VZCZCXYZ0000
PP RUEHWEB

DE RUEHSG #0074/01 0221926
ZNR UUUUU ZZH
P 221926Z JAN 09
FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC PRIORITY 4319
INFO RUCNMER/MERCOSUR COLLECTIVE
RUEHLP/AMEMBASSY LA PAZ JAN LIMA 5921
RUEHQT/AMEMBASSY QUITO 2102

UNCLAS SANTIAGO 000074 
 
SENSITIVE 
SIPDIS 
 
STATE FOR WHA/BSC AND WHA/EPSC 
 
E.O. 12958: N/A 
TAGS: ECON SENV ENRG PGOV TRGY CI
 
SUBJECT:  AMBASSADOR AND ENVIRONMENT MINISTER DISCUSS U.S.-CHILE 
CLEAN ENERGY COOPERATION 
 
REF:  (A) 08 SANTIAGO 1096; (B) 08 SANTIAGO 1087; (C) 08 SANTIAGO 
670 
 
¶1. (SBU) Summary:  In a January 21 meeting, Environment Minister Ana 
Lya Uriarte and Ambassador Simons discussed the timing of the 
formation of the Ministry of Environment, priorities for Chile's 
National Action Plan on Climate Change and the Minister's specific 
interest in collaboration on technical capacity building.  Minister 
Uriarte noted that the environment, particularly climate change, is 
a key issue for Chile's current administration and noted the need to 
conserve water resources and increase energy efficiency in specific 
sectors, particularly agriculture and mining.  She is optimistic 
that Chile will pass the law needed to create a Ministry of 
Environment by June and the ministry will be formed by the end of 
¶2009.  End Summary. 
 
¶2. (U) Ambassador Simons met July 21 with Minister of Environment 
Ana Lye Uriarte and her advisor, Raul Campusano, Head of the 
Department of International Affairs in the Executive Directorate of 
the National Environmental Commission (CONAMA) and a note taker. 
ESTH officer accompanied the Ambassador. 
 
Chile Focused on Environment-Energy Nexus 
----------------------------------------- 
 
¶3. (SBU) The Ambassador opened the meeting by mentioning the new 
U.S. administration's concern with climate change and its interest 
in collaborating with Latin American countries on alternative and 
renewable energy.  Minister Uriarte responded positively, citing 
Chile's new National Action Plan on Climate Change (ref a) and 
noting interest in water issues, including creating a water 
investigation center in Atacama in the north and the construction of 
a desalinization plant in Arica.  She emphasized that energy is a 
key issue for the environment and gave the examples of a renewable 
energy center, cooperation with Germany on renewable energy projects 
(ref b), and Chile-California cooperation. 
 
¶4. (SBU) Uriarte emphasized Chile's focus on energy efficiency.  She 
said they would like to target specific sectors to improve, e.g., 
mining and agriculture.  She noted that water use is not generally 
considered in evaluating the environmental impact of agricultural 
projects.  In discussing hydroelectric power generation, Uriarte 
highlighted the need to implement best practices, but recognized 
that Chile lacks sufficient technical capacity to do so.  She 
emphasized interest in energy generation by smaller producers (less 
than 3MW) and direct discussions with cities and municipalities on 
this issue.  COMMENT:  It is possible that the concentration on 
smaller generators is because the Ministry of Energy will not 
relinquish authority for regulating larger generators.  END 
COMMENT. 
 
¶5. (SBU) According to meeting participants, Chile's potential for 
using solar energy in the north is of continued interest.  The 
Ambassador noted President Obama's choice of Steven Chu for Energy 
Secretary was a good connection for Chile given Chu's experience at 
Lawrence Berkeley Laboratory, which has developed close relations 
with Chile under the new Chile-California partnership. 
 
Innovative Plan to Improve Air Quality in Santiago 
--------------------------------------------- ----- 
 
¶6. (SBU) The Ambassador mentioned the Embassy's efforts to support 
work on improving indoor and outdoor air quality in Santiago.  The 
Minister suggested that the economic crisis and declining gas prices 
have negatively impacted investment in green technologies.  They 
discussed the large investment necessary to reduce sulfur emissions 
from diesel.  Uriarte acknowledged the need to continue to retrofit 
diesel transit buses with filters (ref c), but complained that 
additional government funding was only a remote possibility.  She 
outlined an alternative mechanism that would request that projects 
producing particulate pollution to offset their emissions with the 
purchase of filters for the buses.  This would be a voluntary 
program, and it is still in the formative stages.  Uriarte 
recognized both the benefits of public-private partnerships and the 
need to outline economic and environmental benefits to encourage 
participation.  She acknowledged this type of program is only a 
partial solution to Santiago's air pollution and expressed strong 
interest in learning about other voluntary mechanisms to address the 
situation. 
 
¶7. (SBU) Uriarte identified indoor air pollution from paraffin 
stoves as an even greater health risk than outdoor air pollution. 
She said that Chile's national petroleum company, ENAP, needs to 
invest in cleaner fuels for indoor use but did not provide a 
proposed standard or details of any plan to do so. 
 
 
New Ministry of Environment by December 2009 
-------------------------------------------- 
 
¶8. (SBU) When asked about the status of new Ministry of Environment, 
Uriarte joked that she is working on nothing else.  She predicted it 
would likely be passed into law this coming June and all the 
necessary institutions for the ministry would be in place by 
December (ref c). 
 
COMMENT:  Perfect Time to Include Chile in Policy Evolution 
--------------------------------------------- ------ 
 
¶9. (SBU) Comment:  It is clear from this exchange that Chile views 
the advent of a new U.S. administration as an opportunity to 
increase cooperation on environmental and renewable energy issues. 
Chile has a particular interest in capacity building in order to 
implement innovative policies and technologies, and has expressed a 
keen desire to improve water usage, promote energy efficiency, and 
voluntary measures to improve air quality, and increase the use of 
solar energy.  Post strongly recommends that Chile be included as a 
willing partner in the discussions of opportunities to engage Latin 
America on the environment, including climate change, and energy 
issues.  End comment. 
 
SIMONS