From: Aftenposten
Date: 09/11/2009
UNCLAS SECTION 01 OF 02 OTTAWA 000874
SENSITIVE
SIPDIS
STATE FOR OES/EGC
STATE FOR SECC
STATE FOR S/CIEA
STATE FOR EEB/ESC
PASS TO DOE/PIA E.O. 12958: N/A
TAGS: SENV, ENRG, CA
SUBJECT: Ottawa: Ambassador Jacobson and Environment Minister
Prentice discuss continental carbon market and oil sands
1) Summary: During an engaging introductory lunch on November 5,
2009, Ambassador Jacobson and Canadian Minister of the
Environment Jim Prentice covered a wide variety of issues,
ranging from Canada´s international reputation and potential
damage from oil sands coverage to exploring the possibility of
a harmonized continental carbon market and collaborating on
the Great Lakes. Minister Prentice clearly indicated his
interest in working closely with the Obama Administration and
both parties stressed the importance of the environment
globally, but also as a key component of our bilateral
agenda. As an immediate follow-up, Minister Prentice asked for
assistance in setting up a conversation with Senator Kerry to
discuss some key issues of concern to Canada in regard to
potential Senate climate legislation. The Ambassador also
agreed to assess interest in Washington on further exploring
the benefits of a continental carbon market. Based on the
breadth and scope of their discussion, the meeting established
common interest and a mutual intention to push forward a
strong environmental dialogue. End Summary.
2) From the onset of lunch, Minister Prentice was clearly
making every effort to establish a connection with Ambassador
Jacobson, outlining his respect for the Administration and his
interest in President Obama´s "back story", persona, and
goals. The tone was very collegial and Prentice appeared
unrushed, focused, and interested in getting to know the
Ambassador on a personal level, sharing stories about his
daughter, life in Alberta, and his love for the
outdoors. Prentice appeared keen to forge a personal
relationship with Ambassador Jacobson - to the mutual benefit
of both countries. Note: Prentice is widely-considered to be
the most respected member of Prime Minister Harper´s inner
circle and enjoys Harper´s complete trust. He is the lead
Minister for climate change, as well as the lead on the Clean
Energy Dialogue and Northern Gas pipelines.
3) During a discussion of the Ambassador´s travels, Prentice
asked for his views on the oil sands. Prentice shared that he
was concerned about the media focus on the sands and the
possible impact on Canada´s international reputation. He
recalled that he was first concerned about oil sands coverage
during a trip to Norway where the public was debating whether
or not Norway should be investing public funds (Statoil) in
´dirty oil´. As Prentice relayed it, the public sentiment in
Norway shocked him and has heightened his awareness of the
negative consequences to Canada´s historically ´green´
standing on the world stage. Calling himself
"conservationist-minded", Prentice said he would step in and
regulate the sands if Canada´s image in the world gets further
tarnished by negative coverage. Although he never mentioned
Natural Resources Minister Raitt by name (perhaps, an
indication of the rumored tensions between the two
Ministries), Prentice did say that he felt that Government of
Canada´s reaction to the dirty oil label was ´´too slow" and
failed to grasp the magnitude of the situation. As the
Minister representing Alberta and one of the most senior
Ministers in the Cabinet, Prentice made clear that he was
constantly monitoring the situation. He noted that if industry
did not take voluntary measures and if the provincial
government did not set more stringent regulations, he would
step in and press federal environmental legislation. In
response to the Ambassador´s inquiry about a possible
moratorium on further expansion in the oil sands, Prentice
didn´t think it was necessary at this time and felt growth to
the 3-4 m/b/d was sustainable. He agreed that the province
should be looking at cumulative environmental impacts and
addressing long-term sustainability concerns. At the end of
the day, Prentice wants Canada to be billed as the most
environmentally-conscious energy superpower.
4) As the topic turned to climate change, Minister Prentice
highlighted a number of concerns that he was interested in
discussing further, preferably with Senator Kerry prior to the
passage of legislation in the Senate. These issues include:
the need for an integrated carbon market, necessitated by the
integrated nature of our economies and energy markets; a
harmonized approach to a low-carbon fuel standard; further
discussion of renewable portfolio standards; an assessment of
the impact/nature of border adjustment measures; and a general
increase in
OTTAWA 00000874 002 OF 002
understanding to avoid inadvertent/unintended consequences of
U.S. legislation on Canada. The Ambassador offered to assist
in setting up a conversation with Senator Kerry, as well as
exploring the possibility of initiating a dialogue on a
harmonized continental carbon market.
5) The last major topic of discussion was a mutual interest in
the protection of and long-term health of the Great Lakes.
Both parties expressed a desire to work collaboratively
on such efforts. Overall, the lunch was a success and laid a
number of markers for further cooperation. Minister Prentice
and Ambassador Jacobson will be meeting again for dinner on
November 9, building further on their relationship. End Cable.
JACOBSON
Reaction by Colby Cosh.
The Globe & Mail