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OO RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHVI #2914/01 3411612
ZNR UUUUU ZZH
O 071612Z DEC 07
FM AMEMBASSY VIENNA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9133
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE IMMEDIATE
RHEBAAA/USDOE WASHDC IMMEDIATE

UNCLAS SECTION 01 OF 02 VIENNA 002914 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: SENV KGHG PREL PGOV ENRG AU
SUBJECT: BALI CLIMATE CHANGE CONFERENCE: AUSTRIAN VIEWS 
 
REF: A) STATE 159374 B) VIENNA 2690 
 
Summary 
------- 
 
¶1.  (SBU) Environment Minister Josef Proell told the Charge 
on December 6 that Austria was supportive of U.S. efforts to 
develop a Bali roadmap.  Proell recognized that any 
post-Kyoto agreement needed to include flexibility for 
national plans, but he stressed that Austria supported the EU 
goal of limiting global warming to less than two degrees 
centigrade above pre-industrial levels.  Proell said the 
developing world must step up environmental assistance and 
technology transfers to the emerging economies, but Klaus 
Radunsky from the Federal Environment Agency cautioned that 
there would certainly be IPR concerns with transfers to 
China.  Helene Schuberth, the Chancellor's Economic Advisor, 
told us that without the world's major emitters, an EU 
"go-it-alone" strategy would actually increase global demand 
for fossil fuels and concurrently carbon dioxide emissions. 
Schuberth acknowledged that many countries, including 
Austria, needed "more deeds and less words" in their policies 
to reduce global warming.  Post's outreach efforts to 
Austrian stakeholders included an op-ed by the Charge in the 
December 7 edition of Die Presse, one of Austria's two 
leading dailies.  End Summary. 
 
 
GoA Supports Bali Roadmap 
------------------------- 
 
¶2.  (SBU) On December 6, Charge and Acting EconPol Counselor 
met with Minister of Agriculture and Environment Josef Proell 
to lay out USG positions (ref A) on the Bali UN Climate 
Change Conference.  Charge stressed that the USG was 
committed to develop a post-2012 framework that is global in 
nature, environmentally effective, and economically 
sustainable.  Charge underscored that it would be important 
to allow for some flexibility in each country's national 
plans.  Binding targets were one tool, but other measures, 
such as market-based incentives, non-voluntary targets, and 
technology were equally important to achieve meaningful 
reductions that do not limit economic growth.  The USG hoped 
to work with its partners at Bali to construct a roadmap 
leading to a consensus on a new framework by 2009. 
 
¶3.  (SBU) Proell, who will lead the Austrian delegation to 
the Bali Ministerial, welcomed the U.S. willingness to strive 
for a global commitment to reduce greenhouse gas emissions. 
To be effective, a post-2012 framework must include the U.S., 
India, and China.  Proell opined that to integrate the large 
emerging economies into the process, the developed world 
would need to ratchet up assistance and technology transfers 
to developing countries.  Proell expressed understanding for 
flexible national plans, but he added that the EU had made a 
firm commitment to binding targets.  Moreover, the EU 
remained committed to the goal of limiting global warming to 
no more than two degrees above the pre-industrial temperature. 
 
 
Is 2009 Too Ambitious? 
---------------------- 
 
¶4.  (SBU) EconPol Counselor and EconUnit Chief met separately 
with Klaus Radunsky from Austria's Federal Environment 
Agency.  Radunsky also argued for increased technology 
transfers to emerging economies, but he cautioned that, 
especially in the case of China, there were significant IPR 
concerns to overcome.  Radunsky expressed concern that the 
goal of reaching an agreement by 2009 might be too ambitious, 
given the number of preparatory meetings, as well as internal 
coordination within governments, that will be necessary.  He 
also suggested that the scope of the negotiations should be 
narrowed.  At the same time, however, Radunsky argued that it 
would be important to keep all elements of a strategy in one 
agreement, e.g., it would be important to deal with 
mitigation and adaptation together.  Radunsky welcomed U.S. 
interest in beginning a sectoral approach, but he also 
cautioned that this is a new area, where there is no 
precedent on how to proceed. 
 
 
Chancellery: Post-Kyoto Agreement Must Be Global 
--------------------------------------------- --- 
 
¶5.  (SBU) EconUnit Chief met on December 6 with Helene 
Schuberth, the Chancellor's Special Advisor on Economic 
Policy.  Schuberth, who will represent the Chancellery at 
Bali, noted that, while the U.S. and EU have many points of 
convergence on global warming, the EU favored a top-down 
approach as opposed to a bottom-up approach in the U.S. 
 
VIENNA 00002914  002 OF 002 
 
 
Austria supported the concept of "equitable, global burden 
sharing," as well as increased promotion of technology as a 
means to fight global warming.  Schuberth admitted that many 
countries, including Austria, needed "more deeds and less 
words" to achieve real reductions.  (Note: Austria's 2005 
emissions were 18% above 1990 levels and 37% above its own 
Kyoto commitment for the 2008-2012 period (ref B).  End 
Note.) 
 
¶6.  (SBU) Schuberth maintained that, because the EU accounts 
for only 16% of global emissions, the EU's efforts would be 
in vain unless all major emitters participate in a post-Kyoto 
agreement.  The EU's binding targets should lead to a 
decrease in demand for fossil fuels in Europe.  However, with 
no corresponding decline in world demand, the additional 
world supply (not available to Europe) will drive down the 
world price for fossil fuels.  A lower world price will lead 
to an increased demand from those who have not committed to 
reduce their carbon dioxide emissions.  In the end, Schuberth 
lamented, you will have an even greater increase in global 
carbon dioxide output. 
Kilner