VZCZCXRO7723
RR RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV RUEHSR
DE RUEHTC #0177/01 0711509
ZNR UUUUU ZZH
R 121509Z MAR 09
FM AMEMBASSY THE HAGUE
TO RUEHC/SECSTATE WASHDC 2657
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 2060
RUEHMO/AMEMBASSY MOSCOW 1849
RUEHAT/AMCONSUL AMSTERDAM 4182
RUEHMT/AMCONSUL MONTREAL 0460
RUCPDOC/DEPT OF COMMERCE WASHDC
RULSDMK/DEPT OF TRANSPORTATION WASHDC

UNCLAS SECTION 01 OF 02 THE HAGUE 000177 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EEB/TRA/OTP AND EUR/ERA 
MONTREAL PASS USICAO 
 
E.O. 12958: N/A 
TAGS: EAIR ECON ETRD SENV EU NL
SUBJECT:  DUTCH VIEWS ON INCLUSION OF INTERNATIONAL AVIATION IN THE 
EU'S EMISSIONS TRADING SCHEME 
 
Ref:  STATE 1023 
 
THE HAGUE 00000177  001.2 OF 002 
 
 
¶1. (U) Summary:  The GONL supports the EU's decision to include 
international aviation in the Emissions Trading Scheme (ETS) in 
¶2012.  At the same time, the GONL would like to see the issue 
concurrently being addressed on a global scale, largely through the 
International Civil Aviation Organization (ICAO) and even within the 
UN Framework Convention on Climate Change (UNFCCC) if possible. 
Amsterdam-based KLM and Northwest/Delta airline officials prefer a 
global solution, and KLM has concerns that third countries such as 
China and Russia could retaliate against EU carriers in 2012. 
 
---------------------- 
GOVERNMENT PERSPECTIVE 
---------------------- 
 
¶2. (SBU) On February 4, 2009, Senior FAA Rep and Econoff held 
introductory meetings with Dutch Transport Ministry aviation 
officials Ellen Bien, Director for Civil Aviation, Michael Lunter, 
Deputy Head for International Affairs Civil Aviation and Market 
Access, and Jan Busstra, Head of Unit Civil Aviation Safety and 
Security Department.  Drawing on reftel points, Emboff raised U.S. 
concerns over the EU's inclusion of international aviation in its 
ETS beginning in 2012.  While the Transport Ministry officials 
stated that the GONL would prefer an international solution to 
aviation greenhouse gas (GHG) emissions rather than having the ETS 
imposed on third countries, the GONL ultimately supports the EU's 
position.  In this regard, the GONL supports working toward a 
solution within the ICAO's Group on International Aviation and 
Climate Change (GIACC).  The Transport Ministry officials added that 
addressing aviation GHG emissions at the upcoming December 
Copenhagen Summit on the UNFCCC, as the EU is proposing, would only 
enhance the international process.  At the same time, they are not 
optimistic about the prospects of aviation making the UNFCCC agenda 
in Copenhagen because of resistance from Brazil and China. 
 
¶3. (SBU) Separately, Emboffs met February 10 with key members of the 
Dutch climate change team: Sanne Kaasjager from the Ministry of 
Foreign Affairs, and Gerie Jonk from the Environment Ministry. 
(Note: Kaasjager is one of two Dutch officials who will represent 
the GONL at this year's climate negotiations.  End note.)  Kaasjager 
and Jonk stated that the GONL would like the UNFCCC to set global 
targets for aviation and maritime emissions but leave implementation 
and technical details to the ICAO and the International Maritime 
Organization (IMO).  According to Kaasjager and Jong, the GONL and 
the EU were frustrated that the ICAO and the IMO "have not been 
performing" quickly enough to establish their own emission trade 
systems.  The GONL agreed in principle that aviation and maritime 
emissions should be subject to a global system rather than a 
regional, EU one.  However, the GONL sees the inclusion of aviation 
in the EU's ETS not as undermining the ICAO process but as a way "to 
put pressure on the United States." 
 
-------------- 
INDUSTRY VIEWS 
-------------- 
 
¶4. (SBU) Emboffs met February 2 with senior KLM officials Willem de 
Jonge, Vice President of Government and Industry Affairs, and 
Michiel Laumans, Director of European Affairs (Brussels office), to 
discuss a wide range of industry issues.  Taking into account the 
U.S. position as the EU's largest trading partner and other third 
QU.S. position as the EU's largest trading partner and other third 
country carriers' concerns, KLM supports a global solution to 
tackling aviation GHG emissions.  While KLM recognizes that its 
flights to the United States will not be in jeopardy due to the 
impending ETS coming on-line in 2012, KLM does have concerns that 
other countries such as China and Russia could retaliate in some 
capacity against EU airline carriers.  Moreover, KLM indicated that 
it had fought hard for a workable ETS, and while the current one 
approved by the EU is not perfect, KLM is not opposed to it in 
principle.  KLM believes the EU Commission was far too aggressive in 
its early considerations of aviation in the ETS, but KLM and other 
airlines' lobbying efforts in Brussels succeeded in watering down 
the end result, particularly surrounding the auctioning of GHG 
permits which KLM concedes could had been far worse.  At present, 
KLM continues to have concerns about how the ETS will be 
implemented. 
 
¶5. (SBU) In a December 18, 2008, meeting, Patricia Epting, Managing 
Director, Atlantic Region, Northwest/Delta Airlines, told Emboffs 
that the ETS is a huge concern for her airline and if implemented, 
 
THE HAGUE 00000177  002.2 OF 002 
 
 
would make it financially unfeasible for her airline to operate 
certain routes.  Epting argued that there needs to be a global 
regime governing aviation GHG emissions, not one that is 
European-specific and imposed unfairly on third parties. 
 
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COMMENT 
------- 
 
¶6. (SBU) The GONL would prefer a global solution to aviation GHG 
emissions rather than a European one.  But as a supporter of EU 
consensus on this issue, the Netherlands will not publicly criticize 
the inclusion of international aviation in the ETS.  Working quietly 
with the Dutch (both government and industry) to prod the EU toward 
a global solution will be the most effective bilateral strategy. 
Further, the Europeans in ICAO recently nominated Mark Dierikx, the 
Dutch Transport Ministry's Director General of Civil Aviation and 
Freight Transport, to replace UK rep Peter Griffiths on the GIACC. 
If Dierikx is confirmed, the Dutch will assume a bigger role in this 
debate. 
 
 
GALLAGHER