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Viewing cable 09BEIJING2072, SECRETARY CHU MEETS WITH VICE PREMIER LI KEQIANG
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Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
09BEIJING2072 | 2009-07-21 06:07 | 2011-08-23 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Beijing |
VZCZCXRO2113
PP RUEHAST RUEHCN RUEHDH RUEHGH RUEHHM RUEHLN RUEHMA RUEHPB RUEHPOD
RUEHSL RUEHTM RUEHTRO RUEHVC
DE RUEHBJ #2072/01 2020607
ZNR UUUUU ZZH
P 210607Z JUL 09
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC PRIORITY 5305
RHMFIUU/DEPT OF ENERGY WASHINGTON DC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
INFO RUEHOO/CHINA POSTS COLLECTIVE PRIORITY
RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE PRIORITY
RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
RUEAEPA/HQ EPA WASHDC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
UNCLAS SECTION 01 OF 03 BEIJING 002072
SENSITIVE
SIPDIS
STATE FOR SECC/STERN, EAP/CAMPBELL AND NORRIS, OES/MIOTKE, OES/EGC,
EAP/CM, EEB/ESC
STATE PASS USTR FOR LINSCOTT AND STRATFORD
COMMERCE FOR KASOFF AND MELCHER
ENERGY FOR SANDALOW AND YASHIDA
E.O. 12958: N/A
TAGS: ENRG KGHG ECON SENV PGOV CH
SUBJECT: SECRETARY CHU MEETS WITH VICE PREMIER LI KEQIANG
1.(U) This cable is Sensitive but Unclassified (SBU) and for
official use only. Not for transmission outside USG channels.
¶2. (SBU) Summary: Chinese Vice Premier Li Keqiang, after taking
a moment to officially state China's position on the recent violence
in Urumqi, reaffirmed to Energy Secretary Chu China's commitment to
energy conservation and protecting the environment. He added,
however, that as a developing nation, China had to prioritize
economic development. Li stated that developed countries should
take the lead in cutting emissions and transferring technology and
reiterated the need to proceed under the principle of common but
differentiated responsibilities. Chu acknowledged China's
circumstances, applauded its progress to date, and asked Li to
further publicize Chinese efforts to help combat U.S. skepticism
about China's commitment to energy conservation. Li did not
directly respond to Chu's suggestion that China send climate
negotiators to the upcoming Strategic and Economic Dialogue, and
instead countered with his hopes for progress at the Copenhagen
Climate Conference. Li said that China welcomed more technology
transfer and Chu said that the U.S. was working to bring down the
cost of CSS and other technologies. End summary.
¶3. (SBU) On July 16, U.S. Secretary of Energy Steven Chu met with
China's Vice Premier Li Keqiang. Li opened the meeting by observing
that, since the beginning of the Obama administration, there was new
momentum in the bilateral relationship and a great opportunity to
work together on climate change as developed and developing
countries. He said that he was happy with the progress in the
preparations for the Strategic and Economic Dialogue and pleased to
know that Chu himself would be attending.
¶4. (SBU) Li then presented China's position on the situation in
Urumqi where "serious acts of premeditated violence have been
committed by overseas separatists." He said that China, like any
nation, must uphold the rule of law. He insisted that this was an
internal Chinese affair and asked for U.S. support and understanding
as China safeguarded its social stability and territorial integrity.
He also said that U.S. support on this issue was important for
future collaboration on counterterrorism. He ended by saying that
U.S.-China cooperation should be "all-dimensional."
¶5. (SBU) Chu stated that the purpose of his visit was to find ways
to cooperate to develop new technologies to reduce carbon emissions.
He said he was very encouraged by how much China had moved forward
in promoting energy efficiency and cleaner forms of energy. Chu said
that he hoped to work together specifically on increasing building
efficiency, on using coal reserves in a cleaner way and on creating
more efficient cars. The U.S. and China paralleled each other in
that both are big oil importers and both have similar goals to
decrease oil consumption. Chu reiterated that the Obama
administration has aggressive goals in improving energy efficiency
and Americans are trying to achieve this by driving less, driving
more efficient cars, developing electrified cars and developing
fourth-generation biofuels.
¶6. (SBU) Li insisted that cooperation was very important and that
Chu's trip to China would greatly contribute to the effort. He
acknowledged Chu's comment that the United States and China parallel
each other as great consumers of energy but specified that there
were differences between the two countries as well. China, as a
populous country with a weaker economic foundation, must focus on
its economic development. Nonetheless, he asserted that China is
committed to attaining this development in an energy efficient and
environmentally friendly manner. He insisted that conservation was
a priority in China's development strategy because Beijing did not
believe a development model predicated on massive energy consumption
was sustainable.
¶7. (SBU) Li detailed the following steps the Chinese government has
taken to raise energy efficiency:
* Closing coal fired plants which consume 400g coal per kWh and
designating supercritical coal plants that reduce coal consumption
to about 280g per kWh. China is disseminating this technology as
widely as possible and closing inefficient plants as they bring on
the more efficient ones.
* Promoting IGCC technology despite its high cost.
* In 2005, the Chinese government formulated a program to reduce
energy consumption by 20% in 5 years and the goal is already within
BEIJING 00002072 002 OF 003
reach. Scientists have calculated a reduction of 600-700 million
tons of coal annually from this program.
* Promoting clean energy technologies. Although the current ratio
is modest, the goal is to raise the clean energy ratio to 15% or
more of the energy mix by 2020.
* Requiring the removal of particulates, sulfur and nitrogen from
coal plant emissions (which account for 70% of China's energy mix)
and supporting technologies related to carbon capture and storage.
* Supporting the development of electric vehicles and related
enterprises.
* Increasing the cost of fuel to discourage its consumption.
China's fuel tax makes auto fuel more costly than in the United
States.
* Driving a new balance of electrical energy generation via China's
five year plan. Currently nuclear power generates 25 million
kilowatts per year and hydropower generates 170 million kilowatts
per year. Both of these clean energy forms are being rapidly
expanded.
¶8. (SBU) Li concluded that these efforts proved China's seriousness
about a scientific approach to development and commitment to clean
energy. However, he added that the two nations must continue to
follow the principle of common but differentiated responsibilities.
As China is still developing, most emissions are of the category of
subsistence emissions and transfer emissions. He gave the example
of China's production of 2 million kilowatts of solar photocells
which create energy-conserving benefits for many nations but which
are the result of an energy intensive production process carried out
in China. He stated that in cutting emissions, developed countries
should take the lead for historical reasons and due to their higher
per capita consumption.
¶9. (SBU) Chu recognized that China had the right to become a
prosperous country and supported the principle of common but
differentiated responsibilities. He also acknowledged that as a
services-centered economy, the United States had outsourced many of
its energy intensive industries. Chu gave an overview of some of
the positive steps the Obama administration had taken to revamp U.S.
energy policy. In particular, he discussed the economic stimulus
plan's focus on energy efficiency and clean energy. He also
informed Li of the $38.9 billion in additional funding DOE had
received to promote energy efficiency and clean energy. Chu
explained that DOE is highly focused on research and development and
supporting scientists. Chu admitted that the United States had not
taken a strong leadership role on environmental issues in the past
but reiterated that the current administration is deeply committed
to decreasing its energy consumption and carbon footprint.
¶10. (SBU) Chu said that conveying to the U.S. public how serious
China is about climate change was important to bilateral
cooperation. The American people and Congress needed to be
convinced. He explained that some Americans do not realize the risk
of climate change and use the false perception that the Chinese are
not making efforts to conserve energy as an excuse for U.S.
inaction. He urged China to publicize all the impressive efforts he
had learned about during his visit.
¶11. (SBU) Chu said that he hoped China would bring climate
negotiators to the upcoming Strategic and Economic Dialogue. Li was
non-committal, saying that the relevant departments were taking the
necessary steps and stressing instead that he hoped for a positive
outcome from the Copenhagen Climate Conference.
¶12. (SBU) Li said that the energy administrations of the two
countries varied greatly. He said that China did not have as many
resources, joking that National Energy Administration (NEA) Director
ZHANG Guobao, who was also present at the meeting, would now be
lamenting his modest budget. Secondly, he clarified that many
different ministries were making their own efforts. For example,
the Ministry of Housing and Urban-Rural Development was taking the
lead on raising building efficiency. He also stated that large
portions of China's economic stimulus package were being targeted at
energy efficient companies. Though he provided no quantitative
statistics, he stated that the plan greatly prioritized new energy
and related technologies.
¶13. (SBU) In a final exchange, Chu asked Li to consider Carbon
BEIJING 00002072 003 OF 003
Capture and Storage (CSS) and said that the U.S. was committed to
bringing down the price. Li said that China hoped for more
technology transfer and wanted to work together on making CSS and
other technologies more affordable.
GOLDBERG