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RR RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #1834/01 1851032
ZNR UUUUU ZZH
R 031032Z JUL 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC 5605
INFO RUEHBJ/AMEMBASSY BEIJING 4234
RUEHRL/AMEMBASSY BERLIN 1453
RUEHKU/AMEMBASSY KUWAIT 0375
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RUEHUL/AMEMBASSY SEOUL 0224
RUEHFK/AMCONSUL FUKUOKA 8720
RUEHNAG/AMCONSUL NAGOYA 6949
RUEHNH/AMCONSUL NAHA 1096
RUEHOK/AMCONSUL OSAKA KOBE 2449
RUEHKSO/AMCONSUL SAPPORO 9305
RUEHBS/USEU BRUSSELS
RUEHIN/AIT TAIPEI 7080
RUCNDT/USMISSION USUN NEW YORK 0637

UNCLAS SECTION 01 OF 03 TOKYO 001834 
 
SIPDIS 
SENSITIVE 
 
STATE PASS DOE FOR KFREDRIKSON, MWILLIAMSON 
STATE FOR E, G, EEB, OES, AND EAP/J 
NSC FOR PAUL BROWN AND JONATHAN SHRIER 
CEQ FOR JAMES CONNAUGHTON 
 
E.O. 12958: N/A 
TAGS: ENRG SENV ECON OVIP JA
SUBJECT: G8, G8+3 ENERGY MINISTERIALS 
 
REF: TOKYO 1505 
 
SENSITIVE BUT UNCLASSIFIED.  NOT FOR INTERNET DISTRIBUTION. 
 
¶1. (SBU) Summary. Representatives from the G8 countries as 
well as from China, India, and Korea gathered for the G8 and 
the G8 3 Energy Ministerials in Aomori, Japan, June 8. 
During the G8-only ministerial, participants reviewed reports 
on progress made in implementing the St. Petersburg Global 
Energy Security Principles.  Participants in both 
ministerials expressed concern over historically-high oil 
prices and the impact they could have on the global economy. 
Energy Secretary Samuel Bodman and others called for 
increased investment in energy infrastructure and urged 
oil-producing countries to create open and transparent legal 
and regulatory systems to encourage such investment.  The 
G8 3 participants discussed the need to diversify energy 
sources to include more renewables and biofuels, the 
importance of increasing energy efficiency, and the need to 
invest more in and help commercialize new technologies.  They 
also announced the creation of the International Partnership 
for Energy Efficiency Cooperation.  End Summary. 
 
¶2. (SBU) Representatives from the G8 countries as well as 
China, India, and Korea gathered for the G8 and the "G8 3" 
energy ministerials in Aomori, Japan, June 8.  Topics covered 
included a review of St. Petersburg commitments, market 
volatility and the investment climate in the oil industry, 
and energy security and climate change. 
 
Progress Made on Energy Security Initiative 
------------------------------------------- 
¶3. (SBU) In the opening session, the G8 countries met to 
review the progress made to date in implementing the St. 
Petersburg Energy Security Principles adopted at the 2006 St. 
Petersburg Summit.  International Energy Agency (IEA) 
Executive Director Nobuo Tanaka presented preliminary 
comments based on the IEA's review of the national reports 
submitted by G8 countries and indicated where countries could 
be praised for their actions consistent with the Principles, 
as well as where they should devote more effort.  Energy 
Secretary Samuel Bodman and Canadian Minister of Natural 
Resources Gary Lunn spoke in favor of making the reports 
public and updating them for the 2009 G8 Summit in Italy. 
 
¶4. (SBU) Echoing the previous day's Five-Country Energy 
Ministerial (septel), many participants expressed concern 
over recent oil market volatility and cited the need to 
promote transparent and stable markets and to improve the 
investment climate in producing and consuming countries. 
Participants also highlighted efforts to increase the share 
of renewables in their country's energy mix. 
 
Investment in Infrastructure Needed 
----------------------------------- 
¶5. (SBU) Participants in the G8 3 Energy Ministerial agreed 
that the unprecedented high oil prices are a serious concern 
for the global economy.  During the oil market and investment 
climate discussions, Indian Ambassador to Japan, H.K. Singh, 
stated a lack of investment in energy infrastructure, driven 
in part by concerns over traditionally cyclical oil markets, 
is largely to blame for the jump in oil prices.  Toward this 
end, participants agreed to participate fully in the Joint 
Oil Data Initiative (JODI), providing timely, reliable, and 
complete data.  Singh argued, however, that consumer 
countries will depend upon fossil fuels for the foreseeable 
future and called for oil producing countries to create open 
 
TOKYO 00001834  002 OF 003 
 
 
and transparent legal and regulatory environments to 
encourage investment. 
 
¶6. (SBU) Participants cited the need for consumer countries 
to develop long-term plans and investment strategies for both 
traditional and alternative energy sources.  They also called 
for a dialogue between producing countries and consuming 
countries and suggested the IEA or the International Energy 
Forum could facilitate such talks. 
 
Energy Security and Climate Change 
---------------------------------- 
¶7. (SBU) The discussion on energy security and climate change 
was divided into three sub-topics -- lower-carbon energy, 
energy efficiency, and innovative energy technology. 
Canada's Lunn suggested countries must set their own 
carbon-reduction targets and develop appropriate action 
plans.  He urged countries to take a market-based approach 
based on clear and predictable regulatory frameworks. 
Participants acknowledged that many developed and developing 
countries will continue to rely heavily on coal in their 
energy mix and cited the importance of new technologies such 
as carbon capture sequestration (CCS) to help reduce 
greenhouse emissions.  Most also noted the importance of 
nuclear technology as a source of clean and secure energy. 
 
¶8. (SBU) Japan's Minister of Economy, Trade and Industry 
(METI) Akira Amari argued countries must identify key energy 
consuming industries and then utilize best practices and new 
technologies to improve those industries' efficiency.  Amari 
and other participants advocated implementing IEA 
recommendations to the G8 on increasing efficiencies. 
Chinese National Development and Reform Commission Vice 
Chairman Zhang Guobao outlined steps China is taking to 
increase efficiency by closing outdated manufacturing plants, 
offering tax incentives to businesses that reduce their 
energy consumption, and labeling consumer products as energy 
efficient. 
 
¶9. (SBU) Participants in the G8 3 Energy Ministerial formally 
established the International Partnership for Energy 
Efficiency Cooperation (IPEEC), an effort to help both 
developed and emerging economies put in place more effective 
policies and programs to improve energy efficiency.  European 
Union Energy Commissioner Piebalgs lauded the creation of 
IPEEC as a way to gain international cooperation and to 
ensure best practices and existing technologies are deployed 
globally. 
 
¶10. (SBU) Secretary Bodman, French Energy Minister Jean-Louis 
Borloo, and Korean Knowledge Economy Minister Lee You Ho all 
argued for increased inter-governmental and public-private 
cooperation to develop new technologies.  Speakers also 
called for additional research and development in renewable 
energies such as wind, cellulosic biofuels, nuclear energy, 
and clean coal technology.  Secretary Bodman discussed USG 
efforts to help commercialize new energy technologies, most 
notably through a $42.5 billion loan guarantee program, and 
stressed the importance that governments create an investment 
climate that encourages private industry to invest in new 
technologies. 
 
Comment 
------- 
¶11. (SBU) One notable sub-theme of the G8 3 Energy 
Ministerials was the strong intention by nearly all countries 
to expand the use of nuclear energy in their energy mix. 
 
TOKYO 00001834  003 OF 003 
 
 
This included Italy's announcement of a recent decision to 
include nuclear power in its future energy mix.  Germany did 
not express opposition to the discussion of nuclear power. 
End Comment. 
 
¶12. (U) This cable was cleared by State and DOE subsequent to 
the delegation's departure. 
SCHIEFFER