VZCZCXRO3947
PP RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV
DE RUEHFR #1315 1921646
ZNR UUUUU ZZH
P 101646Z JUL 08
FM AMEMBASSY PARIS
TO RUEHC/SECSTATE WASHDC PRIORITY 3707
RUEHRC/USDA FAS WASHDC PRIORITY
RHEHAAA/WHITE HOUSE WASHDC PRIORITY
INFO RUCNMEM/EU MEMBER STATES

UNCLAS PARIS 001315 
 
SENSITIVE 
SIPDIS 
 
WHITE HOUSE FOR NEC, CEQ and USTR 
 
E.O.12958: N/A 
TAGS: ENRG SENV EAGR EU FR
SUBJ: EMISSIONS CONSENSUS WITH A GMO KICKER CLAIMED FOR EU 
ENERGY/ENVIRONMENT MEETING 
 
¶1.  (SBU) French Minister of State Jean Louis Borloo hosted 
back-to-back informal meetings of EU Energy and Environment 
Ministers July 3-5 to begin implementation of Council decisions on 
carbon emissions reduction.  Pascal Shuster (protect), who runs this 
portfolio in the Ministry of Ecology, Energy, Sustainable 
Development and Planning (MEEDDAT), told us that the results 
exceeded the GOF's expectations.   The meetings considered three 
draft directives prepared by the Commission in January (Improving 
the EU Emissions Trading System, Promoting Renewables, Carbon 
Capture and Storage) and a draft decision allocating non-ETS covered 
emissions quotas.  They reportedly agreed in principle on the 
allocation of burden sharing (at both 20 percent and 30 percent 
overall 2020 reduction goals) in the sectors covered by the 
Emissions Trading System and in sectors outside of the ETS, as well 
as burden sharing to reach the renewable target and burden sharing 
in CCS goals.  Member states also agreed on the rate of renewable 
targeted in transportation and agreed that aviation emissions would 
be covered by the ETS with a rising proportion of carbon credits 
from aviation to be auctioned rather than allocated.  Regarding the 
ETS, Shuster reported agreement on auctioning all carbon permits for 
the power generation sector, with other sectors to be subjected to a 
combination of auctioned and allocated credits with the proportion 
of auctioned credits rising over time  Member states also reportedly 
agreed to a division among Member States of 90 percent auction 
proceeds in proportion to 2005 ETS emissions levels while the 
remaining 10 percent would constitute a solidarity fund for 
redistribution from richer to poorer member states. 
 
¶2.  (SBU) In addition to a general agreement on the directives and 
decision, Shuster said that the Ministers also reached some level of 
agreement on the principle of a "Carbon Inclusion Mechanism." 
Under the CIM, imports of products in specified sectors from 
producer countries that are not party to a post-Kyoto arrangement 
(presumably to be reached at the 2009 Copenhagen Conference) would 
require a European carbon permit.  At the same time, European 
producers in the specified sectors would receive a quota of free or 
discounted carbon credits (presumably to "level the playing field by 
either facilitating European exports or allowing them to capture the 
carbon value of competing imports.) 
 
¶3.  (U) According to press reports, an additional outcome of the 
environment ministers meeting was agreement in principle on French 
proposals to address the EU mechanism for evaluation of genetically 
modified organisms.  State Secretary for Environment Nathalie 
Kosciusko-Morizet proposed that the current procedures to evaluate 
imports and cultivation of GMO's should be modified to incorporate 
not just scientific analysis but also an evaluation by civil 
society.  In addition, she proposed that the subsidiarity principle 
be applied to allow regions to opt out of permitting cultivation of 
approved GM varieties. 
 
¶4.  (SBU) Comment:  The above represents one insider account of the 
outcomes of last week's meetings and we will continue to follow up. 
It seems clear, however that the French got further than they 
expected on this key priority of the Presidency.  The 
super-Ministry, created by Sarkozy after his election last year 
spent much of its first six months on the "Grenelle de 
l'Environment", France's domestic national debate on sustainable 
development.  The Ministry spent the last six months on internal 
reform fusing its diverse divisions and responsibilities into a 
coherent organization.  Ministry staff is now consolidated in new 
highrise offices and a large and powerful Minister's cabinet is 
under one historic roof downtown.  The temperamental, unpredictable 
but charismatic Jean-Louis Borloo remains popular and is reportedly 
the only cabinet member whose European Presidency agenda and 
portfolio connects for average French citoyen. 
 
Stapleton