oil sands prentice environment

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"233957","11/9/2009 22:20","09OTTAWA874","Embassy Ottawa","UNCLASSIFIED//FOR OFFICIAL USE ONLY","","VZCZCXRO3831
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RR RUEHGA RUEHQU RUEHVC
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DE RUEHOT #0874/01 3132221
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ZNR UUUUU ZZH
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R 092220Z NOV 09
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FM AMEMBASSY OTTAWA
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TO RHEBAAA/DEPT OF ENERGY WASHINGTON DC
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RUEHC/SECSTATE WASHDC 0063
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INFO ALL CANADIAN POSTS COLLECTIVE
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RHEHNSC/WHITE HOUSE NATIONAL SECURITY COUNCIL WASHINGTON DC","UNCLAS SECTION 01 OF 02 OTTAWA 000874
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SENSITIVE
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SIPDIS
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STATE FOR SECC
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PASS TO DOE/PIA
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E.O. 12958: N/A
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TAGS: SENV, ENRG, CA
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SUBJECT: Ottawa: Ambassador Jacobson and Environment Minister
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Prentice discuss continental carbon market and oil sands
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1)       Summary:  During an engaging introductory lunch on
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November 5, 2009, Ambassador Jacobson and Canadian Minister of the
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Environment Jim Prentice covered a wide variety of issues, ranging
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from Canada\'s international reputation and potential damage from
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oil sands coverage to exploring the possibility of a harmonized
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continental carbon market and collaborating on the Great Lakes.
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Minister Prentice clearly indicated his interest in working closely
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with the Obama Administration and both parties stressed the
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importance of the environment globally, but also as a key component
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of our bilateral agenda.  As an immediate follow-up, Minister
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Prentice asked for assistance in setting up a conversation with
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Senator Kerry to discuss some key issues of concern to Canada in
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regard to potential Senate climate legislation.  The Ambassador
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also agreed to assess interest in Washington on further exploring
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the benefits of a continental carbon market.  Based on the breadth
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and scope of their discussion, the meeting established common
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interest and a mutual intention to push forward a strong
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environmental dialogue.  End Summary.
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2)      From the onset of lunch, Minister Prentice was clearly
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making every effort to establish a connection with Ambassador
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Jacobson, outlining his respect for the Administration and his
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interest in President Obama\'s \"back story\", persona, and goals.
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The tone was very collegial and Prentice appeared unrushed,
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focused, and interested in getting to know the Ambassador on a
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personal level, sharing stories about his daughter, life in
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Alberta, and his love for the outdoors.  Prentice appeared keen to
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forge a personal relationship with Ambassador Jacobson - to the
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mutual benefit of both countries.  Note:  Prentice is
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widely-considered to be the most respected member of Prime Minister
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Harper\'s inner circle and enjoys Harper\'s complete trust.  He is
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the lead Minister for climate change, as well as the lead on the
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Clean Energy Dialogue and Northern Gas pipelines.
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3)      During a discussion of the Ambassador\'s travels, Prentice
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asked for his views on the oil sands.  Prentice shared that he was
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concerned about the media focus on the sands and the possible
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impact on Canada\'s international reputation.  He recalled that he
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was first concerned about oil sands coverage during a trip to
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Norway where the public was debating whether or not Norway should
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be investing public funds (Statoil) in \'dirty oil\'.  As Prentice
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relayed it, the public sentiment in Norway shocked him and has
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heightened his awareness of the negative consequences to Canada\'s
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historically \'green\' standing on the world stage.   Calling himself
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\"conservationist-minded\", Prentice said he would step in and
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regulate the sands if Canada\'s image in the world gets further
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tarnished by negative coverage.  Although he never mentioned
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Natural Resources Minister Raitt by name (perhaps, an indication of
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the rumored tensions between the two Ministries), Prentice did say
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that he felt that Government of Canada\'s reaction to the dirty oil
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label was \'\'too slow\" and failed to grasp the magnitude of the
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situation.   As the Minister representing Alberta and one of the
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most senior Ministers in the Cabinet, Prentice made clear that he
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was constantly monitoring the situation.  He noted that if industry
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did not take voluntary measures and if the provincial government
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did not set more stringent regulations, he would step in and press
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federal environmental legislation.   In response to the
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Ambassador\'s inquiry about a possible moratorium on further
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expansion in the oil sands, Prentice didn\'t think it was necessary
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at this time and felt growth to the 3-4 m/b/d was sustainable.  He
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agreed that the province should be looking at cumulative
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environmental impacts and addressing long-term sustainability
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concerns.    At the end of the day, Prentice wants Canada to be
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billed as the most environmentally-conscious energy superpower.
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4)      As the topic turned to climate change, Minister Prentice
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highlighted a number of concerns that he was interested in
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discussing further, preferably with Senator Kerry prior to the
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passage of legislation in the Senate.  These issues include:  the
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need for an integrated carbon market, necessitated by the
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integrated nature of our economies and energy markets; a harmonized
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approach to a low-carbon fuel standard; further discussion of
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renewable portfolio standards; an assessment of the impact/nature
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of border adjustment measures; and a general increase in
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OTTAWA 00000874  002 OF 002
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understanding to avoid inadvertent/unintended consequences of U.S.
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legislation on Canada.  The Ambassador offered to assist in setting
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up a conversation with Senator Kerry, as well as exploring the
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possibility of initiating a dialogue on a harmonized continental
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carbon market.
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5)      The last major topic of discussion was a mutual interest in
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the protection of and long-term health of the Great Lakes.  Both
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parties expressed a desire to work collaboratively on such efforts.
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Overall, the lunch was a success and laid a number of markers for
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further cooperation.  Minister Prentice and Ambassador Jacobson
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will be meeting again for dinner on November 9, building further on
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their relationship.    End Cable.
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JACOBSON
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