Sunday, 5 December 2010

WikiLeaks cables: US backs UAE bid to host green energy agency

Dispatches show support for major oil producer to host Irena as trade-off for political, military and financial help in Middle East

Damian Carrington guardian.co.uk, Friday 3 December 2010 21.30 GMT
The US backed an audacious bid by the oil-rich United Arab Emirates to host a major international agency promoting green energy after the federation signalled that its support for America in Afghanistan, Pakistan, Iraq and the Palestinian territories could be at stake.

"We will remember your help," the UAE foreign minister, Sheikh Abdullah bin Zayed al-Nahyan, told the US secretary of state, Hillary Clinton, according to a secret US diplomatic cable sent on 9 April 2009 and released by WikiLeaks.

At the time the US was opposed to the founding of the International Renewable Energy Agency (Irena), a body mirroring the highly influential International Energy Agency. In a cable a week earlier the US ambassador to the UEA admitted it was "counterintuitive" for the world's fourth biggest oil producer to host the headquarters of Irena. The country that first proposed Irena and hosted the founding meeting, Germany, is a world leader in renewable energy.

But Richard Olson's cable was straightforward: "The UAE is clearly signalling that it wants US to support its Irena bid, given UAE support for many of our political, security and financial priorities. While the UAE has not expressed any direct linkage … it expects the USG [US government] to be helpful."

Olson said the UAE had been one of America's most helpful security partners in the Middle East.

"UAE troops are in the fight in Afghanistan (in greater numbers and more dangerous places than many Nato allies); the UAE has cancelled Saddam-era debt in Iraq and opened an embassy; it is perhaps the only Arab country to have fully paid up its dues to the Palestinian Authority; and it has taken a leading role in the Friends of Pakistan initiative."

There was also a financial benefit for the US, Olson suggested: "The UAE, unlike many supporters of renewables, has serious resources to put into the development of technology. This is a point that has not been lost on the US and other countries' private sectors who have worn a deep path to [UEA's] door seeking participation in its projects."

Today, Irena's interim headquarters is in the emirate of Abu Dhabi, with the final confirmation to be made in April 2011. The US has signed up as a member.

Bin Zayed had in March pressed the UEA's case with Richard Holbrooke, the US special representative for Afghanistan and Pakistan, in March. A cable reporting the the meeting, said Bin Zayed's "request for support came in the context of a discussion on Afghanistan and Pakistan in which [he] indicated their desire (based on proven ability) to be very helpful to the United States on political issues".

By June, US embassies around the world were receiving orders to push countries on their support for Irena and the UAE's bid to host it. Turkey had signed up and was supporting the UAE, Japan would join and was "leaning towards" the UAE bid, Latvia favoured the UAE but Norway preferred the German bid.

Other countries, including France, also helped the UAE. After the French president, Nicolas Sarkozy, visited the UEA, Olson wrote in a cable in May: "We had already heard that France (committed to supporting Germany for EU reasons) promised to deliver Francophone west Africa. Now, in a political payback to the African states that support the UAE bid, UAE diplomats will be placed in French embassies, principally in west Africa." The UEA had recruited Cuba itself, with a ministerial visit as thanks.

Despite the heavy diplomatic pressure placed on the US, the UEA complained in May 2009 that Germany wanted to re-open the bidding process. Dr Sultan Al Jaber, chief executive of Masdar, the Abu Dhabi Future Energy Company, told US officials, apparently without irony, that "the process is being politicised to the detriment of Irena".

Cancún climate change conference: Week one roundup

As the Cancún summit's first week draws to a close, John Vidal analyses progress on the key issues, from emissions cuts to finance for developing countries


John Vidal guardian.co.uk, Friday 3 December 2010 15.58 GMT
GIGATONNE GAP
Plan: To hold emissions to a maximum temperature rise of 2C.

The prize: To prevent runaway global warming.

Progress: Little. But many rich countries only interested in implementing unambitious Copenhagen accord.

Setbacks: Pledges made so far by countries only cover 60% of what science says is needed to hold temperatures to 2C increase.

Outlook: Bleak. Hard to see how big emitters like the US will compromise to greater cuts.

Comment: Wendel Trio, Greenpeace climate director: "This is a meeting of emitters anonymous. They haven't even taken the first steps to admit there is a problem."

FORESTS
Plan: Reducing emissions from deforestation and degradation (Redd). To set up an international forest and land use agreement which will allow countries to offset carbon emissions by protecting forests – and locking away emissions – in developing countries.

The prize: Possible $30bn a year to go to developing countries to protect and restore forests.

Progress: Little. Informal discussions taking place but Saudi Arabia is hostile.

Setbacks: Concerns that a bad agreement could fund loggers and lead to corruption.

Outlook: Good. No final agreement but all parties determined to deliver one.

Comment: Peg Putt, Tasmanian Greens leader: "We need to ensure natural forests will be protected, and biodiversity is maintained."

FINANCE
Plan: To raise $100bn a year by 2020 for developing countries affected by climate change, and set up a giant carbon fund.

Progress: Good. Financiers confident money can be found. Some of the key elements like governance of the fund and allocation of more money for adapting to the impacts of climate change – such as flooding – are heading in the right direction.

Setbacks: The US and others are holding finance hostage to get concessions from China on the transparency of monitoring emissions cuts.

Outlook: Close to agreement. This could be one of the deliverables at Cancún. Developing countries will have to agree to a large tranche of risky market-driven money rather than guaranteed public funds, but look like keeping control over the funds.

Comment: Tim Gore, Oxfam climate change adviser: "This is achievable. A fair climate fund could make a huge difference in ensuring that people suffering the impacts of climate change get the help they need and will help put the negotiations back on track towards a global deal."

TECHNOLOGY TRANSFER
Plan: To reach agreement so all countries have access to new low-carbon technologies.

Progress: Talk of regional or international centres to provide advice and information.

Setbacks: Not many. Considered relatively easy to achieve

Outlook: Good but probably to be concluded in 2011.

KYOTO PROTOCOL
Plan: To get rich countries to sign up to extending the Kyoto protocol and state their plans for emissions cuts.

Progress: Backwards.

Setbacks: Japan has stated categorically that it will not sign up to a new period, and other countries like Russia, Australia and Canada are reluctant to give positions away.

Outlook: Critical. Kyotyo protocol is totemic issue for developing countries who say it is the only legally binding treaty forcing rich countries to cut emissions.

Comment: Martin Khor, director of the inter-governmental South Centre: "This is very shocking. The whole Kyoto protocol is now under severe threat."

LOOPHOLES
Plan: Close loopholes in negotiating texts that could mean a rise emissions.

Progress: None. EU, Australia, Russia New Zealand and Canda are trying to open more loopholes.

Setbacks: If major loopholes in forestry, land use and unused permits to emit carbon are not closed, some rich countries may need to take no action to cut emissions.

Outlook: No prospects for agreement.

Comment: Paul Winn, Greenpeace Australia: "The loopholes are so big you can drive a logging truck straight through them and build a coal plant in its shadow. It's time to bring an end to this farce".

VERIFICATION
Plan: Commit to an international program by which countries would monitor, report and verify one another's progress on emission reduction commitments and climate aid pledges.

Progress: China and the US have indicated they are prepared to compromise, and an Indian compromise proposal on self-financed actions at home is shaping up as a deal-maker. Countries are now discussing setting up a new oversight body for long term finance.

Setbacks: Rich countries want to be allowed to measure, and verify actions taken by developing countries to combat climate change. Equally, poor countries want to be certain rich country money comes on non top of official aid.

Outlook: Significant steps so far suggest there could be a breakthrough.

HOW HAVE THEY DONE?
China: Has played the first week quiet, avoiding confrontation with US. But real discussions have barely started.

US: Less assertive and aggressive since the mid term elections because they are in weaker position. Eager to avoid attacks by developing countries but not offering compromises yet.

Europe: The most ambitious of the rich country blocs, not eager to lead but prepared to compromise to get deals on Redd and finance. Positioned midway between Japan and developing countries on Kyoto.