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RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUCNDT/USMISSION USUN NEW YORK 9481
RUEATRS/TREASURY DEPT WASHDC
RHEHAAA/NSC WASHDC

UNCLAS SECTION 01 OF 03 TOKYO 001110 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT PASS USTR FOR CUTLER AND BEEMAN 
NSC FOR PBROWN, KTONG 
STATE FOR E, G, EEB, OES, AND EAP/J 
TREASURY FOR IA/CARNES 
USDOC FOR 4410/ITA/MAC/OJ 
 
E.O. 12958: N/A 
TAGS: ECON ETRD SENV PREL OECD JA
SUBJECT: G-8 BUSINESS SUMMIT CALLS FOR STRONG CLIMATE 
CHANGE POLICIES 
 
 
Sensitive But Unclassified.  Not for Internet Distribution. 
 
¶1.  (SBU) Summary. The 2008 G-8 Business Summit featured a 
lively debate over climate change and a challenge to business 
to take a lead in finding technological solutions to the 
situation.  Although the U.S. delegation came under strong 
European pressure for firm numerical emission targets in the 
Summit's joint statement, the final text includes only a 
reference to "meaningful emission reductions while assuring 
economic growth."  Delegations agreed on the importance of 
technological innovation in dealing with climate change and 
called on governments to increase R&D spending and promote 
adequate education for all citizens.  Participants also 
discussed IPR, steps underway in the Transatlantic Economic 
Council to remove/prevent regulatory barriers, and commended 
progress on Asian regional economic integration, stressing 
this integration must be "inclusive, not exclusive."  The 
heads of the G-8 business organizations presented the 
recommendations to Japan's Prime Minister for consideration 
at July's G-8 Toyako summit.  The statement's full text is 
available at 
http://www.keidanren.or.jp/english/policy/200 8/020.pdf.  End 
Summary 
 
¶2.  (SBU) The Second G-8 Business Summit, hosted by the Japan 
Business Federation (Keidanren) took place April 17 in Tokyo. 
 Japanese Prime Minster Fukuda opened the day-long meeting 
with a call to business to take a "dynamic perspective" to 
current economic and global challenges and join with 
governments in promoting a "low-carbon revolution" in the 
global economy.  Fukuda's speech foreshadowed much of the 
rest of the day's deliberations, which focused on the 
structure for a post-Kyoto framework to address climate 
change and business' role in finding long-term solutions. 
There were then three panel discussions: Enhancing 
Competitiveness through Innovation; Tackling Climate Change: 
a post-2012 International Framework; and Partnership with 
Asia as a Center of Growth. 
 
Lively Debate on Emissions Targets 
---------------------------------- 
 
¶3.  (SBU) Central to the day's discussion was debate over an 
international post-2012 climate change framework. 
Participants agreed this year's G-8 will be critical for 
reaching consensus on a successor regime to the Kyoto 
Protocol and that any post-Kyoto framework must include 
emission reduction commitments from all major emitters, 
including developing countries.  Panelists welcomed Japan's 
proposal for a sectoral approach to emission targets as a 
creative way forward.  Panel moderator Bjorn Stigler of the 
World Business Council for Sustainable Development urged 
participants to find "a realistic consensus" on what 
recommendations to make to G-8 leaders or else "the private 
sector will have to accept whatever our political leaders 
decide." 
 
¶4.  (SBU) While agreeing on the problem's urgency and the 
contribution of technology to an effective response, there 
was disagreement on specific measures to include in the 
recommendations to national leaders.  French Business 
Federation President Laurence Parisot described climate 
change as a "matter of civilization" and said French business 
supports the EU goal of cutting carbon emissions 20% by 2020. 
 
TOKYO 00001110  002 OF 003 
 
 
 She regretted the Summit's draft joint statement was "not as 
firm as we expected" on specific emission reduction targets. 
Such targets, Parisot asserted, are compatible with economic 
growth, if growth is "green oriented." 
 
¶5.  (SBU) The U.S. Chamber of Commerce Chairman, Paul 
Speranza, stressed four key concepts in any climate change 
response: recognition of the urgency of the problem, the role 
of technology in finding a solution, the importance of 
international cooperation, and a need for a G-8 "Call to 
Action" similar to President Kennedy's 1961 space program 
challenge.  Italian Presidential Advisor Vincenzo Partone, 
representing the Confederation of Italian Industry, hoped G-8 
leaders will issue a "clear and sincere" climate change 
statement at Toyako that recognizes while steps to address 
climate change will likely be unpopular and even costly, they 
are necessary.   Canadian Chamber of Commerce Chairman John 
Peller said his country has been slow to recognize the 
problem's seriousness, but has adopted a range of measures, 
including cap-and-trade and carbon taxes.  Peller also said 
the issue is likely to figure prominently in this year's 
national election. 
 
¶6.  (SBU) During the open discussion following the climate 
panel presentations, the U.S. delegation came under strong 
pressure from French, British and German delegates, as well 
as the President of BusinessEurope, to agree to include a 
recommendation for specific numerical emissions targets in 
the final joint statement.  Juergen Thumann of the Federation 
of German Industries (BDI), host of the last year's inaugural 
G-8 Business, noted EU members have agreed to specific 
targets, which were needed to provide incentives to 
politicians to adopt strong policies and for business to 
develop the technology needed to solve the climate problem. 
Keidanren Vice Chairman Akio Mimura was cautious, noting 
countries should agree on a framework before deciding on 
specific targets and insisted that whatever targets were 
eventually decided, the initial benchmark must be 
"equitable."  Patrone urged realism in setting targets, 
noting EU members had made a firm commitment to a strategy 
for achieving its targets and an acceptance of the costs. 
Such a pre-requisite did not yet exist among a broader set of 
countries. 
 
Innovation Key to Growth, Tackling Climate Change 
--------------------------------------------- ---- 
 
¶7.  (SBU) Climate change was also a subtext for much of the 
discussion on innovation and technological change.  Keidanren 
Vice Chairman Sadayuki Sakakibara challenged his G-8 
colleagues to build a basis for innovation by working with 
their individual governments to promote increased R&D 
spending and adequate education for all citizens.  He 
reiterated business's role is to ensure links between the 
market and the technology that emerges from scientific 
research; only in that way can it be sustainable.  The BDI 
Chairman echoed the call for greater attention to education 
as an incubator of innovation.  He also described the German 
government's efforts to cooperate with business to draft and 
implement a national high tech strategy designed to boost 
innovation in key industrial sectors. 
 
¶8.  (SBU) Confederation of British Industry President Martin 
Broughton highlighted a similar effort by HMG to advance 
 
TOKYO 00001110  003 OF 003 
 
 
research and innovation through, among other steps, 
establishing a Ministry of Innovation, Universities, and 
Science.  He also called for harmonizing intellectual 
property rights (IPR) rules and urged the U.S. to follow most 
other countries in adopting a "first-to-file" patent 
application system.  Harold McGraw, President of the U.S. 
Business Roundtable noted it was important to maintain high 
standards for IPR protection when negotiating free trade 
agreements to provide incentives for better IPR protection in 
developing countries.  All panelists noted the critical 
importance of effectively enforcing IPR rules if business is 
to develop and to market the technology needed to address 
climate change. 
 
Asia as an Economic Growth Center 
--------------------------------- 
 
¶9.  (SBU) All participants commended Asia's accelerating 
economic integration over the past decade and agreed it 
provided both opportunities and challenges for G-8 members. 
According to Keidanren Vice Chairman Hiromasa Yonekura, Japan 
facing slow growth and a declining population had made an 
explicit decision to link its economy more closely to the 
fast growing economies in the region.  Prime Minister Fukuda 
has a strong personal interest in regional integration since 
his father, former PM Takeo Fukuda, had made closer 
partnership with developing Asian economies a pillar of his 
foreign policy in the late 1970's.  BusinessEurope Chair 
Ernest-Antoine Seilliere observed long-term accumulation of 
knowledge in the Asia-Pacific region carries enormous 
potential for future growth.  U.S. Council for International 
Business board member Charles Heeter observed APEC is the 
best vehicle for greater regional integration as it could 
best ensure that integration be inclusive of economies 
outside East Asia proper. 
 
Joint Statement Delivered to Prime Minister Fukuda 
--------------------------------------------- ----- 
 
¶10.  (SBU) After the conference, panel speakers led by Summit 
chairman Fujio Mitarai, head of Keidanren, presented the 
Joint Statement to PM Fukuda and urged him to take up its 
recommendations with fellow leaders at July's Toyako Summit. 
In the end, the joint statement did not include specific 
numerical emissions targets, but merely called for 
"meaningful emission reductions while assuring economic 
growth."  The statement urged emissions reductions be based 
on "sound science, national circumstances and sectoral and 
transparent, measurable and verifiable methodologies."  The 
G-8 leaders, it said, should adopt "policies to stimulate 
dissemination of low-carbon technology, bilateral and 
financial mechanisms that support developing countries to 
limit greenhouse gas emissions, and protection of 
intellectual property rights in order to accelerate 
development of new technology."  On other issues, the 
statement called on G-8 Leaders to cooperate more closely to 
stabilize the world economy and monitor foreign exchange 
markets to prevent excessive volatility; to begin formal 
negotiations on an Anti-counterfeiting Trade Agreement; to 
remove trade barriers to environmental goods and services; 
and to accelerate efforts to conclude the Doha Development 
Round by the end of 2008. 
SCHIEFFER