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Cablegate: Donor Roundable Meeting On Clmate Change

VZCZCXRO9523
RR RUEHCHI RUEHDT RUEHHM
DE RUEHJA #2459/01 2490836
ZNR UUUUU ZZH
R 060836Z SEP 07
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 6097
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHKO/AMEMBASSY TOKYO 0750
RUEHBJ/AMEMBASSY BEIJING 4280
RUEHBY/AMEMBASSY CANBERRA 1122
RUEHUL/AMEMBASSY SEOUL 4173
RUCNDT/USMISSION USUN NEW YORK 0668

UNCLAS SECTION 01 OF 02 JAKARTA 002459

SIPDIS

SIPDIS
SENSITIVE

DEPT FOR IO, OES/EGC, OES/IET AND EAP/MTS
USAID FOR EGAT/ESP - BARBER AND ANE/TS- MELNYK
USFS FOR MACKIE
TREASURY FOR TFCA - BERG
WHITE HOUSE FOR CEQ - James CONNAUGHTON

E.O. 12598: N/A
TAGS: SENV KGHG ECON TBIO ENRG ID
SUBJECT: DONOR ROUNDABLE MEETING ON CLMATE CHANGE

1. (U) Summary. During a September 5 Donor Roundtable Meeting on
Climate Change, Agus Purnomo, Executive Director, National Steering
Committee for the Conference of Parties 13 (COP 13) updated donor
partners and embassy officials on COP 13 preparations. Joe
Leitmann, Environment Coordinator, World Bank Indonesia presented on
the World Bank's proposed mitigation mechanism: the Reducing
Emissions from Deforestation and Degradation (REDD) initiative.
Leitmann also addressed the status of the Indonesian REDD proposal.
Hakan Bjoerkman, United Nations Development Program (UNDP) Country
Director, and Dr. Rizaldi Boer, UNDP Senior Advisor, concluded the
meeting with a presentation on adaptation and helping Indonesia cope
with the impact of climate change. End Summary.

-----------------------
COP 13 Planning Update
-----------------------

2. (U) Purnomo described the draft COP 13 agenda as four likely
principal items: mitigation, an adaptation funding mechanism,
reducing emissions from the forestry sector and technology transfer.
Purnomo said that successful outcomes for these areas depended
largely on the success of other upcoming climate change meetings,
including the September 24 climate change discussions on the
sidelines of United Nations General Assembly, the September 27-28
Major Economies Meeting in Washington and the October 24-25 Pre-COP
13 Planning Meeting in Bogor.

3. (U) Purnomo reported that logistics planning for COP 13
continues. COP 13 organizers anticipate 191 countries will
participate, with 2,500 official delegates, including 120
Environmental Ministers. Organizers expect an additional 2,500
Media participants and 5,000 civilian society participants from
NGOs, corporations and other interested groups for a total of 10,000
participants. COP 13 will feature 800 sessions and three major
exhibits: a Clean Development Mechanism (CDM) market place and
carbon expo; a green/cool energy exhibit; and a climate friendly
automotive exhibit. Purnomo emphasized that Embassies should prepare
delegations for the fact that COP 13 will not be a stage for
speeches and will feature only three plenary sessions. Minister of
Environment Rachmat Witoelar, as COP 13 Chairman, will open the
working plenary session. President Yudhoyono will open the High
Level Session on December 11. Chairman Witoelar will then address
the final plenary session to close the event.

4. (U) Purnomo also noted that the Indonesian Minister of Finance
Sri Mulyani Indrawati was seeking an alternate date for the side
meeting with finance ministers in order to accommodate U.S. Treasury
Secretary Paulson's interest in attending. The Ministry of Finance

SIPDIS
expects 20 ministers to attend the ministers' meeting (currently
planned for December 11) and 20 deputy ministers to attend the
deputies' meeting (currently planned for December 10). Purnomo also
described a likely trade ministers meeting on December 9-10 that
would include 20 trade ministers and deputies.

---------------------------
World Bank REDD Initiative
----------------------------

5. (U) Joe Leitmann, Environment Coordinator, World Bank Indonesia,
presented the World Bank's proposed mitigation mechanism: the
Reducing Emissions from Deforestation and Degradation (REDD)
initiative. The REDD mechanism proposes that countries able to
reduce deforestation against an agreed future estimate would be
compensated for the amount of resulting reduction in carbon
emissions. Leitmann noted that the potential value for compensation
for Indonesia is significant, with estimates ranging from $500
million and $2 billion.

6.(U) Leitmann explained that the Forest Carbon Partnership Facility
(FCPF) is a likely instrument for REDD. The objective would be to
kick-start the forest carbon market through testing approaches
(national and subnational, market and nonmarket), incentive systems,
institutional arrangements and payment mechanisms. He noted that
discussions of the FCPF have accelerated since last year with
several tropical countries (Democratic Republic of Congo, Brazil,
Costa Rica, Papua New Guinea, and Indonesia) expressing interest in
participating and a number of industrial countries (Germany, the
United Kingdom, Australia, France, Belgium and Italy) expressing
interest in financing.

JAKARTA 00002459 002 OF 002

7. (U) Leitmann described the Indonesian REDD proposal as the most
advanced REDD country proposal at this time. The Ministry of
Environment has set up seven cross-Ministry working groups to work
on technical proposals for Bali on adaptation, forestry, energy,
technology transfer, Clean Development Mechanism, financial
mechanisms and post-2012 Kyoto Protocol plans. The goal of the
Indonesian REDD is to develop a workable carbon financing mechanism
for avoided deforestation that is ready for presentation at the Bali
COP. Using public funds initially, the GOI would scale up proposed
activities and put them into practice by the end of the Kyoto period
in 2012.

--------------------------------------------- ---------
Adaptation - Coping with the Impact of Climate Change
--------------------------------------------- ---------

8.(U) UNDP's Country Director Hakan Bjorkman and Senior Advisor Dr.
Rizaldi Boer presented on the UNDP efforts to help the GOI plan for
adaptation. Bjorkman noted that the UNDP's goal is to help GOI plan
for and deal with the consequences of increasing climate related
disasters, including floods, rising sea levels, and food security
issues. The UNDP is working with the government to implement a
"climate proofing" concept to increase the resilience of sectors and
communities to current and future climate risks, through six
intervention strategies:

--revisiting and adjusting long life infrastructure to become
climate proof;
--revisiting and synchronizing local and national development
plans;
--policy and regulation reform;
--institutional capacity buildings;
--awareness rising and community empowerment; and
--climate research.

9. (U) The UNDP hopes to complete the national adaptation strategy
and program by the end of 2007 and then begin donor harmonization
activities and program/project implementation in 2008.

----------------------------
GOI Wants Donor Coordination
----------------------------

10. (U) Following the presentations, speakers fielded a number of
questions. A common theme emerged from speakers and participants
that Indonesia does not want a variety of funds from different
donors. Indonesia would prefer to work climate change activities
through a multidonor fund such as the World Bank proposed Indonesia
Climate and Resource Use Sustainability (ICARUS) Fund. BAPPENAS
(the GOI planning agency) prefers that donors integrate a pooled
activity on climate change into the five-year development plan for
Indonesia. Attendees also noted that many G-77 countries are not
happy with the management of the Global Environment Facility (GEF)
adaptation fund. Purnomo asked donors to work productively and
constructively together and not to create tensions through pursuit
of solitary activities.

11. (SBU) Note: For electronic copies of the presentations, contact
ESTH Officers Machut Shishak shishakma@state.gov or Colette
Marcellin marcellinca@state.gov.


HUME

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