VZCZCXYZ0000
RR RUEHWEB

DE RUEHBJ #1490/01 1550749
ZNR UUUUU ZZH
R 040749Z JUN 09
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 4292
RUEHCP/AMEMBASSY COPENHAGEN 0755
RUCNDT/USMISSION USUN NEW YORK 2146
RUEHGV/USMISSION GENEVA 2489
RHMFIUU/DEPT OF ENERGY WASHINGTON DC

UNCLAS BEIJING 001490 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON ETRD EIND ENRG CH
SUBJECT: PELOSI DELEGATION'S MEETING WITH CHINA'S NATIONAL PEOPLE'S 
CONGRESS 
 
This cable is sensitive but unclassified.  Not for distribution 
outside the United States Government. 
 
¶1. (U) Speaker of the House of Representatives Nancy Pelosi and 
Representative Edward Markey (D - MA) on May 27 led a delegation 
that met with China's National People's Congress (NPC) Environmental 
Protection and Resources Conservation Committee (EPRC).  Please see 
paragraphs 13 and 14 for a list of participants. The Chinese 
delegation was led by Chairman of the EPRC Mr. Wang Guangtao. 
 
Environmental Legislation 
------------------------- 
¶2. (SBU) Wang commenced the meeting by giving an overview of China's 
legislative efforts since 1979 to reduce carbon emissions and 
increase energy efficiency.   According to Wang, in the last five 
years, China has redoubled its efforts,  and has passed a series of 
laws and regulations setting targets for renewable energy usage and 
energy efficiency in public buildings, encouraging energy 
conservation, reducing energy intensity, strengthening enforcement 
of environmental standards, and increasing supervision over projects 
that may have an impact on the environment. 
 
¶3. (SBU) Wang stated that his committee continues to work to 
strengthen China's legal system, particularly in the area of 
enforcement, to encourage both economic development and 
environmental protection.  The EPRC is particularly active in 
assisting China's Standing Committee review work reports submitted 
by developmenQommittees outlining progress made on controlling air 
pollution as mandated in the Eleventh Five-Year plan.  The EPRC also 
investigates claims from the public on potential environmental law 
infringements and has launched a national campaign to raise public 
awareness on the importance of conservation, Wang explained. 
 
Seeing the Results 
------------------ 
¶4. (SBU) Wang claimed China has met with great success because of 
these efforts and cited some statistics to bolster that claim.  He 
said renewable energy usage has increased with hydropower increasing 
from 79.3 million kW per year in 2008 to 163 million kW in 2008 and 
nuclear energy increasing from 2.1 million kw to 8.85 million kW 
over the same period.  According to Wang, from 2006 to 2008, China 
has decreased energy intensity by 10%, carbon emissions by 6.6% and 
sulfur dioxide emissions by 8.9%. 
 
"Unprecedented" Efforts to Reduce Emissions 
-------------------------------------------- 
¶5. (SBU) Congressman Markey, briefly explaining the Waxman-Markey 
bill, said the U.S. wants to show its leadership in the area of 
global climate change at the upcoming COP 15 United Nations Climate 
Change Conference in Copenhagen in December.  As the two largest 
emitters of green house gases, the U.S. and China need to work 
together to lead global efforts in reducing carbon emissions, he 
stated.  Congressman Markey asked what plans the Chinese government 
has for limiting and reducing coal emissions.  Chairman Wang replied 
China has a four-pronged approach.  First, the government has a goal 
of reducing energy intensity by 20% by 2020.  Second, China is 
making "unprecedented" efforts to forcibly phase out coal-fired 
manufacturing plants and power generation plants.  China is focusing 
on new energy sources to reduce green house gases in rural areas and 
has already equipped 26.5 million homes with biogas capabilities. 
Finally, reforestation efforts are underway with forested areas 
increasing from 12% at the turn of the century to 18% today. 
 
China is Still a Developing Nation 
---------------------------------- 
¶6. (SBU) Representative James Sensenbrenner (R - WI) stated that 
both China and the United States are being criticized for not having 
done enough to limit and reduce greenhouse gas emissions.  The two 
countries should work together in Copenhagen to develop an agreement 
that satisfies all parties.  Chairman Wang replied China has 
endorsed the "common but differentiated responsibilities" concept 
put forth in the Kyoto protocol and the United Nations Framework 
Convention on Climate Change (UNFCC).  Wang emphasized China is 
still a developing nation with 150 million people living below the 
poverty line.  Twenty-three million people have left the countryside 
to find work in the cities.  Thirty million don't have access to 
clean drinking water.  As such, China needs to balance its efforts 
in environmental protection with the need to address these societal 
and economic challenges. 
 
¶7. (U) Representative Earl Blumenauer (D - OR) suggested the Chinese 
government look at ways to improve land use planning and 
transportation to achieve more sustainable and affordable 
development.  Wang agreed, saying Chinese experts have studied U.S. 
urban planning models.  He said the Urban and Rural Planning Law is 
aimed at reducing the cost of development and boosting energy 
efficiency.  In the course of urbanization, 40% of rural workers 
have moved to large cities while 60% have moved to small cities. 
China has built many highways and high-speed railways to connect 
 
these cities.  In Beijing alone, 200 km of subway lines have been 
built and that will increase to 500 km over time, Wang explained. 
 
Out with the Old, In with the New 
--------------------------------- 
¶8. (SBU) Mr. Pu Haiqing, Vice Chairman of the NPC EPRCC told the 
delegation the energy sector is responsible for 90% of carbon 
emissions in China.  The Chinese government is exploring new 
technologies in energy-intensive sectors such as iron and steel 
production.  In addition, Pu reported China is phasing out 90 
million tons of outdated still mill capacity between 2009 and 2011 
and 60 million tons of iron ore production capacity.  In response to 
a question from Representative Markey, Pu reported China has 87 
major iron and steel manufacturers and as many as 500 minor 
producers. 
 
If Not Cuts, A Cap? 
------------------- 
¶9. (SBU) Representative Jay Inslee (D - WA) suggested the U.S. and 
China sign a bilateral agreement to work together on carbon capture 
sequestration technology and asked what are the plans for limiting 
carbon emissions for the foreseeable future.  He proposed China 
consider setting a cap on total carbon emissions at Copenhagen if it 
could not agree to actually emissions cuts.  Chairman Wang stated 
the U.S. and China are already cooperating at both the government 
and commercial level in many areas including in petro-chemicals, 
nuclear technology and automotive technology. 
 
¶10. (SBU) Wang said he was formally the head of the Ministry of 
Construction.  Under his leadership, the ministry imposed a 
regulation that required public buildings increase their energy 
efficiency by an average of 50%.  In Beijing, Shanghai and Tianjin, 
the requirement is 65%.  This equates to an equivalent of reducing 
coal consumption by 90 million tons, Wang conveyed.  He said 150 
million square meters of building space will be renovated with 
energy saving technology by 2010. 
 
¶11. (SBU) NPC EPRCC member Zhou Yuan said China currently imports 
50% of its oil.   The government has developed three and five year 
plans to reduce oil consumption and raise refining standards. 
Currently, Beijing and Shanghai both meet Euro IV standards while 
the rest of China meet Euro III standards. 
 
¶12. (U) The delegation has cleared on this cable. 
 
Chinese Participants 
---------------------------- 
¶13. (U) Mr. Wang Guangtao, Chairman, NPC EPRCC 
Mr. LI Zhaoxing, Chairman, NPC Foreign Affairs Committee 
Mr. ZHOU Wenzhong, Chinese Ambassador to the United States 
Mr. PU Haiqing, Vice Chairman, NPC EPRCC 
Ms. WANG Jirong, Vice Chairperon, NPC EPRCC 
Mr. YUAN Si, Vice Chairman, NPC EPRCC 
Mr. ZHANG Hongbiao, NPC EPRCC Member 
Mr. XU Jianmin, NPC EPRCC Member 
Mr. ZHOU Yuan, NPC EPRCC Member 
Mr. GU Yidong, NPC EPRCC Member 
 
U.S. Participants 
---------------------- 
¶14. (U) Speaker of the House of Representatives, Mrs. Nancy Pelosi 
Rep. Edward Markey (D-MA) 
Rep. James Sensenbrenner (R-WI) 
Rep. Earl Blumenauer (D-OR) 
Rep Jay Inslee (D-WA) 
Rep Jackie Speier (D-CA) 
Wyndee Parker, National Security Advisor to the Speaker (Policy 
Staff) 
Karen Wayland, Policy Advisor to the Speaker (Policy Staff) 
Jonathan Stivers, Policy Advisor to the Speaker (Policy Staff) 
Brendan Daly, Communication Director to the Speaker 
Bridget Fallon, Chief of Protocol for the Speaker 
Michael Long, Personal Assistant to the Speaker 
Gerry Waldron,PtS*^8U?Steve Rusnak, Official Photographer