VZCZCXRO7212
PP RUEHCD RUEHGD RUEHHO RUEHMC RUEHNG RUEHNL RUEHRD RUEHRS RUEHTM
DE RUEHME #2616/01 2451734
ZNR UUUUU ZZH
P 021734Z SEP 09
FM AMEMBASSY MEXICO
TO RUEHC/SECSTATE WASHDC PRIORITY 8112
INFO RUEHXC/ALL US CONSULATES IN MEXICO COLLECTIVE PRIORITY
RHMFISS/DEPT OF ENERGY WASHINGTON DC
RUEHC/DEPT OF INTERIOR WASHINGTON DC
RHEHAAA/NSC WASHINGTON DC
RUEHBO/AMEMBASSY BOGOTA 4257
RUEHZP/AMEMBASSY PANAMA 2463
RUEHTG/AMEMBASSY TEGUCIGALPA 1922
RUEHSJ/AMEMBASSY SAN JOSE 1921
RUEHGT/AMEMBASSY GUATEMALA 3866
RUEHSN/AMEMBASSY SAN SALVADOR 2729
RUEHMU/AMEMBASSY MANAGUA 1082

UNCLAS SECTION 01 OF 02 MEXICO 002616 
 
SENSITIVE, SIPDIS 
 
STATE FOR WHA/MEX, WHA/EPSC 
STATE FOR EEB/ESC (MCMANUS AND DUGGAN) 
STATE FOR L/OES (MCDONALD) and OES/OPA 
DOE FOR G.WARD AND A.LOCKWOOD 
 
E.O. 12958: N/A 
TAGS: ECON ENRG EINV PGOV SENV MX
SUBJECT: MEXICO READY TO SUPPORT THE ECONOMIC AND CLIMATE CHANGE 
PARTNERSHIP OF THE AMERICAS 
 
¶1.  (SBU) Summary:  Energy Secretariat officials told State/WHA's 
visiting Director for Economic Policy and Summit Coordination that 
Mexico supports the Economic and Climate Change Partnership (ECPA). 
The GOM wants to highlight an ongoing initiative to promote North 
American standards for household appliances in Central America.  GOM 
officials reacted positively to the U.S. proposal to provide 
targeted technical support to the Central American electrical 
interconnection project, and promised to give sympathetic 
consideration to U.S. participation as observer of the associated 
policy-level process.  End Summary. 
 
¶2.  (SBU) Matt Rooney, WHA Director for Economic Policy and Summit 
Coordination and ECONOFFs met August 24 with Mexican Energy 
Secretariat officials (Aldo Flores, Director General for 
International Affairs; Leonardo Beltran, Director for International 
Negotiations; Brenda Melendez, Director for Latin America) to 
discuss next steps for ECPA. 
 
¶3.  (SBU) Mexican officials opened by expressing their support for 
ECPA and asking Rooney about next steps.  Beltran noted that Mexico 
supports the Latin American Energy Association (OLADE) and suggested 
that OLADE could be used as the secretariat or technical arm of 
ECPA.  (Note:  OLADE, the umbrella association of the LAC Energy 
Ministers,  is heavily influenced by Venezuela, and counts Cuba, 
Ecuador, Nicaragua, Venezuela, and Bolivia among its members.  End 
note.)  Rooney responded that the US already is looking at the OAS 
and other regional organizations to provide that kind of technical 
support, but assured the GOM officials that the U.S. understood the 
need to engage the broadest circle of regional institutions in ECPA. 
 
 
REGIONAL ELECTRICITY CONNECTIONS 
-------------------------------- 
¶4.  (SBU) Rooney raised US interest in the SIEPAC Mexico-Central 
America-Panama electricity connection project under the Mesoamerican 
plan. He suggested that ECPA provided the U.S. with an opportunity 
to support SIEPAC by helping encourage energy reforms and further 
liberalization in the region.  He also noted that the US previously 
held an observer role in the Mesoamerican Summits process and 
suggested that this observer role could be revived.  Flores said 
that while he personally supported the idea, other countries in the 
region might not support having the USG participate as an observer. 
 
 
¶5.  (SBU) Emphasizing that the electricity interconnection project 
has been a success because it is pragmatic and focused, Beltran said 
the last unfinished piece in Guatemala should be completed by the 
end of 2009.  He welcomed US support for the process, and noted that 
financial and technical assistance via OPIC, USAID and other 
organizations would be useful.  Flores added that many countries in 
the region are suffering from reform fatigue, and discussing further 
reforms would not advance the process far.  Central America is 
lacking infrastructure, said Flores, and what are really need now 
are concrete projects to improve regional integration. 
 
¶6.  (SBU) Flores lauded the model USAID used in the Dominican 
Republic in which local experts were used as advisors and suggested 
such an approach would be worth replicating.  For example, Mexico 
could offer some of its experts as advisors.  On financing, Flores 
recommended channeling funds through some regional banks.  The 
Central American Development bank, for example, is more efficient 
and less bureaucratic than the larger development banks or the OAS. 
 
 
INTEREST IN ENERGY EFFICIENCY PROJECTS 
-------------------------------------- 
 
¶7.  (SBU) Rooney asked the GOM participants in the meeting to expand 
on their ideas for ECPA initiatives.  Beltran said that energy 
efficiency projects provide the greatest impact for the least cost. 
Mexico has an appliance exchange program which replaces old 
refrigerators, light bulbs and air conditioners with newer, more 
energy efficient models.  Beltran added that the GOM is considering 
replicating this model in other countries including Brazil.  Mexico 
would like to work on introducing an appliance standard throughout 
the region, both for energy efficiency as well as competitiveness 
 
MEXICO 00002616  002 OF 002 
 
 
reasons.  Rooney and Beltran agreed that it would be difficult to 
create these standards, given the lack of a regional mechanism to 
harmonize standards.  Beltran also mentioned Mexico's Wind Energy 
Research Center in Oaxaca.  The GOM is already in contact with the 
National Renewable Energy Laboratory about possible collaboration on 
this center.  Beltran was open to Rooney's suggestion that this 
Center could form part of a hemispheric network of renewable energy 
centers in the hemisphere, which would also include centers in Chile 
and Peru. 
 
¶8.  (SBU) Comment:  The GOM has been supportive of ECPA from the 
outset, having immediately grasped our intention to depart from old 
approaches to this often intractable issue.  The ideas they have 
brought forward are supportive of U.S. goals for ECPA and have the 
right balance of regional vision and practical payoff.  They would 
welcome our support as they develop an implementation plan. 
 
PASCUAL