VZCZCXRO9852
RR RUEHRG
DE RUEHBR #1565/01 3401826
ZNR UUUUU ZZH
R 051826Z DEC 08
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC 3045
INFO RUEHSO/AMCONSUL SAO PAULO 3162
RUEHRI/AMCONSUL RIO DE JANEIRO 6954
RUEHRG/AMCONSUL RECIFE 8777
RUEHRL/AMEMBASSY BERLIN 0295

UNCLAS SECTION 01 OF 02 BRASILIA 001565 
 
SENSITIVE 
 
SIPDIS 
 
DEPT FOR OES/ENRC, OES/STC 
 
E.O. 12958: N/A 
TAGS: SENV KSCA KGHG BR GM
SUBJECT: GERMANY SEEKS TO EXPAND ITS SUBSTANIAL ASSISTANCE TO BRAZIL 
ON CLIMATE CHANGE AND COMBATING DEFORESTATION 
 
REF: A) BRASILIA 1377, B) BRASILIA 1159 
 
¶1.  (U) THIS CABLE IS SENSITIVE BUT UNCLASSIFIED AND NOT FOR 
INTERNET DISTRIBUTION. 
 
¶2.  (SBU) SUMMARY.  Germany has long been the leading contributor of 
financial and technical assistance to Brazil on deforestation and 
climate change.  It is looking to expand its substantial program of 
technical assistance at the national and state levels with 
deforestation, and it also plans to increase its financial 
assistance with over 100 million Euros on climate change and 
renewable energy projects.  END SUMMARY. 
 
LONG THE LEADING CONTRIBUTOR 
 
¶3.  (SBU) Germany has long played the leading role in the 
international effort on conserving the Amazon forest.  It was a 
major contributor to the G-7's Pilot Program to Conserve the 
Brazilian Rainforest (PPG7), which was created by the Group of 7 in 
1992 and is now winding up.  According to Dr. Michael Grewe, 
Counselor for Technical and Financial Assistance of the German 
Embassy in Brasilia, the German assistance agency KFW as of 
September 2008 had contributed approximately 360 million Euros on 
sustainable forestry activities, protection of indigenous 
reservations, and land use planning and regulation. (REFTEL A) 
Further, Jen Ochtrop, the German Development Bank's (KfW) Brazil 
Director of Programs for the Management of Natural Resources in an 
October 14 briefing for Embassy Science Officers outlined ambitious 
plans for future financial assistance.  At that same briefing, the 
Dr. Helmut Eger, the Director of the German Technical Assistance 
Agency's (GTZ) Program for the Protection and Sustainable Management 
of Tropical Forests, described expanding an already impressive 
technical assistance program. 
 
¶4.  (SBU) Germany would still be the leading contributor to Brazil 
in this area if Norway had not announced in September a one billion 
dollar pledge to the Amazonas Fund (REFTEL B).  Germany is still 
studying that fund and has not decided whether it will also 
contribute or not.  During the October meeting, Grewe and Ochtrop 
expressed concerns over the lack of controls and transparency 
 
¶5.  (SBU) Germany has established partnerships with the Ministry of 
the Environment, FUNAI (the Brazilian Indian Aid Agency), the 
Ministry of Agricultural, and the State of Amazonas.  GTZ and KfW 
efforts focus on reducing deforestation and promoting sustainable 
development in the states of Amazonas and Acre.  While Germany is 
looking to expand its impressive environmental efforts, it is no 
longer working with Brazil on projects to combat poverty.  Grewe 
explained that this is because Germany has determined that Brazil, 
now a middle income country, has sufficient economic resources to 
carry out such activities on its own. 
 
AMBITIOUS PLANS FOR THE FUTURE 
 
¶6.  (SBU) According to Ochtrop (KfW) and Egger (GTZ), Germany's 
priority areas for Brazilian cooperation are:  forest conservation 
and sustainable use; renewable energy and energy efficiency; 
sustainable development of natural resources with a focus on 
protected areas; demarcation and protection of indigenous lands; and 
land use planning and regional development.  Germany is also working 
on capacity building with IBAMA (the Brazilian Institute of 
Environment and Renewable Natural Resources), the Chico Mendes 
Institute (which manages conservation areas), and the Brazilian 
Forest Service in the areas of knowledge management and capacity 
development.  The majority of their capacity development work takes 
place in the State of Amazonas. 
 
¶7.  (SBU) Germany is heavily involved in projects with the Amazonas 
State Environmental Secretariat as well as other state government 
institutions in the states of Amazonas and Acre.  Much of this 
activity has occurred since July 2008. Germany participates in land 
management projects such as the formalizing of land titles and 
ownership records.  The Germans are looking for ways to support the 
introduction of programs for Reducing Emissions for Deforestation 
and Forest Degradation (REDD), especially in Amazonas State. 
 
CLIMATE CHANGE 
 
¶8.  (SBU) KfW has started a new climate protection initiative that 
originated in the German environmental ministry.  The German 
government has allocated approximately 400 million Euros for 
international climate change projects, which will come from the 
auction of emission rights under a carbon trading scheme.  Of this 
total, 120 million Euros have been set aside for the initial round 
of projects, and 20 million Euros are being designated specifically 
 
BRASILIA 00001565  002 OF 002 
 
 
for use in Brazil. 
 
¶9.  (SBU) Over the last two years the Germany has spent 
approximately 92 million Euros for climate related project.  In 
regard to clean energy projects, Grewe told Science Officers that 
Germany plans to spend about 100 million Euros on wind energy in 
Brazil and 89 million Euros on a hydroelectric project.  These will 
be implemented through the electric utilities Electrosul and 
Electrobras. 
 
COMMENT 
 
¶10.  (SBU) Germany shares many of the USG's concerns and interests 
regarding deforestation and climate change in Brazil.  Germany has 
brought substantial financial and technical resources to help 
address these problems, and it plans to expand these efforts. 
Coordination of USG efforts with Germany and other contributors 
could offer opportunities to leverage our limited technical and 
financial resources in these critical areas.  END COMMENT. 
 
KUBISKE