AND IA-BAUKOL 
NSC FOR CEQ CONNAUGHTON, VAN DYKE 
TREASURY FOR U/S MCCORMICK, DAS DOHNER 
USUN FOR ECOSOC - HEIDT 
SINGAPORE FOR TREASURY-BAKER 
COMMERCE FOR 4430-BERLINGUETTE 
 
E.O. 12598: N/A 
TAGS: EFIN SENV ECON KGHG TBIO ID
 
SUBJECT: COP-13 FINANCE MINISTERS' SIDE MEETING 
 
¶1. Summary: The Finance Minister's side meeting at the upcoming 
United Nations Climate Change conference seeks to review the cost of 
environmental damage; examine policy instruments available to 
address the issues; set objectives and common goals; and outline 
next steps.  The Government of Indonesia requests that each 
country's delegation prepare an action plan for climate change 
mitigation and adaptation and provide comments on the draft 
statement to be provided on or about November 30.  End Summary. 
 
Finance Ministerial Side Meeting a New Tradition 
--------------------------------------------- --- 
 
¶2. The Government of Indonesia (GOI) recently held a meeting with 
relevant Ambassadors to brief on the GOI's goals for Finance 
Ministers' side meeting at the United Nations Framework on Climate 
Change Conference of Parties (UNFCC-COP-13) to be held in Bali 
December 3-14.  Finance Minister Mulyani urged thoughtful 
participation by all delegations and noted that this would be the 
first Finance Ministerial at a UNFCC event.  Indonesia wants to 
start a "new tradition," Mulyani noted. 
 
Agenda and Substance of Finance Ministerial 
------------------------------------------- 
 
¶3. The agenda of the Finance Ministerial will include the following 
sessions: 
 
Session I: Magnitude of the Problems and Costs of Environmental 
Damage; 
 
Session II: Policy Instruments Available to Address the Issues; 
 
Session III: Objectives and Common Goals - National, Regional and 
Global; 
 
Session IV: Next Agenda (Steps Towards Upcoming Meetings and 
Cooperation Among Finance Ministers). 
 
¶4. In addition, Minister Mulyani made clarifying comments on goals 
for the above topics: 
 
-- Session I: Economic magnitude and consequences of climate change 
on the global economy and domestic policies.  Will climate change 
shift global attention and resources and how?  Costs of early action 
are less than responding to damage.  Climate change is also a 
development, economic and investment problem.  Finance Ministers 
need to integrate climate change-related issues into policy and 
financial planning. 
 
-- Session II: How domestic policies can be developed to address 
climate change issues. Will CC take over the development agenda for 
poor countries?  Can we summarize a toolkit of national policy 
instruments available to finance ministers?  Global best practices 
and sharing of country experiences.  Call for systemic integration 
of climate change adaptation and greenhouse gas mitigation into 
country development and poverty reduction plans. 
 
-- Session III: Common international objectives on climate change. 
Where can we work together?  How to address deforestation in 
developing countries?  Can we create a global adaptation fund? 
There is a case for making international financing mechanisms 
larger, more effective, more accessible, more concessionary. 
Emphasize the need for innovative and additional financing for both 
mitigation and adaptation in developing countries.  Highlight the 
importance of technology development and technology transfer to 
developing countries.  Call for a global compact on climate change 
that combines equity, efficiency, mitigation and adaptation. 
 
-- Session IV: Identifying next steps for Finance Ministers 
specifically.  Call for regular follow-up meetings, discussions at 
future World Bank annual meetings and future COPs.  Discuss and 
coordinate actions in the area of climate change and development. 
 
JAKARTA 00003274  002 OF 002 
 
 
Finance Ministers could propose to advance the understanding of the 
impacts of climate change, greenhouse gas mitigation options at 
macro and micro-economic level.  Finance Ministers could propose to 
review and assess financial incentive instruments to influence 
decision making with a view to making it lower carbon or more 
climate resistant (e.g. a more rational pricing for the use of 
scarce resources, fiscal and financial policies, insurance products, 
etc.) 
 
Goals and Outcomes 
------------------ 
 
¶5.  The GOI has circulated papers from international institutions 
(Stern Review, OECD, Inter-Governmental Panel on Climate Change 
Working Group) for review the week of November 26, which have been 
transmitted to Departments of State and Treasury via e-mail.  The 
GOI requests that participating delegations prepare an action plan 
on the implementation of financial and fiscal policies for climate 
change adaptation and mitigation.  A draft Ministerial statement 
will be circulated on or about November 30.  The GOI would 
appreciate USG comments.  A press statement will be issued right 
after the closing of the Finance Ministerial side meeting, but the 
full text of the statement will be given to the UNFCC Plenary on 
December 14. 
 
HUME