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R 031032Z JUL 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC 5605
INFO RUEHBJ/AMEMBASSY BEIJING 4234
RUEHRL/AMEMBASSY BERLIN 1453
RUEHKU/AMEMBASSY KUWAIT 0375
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RUEHFR/AMEMBASSY PARIS 6181
RUEHRH/AMEMBASSY RIYADH 0577
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RUEHUL/AMEMBASSY SEOUL 0224
RUEHFK/AMCONSUL FUKUOKA 8720
RUEHNAG/AMCONSUL NAGOYA 6949
RUEHNH/AMCONSUL NAHA 1096
RUEHOK/AMCONSUL OSAKA KOBE 2449
RUEHKSO/AMCONSUL SAPPORO 9305
RUEHBS/USEU BRUSSELS
RUEHIN/AIT TAIPEI 7080
RUCNDT/USMISSION USUN NEW YORK 0637
UNCLAS SECTION 01 OF 03 TOKYO 001834
SIPDIS
SENSITIVE
STATE PASS DOE FOR KFREDRIKSON, MWILLIAMSON
STATE FOR E, G, EEB, OES, AND EAP/J
NSC FOR PAUL BROWN AND JONATHAN SHRIER
CEQ FOR JAMES CONNAUGHTON
E.O. 12958: N/A
TAGS: ENRG SENV ECON OVIP JA
SUBJECT: G8, G8+3 ENERGY MINISTERIALS
REF: TOKYO 1505
SENSITIVE BUT UNCLASSIFIED. NOT FOR INTERNET DISTRIBUTION.
1. (SBU) Summary. Representatives from the G8 countries as
well as from China, India, and Korea gathered for the G8 and
the G8 3 Energy Ministerials in Aomori, Japan, June 8.
During the G8-only ministerial, participants reviewed reports
on progress made in implementing the St. Petersburg Global
Energy Security Principles. Participants in both
ministerials expressed concern over historically-high oil
prices and the impact they could have on the global economy.
Energy Secretary Samuel Bodman and others called for
increased investment in energy infrastructure and urged
oil-producing countries to create open and transparent legal
and regulatory systems to encourage such investment. The
G8 3 participants discussed the need to diversify energy
sources to include more renewables and biofuels, the
importance of increasing energy efficiency, and the need to
invest more in and help commercialize new technologies. They
also announced the creation of the International Partnership
for Energy Efficiency Cooperation. End Summary.
2. (SBU) Representatives from the G8 countries as well as
China, India, and Korea gathered for the G8 and the "G8 3"
energy ministerials in Aomori, Japan, June 8. Topics covered
included a review of St. Petersburg commitments, market
volatility and the investment climate in the oil industry,
and energy security and climate change.
Progress Made on Energy Security Initiative
-------------------------------------------
3. (SBU) In the opening session, the G8 countries met to
review the progress made to date in implementing the St.
Petersburg Energy Security Principles adopted at the 2006 St.
Petersburg Summit. International Energy Agency (IEA)
Executive Director Nobuo Tanaka presented preliminary
comments based on the IEA's review of the national reports
submitted by G8 countries and indicated where countries could
be praised for their actions consistent with the Principles,
as well as where they should devote more effort. Energy
Secretary Samuel Bodman and Canadian Minister of Natural
Resources Gary Lunn spoke in favor of making the reports
public and updating them for the 2009 G8 Summit in Italy.
4. (SBU) Echoing the previous day's Five-Country Energy
Ministerial (septel), many participants expressed concern
over recent oil market volatility and cited the need to
promote transparent and stable markets and to improve the
investment climate in producing and consuming countries.
Participants also highlighted efforts to increase the share
of renewables in their country's energy mix.
Investment in Infrastructure Needed
-----------------------------------
5. (SBU) Participants in the G8 3 Energy Ministerial agreed
that the unprecedented high oil prices are a serious concern
for the global economy. During the oil market and investment
climate discussions, Indian Ambassador to Japan, H.K. Singh,
stated a lack of investment in energy infrastructure, driven
in part by concerns over traditionally cyclical oil markets,
is largely to blame for the jump in oil prices. Toward this
end, participants agreed to participate fully in the Joint
Oil Data Initiative (JODI), providing timely, reliable, and
complete data. Singh argued, however, that consumer
countries will depend upon fossil fuels for the foreseeable
future and called for oil producing countries to create open
TOKYO 00001834 002 OF 003
and transparent legal and regulatory environments to
encourage investment.
6. (SBU) Participants cited the need for consumer countries
to develop long-term plans and investment strategies for both
traditional and alternative energy sources. They also called
for a dialogue between producing countries and consuming
countries and suggested the IEA or the International Energy
Forum could facilitate such talks.
Energy Security and Climate Change
----------------------------------
7. (SBU) The discussion on energy security and climate change
was divided into three sub-topics -- lower-carbon energy,
energy efficiency, and innovative energy technology.
Canada's Lunn suggested countries must set their own
carbon-reduction targets and develop appropriate action
plans. He urged countries to take a market-based approach
based on clear and predictable regulatory frameworks.
Participants acknowledged that many developed and developing
countries will continue to rely heavily on coal in their
energy mix and cited the importance of new technologies such
as carbon capture sequestration (CCS) to help reduce
greenhouse emissions. Most also noted the importance of
nuclear technology as a source of clean and secure energy.
8. (SBU) Japan's Minister of Economy, Trade and Industry
(METI) Akira Amari argued countries must identify key energy
consuming industries and then utilize best practices and new
technologies to improve those industries' efficiency. Amari
and other participants advocated implementing IEA
recommendations to the G8 on increasing efficiencies.
Chinese National Development and Reform Commission Vice
Chairman Zhang Guobao outlined steps China is taking to
increase efficiency by closing outdated manufacturing plants,
offering tax incentives to businesses that reduce their
energy consumption, and labeling consumer products as energy
efficient.
9. (SBU) Participants in the G8 3 Energy Ministerial formally
established the International Partnership for Energy
Efficiency Cooperation (IPEEC), an effort to help both
developed and emerging economies put in place more effective
policies and programs to improve energy efficiency. European
Union Energy Commissioner Piebalgs lauded the creation of
IPEEC as a way to gain international cooperation and to
ensure best practices and existing technologies are deployed
globally.
10. (SBU) Secretary Bodman, French Energy Minister Jean-Louis
Borloo, and Korean Knowledge Economy Minister Lee You Ho all
argued for increased inter-governmental and public-private
cooperation to develop new technologies. Speakers also
called for additional research and development in renewable
energies such as wind, cellulosic biofuels, nuclear energy,
and clean coal technology. Secretary Bodman discussed USG
efforts to help commercialize new energy technologies, most
notably through a $42.5 billion loan guarantee program, and
stressed the importance that governments create an investment
climate that encourages private industry to invest in new
technologies.
Comment
-------
11. (SBU) One notable sub-theme of the G8 3 Energy
Ministerials was the strong intention by nearly all countries
to expand the use of nuclear energy in their energy mix.
TOKYO 00001834 003 OF 003
This included Italy's announcement of a recent decision to
include nuclear power in its future energy mix. Germany did
not express opposition to the discussion of nuclear power.
End Comment.
12. (U) This cable was cleared by State and DOE subsequent to
the delegation's departure.
SCHIEFFER