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Cablegate: Asia Pacific Partnership On Clean Development And

VZCZCXRO4204
PP RUEHCN RUEHGH RUEHVC
DE RUEHGZ #0122/01 2580956
ZNR UUUUU ZZH
P 150956Z SEP 06
FM AMCONSUL GUANGZHOU
TO RUEHC/SECSTATE WASHDC PRIORITY 3357
INFO RUEHBY/AMEMBASSY CANBERRA 0373
RUEHNE/AMEMBASSY NEW DELHI 0099
RUEHUL/AMEMBASSY SEOUL 1427
RUEHKO/AMEMBASSY TOKYO 1212
RUEHOO/CHINA POSTS COLLECTIVE
RUEAEPA/HQ EPA WASHDC
RHMCSUU/DEPT OF ENERGY WASHINGTON DC
RUCPDOC/USDOC WASHDC

UNCLAS SECTION 01 OF 02 GUANGZHOU 030122

SIPDIS

SIPDIS

STATE FOR OES/WATSON, OES/EGC-DEROSA-JOYNT AND OES/PCI
STATE FOR EAP/CM - WARD
STATE PASS TO CEQ CONNAUGHTON AND BANKS
STATE PASS TO NSC FOR HUNTER
DOE FOR INTERNATIONAL/PUMPHREY AND GEBERT
EPA FOR INTERNATIONAL/MCASKILL

E.O. 12958: N/A
TAGS: SENV ENRG TSPL BEXP CH
SUBJECT: ASIA PACIFIC PARTNERSHIP ON CLEAN DEVELOPMENT AND
CLIMATE: CEQ CONNAUGHTON MEETS WITH THE GUANGDONG
DEVELOPMENT AND REFORM COMMISSION


1. (U) Summary: In a September 1 meeting with Guangdong
Province Development and Reform Commission (DRC) Deputy
Director Li Miaojuan, White House Council on Environmental
Quality (CEQ) Chairman James Connaughton called for
eliminating tariffs on environmental technology products;
he told Li that U.S. technology providers are working to
make the latest technologies affordable for sale in China.
Connaughton and Li discussed the Asia Pacific Partnership
on Clean Development and Climate (APP) as well as ways in
which we could share information and cooperation on
environmental issues bilaterally. Li stated she was
looking forward to learning more about the APP and working
with U.S. agencies and organizations. End Summary.

2. (U) On September 1, CEQ Chairman Connaughton met with
DRC Deputy Director Li Miaojuan to discuss the APP and
opportunities for information sharing and cooperation.
Also present were the respective Chiefs of the DRC?s Energy,
Industry, Investment, and Regional Economy Sections.

3. (U) Connaughton said his senior-level discussions in
Beijing had focused on promoting the APP and a stronger
dialogue between governments and industry to control
pollution, reduce greenhouse gases, and ensure energy
security. He had come to Guangzhou to learn about local
conditions and policies, and to discuss best practices and
the latest environmental protection technologies. In
addition to clean coal cooperation, Connaughton said the
APP was interested in renewable fuel, natural gas turbines,
and clean diesel engines.

4. (U) Li stated that she too was ?very interested? in
these issues, wanted to learn more about the APP, and was
prepared to cooperate with U.S. agencies and organizations.
She outlined the challenges facing the Province in
balancing environmental protection and economic growth. Li
also mentioned the provincial government?s efforts to
implement the 11th Five-year Plan with regard to energy and
the environment, specifically, efforts to promote liquefied
natural gas (LNG) and nuclear power for the region, as well
as research into wind and solar energy, methane power
generation in villages, power plant desulphurization
projects, and the elimination of the small, high-polluting
cement factories and ?backyard? power plants. As part of
the Five-year Plan, Guangdong?s Clean Production Program
required that by 2008, 100% of the power plants in the
Province had to install desulphurization devices; this was
double the 50% target set at the national level. For all
new coal-fired power plants, the provincial government had
also requested the installation of nitrogen removal devices.
To the best of her knowledge, Li said, no other province
had advocated this measure.

5. (U) Li concluded that in order to advance the APP
locally, the Partnership countries should first seek
Central Government support. They should then encourage
local governments to increase communication and urge tax
incentives be provided to encourage enterprises?
participation.

6. (U) Connaughton emphasized the need for high level
cooperation between industrial leaders, facilitated by
governments, to take full advantage of the APP. He pointed
out that his discussions in Beijing had positive with
regard to the APP and other matters and said that U.S.
technology providers were working to make the latest
technologies affordable. He urged APP countries to
eliminate tariffs on environmental products. Connaughton
expressed a desire to move forward on the zero-tariff
discussions which have been delayed in WTO negotiations.

7. (U) COMMENT: While Li appeared receptive to the APP and
cooperative efforts to protect the environment, Chinese
company representatives with whom the Chairman met in a
subsequent meeting hosted by the Guangdong Economic and
Trade Commission were less enthusiastic. Representatives

GUANGZHOU 00030122 002 OF 002


from Shaoguan Iron and Steel, Guangdong Yudean Group, China
Petroleum and Chemical Corporation, and Zhujiang Brewery
appeared more interested in personnel, technology, and
possible financial support that could be provided by the
APP countries. End Comment.

8. (U) Chairman Connaughton has cleared this message.

GOLDBERG

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