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Viewing cable 08STOCKHOLM416, SWEDEN: TREASURY DEPUTY'S CLEAN TECHNOLOGY FUND DISCUSSIONS

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Reference ID Created Released Classification Origin
08STOCKHOLM416 2008-06-09 08:37 2011-08-30 01:44 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Stockholm
VZCZCXRO4276
OO RUEHAG RUEHAST RUEHBC RUEHDA RUEHDE RUEHDF RUEHFL RUEHIHL RUEHIK
RUEHKUK RUEHKW RUEHLA RUEHLN RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK
RUEHYG
DE RUEHSM #0416/01 1610837
ZNR UUUUU ZZH
O 090837Z JUN 08
FM AMEMBASSY STOCKHOLM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3497
RUEATRS/DEPT OF TREASURY WASH DC IMMEDIATE
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RUCNRAQ/IRAQ COLLECTIVE PRIORITY
RUEHGB/AMEMBASSY BAGHDAD PRIORITY 0093
RUEHPF/AMEMBASSY PHNOM PENH PRIORITY 0036
RUEHBP/AMEMBASSY BAMAKO PRIORITY 0039
UNCLAS SECTION 01 OF 02 STOCKHOLM 000416 
 
SENSITIVE 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV ECON ENGR ENRG SENV EAID TBIO TRGY SW
SUBJECT: SWEDEN: TREASURY DEPUTY'S CLEAN TECHNOLOGY FUND DISCUSSIONS 
WITH A CAUTIOUS BUT INTERESTED SWEDISH GOVERNMENT 
 
1.  (SBU)  On May 28, Deputy Treasury Secretary Robert Kimmitt 
raised the Clean Technology Fund (CTF) with Gunilla Carlsson, 
Swedish Minister for International Development Cooperation; also in 
attendance were Per Jansson, State Secretary in the Ministry of 
Finance, and Anders Turesson, Sweden's Chief climate change 
negotiator, Ministry of Environment.  Kimmitt described the CTF in 
detail, commenting that the CTF's focus on working closely with the 
developing world and its interaction with the private sector, the 
venture capital community, and green technology were a good match 
for both the Swedish government and Swedish business.  Carlsson 
stressed the need for the U.S. and Sweden to continue to work 
closely together before COP-15 in Copenhagen (December 2009) and the 
importance of including developing countries in the CTF 
decision-making process.  END SUMMARY. 
 
2.  (SBU) Carlsson began the meeting by describing in detail her 
recently-created international Commission on Climate Change and 
Development (CCCD).  The CCCD, funded entirely by the Swedish 
government, is designed to lead to greater understanding of the 
impact of climate change on local communities, particularly in the 
developing world.  "We created and financed this Commission," said 
Carlsson, "in order to get the poor people's perspective on climate 
change."  Carlsson said the CCCD is a hands-on entity which met 
recently in Cambodia and will soon reconvene in Mali.  Its mission 
is to build developing countries' capacity to deal with climate 
change, since "the developing world can't rely solely on Overseas 
Development Assistance to solve problems." 
 
3.  (SBU) After thanking the Swedish government for hosting the 
International Compact with Iraq conference, Kimmitt praised Sweden's 
"strategic vision" on climate change and stressed the important role 
Sweden has played, plays, and will play in the future when it 
assumes the EU Presidency in July 2009.  He asked Carlsson how the 
CCCD works within the framework of the EU Presidency and the UN. 
She responded that the World Bank is interested in the Commission's 
findings, adding that "it would be optimum if the Commission could 
help the UN by facilitating discussions and negotiations on climate 
change in the lead-up to an international, post-2012 agreement." 
 
4.  (SBU) Kimmitt told Carlsson that the CTF is not in conflict or 
competition with the UN's Global Environment Facility (GEF), adding 
that the two can "complement, learn and draw from each other."  Like 
the GEF, the CTF takes into account the lesser-developed countries' 
perspective and ensures that all countries play a role.  He 
explained how both donor and recipient countries would be actively 
involved in the CTF's governance, with the trust fund committee 
equally split between them.  In response to a question from Carlsson 
re whether the CTF would continue beyond the Bush Administration, 
Kimmitt commented that the CTF enjoys strong support in the current 
U.S. Administration, in Congress, and into the next Administration, 
whether Republican or Democratic. 
 
5.  (SBU) Kimmitt and Ambassador Wood then discussed the timeline 
for launching the CTF at the G-8 in Hokkaido in early July.  He 
explained that the USG has pledged $2 billion to the CTF over a 
three-year period, with the United Kingdom and Japan both pledging 
$1.5 billion to reach the current total of $4.5 billion.  The CTF's 
start goal is $10 billion, with a minimum suggested contribution to 
donor countries of $50-100 million over a three-year period. 
However, Kimmitt and Wood said that in order for Sweden - or other 
countries - to play an active role in the CTF, the pledge would need 
to be in the $300-500 million range over a three-year period. 
 
6.  (SBU) Carlsson seemed surprised by the $300-500 million 
suggested figure, responding that "Sweden will look into the CTF in 
due time.  We want to deepen climate change cooperation with other 
countries. For us, where we put our development money and what 
impact it has is very important."  Finance Ministry State Secretary 
Jansson was more positive, saying the developed world needs to build 
confidence before COP 15 in Copenhagen in December 2009.  He added 
that the CTF would "send a strong signal pre-Copenhagen" that the 
major emitters are committed to real change. 
 
7.  (SBU) COMMENT: Post will continue to work the CTF at all levels 
with our GOS counterparts.  Secretary Rice mentioned it during her 
May 29 meetings with Prime Minister Reinfeldt and Foreign Minister 
Bildt; we anticipate that U.S. officials will again raise it with 
Bildt during his Washington meetings this week.  Environment 
Minister Andreas Carlgren will be in Washington June 23-24 for 
meetings, during which we expect the CTF to be raised frequently by 
USG interlocutors.  Our view is that the GOS is warming to the idea, 
but finds the price tag for a seat at the table to be very steep. 
 
 
 
STOCKHOLM 00000416  002 OF 002 
 
 
8.  (U) This cable has been cleared by Deputy Treasury Secretary 
Kimmitt. 
 
WOOD