VZCZCXRO5349
RR RUEHIK
DE RUEHRO #1141/01 2811151
ZNR UUUUU ZZH
R 081151Z OCT 09
FM AMEMBASSY ROME
TO RUEHC/SECSTATE WASHDC 2758
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE
RHEHNSC/NSC WASHDC
RHEBAAA/DEPT OF ENERGY WASHDC
RUEAEPA/HQ EPA WASHDC
RUEHNP/AMCONSUL NAPLES 4048

UNCLAS SECTION 01 OF 02 ROME 001141 
 
SENSITIVE 
 
SIPDIS 
 
S/SECC FOR J. PERSHING 
EUR/PGI FOR S. PARKER-BURNS 
EUR/WE FOR S. HARTMANN 
OES/EGC FOR W. MOORE 
NSC FOR E. FENDLEY 
DOE FOR J. SKEER 
EPA FOR A. PHILLIPS 
 
E.O. 12958: N/A 
TAGS: SENV KGHG ENRG TRGY KSCA UN IT
SUBJECT: Climate Change - Italy Supportive on MEF and Emerging 
Economies Outreach; Comments on U.S.-EU Comparability, Binding 
Commitments, Carbon Markets 
 
REFS: a) 10/1/09 Preston-Fendley e-mail  b) 9/29/09 Preston - 
Parker-Burns and DeRosa-Joynt - Preston e-mails  c) 9/25/09 
Preston-Moore e-mail  d) State 97542 
 
ROME 00001141  001.3 OF 002 
 
 
¶1. (SBU) Summary:  Italian officials involved in international 
climate negotiations feel the September Major Economies Forum (MEF) 
meeting went well, and recommend close U.S.-EU coordination before 
the October 18-19 MEF meeting.  They confirmed that Italian 
Environment Minister Prestigiacomo had pressed China to take on 
internationally- binding commitments during her recent trip there. 
The Foreign Ministry (MFA) official called for a common U.S.-EU 
platform vis-a-vis China, and asked for a sample text for what the 
USG needs from China in terms of binding commitments in a global 
climate agreement.  On the U.S.-EU front, she said Italy will be 
pushing for carbon-market linkage.  She explained that the crux of 
the U.S-EU-comparability issue for Italy is finding a way to move 
forward that does not trigger the EU's conditional pledge to reduce 
greenhouse-gas emissions by 30 percent, instead of the current 20 
percent, by 2020.  End summary. 
 
¶2. (U) SCICouns delivered ref d) points on 24 September to 
Environment Ministry Diplomatic Advisor Antonio Bernardini, and on 
29 September to Ministry of Foreign Affairs (MFA) Energy, 
Environment and Sustainable Development Director Giovanna 
Piccarreta.  SCICouns also discussed some of ref d) points with 
energy expert Dario Garofalo of Prime Minister Berlusconi's office, 
who participates in the   Major Economies Forum on Energy and 
Climate (MEF) negotiations.  SCICouns left with Piccarreta the 
"Global Temperature Change" and "U.S. and EU Emissions Relative to 
2005 Baseline" graphs from ref c attachment. 
 
MEF and Outreach to Emerging Economies 
-------------------------------------- 
 
¶3. (SBU) Garofalo said that the positive results of the September 
17-18 MEF meeting, along with Chinese President Hu Jintao's speech 
in New York, mean "we now are in position to really start shaping 
the key elements of the Copenhagen agreement."  He supported 
bilateral engagement with key emerging economies on topics most of 
interest to each (Brazil - forests; China - technology; India - 
finance and technology) in addition to addressing them together in 
the MEF.  He stressed that Italy's priority "will be continuing to 
push them [the leading emerging economies] even if a clear move from 
the U.S. will be the indispensable starting point for success." 
Bernardini said he was pleased with the MEF work on technology 
cooperation, for which he could see a "real role post-Copenhagen." 
 
¶4. (SBU) Garofalo and Piccarreta both stressed the need to prepare 
carefully for the October 18-19 MEF meeting in London.  Piccarreta 
urged consultations, perhaps in the context of the U.S.-EU Energy 
Council discussions, so that the U.S. and EU have a common position 
going into the MEF meeting.  Piccarreta and Bernardini mentioned 
that, as Post had requested, during her September 13-16 visit to 
Beijing Italian Environment Minister Stefania Prestigiacomo pressed 
her hosts for China to agree to internationally-binding measures to 
combat climate change.  Piccarreta said that "It is not in the EU 
interest to go to China with a different position from the U.S.  We 
really need a common platform."  She noted that there will be an 
EU-China summit in Nanjing in late October/early November.  She also 
mentioned that during Prestigiacomo's China trip, the GOI signed an 
MOU with China for "cooperation on climate change negotiations," in 
addition to two cooperation agreements on renewable energy, energy 
efficiency, and carbon capture and storage. 
 
Comparability of U.S. and EU GHG Reduction Measures 
--------------------------------------------- ------ 
 
¶5. (SBU) After listening carefully to ref d points, and studying the 
two graphs, Piccarreta said that EU experts would likely disagree 
with them on some aspects.  She explained that the real problem on 
comparability is that the EU has promised internationally to move 
from 20 percent to 30 percent greenhouse-gas (GHG) reduction from 
1990 levels by 2020 if other major countries agree to "comparable" 
measures.  If the EU agrees that the U.S. measures are comparable, 
then countries like India may try to hold them to their 30 percent 
 
ROME 00001141  002.3 OF 002 
 
 
pledge, she said.   (Comment: Italy is facing reported costs of 550 
million euros/year in 2009, rising to 840 million euros/year in 
2012, for its failure to meet its targets under the EU's Emissions 
Trading Scheme.  The GOI continues to seek flexibility from Brussels 
to ease the burden on Italian businesses, and very likely would 
fight an effort to move the EU to the 30 percent target for 2020.) 
 
 
UNFCCC-Related Questions 
------------------------ 
 
¶6. (SBU) Regarding the UN Framework Convention on Climate Change 
(UNFCCC) negotiations, Piccarreta asked for examples of the kind of 
text that the U.S. needs to see regarding major emerging economies' 
international commitments to take national actions.  She said it was 
important for EU negotiators to have this soon.  She also 
recommended that U.S. and EU negotiators discuss what kind of 
compliance mechanism the U.S. envisions - one similar to Kyoto, or 
stricter? 
 
Carbon Markets - Topic at November G8 Energy Meeting 
--------------------------------------------- ------- 
 
¶7. (SBU) Piccarreta said that Italy is planning on hosting a meeting 
in Rome in November to follow up on the G8 Energy Ministerial. 
Among the topics to be discussed, she said, will be an Italian-World 
Bank study containing proposals for linking carbon markets.  She 
stressed that Italy wants an international system in which there is 
communication between carbon markets, where companies can invest in 
all of them without greatly different standards and rules.  It will 
be important for Italy to be able to continue to use certificates of 
emissions reduction issued by the Clean Development Mechanism board, 
she noted.  She mentioned that the Italian expert working on the 
carbon markets study had briefed OES' Mars Hanna on it earlier this 
year. 
DIBBLE