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Cablegate: More On France - Brazil Climate Pact

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RR RUEHIK
DE RUEHFR #1545 3241311
ZNR UUUUU ZZH
R 201311Z NOV 09
FM AMEMBASSY PARIS
TO RUEHC/SECSTATE WASHDC 7569
INFO RHEBAAA/DEPT OF ENERGY WASHINGTON DC
RUCPDOC/USDOC WASHDC
RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHBR/AMEMBASSY BRASILIA 2343

UNCLAS PARIS 001545

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E.O. 12958: N/A
TAGS: SENV ENRG KGHG FR
SUBJECT: More on France - Brazil Climate Pact

REF A) Paris 1520 B) Brasilia 1322

1. (SBU) Gwenaelle Huet, Chief of staff to Brice Lalonde, French
Ambassador for climate change negotiations, commented to ESTH
Counselor November 19 on the "Common Position" announced by
Presidents Sarkozy and Lula da Silva last week. She said that that
Environment Minister Jean-Louis Borloo thinks the accord is not a
sufficient basis for negotiation at Copenhagen, but is useful as a
bridge between Annex I countries and the non-Annex I developing
countries. Particular sticking points in the negotiations were
Brazil's lack of support for the Mexican "green fund" financing
proposal, and Brazil's opposition to setting a date for peaking of
non-annex I country emissions (given possible greenhouse gas (GHG)
fluctuations related to deforestation). The French also had to be
creative over REDD (Reducing Emissions from Deforestation in
Developing Countries) because the Brazilians did not want a
reference to the carbon market as a source of financing.

2. (SBU) The Brazilians agreed to support the proposal to establish
a World Environmental Organization (WEO), though Huet explained
that the WEO concept is still under development, and that France is
open to suggestions on its possible governance and membership. One
thought is that the WEO, as a neutral body, could grant flexibility
to countries in implementation of commitments on greenhouse gas
emission reductions, much as the IMF or European Bank allow
countries to run larger budget deficits during recessions.

3. (SBU) Huet noted that another possible WEO role might be in
handling Assigned Amount Units (AAUs) rolling over from the Kyoto
Protocol, an issue for the EU's eastern European member states and
especially for Russia, which has a large number of AAUs resulting
from the collapse of the Soviet economy. France's position is that
if Russia wants to retain its AAUs, then it must commit to greater
emission reductions. According to Huet, Minister Borloo believes
that a fair middle ground must be found between Russia's desire to
retain the AAUs and France's insistence that the AAUs cannot be used
to subvert the goals of reducing GHG and hopes to travel to Moscow
next week to discuss these and other issues with the Russians.

RIVKIN

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