VZCZCXRO2096
RR RUEHHM RUEHLN RUEHMA RUEHPB RUEHPOD
DE RUEHRL #0493/01 1091716
ZNR UUUUU ZZH
R 181716Z APR 08
FM AMEMBASSY BERLIN
TO RUEHC/SECSTATE WASHDC 0958
INFO RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE
RHEHNSC/NSC WASHDC

UNCLAS SECTION 01 OF 02 BERLIN 000493 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
STATE FOR OES: THOMPSON, EEB: MONOSSON, AND EUR 
PLEASE PASS CEQ - CONNAUGHTON 
 
E.O. 12958: N/A 
TAGS: SENV KGHG ENRG PGOV EUN GM
SUBJECT: GERMAN CONFERENCE PROMOTES INTERNATIONAL RENEWABLE 
ENERGY AGENCY PROPOSAL 
 
REF: A. BERLIN 218 
     ¶B. BERLIN 407 
 
¶1. (SBU)  Summary: German officials say they plan to work 
with "like-minded" countries to establish the International 
Renewable Energy Agency (IRENA) this fall, regardless of 
whether major developed nations support the endeavor. 
According to the German proposal, IRENA would offer policy 
advice, facilitate technology and knowledge transfer, provide 
capacity building and stimulate research in the field of 
renewable energy.  At a two-day international conference held 
in Berlin April 10-11, developing nations voiced overwhelming 
support for IRENA's establishment.  Germany plans a 
consultative process this summer and aims to launch IRENA in 
November 2008.  End Summary. 
 
¶2. (SBU)  The German MFA held a "Preparatory Conference for 
the Foundation of the International Renewable Energy Agency 
(IRENA)" April 10-11 in Berlin.  In a keynote address, MFA 
State Secretary Heinrich Tiemann argued that the world needs 
a new international energy network to meet increasing demand 
and to limit global temperature increases.  Environment 
Ministry (BMU) State Secretary Matthias Machnig said it is 
important to have IRENA up and running well before the UNFCCC 
2009 negotiations in Copenhagen in order to send a political 
signal to negotiators that the world is ready to confront 
climate change.  Czech Environment Minister (and Deputy Prime 
Minister) Martin Bursik, Chairman of the European Association 
for Renewable Energy Hermann Scheer, and World Future Council 
Chair Bianca Jagger also gave keynote speeches supporting 
IRENA.  Fifty-three nations officially participated in this 
event.  The USG, Australia, Canada, Japan, and the UK sent 
embassy represenatives as unofficial observers. 
 
¶3. (SBU)  The objective of IRENA would be to foster and 
promote the large-scale adoption of renewable energy 
worldwide.  This would be accomplished by: improving 
regulatory frameworks for renewable energy through policy 
advice, improving the transfer of renewable energy technology 
and disseminating skills and know-how for renewable energy. 
IRENA would also provide services when requested by member 
states. 
 
¶4. (SBU)  Countries expressing support for IRENA included: 
Argentina, Bulgaria, Chile, Colombia, Costa Rica, Egypt, 
Estonia, Ethiopia, Ghana, Greece, India, Indonesia, Jordan, 
Kenya, Malaysia, Mali, Mexico, Morocco, Nigeria, Pakistan, 
Poland, South Africa and Spain.  Many delegates noted that 
International Energy Agency membership is restricted to OECD 
members and therefore does not address the needs of 
developing nations.  Countries arguing in favor of IRENA 
stressed the need for financing, technology and "know-how." 
Many argued that their experts have difficulty finding 
information about renewable energy.  They would like a 
"one-stop shop" that will serve as a clearinghouse for 
information and advice about renewable energy.  Argentina, 
Greece, and Pakistan highlighted the energy needs of rural 
communities that are not serviced by existing electricity 
grids.  Mexico offered to host the official founding 
conference for IRENA this fall.  India said that IRENA should 
be based in a developing country and offered to host the 
agency, should other members agree. 
 
¶5. (SBU)  Unlike past climate initiatives, Germany presented 
its proposal for the establishment of IRENA directly to 
foreign missions in Berlin without first securing EU 
consensus.  This offended some EU members, a number of whom 
had specific instructions not to take an official position on 
IRENA at the conference.  Representatives from Sweden and 
Switzerland both privately expressed concerns that IRENA will 
duplicate renewable energy efforts underway in other fora. 
The Austrian delegate publicly said that Vienna is home to 
many international organizations that deal with energy issues 
and Austria is concerned that IRENA will duplicate the work 
of those institutions.  Norway said it would study the issue 
at greater length, noting that any new agency must add real 
value.  Italy noted that it could not undertake any political 
or financial commitments under its caretaker government. 
Despite these concerns, German officials believe delegates 
from these EU member states will go along with a developing 
EU consensus to support IRENA, primarily because many EU 
member states believe IRENA will help them meet their EU 
"burden-sharing" greenhouse gas emissions reduction goals or 
extend power to rural areas. 
 
¶6. (SBU)  IRENA's initial annual budget would be 25 million 
USD per year. Germany projects the budget will gradually 
 
BERLIN 00000493  002 OF 002 
 
 
increase to 125 million USD.  Under the German proposal, 
capacity to pay would be assessed according to the equity 
principle used by the United Nations; specifically, a 
per-capita income deflator will be applied to the three year 
gross national income average.  In a sample fee schedule of 
nations who officially participated in the conference, the EU 
and China would bear most of the cost.  China argued that 
developed nations should contribute the financing since 
developing nations provided a market and renewable energy 
sources.  China also argued that there should be permanent 
members of the Board of Governors (an idea opposed by all 
other countries) and that such members should contribute more 
than other countries.  China later asked whether it could 
receive more from IRENA in technology transfers if it paid 
higher dues.  German officials said IRENA is not intended to 
be a funding instrument but do expect that it will partner 
with multilateral agencies -- including international 
development banks -- to facilitate financing for renewable 
energies. 
TIMKEN JR