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UNCLAS SECTION 01 OF 02 LONDON 004297 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: SENV KGHG UK
SUBJECT: PM Brown Announces "Marshall Plan" on Climate 
 
 
¶1.  (SBU) Summary:  In a November 19 speech, Prime 
Minister Gordon Brown reaffirmed the UK's commitment 
to 60% cuts in carbon emissions by 2050 and 20% of 
energy in the EU from renewable sources by 2020, and 
called for a "Marshall Plan" on climate to assist 
developing countries.  He pledged $2.74 billion for 
R&D in offshore wind, wave and tidal energy and for 
bringing those technologies to market. He also 
announced a competition for a coal-fired power plant 
on a commercial scale with carbon capture and storage 
(CCS) technology and that the EU and UK will begin a 
Near Zero Emission Coal Initiative in China. Finding 
the money for these plans, however, may be a problem. 
End summary. 
 
"Developed Countries Have Historic Responsibility" 
--------------------------------------------- ----- 
 
¶2.  (U) Speaking two weeks before the UN Climate 
Change conference begins in Bali, Brown said that 
although the goal of Bali was to launch negotiations 
for a post-2012 climate change agreement, the long- 
term goal is to build a global low-carbon economy.  He 
said climate change is a challenge for this century on 
a "comparable financial scale" to the post WW-II 
Marshall Plan.  In a separate statement on November 
18, Brown said that "developed countries have historic 
responsibility for causing climate change, and have 
the greatest capacity for reducing emissions. So we 
must show leadership and take the first and largest 
responsibility." 
 
New Clean Energy Investment Framework Under World Bank 
--------------------------------------------- --------- 
 
¶3.  (U) Brown said the UK would work with the United 
States, Japan, the G-8 and other European donors on 
new funding mechanisms to assist developing countries 
reduce carbon emissions and adapt to climate change. 
The mechanisms include the World Bank-led Clean Energy 
Investment Framework and the UK's $1.6 billion 
Environmental Transformation Fund. 
 
Sticking with Commitment on Renewable Energy 
-------------------------------------------- 
 
¶4.  (SBU) Brown's speech was based on the Climate 
Change Bill published on November 15.  The bill 
legally binds the UK to reducing its emissions of 
carbon dioxide by a minimum of sixty percent from the 
1990 benchmark by 2050. While much of Brown's speech 
reiterated standard UK points on climate, one 
surprising note was his re-commitment to the EU's 
agreement to have 20% of its energy generated from 
renewable sources by 2020.  Media accounts, including 
an article in the October 23 Guardian, have been 
speculating for weeks that the 20% figure was 
unreachable and that Brown would back off.  Note: The 
20% figure covers Europe as a whole, and Brown has 
only committed the UK to "meeting our share," not to a 
specific amount or percentage.  Brown said in his 
speech that the European Commission will make a 
proposal in January 2008 about how the 20% figure 
would be apportioned among different member states. 
End note. 
 
$2 Billion for Wind, Wave and Tidal Energy R&D 
--------------------------------------------- - 
 
¶5.  (SBU) In his speech, Brown announced a $2 billion 
public-private Energy Technologies Institute that will 
focus on R&D in offshore wind energy, wave energy and 
tidal energy.  A separate $740 million domestic 
Environmental Transformation Fund will focus on 
bringing those technologies to market.  Brown noted 
that the new planning bill will help reduce the 
obstacles to building local power, especially in 
 
LONDON 00004297  002 OF 002 
 
 
renewables.  Brown referred as well to a host of other 
energy efficiency programs including promotion of 
building insulation, a phase-out of standard filament 
light bulbs starting in 2008, and smart metering of 
electricity.  He also announced a competition for 
building a coal-fired power plant on a commercial 
scale with carbon capture and storage (CCS) 
technology.  In a similar vein, he said that the EU 
and the UK will begin a Near Zero Emission Coal 
Initiative in China.  Brown was more circumspect on 
nuclear, saying only that nuclear was a "potential" 
energy source, "subject to the outcome of our 
consultation" with the public. 
 
¶6.  (SBU) Comment: Brown is trying to position the UK 
on the moral high ground on climate by making clear 
domestic commitments, investing in technology, and 
offering financial support to developing economies. 
Delivering on the promises may be tough, however.  On 
November 17, the Guardian newspaper reported that 
DEFRA, the UK's lead agency on climate change, is 
facing $600 million in budget cuts to compensate for a 
string of unexpected expenses resulting from floods, 
foot-and-mouth disease, and other unexpected costs. 
 
TUTTLE