VZCZCXRO8855
RR RUEHAST RUEHDH RUEHHM RUEHLN RUEHMA RUEHPB RUEHPOD RUEHSL RUEHTM
RUEHTRO
DE RUEHBR #1059/01 2381329
ZNR UUUUU ZZH
R 261329Z AUG 09 ZDK CTG #1042
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC 4934
INFO RUEHSO/AMCONSUL SAO PAULO 4437
RUEHRI/AMCONSUL RIO DE JANEIRO 8105
RUEHRG/AMCONSUL RECIFE 9845
RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE

UNCLAS SECTION 01 OF 02 BRASILIA 001059 
 
SENSITIVE 
 
SIPDIS 
 
DEPT FOR S/SECC, WHA-Shannon/Kelly/McMullen, WHA/BSC, OES/EGC 
 
E.O. 12958: N/A 
TAGS: SENV KGHG BR
SUBJECT: SECC STERN'S VISIT TO BRAZIL HIGHLIGHTS AREAS OF POTENTIAL 
COOPERATION IN THE LEAD UP TO COPENHAGEN 
 
BRASILIA 00001059  001.4 OF 002 
 
REF: 
 
(U) THIS CABLE IS SENSITIVE BUT UNCLASSIFIED AND NOT FOR INTERNET 
DISTRIBUTION. 
 
¶1. (SBU) SUMMARY.  Special Envoy Todd Stern's visit to Brazil 
provided a valuable opportunity for him to meet with a variety of 
Brazilian counterparts and hear the range of views within Brazil 
regarding the on-going climate change negotiations.  Stern's 
conversations highlighted a strong Brazilian interest in the 
recently signed U.S. - China MOU; increasing the visibility of joint 
cooperative efforts to confront this global problem; a subtle shift 
in the GOB position on REDD and carbon offsets; and the need on the 
part of the G-77 for strong signals of the developed world's 
intentions.  The conversations elaborated several points of 
agreement and have created an opening for the USG to continue this 
productive dialogue with a potentially valuable partner in the 
UNFCCC negotiating process.  END SUMMARY. 
 
¶2. (SBU) From August 4th through 6th Special Envoy for Climate 
Change Todd Stern visited Brazil to talk with a variety of 
governmental and non-governmental interlocutors about the on-going 
UNFCCC climate negotiations and the role that Brazil and the United 
States can play in addressing the global challenge of combating 
climate change.  Special Envoy Stern held meetings in Brasilia and 
Manaus followed by a press engagement in Sao Paulo. 
 
¶3. (SBU) In all of his meetings, Special Envoy Stern praised 
Brazilian efforts thus far and pointed out that confronting the 
climate change problem presents an opportunity for Brazil, both 
diplomatically and economically.  He pointed out that Brazil's 
clean, predominantly non-fossil fuel based energy matrix positions 
it as a natural leader in this arena.  He challenged his 
governmental counterparts to continue their work on climate issues 
and leverage their advantages to become global leaders on the issue. 
 Stern also stressed the importance of pragmatism; science-based 
approaches to climate change mitigation; emissions reductions for 
developed nations; reduction in emissions growth for developing 
nations; financing; and verification in reaching a successful 
conclusion in Copenhagen. 
 
GREAT INTEREST IN THE U.S. - CHINA MOU 
 
¶4. (SBU) Many of Stern's governmental interlocutors expressed great 
interest in the recently signed U.S. - China memorandum of 
understanding (MOU) to enhance cooperation on climate change, 
energy, and the environment.  Both the Minister of the Environment, 
Carlos Minc, and the Minister of External Relations, Celso Amorim, 
asked Stern if and when the United States would consider signing a 
similar MOU with the government of Brazil (GOB).  Amorim even asked 
his staff to draft sample language of such an agreement for Stern to 
review.  The Governor of Amazonas, Eduardo Braga, also commented 
that the MOU generated interest among the states within the 
Brazilian Amazon. 
 
¶5. (SBU) In each case, Stern welcomed the Brazilian desire to work 
closer with the United States in confronting global climate change. 
He commented that an MOU similar to that signed with China could be 
a good start. 
 
INCREASING VISIBILITY AND ENGAGEMENT 
 
¶6.  (SBU) Beyond discussion of the U.S. - China MOU, Stern's 
counterparts repeatedly expressed an interest on the part of the GOB 
to become further involved in the on-going climate discourse in a 
visible way.  Minc suggested that the United States and Brazil host 
a ministerial-level meeting of their Common Agenda for the 
Environment (CAE) in September, with a specific focus on climate 
change.  (NOTE: There is no indication that Minc coordinated this 
plan with the Ministry of External Relations, the Brazilian lead on 
the CAE.  END NOTE.)  Amorim also expressed an interest in hosting a 
meeting in Brasilia as part of the on-going climate discussions.  He 
suggested that the Major Economies Forum (MEF) format was too 
limited, but that perhaps they could host a MEF-plus meeting that 
would include greater participation by African and island nations. 
Amorim also commented that it is key not only that the United States 
and Brazil work together, but that they be "seen" working together 
on the issue.  For this reason he asked Stern to participate in a 
press conference on August 6th with Undersecretary Vera Machado and 
Division Head Luiz Figueredo Machado.  Stern complied with this 
suggestion. 
 
REDD AND OFFSETS 
 
¶7. (SBU) During the visit many GOB officials, and other players with 
 
BRASILIA 00001059  002.2 OF 002 
 
 
significant political insight, indicated that the GOB's view on 
REDD, carbon offsets, and climate change more broadly is shifting. 
They pointed to Lula's apparent decision to create a Secretariat for 
Carbon Credits within the executive office of the President as the 
strongest sign of this shift.  Officials from the Ministry of the 
Environment and from Governor Braga's office also commented that 
they have recently noticed that the concept is being more widely 
accepted in inter-ministerial or federal-state conversations.  Braga 
believes that he has seen definitive political signaling that 
President Lula has decided to become personally involved in the 
issue and may have already decided the direction in which he wishes 
the government's policy to move.  Braga attributed this change to 
the pressure that the governors of the Brazilian Amazon have placed 
on President Lula.  Vice-Minister of the Environment, Izabella 
Teixeira, concurred that the efforts of the governors have been 
important, but also believes climate change is becoming increasingly 
important to Lula as a legacy issue, and to his Chief of Staff, 
Dilma Rousseff, as she prepares to run for President in 2010. 
 
¶8. (SBU) Despite the widely held perception of increased acceptance 
for REDD and Carbon Offsets, some concerns still persist.  Rousseff 
noted that due the complexity of the issue and the need for strong 
commitments by all parties, she still advocated caution in 
determining the role that offsets would play in a final climate 
agreement.  She and Amorim emphasized that financial transfers could 
not buy consensus and should not become the focus of the 
negotiations; rather climate change mitigation should remain the 
true focus, with financial transfers and considerations being one of 
the many aspects involved. 
 
THE NEED FOR STRONG SIGNALS FROM DEVELOPED NATIONS 
 
¶9. (SBU) Another common topic of conversation with Brazilian 
counterparts, including Minc, Amorim, Braga, and NGO leaders, was 
the need for strong and credible signals from the developed nations. 
 Specifically, the felt that developed nations would need to both 
commit to ambitious targets and goals, and demonstrate that they 
intend to keep these commitments.  The signals that were suggested 
varied from firm financial commitments to the developing world for 
climate change mitigation to strong and verifiable mid-term goals 
that the developed nations could be measured against.  In all cases, 
the key element was that without these signals the developing world, 
and specifically the G-77, would feel that they were being asked to 
potentially curb their economic growth while the developed world is 
allowed to continue apace without any meaningful sacrifice. 
 
¶10. (SBU) GOB representatives also repeated that Brazil would not be 
willing to break with the G-77 in the climate discussion, but that 
Brazil could play a crucial role as a bridge between the G-77 and 
the developed nations. 
 
COMMENT 
 
¶11. (SBU) While there was no singular breakthrough in the climate 
debate during Special Envoy Stern's visit, it is clear that policy 
space exists within which Brazil and the United States can 
constructively work together toward a successful conclusion in 
Copenhagen.  The face-to-face conversations that occurred during 
this visit helped to strengthen the on-going cooperation between our 
two countries.  The USG is now presented with the opportunity to 
continue to work closely with a potentially valuable partner in the 
UNFCCC climate negotiations process.  However, to take advantage of 
this opportunity the USG must continue these productive dialogues, 
both at a technical and political-level.  By building upon the 
common ground identified, while also addressing the GOB's concerns 
regarding developed nation commitment and continued economic 
development, the two countries could cooperatively push the climate 
negotiations to the next level. 
 
KUBISKE