VZCZCXRO3831
RR RUEHGA RUEHQU RUEHVC
DE RUEHOT #0874/01 3132221
ZNR UUUUU ZZH
R 092220Z NOV 09
FM AMEMBASSY OTTAWA
TO RHEBAAA/DEPT OF ENERGY WASHINGTON DC
RUEHC/SECSTATE WASHDC 0063
INFO ALL CANADIAN POSTS COLLECTIVE
RHEHNSC/WHITE HOUSE NATIONAL SECURITY COUNCIL WASHINGTON DC

UNCLAS SECTION 01 OF 02 OTTAWA 000874 
 
SENSITIVE 
SIPDIS 
STATE FOR OES/EGC 
STATE FOR SECC 
STATE FOR S/CIEA 
STATE FOR EEB/ESC 
PASS TO DOE/PIA 
 
E.O. 12958: N/A 
TAGS: SENV ENRG CA
SUBJECT: Ottawa: Ambassador Jacobson and Environment Minister 
Prentice discuss continental carbon market and oil sands 
 
1)       Summary:  During an engaging introductory lunch on 
November 5, 2009, Ambassador Jacobson and Canadian Minister of the 
Environment Jim Prentice covered a wide variety of issues, ranging 
from Canada's international reputation and potential damage from 
oil sands coverage to exploring the possibility of a harmonized 
continental carbon market and collaborating on the Great Lakes. 
Minister Prentice clearly indicated his interest in working closely 
with the Obama Administration and both parties stressed the 
importance of the environment globally, but also as a key component 
of our bilateral agenda.  As an immediate follow-up, Minister 
Prentice asked for assistance in setting up a conversation with 
Senator Kerry to discuss some key issues of concern to Canada in 
regard to potential Senate climate legislation.  The Ambassador 
also agreed to assess interest in Washington on further exploring 
the benefits of a continental carbon market.  Based on the breadth 
and scope of their discussion, the meeting established common 
interest and a mutual intention to push forward a strong 
environmental dialogue.  End Summary. 
 
 
 
2)      From the onset of lunch, Minister Prentice was clearly 
making every effort to establish a connection with Ambassador 
Jacobson, outlining his respect for the Administration and his 
interest in President Obama's "back story", persona, and goals. 
The tone was very collegial and Prentice appeared unrushed, 
focused, and interested in getting to know the Ambassador on a 
personal level, sharing stories about his daughter, life in 
Alberta, and his love for the outdoors.  Prentice appeared keen to 
forge a personal relationship with Ambassador Jacobson - to the 
mutual benefit of both countries.  Note:  Prentice is 
widely-considered to be the most respected member of Prime Minister 
Harper's inner circle and enjoys Harper's complete trust.  He is 
the lead Minister for climate change, as well as the lead on the 
Clean Energy Dialogue and Northern Gas pipelines. 
 
 
 
3)      During a discussion of the Ambassador's travels, Prentice 
asked for his views on the oil sands.  Prentice shared that he was 
concerned about the media focus on the sands and the possible 
impact on Canada's international reputation.  He recalled that he 
was first concerned about oil sands coverage during a trip to 
Norway where the public was debating whether or not Norway should 
be investing public funds (Statoil) in 'dirty oil'.  As Prentice 
relayed it, the public sentiment in Norway shocked him and has 
heightened his awareness of the negative consequences to Canada's 
historically 'green' standing on the world stage.   Calling himself 
"conservationist-minded", Prentice said he would step in and 
regulate the sands if Canada's image in the world gets further 
tarnished by negative coverage.  Although he never mentioned 
Natural Resources Minister Raitt by name (perhaps, an indication of 
the rumored tensions between the two Ministries), Prentice did say 
that he felt that Government of Canada's reaction to the dirty oil 
label was ''too slow" and failed to grasp the magnitude of the 
situation.   As the Minister representing Alberta and one of the 
most senior Ministers in the Cabinet, Prentice made clear that he 
was constantly monitoring the situation.  He noted that if industry 
did not take voluntary measures and if the provincial government 
did not set more stringent regulations, he would step in and press 
federal environmental legislation.   In response to the 
Ambassador's inquiry about a possible moratorium on further 
expansion in the oil sands, Prentice didn't think it was necessary 
at this time and felt growth to the 3-4 m/b/d was sustainable.  He 
agreed that the province should be looking at cumulative 
environmental impacts and addressing long-term sustainability 
concerns.    At the end of the day, Prentice wants Canada to be 
billed as the most environmentally-conscious energy superpower. 
 
 
 
4)      As the topic turned to climate change, Minister Prentice 
highlighted a number of concerns that he was interested in 
discussing further, preferably with Senator Kerry prior to the 
passage of legislation in the Senate.  These issues include:  the 
need for an integrated carbon market, necessitated by the 
integrated nature of our economies and energy markets; a harmonized 
approach to a low-carbon fuel standard; further discussion of 
renewable portfolio standards; an assessment of the impact/nature 
of border adjustment measures; and a general increase in 
 
OTTAWA 00000874  002 OF 002 
 
 
understanding to avoid inadvertent/unintended consequences of U.S. 
legislation on Canada.  The Ambassador offered to assist in setting 
up a conversation with Senator Kerry, as well as exploring the 
possibility of initiating a dialogue on a harmonized continental 
carbon market. 
 
 
 
5)      The last major topic of discussion was a mutual interest in 
the protection of and long-term health of the Great Lakes.  Both 
parties expressed a desire to work collaboratively on such efforts. 
Overall, the lunch was a success and laid a number of markers for 
further cooperation.  Minister Prentice and Ambassador Jacobson 
will be meeting again for dinner on November 9, building further on 
their relationship.    End Cable. 
JACOBSON