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DE RUEHBU #0603/01 1421124
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R 221124Z MAY 09 ZDK
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC 3768
INFO RUCNMER/MERCOSUR COLLECTIVE
RHMFIUU/DEPT OF ENERGY WASHINGTON DC
RUEHRL/AMEMBASSY BERLIN 1186
RUCNDT/USMISSION USUN NEW YORK 0294
RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE

UNCLAS SECTION 01 OF 03 BUENOS AIRES 000603 
 
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TAGS: SENV KGHG ENRG PREL AR
SUBJECT: ARGENTINA: A USEFUL PARTNER ON CLIMATE CHANGE 
 
BUENOS AIR 00000603  001.2 OF 003 
 
 
¶1. Summary:  With its reliance on agricultural exports and 
hydro-electric power generation, Argentina is highly vulnerable to 
the effects of climate change.  As such, the country's plans tend to 
focus on adaptation rather than mitigation.  Argentina was an early 
participant in the negotiations leading to the establishment of the 
UN Framework Convention on Climate Change (UNFCCC) and is a 
respected leader on the issue. 
 
¶2. Post met with senior technical GOA officials and with the MFA's 
lead negotiator on climate change.  Our interlocutors welcomed the 
initial signals coming from the new U.S. administration and called 
for closer cooperation with the United States on climate change. 
The GOA's lead representative, Ambassador Silvia Merega, expressed 
interest in meeting with our lead climate change negotiator on the 
sidelines of the June 1-12 Bonn Climate Change Talks.  Post believes 
that the constructive and open-minded positions outlined to us by 
GOA officials represent an opportunity for the United States.  Given 
Argentina's influence on climate change issues, early engagement to 
highlight areas of common ground could provide us with significant 
leverage with many other countries ahead of Copenhagen.  End 
Summary. 
 
-------------------------------------------- 
CLIMATE CHANGE:  IMPACT AND INITIAL MEASURES 
-------------------------------------------- 
 
¶3. Argentina is highly vulnerable to the effects of climate change. 
A large percentage of its exports are agricultural commodities and 
agro-industrial products, and a large part of its electricity 
generation comes from hydroelectric power.  While spikes in annual 
average precipitation have resulted in the expansion of crop 
cultivation and increased hydro power production, they have also 
brought about serious incidences of flooding.  These have been 
followed by periods of droughts, such as the one Argentina is 
experiencing at present.  Droughts have typically caused reduction 
in river basin levels and higher concentrations of contaminants in 
their waters, higher temperatures leading to the expansion of 
typically tropical diseases (the current dengue outbreak is an 
example), and losses for agriculture and cattle breeding (this 
year's soybeans harvest is expected to be 30 percent lower than last 
year's and early slaughter of cattle has significantly reduced the 
herd.)  The consequences of abrupt changes of weather patterns 
clearly affect Argentina on many levels. 
 
¶4. Argentina and the United States have different profiles as 
emitters of greenhouse gas (GHG).  While the United States is more 
focused on energy-related emissions from power generation and 
transportation, Argentina's principal source of emissions comes from 
agricultural and cattle breeding production, not from power 
generation.  Hydro-electrical plants account for over 40 percent of 
electricity power generation, natural gas represents almost 50 
percent, and nuclear about 8 percent.  There are no coal-fired power 
plants.  Emissions from vehicles are a problem, but it is 
geographically concentrated in the Greater Buenos Aires area. 
 
¶5.  Argentina's Second National Communication to the United Nations 
Framework Convention on Climate Change (UNFCCC) focused on five 
studies related to mitigation and the reduction of greenhouse gases 
emissions.  Three of these related to the energy sector, one to 
carbon sequestration and the other one to methane emissions 
reduction for cattle.  These studies identified actions and policies 
that could represent a yearly reduction of GHG emissions equivalent 
to 60 million tons of CO2 in 15 to 20 years.  All of the actions 
called for in these studies require significant funding for start-up 
of operations, however, and given the country's more urgent 
development needs, little has been done.  Argentina is currently 
preparing its Third National Communication to the UNFCCC with 
funding support from the Global Environment Facility (GEF).  This 
communication will reflect the country's proposals for adaptation, 
where only isolated measures have been implemented so far. 
 
¶6. The Bureau of Climate Change in the Environment Secretariat 
coordinates information on the different projects managed by all 
government offices.  The Secretariat of Energy promotes the Rational 
Use and Energy Efficiency Project which, with the participation of 
the private sector power distribution companies, expects to achieve 
an accumulated reduction of emissions of 28 million tons in 10 
years.  The Wind Energy Program is a program for the development of 
the wind energy industry, with an initial investment of $300 million 
for a 300MW capacity.  The Law on Biofuels establishes the 
regulatory and promotion structure for the production and use of 
biofuels, and calls for the mandatory mix by 2010 of biofuels in all 
liquid fuels used in transportation. 
 
¶7.  Argentina also has a fiscal policy of subsidies and tax benefits 
 
BUENOS AIR 00000603  002.2 OF 003 
 
 
for planted forests which, in addition to promoting increased 
forestry activity, has contributed to a substantial rise in the 
country's carbon stocks.  Argentina's National Parks and Protected 
Areas structure spans over two million hectares and also contributes 
to limit deforestation and increase carbon sequestration. 
 
¶8.  The National Strategy for Integral Management of Solid Waste is 
a country-wide initiative which started in 2005 with financing from 
the Environment Secretariat and the World Bank.  It is gradually 
improving conditions.  Still, more than 60% of urban solid waste is 
disposed of in open pit structures, and the program proposed the 
closure of these landfills and methane gases capture programs at a 
later stage.  The EPA's Methane-to-Market Partnership Initiative 
currently supports a few pilot projects in-country.  In 2005, the 
GOA created the Argentine Carbon Fund to finance Clean Development 
Mechanisms (CDM) projects from the initial start-up stages through 
development to completion. 
 
--------------------------------------------- - 
ARGENTINA'S HISTORIC ROLE AT THE UN CONVENTION 
--------------------------------------------- - 
 
¶9.  Argentina was an early participant in climate change talks and 
took an active part in the negotiations that led to the 
establishment of UNFCCC.  The GOA's lead negotiator in these early 
years, Ambassador Raul Estrada Oyuela, played an important role in 
the drafting of the Kyoto Protocol, which Argentina ratified in 
¶1994.  Argentina has hosted two conferences of the parties (COP) of 
the UNFCCC and its ministers have exercised the presidency twice. 
In September, 2008, Argentina hosted the Calafate Southern Lights 
Dialogue, the fourth in a series of informal ministerial dialogues 
on climate change initiated in 2005 by Denmark to exchange ideas 
about the design of the future agreement ahead of the December 2009 
Copenhagen COP. 
 
------------------------------------------ 
GOA'S VIEWS OF CLIMATE CHANGE NEGOTIATIONS 
------------------------------------------ 
 
¶10.  ESTHCouns met with Nazareno Castillo, Director of the Bureau of 
Climate Change at the Environment Secretariat, and recently 
appointed Ambassador Silvia Merega, Director of the Bureau of 
Environmental Affairs at the MFA and lead climate change negotiator 
for Argentina.  The purpose of these meetings was to outline the new 
U.S. administration's policies on energy and climate change and to 
highlight President Obama's Climate and Energy Partnership for the 
Americas, as well as to elicit views on Argentina's positions and 
identify possible areas of agreement.  Our interlocutors were very 
knowledgeable about the status of climate change negotiations and 
were heartened by what they perceived as signals of an important 
shift in U.S. policies.  They welcomed increased bilateral 
engagement and expanded cooperation on climate change. 
 
¶11.  In Argentina, the Environment Secretariat and the MFA's Bureau 
of Environmental Affairs share responsibility for climate change 
issues, the former holding a technical and implementation role and 
the latter focusing in international negotiations.  In the recent 
past, dialogue between the two offices proved difficult, due to the 
personalities involved.  It appears, however, that these problems 
have now been resolved, and our impression was that the two entities 
are now in fluid and regular communication.  Merega and Castillo 
told us that the GOA was in the process of setting up an Interagency 
Climate Change Working Group with the purpose of reaching a better 
understanding of existing projects and establishing a more efficient 
cooperation structure to avoid the duplication of efforts. 
 
¶12.  Argentina is well respected in international fora on climate 
change.  Its diplomats, officials and experts have important 
responsibilities in the UNFCCC and the International Panel on 
Climate Change (IPCC).  The GOA is proud of this achievement and 
appears willing to maintain a leadership role as a spokesman and 
active participant.  Castillo told us that Argentina has 
historically developed interesting proposals and served as group 
coordinator and mediator on many issues.  As an example, he 
mentioned the recent proposal that Argentina presented in Bonn in 
the name of 14 other countries.  He noted that, while MERCOSUR 
countries do not hold a unified position with respect to climate 
change, especially with Brazil following its own way, Argentina, 
Uruguay, and Paraguay hold similar views, in particular on the 
challenges of adaptation. 
 
¶13. Both Castillo and Merega said that Argentina, as member of the 
G77, believes there should be greater support for strengthening 
national adaptation activities to climate change, so as to pursue 
sustainable development goals while reinforcing economic 
 
BUENOS AIR 00000603  003.2 OF 003 
 
 
development, social development, and environmental protection.  They 
described Argentina's position as constructive and made it clear 
that the GOA supported the view of "common responsibility but 
differentiated approach."  While Argentina shares many of the views 
of the G77, Castillo stressed that "the GOA considers that, even if 
developed countries have a greater responsibility, developing 
countries also need to have an active position.  Argentina does not 
oppose making commitments and actually views this as an opportunity 
for development." 
 
----------------------------- 
OPPORTUNITIES FOR COOPERATION 
----------------------------- 
 
¶14.  Castillo welcomed technology transfers as a strong component of 
cooperation.  As an example of possible collaboration, he mentioned 
the solid structure of the U.S. environmental monitoring system and 
its network of meteorological stations.  He added that the GOA would 
like to see an improvement in the market mechanisms of collaboration 
and noted that Norway had come out with an interesting proposal in 
this regard, as had South Korea.  He pointed out that the Clean 
Development Mechanisms (CDMs) had been flawed and had not worked out 
well, with all risk left in the hands of the host country.  As 
possible improvements, he suggested provisions for the increasing 
costs of implementation, a structure to enable advance payments, and 
a better regional distribution of projects. 
 
¶15.  Ambassador Merega stressed the need to establish new lines of 
cooperation, sources of financing and technology transfer.  She 
believed that discussions in Copenhagen would center on the topics 
of international financing and expected cooperation, as well as 
purpose, goals, implementation systems, mechanism and parameters. 
She also saw as important subjects for discussion whether the best 
way to go forward was international cooperation under the UN 
structure or beyond this structure, and whether the parameters would 
be different if financial cooperation were to be undertaken in a 
bilateral or regional way beyond the UN system.  Will there be a 
system establishing more cooperation according to individual country 
needs, she asked, or will it be based on another system agreed upon 
and developed in Copenhagen? 
 
¶16. Merega added that she also welcomed further cooperation in the 
energy sector, particularly in energy efficiency, renewable 
energies, and transportation.  Ambassador Merega looked forward to 
meeting with the U.S. lead negotiator on the sidelines of the June 
1-12 Climate Change Talks in Bonn to explore areas of convergence 
and possible cooperation.  She asked that her request be transmitted 
to the U.S. delegation. 
 
--------------------------------------------- 
COMMENT: A USEFUL PARTNER AHEAD OF COPENHAGEN 
--------------------------------------------- 
 
¶17.  We believe that the constructive and open-minded positions 
outlined to us by GOA climate change officials represent an 
opportunity for the United States.  Given Argentina's influence on 
climate change issues, early engagement with the GOA delegation to 
highlight areas of common ground could provide us with significant 
leverage with many other countries, not only within the G77 but also 
within the region, as we get closer to the Copenhagen COP. 
Argentina's long experience with climate change talks and opinions 
about which mechanisms have worked best may also be of interest to 
our delegation in designing the eventual solutions to be proposed in 
Copenhagen.  End Comment. 
 
WAYNE