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Cablegate: Copenhagen - Advancing U.S.-Indonesia Environmental

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TO RUEHC/SECSTATE WASHDC 3956
RUEATRS/DEPT OF TREASURY WASHDC
RHEHAAA/WHITE HOUSE WASHDC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHMFISS/DEPT OF ENERGY WASHINGTON DC
RUEHC/DEPT OF INTERIOR WASHDC
RUEHRC/DEPT OF AGRICULTURE USD FAS WASHINGTON DC
RUEHCP/AMEMBASSY COPENHAGEN 0113
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DEPT FOR SECC, OES AND EAP
COMMERCE FOR NOAA
EPA/OIA FOR RKASAT, MKASMAN, KBUCKLEY

E.O. 12958: N/A
TAGS: SENV KGHG EAID EFIS PREL ID
SUBJECT: Copenhagen - Advancing U.S.-Indonesia Environmental
Cooperation

1. (SBU) Summary: Cooperation in climate change, energy and
environment is a key component of the U.S.-Indonesia Comprehensive
Partnership, which President Obama is likely to launch formally when
he visits Indonesia in 2010. Bilateral cabinet-level meetings
during climate negotiations in Copenhagen present an opportunity to
advance this partnership, influence key Indonesian cabinet members,
and cultivate a constructive role for Indonesia within the G20. It
is also an opportunity to demonstrate our support for President
Yudhoyono - his acknowledgement of the need for actions by all
countries, and willingness to depart from the developing country
negotiating bloc by announcing specific targets, has positively
influenced international negotiations. Paragraph 3 onwards outlines
potential bilateral meetings or side conversations, Indonesian
counterparts, and issues on which we can deepen the partnership.
(Note: The counterparts listed are likely to be in Copenhagen, but
we do not yet have formal confirmation of this.) End Summary.

2. (SBU) Background: Indonesia is the world's third-largest global
emitter of greenhouse gases. It is also particularly vulnerable to
the impacts of climate change, and consequently pushes strongly in
multilateral fora for significant adaptation assistance. 80% of
Indonesia's emissions currently come from deforestation and peat
land degradation, but its emissions from energy are projected to
grow seven-fold by 2030. President Yudhoyono received sharp
criticism from the G77 after the Pittsburgh G20 Summit when he
declared a unilateral emissions target of 26% below
business-as-usual (BAU), and up to 41% with international assistance
by 2020. He will need encouragement to maintain this constructive
position in the multilateral process. The U.S. and other donors
should support Indonesia's explicit targets, which stand in stark
contrast to China's and India's positions to date.

Possible Bilateral Meetings
---------------------------

3. (SBU) Agriculture Secretary Vilsack (Counterparts: Minister of
Agriculture Suswono, Coordinating Minister for Social Welfare Agung
Laksono, Minister of Forestry Zulkifli Hasan):

-- Food Security: This is a Yudhoyono priority. Climate change is
exacerbating severe food insecurity in parts of Indonesia. As many
as 150 million Indonesians are potential beneficiaries of
improvements in food security. Indonesia needs help on agricultural
adaptation, particularly drought-resistant food crops. It would be
mutually beneficial to establish research and extension linkages
through USDA agencies and Land Grant Universities. Another focus
could be agro forestry. Marine conservation and adaptation are also
vital: Indonesia's marine biodiversity supports the livelihood of 34
million people, and over 60% of Indonesia's national protein comes
from fish.

-- Sustainable Land-Use Management: This will require addressing
the tension between competing land-uses - land for agriculture
versus land as carbon sink or conservation area - since much forest
and peat land conversion is for agricultural uses, including oil
palm and other plantation crops. USAID and the U.S. Forest Service
have done substantial work on this, but much more could be done.

4. (SBU) Interior Secretary Salazar (Counterparts: Minister of
Forestry Zulkifli Hasan, Minister of Agriculture Suswono)

-- Sustainable Land-Use Management: This is crucial for reducing
Indonesia's emissions. Indonesia has indicated that, of its 26%
reductions target, 14% will come from forestry/peat. Consequently,
one Yudhoyono administration priority is harmonizing land-use and
spatial planning across ministries and levels of government to
resolve land-tenure issues and ensure sustainable, balanced
land-use. Interior - together with other agencies like USDA - could
assist Indonesia by sharing our policy experience and technical
expertise on land-use and conservation of forests and wetlands, as
well as on parks/protected areas management.

5. (SBU) Environmental Protection Agency Administrator Jackson
(Counterparts: Minister of Environment Gusti Muhammad Hatta,
Coordinating Minister for Social Welfare Agung Laksono, Minister of
Energy and Mineral Resources Darwin Saleh):

-- Environmental Management: EPA can help improve environmental
governance and management in Indonesia. EPA is finalizing an MOU

with the Ministry of Environment to lay the groundwork for future
cooperation, including on prevention of greenhouse gas emissions,
air and water pollution, chemical and hazardous waste, and watershed
management. With Indonesia indicating that 6% of its 26% reductions
target will come from waste, the partnership opportunities in this
area are promising.

-- Mitigation: When Indonesia joins the Methane to Markets
Partnership shortly, EPA can help assess mitigation opportunities in
the oil and gas sector, as well as in other sectors such as coal-bed
methane and landfills. Assistance for accurately monitoring,
reporting, and verifying greenhouse gas emissions and inventories is
critical for addressing climate change effectively and an important
area for collaboration. This could help Indonesia quantify its
domestic actions in a global agreement, and prepare it for future
carbon markets.

6. (SBU) Commerce Secretary Locke, NOAA Administrator Lubchenco
(Counterparts: Minister of Marine Affairs and Fisheries Fadel
Muhammad, State Minister for Research and Technology Suharna
Surapranata, Minister of Environment Gusti Mohammad Hatta, Minister
of Energy and Mineral Resources Darwin Saleh):

-- Sustainable Fisheries: The Ministry of Marine Affairs and
Fisheries (MMAF) is eager to establish a joint "Center for
Sustainable Ocean Fisheries". USAID and NOAA are already working
with MMAF on capacity building for marine protected areas and
sustainable fisheries. USAID is launching a $25 million, 5-year,
marine program. This work is intimately related to both adaptation
and food security in Indonesia.

-- Ocean Exploration and Science: Marine research is vital for
understanding climate change impacts on the ocean and marine
ecosystems. The U.S. and the Government of Indonesia (GOI) have a
mutual commitment to a partnership in ocean exploration and to bring
NOAA's Okeanos Explorer to Indonesia in 2010. NOAA scientists are
currently planning a joint research cruise with Indonesia's Baruna
Jaya IV vessel in mid-2010.

-- Green Industry, Green Technology (for Minister of Environment and
Minister of Energy and Mineral Resources): There are potentially
significant opportunities for increased involvement by Commerce.
The Government of Indonesia has established a national interagency
team to develop plans for "Green Industry", and they are likely to
seek U.S. expertise and technology for this.

7. (SBU) Energy Secretary Chu (Counterpart: Minister of Energy and
Mineral Resources Darwin Saleh):

-- Renewable Energy: Indonesia has indicated that, of its 26%
reductions target, 6% will come from the energy sector. Several
U.S. agencies have already held successful renewable energy events
in Indonesia, including the Departments of Commerce and USAID. A
strong energy efficiency/renewable energy component to the upcoming
Energy Policy Dialogue that the Department of Energy will host early
in 2010 will solidify regular engagement in this critical area. The
U.S. can help Indonesia meet its current renewable energy and
geothermal power targets.

-- Fuel Subsidies: Rationalizing energy prices is the key to
providing incentives for energy efficiency. SBY's commitment at the
Pittsburgh G20 Summit to gradually eliminate fossil fuel subsidies
needs continued follow-up and support given the highly political
domestic ramifications.

HUME

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