VZCZCXRO5245
RR RUEHAST RUEHHM RUEHLN RUEHMA RUEHPB RUEHPOD RUEHTM RUEHTRO
DE RUEHBR #0157/01 0371730
ZNR UUUUU ZZH
R 061730Z FEB 09 ZDK
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC 3499
INFO RUEHSO/AMCONSUL SAO PAULO 3501
RUEHRI/AMCONSUL RIO DE JANEIRO 7239
RUEHRG/AMCONSUL RECIFE 9053
RHEBAAA/DEPT OF ENERGY WASHDC
RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE

UNCLAS SECTION 01 OF 02 BRASILIA 000157 
 
SENSITIVE 
 
SIPDIS 
 
REF: A) 2008 BRASILIA 1462, B) 2008 BRASILIA 1159 
 
E.O. 12958: N/A 
TAGS: SENV ENRG KGHG EFIN BR
SUBJECT: BRAZIL:  VICE ENVIRONMENT MINISTER ON CHALLENGES AHEAD, 
UPDATE ON TFCA 
 
BRASILIA 00000157  001.2 OF 002 
 
 
(U) THIS CABLE IS SENSITIVE BUT UNCLASSIFIED AND NOT FOR INTERNET 
DISTRIBUTION. 
 
¶1.  (SBU) SUMMARY.  In a meeting with the Ambassador on January 22, 
Brazilian Vice Minister for the Environment Izabella Teixeira 
expressed interest in a new, broader agenda between the United 
States and Brazil.  She highlighted Brazil's need to address the 
interlinked challenges of energy, climate change and development. 
Also, she reported that the Environment Ministry had concluded its 
review of the USG draft agreement under the Tropical Forest 
Conservation Act (TFCA) and was relaying their comments to the 
Ministry of External Relations, which then will prepare a 
consolidated response.  She said they were happy with the results 
and she looked forward to soon having a fund to support efforts to 
protect the Atlantic ropical forest.  COMMENT.  Given these 
opportuniies for increased coordination and cooperation, Pos 
encourages senior USG climate change and enviroment officials to 
visit Brazil early on to meet and discuss these possibilities with 
senior Brazilian counterparts.  END SUMMARY AND COMMENT. 
 
¶2.  (SBU) On January 22, Brazil's Vice Minister for the Environment, 
Isabella Monica Vieira Teixeira, described to Ambassador Sobel her 
perspective on the challenges ahead.  She set the stage by noting 
that President Luiz Inacio Lula da Silva had just two years left 
before he had to leave office.  The Environment Ministry is looking 
at what it can accomplish in the time remaining, as well as what 
policies and programs it can leave that will continue on for the 
mid-term. 
 
¶3.  (SBU) Overall, Teixeira explained that President Lula and 
Environment Minister Carlos Minc were focused on three inter-related 
challenges.  First, how to protect and at the same time sustainably 
use Brazil's natural resources (forests, biodiversity and 
traditional knowledge).  Second, how to meet Brazil's growing energy 
needs without resorting to fossil fuels (via biofuels, wind power, 
and other renewable sources) and how to supply energy to those rural 
areas currently without electricity.  She said that the Environment 
Ministry was coordinating with the Ministry of Mines and Energy in 
this area; she added that the government needed to see where nuclear 
energy fit into the energy matrix.  Third, how to modernize and make 
more efficient the transportation sector.  The Lula Administration 
was seeking to incorporate these issues into an agenda for 
development, she added. 
 
¶4.  (SBU) Teixeira said that Brazil wanted closer ties with the 
United States, and it would like a new agenda, not just global 
climate change, to deal with these challenges (described above). 
The Ambassador pointed out how the Obama Administration was in its 
early days, yet had already signaled the importance of energy and 
climate change, which would contribute to creating green jobs. 
 
CLIMATE CHANGE AND DEFORESTATION 
 
¶5.  (SBU) Teixeira highlighted the National Plan on Climate Change 
(REFTEL A), which President Lula signed on December 1, 2008.  (NOTE: 
 The massive deforestation in Brazil accounts for over 70 percent of 
Brazil's greenhouse gas emissions.  Thus, for Brazil the problem of 
greenhouse gas emissions is basically one of reducing the rate of 
deforestation.  END NOTE.)  The new plan is not limited to 
containing deforestation, but reflects a development agenda and ways 
to grow the economy and make it more efficient and greener.  She 
stressed that Brazil needed to keep development in mind as it deals 
with climate change. 
 
¶6.  (SBU) Fernando Lyrio, the Environment Ministry's Director of the 
International Affairs Office, added that in December at the meeting 
of the UN Framework Convention on Climate Change (UNFCCC) in Poznan, 
Brazil had taken the lead by unveiling its national plan with 
specific figures and programs.  Brazil wanted to put its cards on 
the table, he said.  Lyrio commented that no developing country is 
talking about mandatory goals for developing countries.  He stated 
that Brazil was in close contact with China, India and other 
developing countries about the climate change negotiations. 
 
¶7.  (SBU) Teixeira announced that President Lula planned to meet 
with the mayors of the 36 municipalities identified as having the 
highest levels of deforestation (together accounting for over half 
the Amazon deforestation), in order to seek ways to deal with the 
problem.  Minister Minc would meet with them first in February to 
prepare for the presidential meeting.  The Environment Ministry 
expected to employ the newly created and funded Amazonas Fund 
(REFTEL B) to support efforts to constrain deforestation in these 36 
municipalities, she explained. 
 
 
BRASILIA 00000157  002.2 OF 002 
 
 
TROPICAL FOREST CONSERVATION ACT (TFCA) 
 
¶8.  (SBU) Teixeira reported that the day before (January 21) the 
Legal Office and other interested units within the Environment 
Ministry had completed their review of the USG draft text for an 
agreement under the Tropical Forest Conservation Act (TFCA).  The 
ministry's views would be transmitted to the Ministry of External 
Relations (MRE)for preparation of the government's official 
response.  She said she was very happy with the result and looked 
forward to soon having a fund to support efforts to protect the 
Atlantic tropical forest.  (NOTE.  After the meeting with Teixeira, 
ESTH Counselor met with the Brazilian chief negotiator on TFCA, 
Fernando Coimbra, Director of MRE's Environment Office.  Coimbra 
said that they needed to organize a meeting of the three interested 
ministries - MRE, Environment, and Finance - to finalize the 
official response to the USG draft text.  He said this would happen 
"very soon."  END NOTE.) 
 
COMMENT 
 
¶9.  (SBU) COMMENT.  The new team at the Environment Ministry - 
Minister Minc and Vice Minister Teixeira - is another case of an 
important component of the GOB that is positive toward increasing 
cooperation and bilateral ties, and could be helpful in influencing 
other important players such as the Ministry of External Relations. 
Brazil's focus on the linkages among the issues of energy, climate 
change and the economy mirrors some of the challenges the United 
States is facing.  Vice Minister Teixeira's interest in working 
together on a new, broader agenda to address these challenges is 
consistent with views we hear from other Brazilian decision-makers 
and opinion makers.  Post encourages senior USG climate change and 
environment officials to visit Brazil early on to explore the almost 
unprecedented opportunities for greater coordination and cooperation 
here.  Timing is important because as the months go on the Brazilian 
body politic will likely become consumed by the upcoming 2010 
presidential elections. 
 
¶10.  (SBU) Minister Minc and Vice Minister Teixeira have the most to 
gain from a TFCA program and it is encouraging to see Teixeira's 
enthusiasm for creating a TFCA program.  Concluding a TFCA agreement 
might make a noteworthy item for the upcoming meeting in March 
between President Lula and President Obama.  END COMMENT. 
 
SOBEL