The national emission allowance allocation plan is a central part of the EU emissions trading system. It constitutes the reference framework, in force only for each of the periods of three and five years laid down in Article 15 of the Royal Decree Law 5/2004 of 27 August, governing the regime of trade in the rights of the greenhouse gases, in which the total number of allowances to be allocated in each period is determined, as well as the applicable procedure for their allocation. Article 17 of that Directive, in accordance with Annex III to Directive 2003 /87/EC of the European Parliament and of the Council of 13 October 2003 establishing a regime for the trading of greenhouse gas emission allowances in the European Union the Community and amending Directive 96 /61/EC lays down the criteria for the allocation to be observed by the national plan, based on objective and transparent criteria and also taking into account the claims made through the relevant channels of public information.

The number of rights assigned must be consistent with the international commitments on greenhouse gas emissions assumed by Spain, the contribution of the facilities included in the field of greenhouse gas emissions. This is the case for the application of the national emissions total, the forecasts for the trend and production of all the sectors listed in Annex I to the Royal Decree Law 5/2004 of 27 August, which regulates the system of trade in human rights greenhouse gas emissions, the technical and economic possibilities of reducing greenhouse gases, emissions in all sectors and forecasts for the opening of new installations or the extension of existing ones during the period of the plan.

The plan sets out the individual allocation methodology which, in any case, should avoid the generation of unjustified differences which would lead to an advantage between sectors of activity or between installations included in the the same activity. It is also consistent with the technical and economic possibilities of reducing each sector and takes into account the development forecasts.

The plan also includes a reservation for new entrants and the applicable methodology for the allocation of the rights included in that reservation.

The reservation for new entrants is made up of the set of rights that the plan initially reserves to the facilities whose entry into operation or extension is foreseen for the duration of the plan, as well as the rights previously allocated but not transferred to the holding account of the holders of installations whose issuance authorisation is extinguished by any of the causes provided for in Article 7. In the case of a remnant at the end of the period, the remainder may be disposed of in accordance with the provisions of Law 33/2003 of 3 November of the Heritage of Public Administrations.

The national allocation plan in force for the period 2005-2007 decides an allocation of 172.31 million rights on average annually among the sectors covered by the application of the Royal Decree Law 5/2004, of 27 of August, including cogenerations not associated with industrial processes referred to in Annex I, establishes the individual allocation methodology at the level of installation and determines the amount of rights corresponding to the new reserve incoming, as well as your allocation system.

These decisions are consistent with the government's stated objective that Spain's emissions in the 2005-2007 period should be stabilized in the average of the last three years available (2000-2002).

The additional reduction effort required to comply with Article 9.1 and Annex III to Directive 2003 /87/EC of the European Parliament and of the Council of 13 October 2003 shall take place in the period 2008-2012. At the end of the period, emissions should not exceed 24 percent more of the 1990 emissions, taking into account that this figure is reached by adding the Kyoto Protocol's limitation target (15 percent), to the absorption by sinks (a maximum of two percent) and the credits that can be obtained in the international market (seven percent).

In this way, the national allocation plan for the period 2005-2007 maintains a distribution of the effort between the sectors falling within the scope of Royal Decree Law 5/2004 of 27 August, and those not included in the The current situation in the national total of emissions among the sectors included (40 percent) and the non-included (60 percent).

This is for the country's global emissions, including the included and non-included sectors, a target of 400,7 MT of equivalent CO2 on average annually for 2005-2007, with a reduction of approximately 0.2 percent. with regard to emissions 2002 (401,34 MT).

This royal decree is dictated by the state competence in the field of bases and coordination of the general planning of economic activity and in the field of basic legislation on environmental protection. Article 149.1.13 of the Constitution of the European Union, respectively.

In the elaboration of this royal decree, the autonomous communities have been consulted.

In its virtue, according to the one established in Chapter IV of the Royal Decree Law 5/2004, of 27 August, on the proposal of the Ministers of the Environment, Economy and Finance and Industry, Tourism and Commerce, according to the Council of State and prior deliberation of the Council of Ministers at its meeting on 3 September 2004,

D I S P O N G O:

Single item. Approval of the national emission allowance plan, 2005-2007.

The current national emission allowance plan for the period 2005-2007, which is inserted below, is approved.

The allocation of greenhouse gas emission allowances for that period shall take place in accordance with the provisions of that plan.

Final disposition first. Basic nature and competence title.

This royal decree has a basic nature and is dictated by the state powers in terms of bases and coordination of the general planning of economic activity and basic legislation on the protection of the environment. the environment provided for in Article 149.1.13.a and 23.a of the Constitution, respectively.

Final disposition second. Entry into force.

This royal decree will enter into force on the day following its publication in the "Official State Gazette".

Given in Madrid, 6 September 2004.

JOHN CARLOS R.

The First Vice President of the Government

and Minister of the Presidency,

MARIA TERESA FERNANDEZ DE LA VEGA SANZ

ANNEX

NATIONAL RIGHTS ALLOCATION PLAN

EMISSION 2005-2007

INDEX

Introduction.

1. Summary.

2. The total amount of rights that are allocated.

3. Distribution of rights by activities.

4. Assignment of rights to each installation.

5. Technical aspects.

6. Community legislation.

7. Procedure for public information.

8. Other allocation criteria.

Annex A: List of installations.

Introduction

Directive 2003 /87/EC of the European Parliament and of the Council of 13 October 2003 establishing a system for the trading of greenhouse gas (GHG) emission allowances in the Community and for which it is amends Council Directive 96 /61/EC, establishes a "Community scheme" for emissions trading, in order to promote reductions in emissions of these gases in an efficient manner in relation to cost and economically.

Article 9 of Directive 2003 /87/EC provides that, for each period referred to in Article 11 (1) and (2) of Directive 2003 /87/EC, that is, for the three-year period beginning on 1 January 2005, for the period of five years starting on 1 January 2008 and for each subsequent five-year period, each Member State shall draw up a national allocation plan (NAP) which shall determine the total quantity of allowances to be allocated during that period. period and the allocation procedure. The plan shall be based on objective and transparent criteria, including those listed in Annex III to the Directive and the guidelines of the Commission for the implementation of those criteria presented in January 2004, taking into account the comments from the public.

The NAP 2005-2007 must be a significant step towards compliance with Kyoto, but preserving the competitiveness and employment of the Spanish economy.

This means identifying the most efficient reduction opportunities in the industry, and starting its implementation in an effort that will intensify in 2008-2012. On the other hand, compliance with the Kyoto Protocol and the NAP 2005-2007 should minimise the potentially adverse social effects, and in particular those relating to employment. The flexibility mechanisms of the Kyoto Protocol allow States with emission limitation commitments to meet part of them by emission reductions produced in third countries. Spain will use these mechanisms for the fulfilment of its commitment.

The NAP includes a preliminary list of affected installations. Such a list shall be final only once the procedure laid down by the law for the allocation of rights to installations has been completed.

The elaboration of the NAP has been carried out by the Inter-Ministerial Climate Change Group (GICC), which was formed in May 2004 by the Government's Delegate Committee for Economic Affairs and made up of representatives with rank of Secretary of State or Secretary-General and Directors-General. The GICC is chaired by the Secretary of State for Economic Affairs of the Ministry of Economy and Finance. His secretary is the Secretary-General for Pollution Prevention and Climate Change, the Ministry of the Environment, and is part of the GICC all competent ministerial departments, with permanent presence, in particular in all meetings of the group, of the representatives of the following areas:

Ministry of Economy and Finance: Secretary of State for Economic Affairs. Directorate-General for Economic Policy. General Directorate of Taxation.

Economic Office of the President of the Government.

Department of Welfare Society.

Ministry of Public Works: General Secretariat of Transport.

Ministry of Industry, Tourism and Trade:

Secretary General of Energy. General Secretariat for Industry, Directorate General for Energy Policy and Mines.

General Directorate of Industrial Development. Institute for Diversification and Energy Saving (IDAE).

Ministry of Labour and Social Affairs: Directorate-General for Work.

Ministry of Agriculture, Fisheries and Food:

Secretary General of Agriculture.

Ministry of Environment: General Secretariat for the Prevention of Pollution and Climate Change. Spanish Office of Climate Change.

Ministry of Housing: Directorate General of Architecture and Housing Policy.

The GICC has analysed the working hypotheses developed by the experts, on horizontal issues involved in each of the sections of the NAP, which has been designed in accordance with Annex III of the Directive and the guidelines. of the Commission for the application of the criteria of that Annex in the preparation of the NAP.

Since 2002, work has been done with industry sectors to identify policies and measures for climate change mitigation, the data available and the characteristics of each of the sectors included in the directive and those not included.

During the second half of 2003 and the first quarter of 2004, several ad hoc inter-ministerial preparatory groups, chaired by the Ministry of Economy and with secretariat in the Ministry of the Environment through the Spanish Climate Change Office, gathered information from the sectors affected by the directive for further analysis. All this documentation has served as a basis for the realization of the subsequent works, which are conducive to the decision-making in relation to the initial allocation of allowances.

The GICC, once revised all the preparatory work of the inter-ministerial groups and consultations of the Administration to sectors and agents, in particular the one developed in the last trimester of 2003 and first semester of 2004, and a has carried out the analysis of allocation methods by sectors and activities, prepared a proposal of criteria for the elaboration of the NAP that was approved by the Government Delegation for Economic Affairs at its meeting on June 17 of 2004. The proposal for a plan by the Ministers for the Environment and Industry, Tourism and Trade was presented on 7 July 2004. As of 8 July, this proposal was submitted to public information, as detailed below.

In the preparation of the NAP and in the preliminary work of integration of the data collected, the indications of the operators, competent departments and interest groups affected by the plan have been taken into account.

The structure of the NAP includes the reference to the commitment of Spain in the ratification decision of the Kyoto Protocol; the method of calculating the total number of rights to be allocated and its amount; the consistency with the Kyoto commitment and shared burden at the level of the European Union; measures in sectors not covered by the Directive; flexibility instruments; sector allocations; technical aspects; potential for emissions reductions; processing of new entrants; the closure of installations; other legislation of the European Union; and the main issues related to public consultation processes.

1. Summary:

(SEE IMAGES, PAGE 30618 TO 30620)

Summary of steps and key topics in the elaboration of the NAP

Basic Principles of the Allocation Plan

Objective in the basic scenario

compliance.

It is set as an initial target for Spain's emissions in the 2005-2007 period to stabilise in the average of the last three years available (2000-2002), with an additional increase of 3.5% of emissions from Spain. CO2 from the sectors of the directive, for new entrants. This implies for global emissions a target of 400,70 Mt CO2eq/year for 2005-2007, with a reduction of approximately 0.2% compared to 2002 emissions (401.34 Mt).

Additional Reduction Effort

in the base scenario of

compliance.

The additional reduction effort will take place in 2008-2012. During this period, the average emissions will not exceed by more than 24% the emissions of 1990, a percentage that is reached by joining the target of limitation for Spain of the Kyoto Protocol (15%) to the estimate of absorption by (2%) and international market credits (7%).

Sharing the effort of

reduction across sectors of the

directive and non-directive.

The current weight of CO2 emissions from the sectors included in the directive (40%) is maintained with respect to national total emissions.

Total number of rights for

the period 2005-2007,

sectors included in the directive.

The distribution of 154.86 Mt CO2/year and an additional reserve of 3.5% for new entrants is proposed, resulting in a total allocation of 160.28 Mt CO2/year, with a reduction of 2.5% compared to the 2002 emissions (164.32 Mt).

This is added to 11.11 Mt/year that are allocated to the cogenerations that service processes not listed in Annex I of the directive and 0.92 Mt/year as a reserve for these same facilities.

Additional measures in

sectors not included in the

directive.

Additional measures are required for sectors not included in the directive, leading to a total reduction of CO2eq emissions of approximately 52 Mt in 2005-2007, as well as ensuring compliance with the measures already in place. intended.

A set of accompanying measures is being worked out in the "Strategy for Energy Saving and Efficiency in Spain 2004-2012" (E4), which will allow for a further reduction in energy consumption and, together with others will be grouped together in the Action Plan 2004-2007, with the implementation of the E4's own actions for that period.

Sector-level allocation.

Allocation Method (s).

The sector scenario is under-divided for the electrical sector and scenario for the industrial sectors. Basically, emission projections based on historical emissions have been considered. Based on these projections, the emission reduction capacity of each sector has been calculated to make the allocation at sectoral level.

Sectoral level, electrical sector. The forecast for average emissions of electricity generation is 94 Mt CO2/year in the period 2005-2007. They are allocated to the 86.4 Mt CO2/year electric sector in 2005-2007, which includes new entrants from the sector. The allocation of the steel sector includes an additional 1.6 Mt, corresponding to electricity generation with steel gases, which in practice raises the sector's rights to 88.0 Mt.

Sectoral level, sectors

industrial.

70.30 Mt CO2/year is allocated in 2005-2007 for industrial sectors, including capacity increases of existing operators, as well as 3.58 Mt CO2/year reserve for new entrants, distributed in an indicative way sectorially according to the estimates of increase of emissions between 2002 and the forecasts for 2006, with adjustment of the final allocation according to criteria set for the management of the reserve for new entrants.

Co-Generations associated with

processes not listed in

Annex I to the Directive.

11.11 Mt CO2/year is allocated in 2005-2007, while a reserve for this group of facilities of 0.92 Mt CO2/year is constituted.

Assignment at the

level

installation. Method (s) of

allocation.

For industrial sectors, an approximation has been made on the basis of the average of the emissions for the last three years available (2000-2002). For the energy sector see the relevant section of methodology.

New entrants: definition and

treatment of the reservation of

new entrants.

Not considered new incoming in the NAP 2005-2007:

The extension or operation of installations during the period of validity of the plan, which at 30 September 2004 have all the permits and licenses required by the applicable law and have applied for GHG emission authorization. This request shall indicate the foreseeable date of entry into operation.

A free reserve of 3.5% is set for emissions from the baseline scenario, which is 5.42 Mt/year. Of these, 1.84 Mt/year is allocated to the electricity sector being already included in the allocation of 86.4 Mt/year set for the sector. The rest, 3.58 Mt/year, is allocated to the industrial sectors. 50% of the reserve is initially foreseen for the cogeneration plants which serve in the industrial sectors listed in Annex I of the Directive.

Additionally, a reserve of 0.92 Mt/year is constituted for the co-generations associated with sectors not listed in Annex I of the Directive. The distribution will be made by order of request ("First come, first served"). The rights of the reserve of new entrants not allocated before 30 June 2007 may be allocated in accordance with the provisions of Law 33/2003 of 3 November of the Heritage of Public Administrations.

Early action and technologies

clean.

The potential for reduced facilities is in some cases limited, due to technological improvements already introduced in the past, elimination of the most inefficient facilities and modernization with the latest technologies. available. The rationalization in the use of energy is a constant in the sectors affected by the directive, concretized in improvements in processing units, optimization of heat exchanges, installation of preheaters and improvements in the systems of instrumentation and control of processes and greater efficiency, when this is compatible in a sector or activity, due to increased cogeneration in the sector. While obtaining the new products and finishes at times imply greater energy consumption, their use by other sectors offers quantitative and qualitative improvements in their performance, with a consequent reduction of emissions in the product life cycle. The increase in the weight of the production and use of less carbon-intensive fuels, when this is possible, has allowed the reduction of the specific emissions of some of the sectors.

Extinction of authorizations. The rights not yet issued that have been assigned to installations whose authorization is extinguished, by some of the legally intended causes, will automatically pass to the reservation of new entrants.

"Banking". The rights of the first allocation period (2005-2007) to the second (2008-2012) are not allowed.

Installation definition of

combustion.

A definition of a combustion plant is adopted which includes the public service thermoelectric power plants and the cogeneration plants which produce electrical energy under ordinary or special arrangements, regardless of the sector in which they serve. In both cases, with a rated thermal power exceeding 20 MW. The lower heat power (P.C.I.) shall be used to determine the rated thermal power of the installation and shall be applied as a general rule that a thermal power of 20 MW is equivalent to an electric power in 7 MW bars. It is understood that all the fixed combustion devices associated with the installations of sectors listed in Annex I to the Directive are part of the same and therefore fall within the scope of the Directive.

Pool of installations. Voluntary "pool" of industrial sectors is authorised, while maintaining competition, as an instrument of flexibility to reduce transaction costs and increase the capacity for trading on the markets without altering the integrity of the market. system environment. The authorisation of "pools" in the electricity sector is not permitted as it can be considered as preventing the NAP from effectively incentivising the emission technologies which are less emitting.

Flexibility Mechanisms

based on projects.

100 Mt for the period 2008-2012, this is 7% of the 1990 emissions.

The NAP 2005-2007 containing this document has been prepared in accordance with Articles 9 and 10 and Annex III of Directive 2003 /87/EC and the Guide COM (2003) 830 published on 7 January 2004 and is a document that has been prepared on the assumptions, data and results analysed, which may be subject to subsequent consultations, in the light of the observations resulting from them.

There has been a distribution of the total rights among the different sectors and activities on a meso level, prior to the distribution of rights between the facilities of each of the sectors and activities covered by the directive.

For this purpose, the statistical data parameters contained in the GHG Emissions Inventories communicated to the United Nations Framework Convention for Climate Change, series 1990-2002, have had to be adapted to the scenarios and contexts in the sectors listed in Annex I to Directive 2003 /87/EC, all in line with the implementation of Decision 280 /2004/EC of 11 February 2004 on mechanisms for the control of GHG emissions in the Community for the implementation of the Kyoto Protocol and criterion No 2 of Annex III to Directive 2003 /87/EC.

A point of particular interest in the preparation of the NAP has been the consideration of the evolution of emissions from sectors not included in Annex I to Directive 2003 /87/EC, such as those for sectors such as the transport and residential and tertiary, for the delimitation of the corresponding paths of adjustment of the emission projections in a global, equitable and coherent approach of the distribution of the efforts to be made in the whole of the the evolution of national global GHG emissions on the basis of the emission levels of the on the basis of Council Decision 2002/358/EC of 25 April 2002 on the approval, on behalf of the European Community, of the Kyoto Protocol to the United Nations Framework Convention on Climate Change and on compliance All the commitments entered into by Spain under this Agreement.

The part of the emission reduction effort to be made with additional policies and measures, carbon sinks and project-based mechanisms (clean development and joint implementation mechanisms) constituted a crucial point of this NAP.

Base documents:

Directive 2003 /87/EC.

Communication from the Commission on guidance for assisting Member States in the implementation of the criteria set out in Annex III to Directive 2003 /87/EC.

Decision 280 /2004/EC of 11 February 2004 on mechanisms for the control of GHG emissions in the Community for the implementation of the Kyoto Protocol.

Inventory of GHG Emissions communicated to the United Nations Framework Convention on Climate Change, 1990-2002 series.

2. The total amount of rights that are allocated

2. A Commitment of Spain in the decision of ratification of the Kyoto Protocol

In accordance with Council Decision 2002/358/EC of 25 April 2002 on the approval, on behalf of the European Community, of the Kyoto Protocol to the United Nations Framework Convention on Climate Change and to the compliance with the commitments entered into under that agreement, Spain has a quantified emission limitation commitment, agreed in accordance with Article 4 (1) of the Kyoto Protocol, not exceeding more than 15% of the total % of their emissions from the following GHG: carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6), in the period 2008-2012, compared to 1990 levels in the case of CO2, CH4 and N2O, and 1995 levels in the case of HFCs, PFCs and SF6.

The European Community as a whole has a quantified emission reduction commitment of 8% for the referenced gases and period as set out in Annex B to the Kyoto Protocol.

2. B Principles and data used to determine the contribution of the sectors of the directive to the objective; if projections were used, please describe them

A basic principle in the elaboration of the NAP has been the participation of the departments of the General Administration of the State concerned and the collaboration with the industrial associations. This principle has been applied through a laborious process in which there has been a considerable diversity of information sources. In particular, the following are relevant data sources:

The National Inventory of Gas Emissions to the Atmosphere. In this respect, it is interesting to note that, following the elaboration of the NAP, cooperation between the administrative unit responsible for the inventory has been increased and certain sectors included in the field of emissions trading. It has been possible to carry out methodological reviews and to obtain information adapted to the context of the Directive. Another notable point is the existence in the national inventory of a database on large point-of-time foci. On this basis, individual information on a part of the facilities under the directive is found. The information is obtained through questionnaires aimed at the main installations of the sectors.

In the last phase of consultation with the sectors affected, some inconsistencies were detected, among the inventories produced by the administration and those managed by the sectors to prepare their projections and their request for rights. The public consultation of this document contributed to homogenizing both sets of data. However, some subsequent checks may be necessary in specific cases, although it is considered that the data collected in the document are generally correct.

Questionnaires developed by the industrial associations. -In the framework of the contacts maintained with the industrial associations to develop the NAP, questionnaires were distributed and collected with relevant information on: emissions, production, sectoral foresight, both emissions and production, the development of specific emissions in each of the sectors, potential for reduction, and facilities included in the emissions market regime.

The state register of pollutant emissions and sources (EPER), established in accordance with the provisions of Decision 2000 /479/EC of the European Commission.

The Register of Electrical Power Production Facilities in Ordinary and Special Regime. -This is an instrument created for proper monitoring of electrical production in both regimes.

Working Group General Administration of the Spanish Confederation of Business Organisations (AGE-CEOE Group).-The group carried out a detailed analysis of the options for reducing emissions in the various sectors and activities. A study of sectoral characteristics in terms of emissions, foresight, implementation of clean technologies and comparison with the situation in the rest of the EU was also carried out.

Cooperation agreement between the Ministry of the Environment and the L. R. Klein Institute of the Autonomous University of Madrid. -This agreement has been aimed at the elaboration of a study of the criteria for the allocation of the NAP.

As mentioned, some of the sources of information above include emissions and/or production projections. This is the case for the prospective provided by the industrial associations, through the questionnaires that addressed the specific questions of the NAP or through the work carried out by the group AGE-CEOE.

The approach provided by the sectoral organisations ' forecasts was completed with the foresight developed by the competent ministerial departments:

Energy prospectively related to the " Planning of the electricity and gas sectors. Development of the 2002-2011 transport networks ", which updated the objectives of the 2000-2010 Renewable Energy Promotion Plan and" Energy saving and efficiency strategy in Spain 2004-2012 ".

Forward in the agricultural and livestock sector.

Forward-looking emissions in waste management.

In the first case it is a macro vision covering all CO2 emissions of energy origin, while in the second one covers two important sectors not included in the directive.

In 2002, total GHG emissions in Spain reached 401.34 Mt of CO2-equivalent. This figure is almost 40% higher than the emissions of the base year, or what is the same, almost 25 percentage points of excess over the commitment made in the Kyoto Protocol. The evolution of emissions is largely a consequence of the rapid economic development that has occurred in Spain in recent years. This development highlights the difficulties that are being encountered in order to combine economic convergence with the European Union, a key objective of government policy, and the limitation of the growth of GHG emissions.

Economic growth has resulted in an increase in per capita emissions. However, it should be noted that even in 2002, Spain's per capita emissions had not reached the EU average (EU15). It is therefore clear that the first step towards the implementation of the Kyoto Protocol implies a change in emissions trends. This NAP responds to this need, by setting itself on a path of emissions evolution that leads to compliance with the Kyoto Protocol and recognises economic convergence with the European Union as a goal to be safeguarded.

2. C Total number of allowances to be allocated, explaining whether the auction will be used and whether the rights to be allocated represent variation in the proportion of emissions in the sectors of the directive in relation to the total.

The allocation for the calculation of the total allowances to be allocated has been determined in accordance with the criteria set out in the Trade in Rights Directive.

At the macro allocation level, the amount of rights that will be granted to the total of activities affected by the directive for the period 2005-2007 has been calculated, in accordance with the commitment made by Spain in the Protocol of Kyoto for 2008-2012.

This exercise, known as "the path", has formed the basis for determining the reduction effort to be made for the activities affected by the directive and the effort to be made for the activities not affected, achieve the target of +15% on emissions from the base year, in 2012.

The basic compliance scenario states that between 2008 and 2012 the average emissions should not exceed 24% emissions in 1990, a figure resulting from the Kyoto Protocol's limitation target (15%). estimation of absorption by sinks (a maximum of 2%) and credits from the international market (7%).

Spain has taken into account, in this exercise, the efforts already made to reduce emissions by sectors and activities, both those included in the directive and those not included, as well as the potential to increase this reduction, both in sectors and activities affected and those not affected by the directive. The fair share of the reduction effort required, in addition, to take into account the evolution of the 1990-2002 historical series of emissions in non-directive sectors, some of which, such as transport and residential, have been an evolution that needs to be taken into account in the distribution of GHG emissions reduction efforts, and in particular CO2.

The scenarios and alternatives that are compatible with the determining criteria of the directive have been analysed for this purpose, while maintaining economic competitiveness and respect for commitments is optimised. international. The scenario is that the allocation of the emission reduction effort is made between the sectors of the directive (40%) and the sectors not covered by the directive (60%), while maintaining the current weight of the emissions included in the field of the Directive (CO2) in the national total of emissions (triennium 2000-2002 with average water quality).

Thus, and with regard to the activities included in the directive, by means of the sum of the trend projections for the various activities mentioned in Annex I to the Directive, the allocation of 154,86 has been determined. Mt of CO2, with a free additional reserve of 3.5% for new entrants to the emissions trading scheme, thus ensuring equal treatment between existing and new entrants, provided the latter use the best available technologies. 50%, in principle, of this reserve, will be used for cogeneration installations. To the above amounts, 11.11 Mt of CO2/year should be added which will be allocated to the co-generations serving in sectors not listed in Annex I of the Directive. In addition, a reserve of 0.92 Mt of CO2/year is established for this type of facility. In total, 172.31 Mt of CO2/year, including the reserve.

GRAPHIC:

(VIEW IMAGE, PAGE 30622)

The distribution of the reservation will be by order of request, until it is exhausted. If a remnant is produced, it may be disposed of in accordance with the provisions of Law 33/2003 of 3 November of the Heritage of Public Administrations.

Assigned rights not issued for installations whose authorities are extingan, will automatically go to the reservation for new entrants.

The definition of combustion plant incorporates the co-generation of more than 20 MW associated with industrial processes not included in the directive producing electrical energy under ordinary or special arrangements.

The information available on these installations has been limited, so the inclusion of these facilities in the reference scenario and in the allocation scenario was only possible after the consultation procedure was completed. public.

2. D Measures for sectors not covered by the Directive

The main sectors and activities not covered by Directive 2003 /87/EC, as specified in recital 25 and criterion 1 of Annex III, are covered by this heading. This is how policies and measures are implemented and planned in the transport sectors; residential, commercial and institutional (R&C&I); agriculture; and waste management. In addition, actions are also envisaged to limit and reduce emissions of fluorinated gases (which correspond to three of the GHG targets under the Kyoto Protocol: HFCs, PFCs and SF6).

The following table shows the emissions of these sectors and activities in recent years, as well as those for the reference years (1990 for the first four and 1995 for the fluorinated gases). In general terms, there is a steady increase in emissions from transport and waste management, associated with the economic growth that has taken place in Spain since the mid-1990s and the effort made in Spain. the collection and the most appropriate treatment of waste; a gradual increase-although with ups and downs-in the residential, commercial and institutional sectors, associated with the expansion of the natural gas distribution network; a stabilization of the emissions from the agricultural sector due to its close relationship with the agricultural area and livestock herd, which do not suffer appreciable variations; and a notable decrease in fluorinated gases due to the introduction of measures in the manufacture of aluminium and the containment in the production of hydrofluorinated carbides.

TABLE:

(VIEW IMAGE, PAGE 30622)

kt CO2 eq. 1990 1995 1998 1999 2000 2001 2002

Transport ......................... 58.505.8 67.036.8 79.741.1 84.761.5 87.313.8 91,722.1 93.956.8 R&C&I ............................... 18.104.4 20.716.5 22.355.3 23.501.2 24.843.3 25.651.2 24.615.3 Agrarian .............................. 46.786.4 46.835.1 51.286.4 52,693.5 54,416,6 53,816.0 53,878.7 Waste ............................ 9.485.5 11.697.4 13.586.5 13.966.2 14.547.6 15.157.7 15.666.4 Gases F .............................. 3.287.4 5.529.5 6.699.3 8.045.0 8.787.2 5.728.9 4.391.8 Subtotal ........................ 136.169.5 151.815.3 173.668.6 182.967.4 189.908.5 192.075.9 192.509.0

2. D. to Horizontal Measures.

The tax system can contribute to achieving the objectives set out in the Kyoto Protocol, in so far as it forms part of an appropriate mix of instruments to reduce emissions. In this respect, the current tax system is intended to contribute to the improvement of the relative prices of options that do not produce or barely produce emissions, taking into account social and economic considerations. Among the measures in force is the scope of the Tax on Economic Activities, the Tax on Companies and the Tax on Real Estate, mainly through the extension of the deductions (Royal Decree Law 2/2003, of April 25, of measures of economic reform, in terms of the promotion of the energies

renewable, and Royal Decree 436/2004 of 12 March, on premiums in the production of electrical energy by special scheme), as well as the maximum periods of depreciation of the corresponding investments.

In the context of compliance with the Kyoto Protocol, it may be appropriate to open a debate on the desirability of deepening the use of taxation as an instrument for improving the environment, in general, and for to reduce emissions from sectors not covered by the Directive, in particular.

Outside of fiscal policy, the modification of the system of premiums to the production of electrical energy in Special Regime (cogeneration and renewable), by means of Royal Decree 436/2004, of March 12, will contribute to the achievement of the the objectives of the 2000-2010 renewable energy promotion plan. Firstly, because it gives greater stability to the current remuneration regime and, therefore, improves the confidence of potential investors in new generation capacity with renewable sources and, secondly, because it improves remuneration per kilowatt hour generated for different technologies. The remuneration received per kilowatt hour generated from renewable sources, above the average electricity market price, is the way to internalise the environmental benefits of renewable electricity.

On the other hand, energy saving and efficiency mean the adoption of a set of measures aimed at the rational use of energy, acting on demand to reduce consumption or to promote energy consumption. use of the least polluting forms by means of the discrimination of the supply in distribution. Thus, at the end of 2003, the "Strategy for energy saving and efficiency in Spain 2004-2012" (E4) was adopted, which should contribute to the achievement of the three basic objectives of energy, Community and Spanish policy. Firstly, to ensure the supply of energy in a scenario characterised by the high degree of external energy dependence of Spain; secondly, to improve competitiveness through the efficient use of resources. energy; and thirdly, to promote environmental protection and to make economic progress and the welfare of a cleaner environmental environment compatible.

As regards the promotion of cogeneration as an efficient method for the generation of heat and electricity, the transposition of Directive 2004 /8/EC will provide the appropriate regulatory framework.

Following the previous effort, which led to the approval of the E4, the General Administration of the State is preparing a proposal for Action Plan 2004-2007 that includes measures complementary to the E4. The purpose of this action plan is to implement actions that need to be addressed in the short term, identifying those responsible for their implementation at the three levels of the Administration (state, regional and local). The action plan shall also quantify the public budget necessary for the effective implementation of the measures and identify the origin of the public funds to be committed for the achievement of the planned savings.

2. D. b Transport sector.

Transport represents an essential activity in our society, as it participates in economic activity both in its function as input to the production system, and as an activity that citizens carry out for to satisfy their demand for mobility in relation to their travel to work, places of purchase and leisure. Transport, and in particular infrastructure, have been essential elements of economic policy, having contributed, together with other measures, to economic and social development, to the structure of the territory, to integration and the cohesion of space, and the improvement of accessibility conditions.

But also transport is responsible for a lot of social and environmental impacts: air pollution, noise, accidents, territory fragmentation, congestion, energy dependency, etc. The challenge of the Spanish transport policy will therefore be to find a wise and fair balance between its positive effects and its negative impacts, in particular, in achieving harmonisation of mobility and accessibility with our commitments. International climate protection and, therefore, in the reduction of GHG emissions from transport.

The configuration of inter-urban internal mobility in Spain has varied considerably over the last 50 years. Although by the middle of the 20th century rail was the predominant mode of transport for both travellers (60%) and goods (36%), this position has been occupied by road transport, with a modal share of the order of 90%. in the case of passenger transport and 80% in the case of goods. The reliable analysis of urban mobility has taken place only since 1988 and informs us that urban mobility has increased dramatically, with the transport of passengers having doubled and 25% in the case of transport. goods.

It is also interesting to highlight the strong increase in air transport, especially in the case of passenger transport.

For these reasons, the transport sector in Spain has experienced, for the last few years, the greatest growth in energy consumption, as demand for transport has increased at a rate higher than GNP, which it has caused the greatest efficiencies in vehicles to be overshadowed by the increased growth of mobility. If the evolution of the main transport indicators is reviewed, it is evident that the fleet of vehicles has doubled compared to the year 1985, that the number and length of the movements has increased, and that not only has the energy consumption of the sector grown, but also its energy intensity, 30% higher than that of 1985.

The transport sector currently consumes 36% of our country's final energy, which is 99% of the energy derived from petroleum products, making this sector the second largest contributor of GHG emissions. However, the trend forecasts for the next decade put transport as the sector with the highest growth in energy consumption, with a 4.2% annual average between 2000 and 2012, a fact that would make transport in the The largest GHG emitter in our country.

For these reasons, the transport sector in Spain is going to have to be rapidly transformed over the next few years, otherwise there would be no possibility for our country to comply with the Kyoto Protocol. This is why a set of measures will be put in place in order to fulfil their share of responsibility for CO2 emissions and to achieve, together with the efforts of the other sectors concerned, the reduction scenario assumed in the current NAP.

The main requirement for reducing emissions from the transport sector is to integrate the climate change variable into the decisions that will have to be taken in the transport sector over the next few years, both at the level of infrastructure and in the field of transport services (the Ministry of Public Works is currently drawing up the Strategic Infrastructure and Transport Plan, which will be the subject of strategic environmental assessment).

Consequent with the increase in fossil fuel consumption, GHG emissions from the transport sector have grown the most over the last few years, at a rate of 5%, much higher than the percentage increase. Annual report of Spanish GNP. The transport sector (by road, air and sea) is estimated to contribute more than 22% of Spanish GHG emissions. Several are the reasons for this phenomenon: the high rate of motorization and its breakneck pace of growth; the dramatic increase in investments in infrastructure for high capacity roads, which has placed us at the head of the European countries; the gradual decline of the costs of private road transport experienced over the last 25 years, which has led to the dispersion of activities in the territory and the increase of participation transport in the productive, distribution and consumption structure; and finally, the model of urban planning based on low-density construction, on the specialization of land use and on the fragmentation of the territory. These "driving forces" or directors of the process of increasing mobility and the demand for transport in our country, are difficult to modify and to redrive. Not all the powers to do so fall within the scope of the General Administration of the State, but it seems appropriate to consider that the latter should play a leading coordinating role, in order to establish a transport policy that it has, between other targets, the reduction of their polluting emissions.

Currently, as mentioned, the E4, approved by the government in December 2003, is being implemented for the period 2004-2012. The E4 strategy does not raise the direct objective of reducing GHG emissions from transport, but rather to increase energy saving and efficiency, which will of course lead to savings in some polluting emissions, in This is the case. The E4 strategy is not intended, in the transport sector, to save fuel in absolute terms, but to make the growth of fossil fuel consumption not so fast. If the current consumption is about 35,000 ktep, the E4 Strategy will try to make the demand for fossil fuels in transport not exceed 48,000 ktep, 4,700 ktep less than the figure that would have reached its consumption case of not The E4 strategy (scenario scenario, approximately 53,000 ktep in the year 2012). For these reasons, the E4 strategy will not be able, alone, to contain the growth of transport emissions by driving them to the levels that the NAP marks.

The actions foreseen in the E4 Strategy are summarised below. In the transport sector, the measures have been classified in three groups, as follows:

1. Modal shift:

Urban mobility plans: deterrent parking, car parks, improvement of public transport, promotion of non-motorised mobility, regulation of loading and unloading and regulation of access to urban centres.

Transport plans for companies: car-sharing, teleworking, shuttles and transport aids.

To improve the collective means of road transport: modal exchangers, integration of information systems and regulation of concessions.

Increase rail participation in passenger transport: support for AVE corridors, rail packages, logical integration.

Increase the participation of the shipping of goods: dry ports and short sea shipping (short sea shipping).

2. Efficient use of transport:

Better management of transport infrastructures:

bus-vao, priority lanes, road design and traffic calming measures.

Better road fleet management: telematics management tools and logistics control networks.

Improve air traffic management: optimization of routes and operations at airports.

Efficient driving of the private vehicle.

Efficient driving of trucks and buses.

Good practice in air traffic: navigation, landing and take-off operations, and decrease in "tankering" (additional fuel transport taking advantage of the differences in price between airports).

3. Improved energy efficiency of vehicles:

Renewal of the road, air, sea and car fleet fleet.

The emission savings referred to in the E4 Strategy would add to the order of 14 Mt of CO2 eq. in the period 2005-2007, insufficient to comply with the NAP.

To achieve the necessary reduction in transport, the General Administration of the State, in coordination with other administrations, will implement other complementary measures that could be grouped as follows:

1) Improvement of efficiency and use of alternative fuels. -First, the use of alternative fuels in transport, the importance of which is included in the Plan for the Promotion of Renewable Energy, which provides for the year 2010 that the use of biofuels will be 500 ktep. As this amount is still very small compared to the total number of fossil fuels used in transport (currently more than 30,000 ktoe), it seems appropriate to consider an upward revision of these forecasts, in order to increase further the percentage of alternative fuels used in transport.

With regard to the technological improvements of vehicles, there is an agreement with the Association of European Automobile Builders, which committed itself to put on sale before the year 2012 vehicles that did not emit more than 120 g CO2/km. In line with this voluntary commitment, the Government launched the RENOVE and PREVER programmes as a way to renovate the vehicle fleet and to improve energy efficiency and CO2 savings. The implementation of the Strategic Plan for the Carriage of Goods by Road (PETRA), which provides for the accelerated renewal of commercial vehicles, is also in line with this commitment.

Following in the field of land transport and more specifically in relation to the improvement of the efficiency of public and private vehicles it would be very convenient to promote, throughout the national territory a culture of formation on efficient driving and encouraging the deployment of on-board computers in private vehicles. In the case of lorries and buses, the training of professional drivers should also be used to advise on the use of the vehicle taking into account environmental factors, including those which have been repeated in other Member States. paragraphs the speed of circulation.

With regard to air transport, the Ministry of Public Works is working on the implementation of the National Air Transport Emissions Control Plan, in collaboration with the Ministry of the Environment, the Ministry of Industry, Tourism and Trade, and with the participation of the private sector, including airlines and airports, which contains, as main measures and lines of action in the reduction of GHG emissions from civil aviation, the following:

Fleet renewal.

Improvements in air traffic systems.

Operational Enhancements.

Reducing the practice of "tankering".

Increase of occupancy factors.

Improving the energy management of installations.

Good Practice Codes with airlines.

2) Promotion of intermodality. -The broad possibilities that open intermodality are indispensable to the implementation of the NAP. In other words, transferring part of the increase in demand for transport from intensive modes in the use of energy and in the production of GHG (air transport and private road transport) to other much more efficient modes from the point of environmental view (public transport, rail and sea transport). But intermodality requires specific infrastructure and appropriate regulation. Both things, therefore, need time before we can begin to bear some estimable fruit. Work needs to be done as soon as possible, but the results are not going to start to come-except for urban public transport-as quickly as possible, until after the 2005-2007 period.

With this and other objectives, the Ministry of Public Works will develop a strategic infrastructure and transport plan in the coming months. This document will make it possible to take into account and integrate the commitments of the NAP, in such a way that the possible growth of mobility and transport demand does not entail any increases incompatible with the GHG emissions provided for in the NAP.

The implementation of effective and calm measures in the field of intermodality, where important infrastructure and changes will have to be made in the legal transport system, are not policies that will have results. immediate. Purely technological measures also do not seem to be in the short or medium term to deliver meaningful results.

As the E4 Strategy itself states, "the increase in energy efficiency is insufficient for the fulfilment of these commitments and other complementary measures will be needed to achieve them", as we have just (i) to check, the possibilities for improvement in efficiency are reduced in comparison with the expected growth in demand for transport.

3) Actions in urban environments.-In this line, it should be mentioned, firstly, that more than 50% of the GHG emissions from transport are carried out in urban areas subject to high levels of congestion and where noise and the other pollutant emissions are causing serious environmental and health problems. Regulation towards lower use of private cars in cities is easier, faster and more understandable by citizens. There are currently alternatives to the private car for the development and improvement of public transport, and on the other hand, while addressing the problem of climate change, noise, congestion, pollution and accidents can be reduced. Coordination with local authorities should be intensified in order to develop in the short term policies that could significantly reduce the GHG emissions of Spanish transport, through the implementation of mobility plans. urban, which might include measures such as:

Managing traffic in congested environments and improving existing capacity.

Imposition of urban tolls linked to congestion and environmental impacts.

Reducing access to urban centers.

Limitation of parking and deterrent charges.

Traffic calming measures.

Public transport plans for jobs.

Improvement and expansion of public transport.

Promotion of non-motorized transportation systems.

Logistics of the transportation of goods in the city.

As a detail of some of the previous actions, the short-term promotion of regulations that would make the mobility plans mandatory, in all the cities of more than 100,000 inhabitants, could be mentioned. It would also be necessary to unify legislation which would provide for more restrictive regulation in relation to the loading and unloading, traffic and parking of private vehicles in the city centre and mobility in the new urban developments.

As well as measures complementary to those already included in the E4, the acceleration of the creation of exclusively reserved lanes for alternative modes (public transport, bicycles, car-sharing) could be envisaged. efficient and less polluting than the private vehicle. With regard to measures of a collective nature, it would be very appropriate to promote transport plans in companies which will make it compulsory to implement transport plans for all companies with more than 200 employees.

these measures would produce not only the reduction of GHG but also the improvement of the environmental and social quality of the cities, as these actions will indirectly lead to a reduction in noise, accidents, and congestion, pollution by other substances and the improvement of the quality of life and the access of society to the urban public space.

4) Other measures. -Out of urban environments reducing GHG emissions is more complex and may need more time. As has already been said, the promotion of intermodality requires strong investments in infrastructure and also changes the regulatory framework for transport, which require more long-term programming.

Finally, different measures will be considered for the reduction of speed in transport, whose positive impact will not only affect the emission of GHGs, but will also be felt in the decrease of the accidents and in the increase in security.

2. D. c Residential, commercial and institutional sectors.

Under this heading, both the construction and the energy consumption of the buildings ' facilities, either fixed (heating, air conditioning, hot water production and lighting) or are covered. correspond to your equipment (kitchen, home appliances and office).

In the year 2000, the energy consumption of the building sector amounted to almost 14.5 Mtoe, of which about 8.9 Mtoe corresponded to residential consumption and some 5.6 Mtoe to tertiary consumption. Around 75% of the total energy consumption in households-residential consumption-falls within the scope defined in this building sector, corresponding to heating the most important part, followed by hot water. For its part, the residential energy intensity has been increasing in Spain since the mid-1980s, although the average of the European Union has been three years with slight oscillations within a tendency to stability or even to the reduction of this indicator. In the case of Spain, in this period there has been a sharp increase in housing allocations and comfort levels, with an increasingly widespread use among other consumer elements of centralised heating systems. -individual or collective-in the face of partial heating of housing by isolated devices.

With regard to energy consumption in the service sector (or tertiary), it has been registering strong growth and has increased its consumption, between 1980 and 2000, by more than 2.5. Of the total tertiary consumption, at present, more than 80% fall within the scope defined in this building sector. It has also increased the intensity of the tertiary sector since 1985, largely influenced by the increasingly widespread generalisation of air conditioning systems-heat and cold-in new buildings in the sector. As a mean

in the European Union, since 1990, this intensity has been reduced.

In assessing the energy savings objectives in the building sector, it must be borne in mind that the long life of buildings and their fixed installations, their high number and dispersion, as well as their relatively high Small consumption is considered individually, makes the economic profitability of the technical measures aimed at saving in existing buildings low and difficult to implement. For this reason, the measures introduced in the design phase of the buildings are considered to be more appropriate by setting, via regulation, minimum energy efficiency requirements and by informing the buyer, or user, of the energy efficiency of the buildings. its building, in line with the provisions of Directive 2002/91/EC of the European Parliament and of the Council of 16 December 2002 on the energy efficiency of buildings.

The result of the analysis of the measures proposed in the already repeated E4 for the building sector, it is possible to achieve an energy saving in 2012 of 7.5% per year on a trend scenario, which would be a saving of almost 1.8% Mtoe. The savings accumulated over the entire period of implementation of the Strategy have been assessed at around 6.8 Mtoe, and the emissions avoided in the same period of the order of 40 Mt of CO2.

The measures analysed have been grouped into two blocks, those aimed at existing buildings and those affecting new buildings. In the first case, the measures affect the building envelope, the thermal installations and the lighting. The instruments for their implementation are in regulatory cases, such as the application of the future Technical Code of the Edification in certain rehabilitation actions, or those foreseen in the ongoing review of the Regulation of installations Thermal buildings (RITE), while in other cases they are promoted through the appropriate lines of support. For their part, the new guidelines set out in the second block are in line with the new guidelines set out in Directive 2002/91/EC on the energy efficiency of buildings.

In the case of existing buildings, as in the case of new ones, measures have been assessed in a differentiated way for the domestic (residential) and tertiary sector.

In the existing buildings, actions on the building envelope (facades and covers) would aim to act on 5% of the park, which would mean acting on 91 million m2, and measures on the This would mean that 50% of the existing boilers, air conditioners and cold groups would be replaced, which would put up to 6.5 million m2. These measures, together with the introduction of low-consumption lamps in the domestic sector, involve an investment of 8,332 M euros and involve an annual energy saving of 1,094 ktep. For its part, the implementation of Directive 2002/91/EC on new buildings will involve an associated investment of 5,505 M euros and an annual energy saving of 679 ktep.

The public support (or cost of overcoming barriers) foreseen during the period of implementation of the Strategy, in the building sector, amounts to 577 M euros intended, in its entirety, to facilitate the adoption of the of measures in the park of existing buildings.

As for household equipment, it has increased significantly in recent years, especially since the second half of the 1990s.

There are almost 100% penetration devices such as the washing machine, fridge and kitchen, whose sales evolution is linked to the increase in the number of households. Others, such as dishwashers, microwaves or vacuum cleaners, have experienced significant growths that are linked to more equipment. Audiovisual equipment has grown considerably in recent years. Thus, the average rate of television sets per household is more than 1.4, the video is present in more than 70% of households and in more than 60% there is HI-FI. As for office equipment, it is worth noting that more than one third of Spanish households have a personal computer and that of the more than 800,000 registered companies in Spain, more than 91% have computer equipment, with the average almost nine computers per company.

Globally, the equipment sector had an energy consumption in 2000 of 3,462 ktep, of which 461 ktep was equipped with computer equipment, mostly associated with the tertiary sector, although around 20 ktep are consumed in the residential area. For its part, the rest of the consumption of the equipment sector in the year 2000, that is, the residential equipment, with the exception of the computer, is evaluated in 3,001 ktep and, of them, 60% corresponds to appliances and practically the rest to kitchen. Air conditioning in households does not currently represent a significant consumption. It should be noted that the energy used by these equipment (domestic and tertiary sector), although it only contributes to the final consumption of energy with just under 4%, accounts for about 15% of the total consumption of electricity at the level national.

In kitchens, the weight of electrical energy is increasing due to the increase in the penetration of vitroceramic plates and microwave ovens; however, the use of gas still remains majority, which in all means 58% energy consumption for kitchens. As for the efficiency class of household appliances used in households, sales of equipment of the most efficient classes (A and B) are still reduced, although some increase has been observed in recent years. The sales of classes A and B are practically non-existent in dryers and freezers, with the washing machines being the ones with the highest sales of category A. The high price of the most efficient appliances and the lack of information In this respect, they explain, in part, the low penetration of efficient appliances.

According to the E4 forecasts, the energy consumption in the year 2012 of the residential and office equipment sector would rise to 4,687 ktep in a trend scenario, while applying measures the consumption in that same year, amounts to 4,278 ktep. Therefore, the annual savings in 2012 as a result of the E4 have been assessed at 409 ktep, and the savings accumulated over the entire period of implementation of the Strategy is raised to 2,450 ktep. Similarly, the emissions avoided between 2004 and 2012 amount to 14.5 Mt of CO2.

With regard to the measures proposed in the sector to achieve the objectives outlined above, this is primarily to encourage the progressive implementation of class A (high energy efficiency) appliances. measures to encourage their purchase, promotion campaigns, voluntary agreements with market players, etc., in such a way that a market share of 40% is achieved in 2012. Among the barriers that make it difficult to achieve the objectives it is worth noting: energy efficiency is not a priority at the time of purchase-except in the white range, where it has some relevance-the lack of information to consumers, the high price of the most efficient appliances and the great dispersion in the distribution and sale of equipment. The expected associated investment-at the expense of the agents of the sector-throughout the period 2004-2012, in order to achieve the objectives of saving, amounts to 1,646 M euros and the public supports to 220 M euros.

The Ministry of Housing is developing a set of measures aimed at intensifying energy saving in the construction and equipment of the housing, through the modification of the corresponding state legislation.

2. D. Agricultural sector.

Much of the measures in the agricultural sector were launched in the course of the 1990s, in particular the "Measures for the Accompanying of the Common Agricultural Policy", established by Regulation (EC) No 1257/1999; although some of them derived from Regulation (EEC) No 2078/92, which since 1994 applies in Spain. Some of its so-called agri-environmental measures, such as the promotion of extensive farming or the promotion of agri-environmental training, have led to agricultural practices towards more environmentally friendly systems and, therefore, to the reduction of emissions. These measures are currently regulated by Royal Decree 708/2002 of 19 July 2002, as amended by Royal Decree 172/2004 of 30 January 2002.

Being one of the objectives to reduce the greenhouse effect to encourage the absorption of carbon dioxide, another action of interest is the afforestation of agricultural land, implemented by Regulation (EEC) No 2080/92, and supplemented by Royal Decree 6/2001 of 12 January 2001. Other measures in place and affecting emissions from agricultural soils are covered by Directive 91 /676/EEC. As a result of this directive, a number of areas vulnerable to pollution by nitrates of agricultural origin have been designated in Spain and action programmes have been developed by autonomous community. The action programme contains a number of agricultural practices designed to reduce the use of nitrogen fertilisers both of animal and organic origin. The programmes also affect the irrigation practices of vulnerable areas, trying to reduce nitrogen losses by leaching and runoff, so that indirect emissions from soils would also be reduced.

In addition, within the framework of the Common Agricultural Policy, the new Regulation (EC) No 1782/2003 introduces a condition for the collection of payments:

a series of legal requirements relating to respect for the environment, food safety for consumption and animal welfare standards, and whose failure to comply can lead to the reduction and even cancellation of the total amount of direct payments.

The adaptation to the Spanish regulations of the regulation will make it possible to reduce emissions even further by prohibiting the total burning of stubble, crop residues and livestock pasture. In addition, the possibility of advice provided by the new Regulation (EC) No 1782/2003 can remedy some problems of excessive fertilisation, which according to recent opinion polls are caused by a lack of such services.

Therefore, it can be concluded that many measures are already in place that involve reductions in emissions from the agricultural sector, where savings are observed in the use of agricultural machinery and nitrogen fertilizers. as improvements in the management of waste and the burning of waste. For their part, the enteric fermentation emissions of ruminants and rice cultivation remain virtually constant.

As a result, the expected emissions for 2010 will be lower than the year 2001, indicating a clear effort in a sector with limited emissions reduction potential.

2. D. and Waste Management.

Until 2001, the necessary legislative measures for the reduction of emissions of waste, as specified in Directive 1999 /31/EC, have been implemented. Thus, in order to comply with the requirements of Royal Decree 1481/2001 of 27 December 2001, it is a necessary and essential condition that there be proper waste management at its pre-arrival stage, for which several of the requirements are met. In the case of the Court of Justice of the European Union, the Court of Justice of the European Court of Justice of the European Court of Justice and the Court of Justice of the European Union, the Court of Justice of the European Court of Justice of the European Union, development and implementation of Law 11/1997 of 24 April. All these rules, together with the Community directives and resolutions of which they are issued, contain in their content the principles of the EU's environmental action programmes and the principle of hierarchy in terms of management options: (1) prevention, (2) reuse, (3) recycling, (4) energy recovery, and (5) disposal in landfill. The instruments to carry out these measures and where the objectives are set to be met in each period of validity are the national waste plans.

The national urban waste plan 2000-2006 is developed, among others, through the following specific objectives: to stabilize the national production of urban waste in absolute terms, which is equivalent to reducing the generation per capita; to implement selective collection; to reduce, recover, reuse and recycle packaging waste; to value the organic matter of urban waste, in particular by means of composting; and to safely remove the waste. Non-recoverable or valorizable fractions thereof.

The implementation of the plan and its programmes (national programmes for prevention, recovery and recycling, waste packaging and packaging waste, composting, energy recovery, and disposal) must lead to a significant reduction in the emissions from landfill and waste water, so that while emissions would still be 55% higher in the three-year period 2005-2007 than in 1990, the cumulative effects of these plans would allow for the year 2010 These emissions were already 24% below those corresponding to the reference year.

2. D. F Gases fluorinated.

Following the establishment of the European Climate Change Programme and the creation of a working group on fluorinated gases, the European Commission has presented a proposal for a regulation on certain fluorinated gases greenhouse-COM (2003) 492-whose negotiation process is still under way. However, in the field of these actions, the measures which have had the most significant effects on the reduction of emissions of fluorinated gases have been the change in the supply of alumina in the electrolytic vats of the industry. aluminium and-to a lesser extent-the replacement of gases in units of recovery in ammonia manufacturing plants.

2. E envisaged use of the flexible mechanisms, to what extent they will be used and the provisions adopted and budgetary resources foreseen for their use

As a consequence of the forecasts of the evolution of the emissions in Spain for the period 2008-2012, the Spanish Government has decided together with the adoption of new measures of reduction of emissions, to provide for the use of the Kyoto flexibility mechanisms, the use of which is essential to meet the Kyoto Protocol's commitment, while limiting the

emissions are done in the most efficient way and contribute to the sustainable development of developing countries, promoting the transfer of clean technologies.

The total volume of appropriations from the flexibility mechanisms amounts to 100 Mt for the period 2008-2012, i.e. 20 Mt/year, which accounts for 7% of the emissions of the base year.

The government will encourage the acquisition of credits to cover excess emissions in the "diffuse" sectors, in particular Transportation and Residential. The possible alternatives range from the existing international funds, to the creation of one or more Spanish Carbon Funds.

For the achievement of this objective, a series of measures and implementing instruments are necessary, and among them, the following are highlighted:

The development of a guide for the use of project-based mechanisms; a clean development mechanism (CDM) and the joint implementation mechanism (CA). It is a practical guide in which the General Administration of the State and the business sectors have collaborated in its drafting. The document examines all the steps that are necessary to complete for the registration of a project, as well as the actors involved in the project cycle, and their respective responsibilities. The aim of the guide is to make available to technicians, both private and public, and any interested person, a tool that helps them to understand international legal texts and thereby facilitate them. implementation of projects under the Kyoto Protocol.

The launch of a Spanish pilot project for the use of CDM and AC. The pilot programme enables the administration and business sectors to have practical knowledge to enable the effective processing of projects, by providing an instrument to identify the obstacles encountered by the project. administrations and project promoters in the use of mechanisms, both at national and international level.

As for credit acquisition options, the Spanish government is evaluating the possibilities of participating in one of the existing funds of some institution or entity or, given the size of the needs of the Spain in terms of allowances, in the creation of one or several Spanish Carbon Funds.

Contacts have been maintained with:

1. World Bank (WB), which presented in January 2004 a concrete proposal to negotiate the implementation of a Spanish Carbon Fund managed by the World Bank.

2. Andean Development Corporation (CAF) that has launched the program since 1999

Latin American Carbon (PLAC). In March 2004, a meeting was held with representatives of the CAF in which they presented a proposal for Spain, the Ibero-American Carbon Initiative.

3. European Bank for Reconstruction and Development (EBRD), which is currently launching a Multi-Contributed Carbon Fund for the acquisition of "carbon credits". A first technical meeting with the EBRD's services has been held in March 2004, pending the presentation of the Fund officially to the Bank's Board of Directors.

With all these institutions, it is in permanent contact to carry out a continuous monitoring of the situation. Other institutions such as the Inter-American Development Bank (IDB) and the Asian Development Bank (ADB) are carrying out climate change activities, focusing basically on supporting the capabilities of the developing countries. CDM projects, and are in a very embryonic stage.

At European level, the European Investment Bank (EIB), in the context of the entry into force of the EU Emissions Reduction Directive in 2005, has set up a Carbon Technical Assistance Fund. The bank is currently negotiating with the Commission and a detailed proposal for this fund is expected before the summer in the Council.

In addition to the process of consultation with multilateral institutions, contacts have been held with different national agents to assess the possibilities that they could offer in terms of carbon funds. Thus, for example, the Spanish Company of Export Credit Insurance (CESCE) and the Instituto de Crédito Oficial (ICO) presented in January 2004 a proposal to set up a Spanish Fund with the aim of contributing in part to cover the emission rights deficit that is intended to be made through carbon funds. In addition, private consultants have expressed their interest in participating in this process, although at the moment they have not specified any proposal.

2. F Calculation of absorption by sinks

For the calculation of the absorption figure for carbon sinks in Spain in the period 2008-2012 the absorption produced by afforestation and reforestation activities has been accounted for (Article 3, paragraph 3 of the Protocol of Kyoto) and absorption due to agricultural land management and forest management (Article 3, paragraph 4 of the Kyoto Protocol: additional activities eligible by the Parties to the Protocol).

Data used in the calculation of the potential absorption by carbon sinks in our country during the first commitment period of the Kyoto Protocol have been provided by the Ministry of Agriculture, Fisheries and Food (in the case of reforestation of agricultural land and agricultural land management) and by the Directorate General for Biodiversity, of the Ministry of the Environment (in the case of the reforestations made by the autonomous communities and the management of forests).

For the calculation of the carbon absorbed by the forest formations, the Good Practice Guidelines for Land Use, Land Use Changes and Selcations developed by the IPCC have been used (Intergovernmental Panel). Climate Change Experts). In the case of agricultural land management data, conversion factors have been used extracted from specialized documentation.

The total volume of absorption by sinks accounts for 2% of the base year's emissions.

The following measures include the following:

1) Agricultural activities:

Reduction or suppression of work to prevent loss of carbon stored in soils (use of direct seeding ...)

Establishment, in tree crops, a herbaceous plant cover in the soil, which will increase the capacity of soil uptake.

Promoting integrated production and organic production.

Withdrawal of farmland.

Better treatment of the surfaces placed in irrigation, since modifying the management of the waterings is influenced by the ability to capture the vegetation and the soils.

Substitution of arable crops by woody crops.

Replacement of woody crops by other woody crops with greater absorption capacity.

2) Forest activities. -Among the forestry activities that will be counted as carbon sinks for the period 2008-2012 stand out:

Restoration of the plant cover by appropriate selvicultural actions.

Increase of forest area by means of restocking activities.

Establishment of preventive actions to prevent forest fires, centered on selviculture.

Promoting forest expansion to adapt forest formations to the expected climate change.

Improving knowledge and information about the health status of forests.

Monitoring and control of the action and effects of the different harmful agents acting on the Spanish forests (biotic, abiotic factors, pollutants and climatic factors).

Prevention and control of diseases and pests through selvicultural actions (specifically aimed at improving the state of forest health).

Protection and recovery of forests and agricultural lands affected by the expansion of desertification by regulating the water regime and protecting soil from erosive processes in the framework of ecosystem restoration and degraded areas.

Restoration of areas affected by fire, pollution, agricultural, mining, industrial, extractive or seriously damaged by biotic or abiotic factors.

2. G Consideration of the energy policy and assurance that a path consistent with the compliance of the PK is followed

Energy Outlook.-The growth of primary or total energy consumption is expected to change substantially over the next decade,

fundamentally associated with the evolution of the economy itself, new energy offers, the introduction of new technologies and the progressive saturation of some markets. The forecasts also indicate that in the period 2005-2012 the primary energy intensity of the Spanish economy will have a turning point, tending to stabilize in the last years of the period.

The Spanish future energy balance will be marked by a greater contribution of clean and renewable energy, a growing participation of the final consumer in the context of a liberalised market, which will ensure rational use and energy efficiency and a massive introduction of technology that will enable a sensible increase in energy efficiency.

Regarding the energy balance of products, the estimates in the year 2012 indicate that the weight of the hydrocarbons will remain predominant, and among them natural gas the most growing energy source. Oil consumption will increase less than the total energy consumption, although it will maintain a weight close to half of the total, due to its use as fuel in the transport sector, which will be the fastest growing demand.

In terms of renewable energy, given the current projected increase in energy demand, higher than the forecasts made in the Plan for the Promotion of Renewable Energy, the production of renewable energy will be increased. certain types of energy included in it, in order to maintain the objective of renewable energy sources providing 12% of the total energy consumption at the end of the forecast period.

Final energy consumption in Spain in the likely scenario in the forecast period is estimated to grow at 3.48% per year. Growth in 2000-2006 is estimated at 3.8% per year, with an annual 3.25% between 2006-2012. This growth slowdown is justified, despite the higher economic growth envisaged, by the improvement in energy efficiency and the progressive saturation of some markets at the end of the forecast period.

Demand for final electric power is estimated to increase by 4.5% in 2000-2006 and 3.5% in 2006-2011, with a mean in the forecast period of 3.75% per year. This rate is bringing its growth to GDP, which corresponds to a more developed market than the current one and slightly above the overall final energy growth rate due to the higher demand growth in the sector. services, the significant increase in the number of homes and the greater equipment of the same, along with the continuity of the increase in capacity of industrial sectors whose energy consumption is

fundamentally electric.

Comparing the rates of variation of GDP, of the final electricity demand in Spain and of their prices, a progressive convergence has been observed since the 1980s, although with a higher growth of the electricity demand in the last years, This is the result not only of economic growth but also of the significant fall in prices in real terms, which has led to an increase in electrical intensity due to the increase in household equipment, new uses and growth in the sector. services and industry intensive in electrical consumption.

Primary energy consumption in Spain will grow at a rate of 3.09% per year, lower than the final energy rate, due to the planned electrical generation structure. This demand is obtained as a result of adding the consumption of non-electric final energy consumption in the energy sectors (consumption and consumption in transformation, especially in electricity generation) and losses.

In the supply structure, an important change is observed with regard to the current situation, by significantly increasing the weight of natural gas and renewable energies and lowering coal and nuclear energy. This is mainly due to the change in the electrical generation structure.

Oil loses weight slightly, growing less than total energy, but remains the main source of energy supply.

Total coal consumption will fall by -3.66% per year, corresponding to 85% of total consumption in 2012 to power plants.

Total oil consumption will present an annual increase of 2.34%, which is significantly lower than the total energy consumption and derived from the final consumption, in particular transport, since its weight in the structure of Electricity generation is not significant and will still fall further because of its natural gas substitution, especially in the extra-island electrical systems.

Total demand for natural gas in 2012 is set as the most growing primary energy, with an increase of 9.01% a year, reaching its weight in total energy consumption by 22.5%. In both oil and gas, it is estimated that demand growth will slow down over the last five years of the forecast period, coinciding with the progressive saturation of some final demands.

Renewables, including hydraulics, will contribute in 2012 to the total balance sheet with a higher than expected annotation in the Development Plan. This figure

accounts for 12.0% of total energy demand in 2012.

The production of nuclear power of nuclear origin will reach a weight of 9.5% of the total primary energy in 2012, being in 2003 of 11.8%. In electricity generation it will be able to contribute from 23.5% today to 19.4% in 2012.

2. H Guarantee that no more rights are issued for those resulting from the strict application of the allocation and consistency criteria with the assessment of progress in the area of the emissions monitoring mechanism

The evolution of total emissions over the last few years moves Spain away from the goal assumed in the Kyoto Protocol. The use of flexibility mechanisms and carbon sequestration by the sinks will partly alleviate the effort associated with compliance, with a total of +15% to +24%. However, we would be talking about a reduction from the year 2002 to 2010 of the order of 16%. This reduction can only be achieved through the allocation of severe rights to the sectors affected by the Directive.

With regard to the assessment of current progress, it should be noted that the analysis leading to the allocation of rights contained in this Plan has been based largely on information extracted from the National Inventory of emissions of gases into the atmosphere. It is therefore fully consistent with the referral to the Commission in the field of Decision 280 /2004/EC on a mechanism for monitoring GHG emissions in the Community and for the implementation of the Protocol of Kyoto. As already mentioned above, methodological reviews have been carried out to improve the quality of the inventory due to the preparation of the NAP. In any case, the result of the revisions is incorporated into the National Inventory, so the consistency of the information is guaranteed and the evaluation of the current progress is consistent with the NAP.

As for the evaluation of future progress, a communication was recently produced in which the main new developments were identified, containing, for example, relevant information on the E4. On the other hand, the additional measures that the Government is developing and are cited in the Plan will be the subject of communication in the future (it would be the case of the action plan associated with the Energy Efficiency Strategy and the Strategy of Change). Climate).

2. I If rights, percentage and implementation of the process are to be auctioned

The rights of the reservation of new entrants that will not be used, will be auctioned, if any.

3. Distribution of rights by activities

The allocation scenario for industry sectors is detailed in the following table:

(SEE IMAGES, PAGE 30630 TO 30631)

Assignments

2006

Average

2000-2002

Sector

1990

-Mill.

Tm CO2

2000

-Mill.

Tm CO2

2001

-Mill.

Tm CO2

2002

-Mill.

Tm CO2 Mill.

Tm CO2

PM/90

-%

Requests

sectorial

(1)

2006

No

reservation

(A)

Reservation

(B)

Total

(A) + (B)

Grade of

coverage/

Requests

-%

Electrical generation (2) .......................... 61.61 86.77 81.26 95.95 87.99 42.82 92.40 84.56 1.84 86.40 93.51

Oil refining (3) ............................ 12,64 15,25 14,99 14,86 15,03 18,94 16,57 15,25 0,72 15,97 96.39

Steel (4) ...................................... 13.83 10.79 10.74 10.85 10.79 -21.96 12.30 11.23 0.71 11.94 97.07

Cement ........................................... 21,14 24,99 25,68 26,58 25,75 21,81 30,08 27,25 1.25 28,50 94.73 Cal .................................................. 1.58 2,09 2,08 2,20 2,12 34,69 2,74 2,28 0,16 2,44 89,15

Cement and lime ..................................... 22.72 27.08 27.76 28.78 27.87 22.71 32.82 29.54 1.40 30,94 94.27

Bricks and tiles ................................... 3.89 5.02 5.34 5.51 5.29 35.84 5.98 5.55 0.08 5.64 94.23 Tiles and Tiles ............................... 0.41 1.08 1.09 1.10 1.09 162.84 1.20 1.12 0.05 1.17 97.18

Ceramic industry ................................ 4,31 6,10 6,43 6,61 6,38 48,05 7,18 6,68 0,13 6,81 94.72

Glass (unfried) ................................... 1,55 1,96 2,07 2,16 2,06 32,77 2,26 2,17 0,03 2,20 97.35 Fritas ............................................... 0,22 0,53 0,56 0,60 0,56 151,49 0,70 0,63 0,05 0,68 96.43

Glass ............................................... 1.78 2.48 2.63 2.76 2.62 47.75 2.96 2.80 0.08 2.88 97.13

Pulp paper, paper and cardboard ................... 2.29 3.64 4.33 4.52 4.16 81.99 5.60 4.81 0.54 5.35 95.54

Subtotal Industrial Sectors ................... 54.96 62.73 64.29 65,77 64.27 16.94 77.43 70.30 3.58 73.88 95.41

Total Trade .................................... 119.17 152.11 148.15 164.32 154.86 29.95 169.83 154.86 5.42 160.28 94.38

Assignments

2006

Average

2000-2002

Sector

1990

-Mill.

Tm CO2

2000

-Mill.

Tm CO2

2001

-Mill.

Tm CO2

2002

-Mill.

Tm CO2 Mill.

Tm CO2

PM/90

-%

Requests

sectorial

(1)

2006

No

reservation

(A)

Reservation

(B)

Total

(A) + (B)

Grade of

coverage/

Requests

-%

Other generations (5) ......................... 8.62 10.20 11.11 0.92 12.03

Total emissions Spain (Mt CO2-eq) (6) ........ 285.69 386.68 385.05 401.34 391.02 36.87

(1) In the case of the electrical sector, in the absence of a uniform request of the sector, the forecast of the Administration has been taken:

94.00 Mt. To improve comparability with the allocation to this figure the 1.60 Mt corresponding to the burning of steel gases have been restored. For the rest, the sectoral requests are those submitted up to 31 March 2004. The only exception was the deep-fried sector, which had not delivered a request before 31 March, and which had been included in the glass and ceramic sub-sector, although the data were subsequently sent back.

(2) Historical emissions data do not include those corresponding to the burning of steel gases.

(3) Hydrogen plants are included when their holder is that of the refinery.

(4) Emissions and allocations by adding the steel and coke gases.

(5) This item includes cogeneration installations which serve in sectors not listed in Annex I to the Directive.

(6) All greenhouse gases and all sectors.

Note: Sector estimates include expected capacity increases in full practice.

3. A Methodology used. If different methodologies have been used in different sectors, it is necessary to justify in detail that there is no discrimination

In the case of industrial sectors, the annual growth rate between 1990 and 2001 has been calculated by assigning the average of 2000-2002 emissions in 2001 to attenuate cyclical effects in the last three-year reference period. This annual growth rate has been applied from 2001 to 2006, this year representing the average allocation period.

CO2 emissions for the years 1990, 2000, 2001 and 2002 are real data for sectors, taken from the National Inventory of Gas Emissions to the Atmosphere for the period 1990-2002. In this respect, it should be noted that a comprehensive review of emissions data has recently been carried out (1).

The emission reductions corresponding to the savings identified in the studies carried out in the following areas have been discounted:

job group AGE-CEOE (2) and E4. Logically, the possible double accounting of measures appearing in the two studies is avoided.

This general methodology has been adjusted in two specific cases:

Steel: from 1990 to the reference period there has been a very noticeable reduction in emissions. This has been the result of technological change, the potential of which has already been exhausted. Therefore, the projection is carried out on an ad hoc basis taking into account the expected evolution of the sector.

Ceramics: it has been estimated that 80% of the total emissions of the sector are within the scope of the Directive, as it corresponds to installations that exceed the corresponding production threshold. Once

(1) In the national inventory, emissions from the burning of steel gases by thermal power plants are assigned to the electricity generation sector. This has been properly taken into account and corrected for sectoral projections and allocation to the steel sector.

(2) "Technology and Methodology Options, and Policies and Measures to Reduce Emissions in the Different Sectors and Activities".

know the exact degree of coverage the sector allocation may require some adjustment. This adjustment will also have to be carried out in the historical inventory.

For the electrical sector, part of the energy forecasts set out in paragraph 2.G, taking into account the criteria set out in heading 4.A.a.

In the case of cogeneration installations associated with processes not listed in Annex I to the Directive, the allocation has been calculated on the basis of the emissions estimated in 2002. Based on this data, the expected growth for cogeneration in the E4 has been assumed, which corresponds to 18% between 2002 and 2006. This increase is broken down into two equal parts, accounting for one of the halves of the production increase that will be achieved by already installed power and constituting the other half a reserve for the new entrants of this category.

3. B Indication of whether the reduction potential has been considered (details in Section 5.A)

Under the heading 5.A of this document, the aspects relating to the consideration of the potential for reducing emissions, as well as the legal provisions included in Community legislation and the possible ones, are reflected in heading 5.A of this document. negative effects on competitiveness vis-à-vis non-EU countries in certain industrial sectors.

3. C If Community instruments or regulations have been taken into account, please indicate which (details in section 6.C)

a. Directive 1996 /61/EC IPPC for integrated pollution prevention and control.

b. Council Directive 2003 /96/EC of 27 October 2003 on the restructuring of the Community system for the taxation of energy products and electricity.

c. Directive 1999 /32/EC of 26 April 1999 on the reduction of the sulphur content of certain liquid fuels amending Directive 1993 /12/EEC and Directive 2003 /17/EC of the European Parliament and of the Council of 3 March 2003 amending Directive 1998 /70/EC on the quality of petrol and diesel fuels.

d. Directive 2002/91/EC of the European Parliament and of the Council of 16 December 2002 on the energy efficiency of buildings.

e. Directive 2001 /77/EC of the European Parliament and of the Council of 27 September 2001 on the promotion of electricity generated from renewable energy sources in the internal electricity market.

f. Directive 2001 /80/EC of the European Parliament and of the Council of 23 October 2001 on the limitation of emissions of certain pollutants into the air from large combustion plants.

g. Council Directive 1999 /13/EC of 11 March 1999 on the limitation of emissions of volatile organic compounds due to the use of organic solvents in certain activities and installations.

h. Directive 2001 /81/EC of the European Parliament and of the Council of 23 October 2001 on national emission ceilings for certain atmospheric pollutants.

4. Assigning rights to each installation

4. A Methodology used. If different methodologies have been used for different installations, it is necessary to justify in detail that there is no discrimination

Under this heading, two sections are distinguished: (i) electrical sector and (ii) industrial sectors.

4. A. to Electrical Sector.

They depart from the actual emissions of historical averages from the period 2000-2002, from direct measurements and collected in the GHG Emissions Inventory, for the period 1990-2002.

Facility allocations will be made with the following criteria to achieve the 86.4 Mt CO2 average annual figure.

Geographical: until the entry of GN in the Balearic Islands and LNG in the Canary Islands, rights will be allocated for the total amount of real emissions that are produced by the generating park available in each of the autonomous communities and Cities of Ceuta and Melilla, regardless of the fuel they use. In addition, renewable generation technologies and energy efficiency will be enhanced to cover the increase in demand in the period 2005-2007. There is no need to rule out unforeseen growth in demand that should be properly addressed.

Technology:

It is considered that they will participate with less intensity in the coverage of demand in the period 2005-2007:

the installations that foresee a progressive disappearance of the generation with fuel oil.

the thermal power plants that have consumed a good part of their useful life for more than 25-30 years (which is not the whole life of the plants, but if the period in which they operate does not require technological upgrades and significant new investments).

plants that, by application of other environmental and/or operating conditions, do not have, for economic opportunity, any investment to incorporate technology to reduce pollution.

reduction of production of less efficient thermal power plants (30 %-34% according to the type of coal used) linked to a progressive decrease in the availability of coal.

It is also considered that they will increase their share of demand coverage for gas-fired power plants per combined cycle.

Combined cycle facilities which are not in operation before 30 September 2004 and which have the corresponding administrative authorisations on that date, shall be allocated allowances without consider them to be "new entrants".

To credit the availability of these authorisations, the holders of such facilities shall submit, by 30 September 2004, the following documentation:

Resolution of the General Directorate of Energy Policy and Mines granting prior administrative authorization.

Contract or request denied and appealed for access to the natural gas transportation and distribution system.

Contract of access to the electrical transport and distribution system.

Certificate with the installation activity start date forecast, as well as an indication of the execution status of the works and the investments made.

Combined cycle facilities which are not in operation before 30 September 2004 and which do not have the administrative authorisations previously identified, may be granted allowances to this effect "new entrants". The volume of allowances available for dealing with emissions from this type of plant is raised over the period 2005-2007 to 1,84 X 3 MtCO2.

4. A. b Industrial sectors.

The individual allocation is based on the emissions of the installations during the period 2000-2002 and on the previously determined sector allocation. Once it has been established what the number of duties will be for each of the sectors affected by the Directive, the allocation of these rights between the installations of a given sector will be carried out using the weight of the emissions. of the installation have had in those of that sector during the reference period.

The advantages of using a historical emission metric are in the representativeness and the ability to verify the base information. Thus, the basic allocation formula is based on a pro-rated distribution according to emissions. However, we will see that differentiated treatment is introduced for cogeneration facilities and process emissions.

It should also be noted that there is a possibility that an installation will have representative historical emissions that do not cover the entire period 2000-2002.

This is due to exceptional circumstances, such as a prolonged stop for equipment maintenance. Where the installation demonstrates those circumstances, the abnormal operating time shall not be taken into account in the calculation of the reference emissions. Finally, where the operator of the facility duly accredits it, the individual allocation shall take account of the capacity increases undertaken after 1 July 2001 which result in an increase of at least 20% in their capacity emissions from their understanding that they cancel the representativeness of the reference emissions.

Installations without reference emissions: The normal allocation procedure should be adapted when it comes to an installation that has not been in service before 31 December 2002. It may also be that it has done so over the period 2000-2002, but the existing data is not considered sufficiently representative to be limited to too short a space of time. In both cases, alternative methods need to be used.

For installations that are in this situation, a procedure equivalent to the one that will be used to assign rights to new entrants is followed.

Simply starting by setting reference values for emissions that replace the historical emissions that do not exist in this case:

(SEE IMAGE, PAGE 30633)

E i

proc

= FE s

proc

X C i X U s

E i

comb

= FE s

comb

X C i X U s

where you have distinguished between process emissions and combustion emissions for reasons that will be clear below. In the above formulas, FEs are specific emission factors that result from the historical data provided by the facilities with available information and similar characteristics, Ci the production capacity of the facility and the average capacity utilisation, or load factor, representative of the sector in question.

In general terms the number of installations that in a given sector belong to this category is going to be very insignificant.

Cogeneration: Cogeneration is considered a multisectoral technology that transforms primary energy in the end with a high performance of transformation. The savings measures through cogeneration are due to:

Implementation of new cogeneration facilities with better technological efficiency.

Modification of equipment from existing installations and increased utilization of the plant in operation.

In the 2002-2011 Planning, cogeneration is considered for its advantages of energy saving, economic and emission reduction as an efficient technology. In 2002 the installed power for this technology was estimated at 5752 MW with an approximate generation of 11% of the electrical energy.

The allocation methodology used for cogeneration installations is conceptually similar to the one that has already been set for the rest of the facilities. Given the undoubted attractiveness of these facilities from an environmental point of view, it has been considered appropriate to give them specific treatment in the allocation of rights. This treatment consists in applying a compliance factor equal to 1 independent of the sector in which the cogeneration plant is integrated (total coverage of the expected emissions). This ensures a fair treatment between generations of different industrial sectors and promotes the development of these facilities. Thus, the formula to be used would be:

(SEE IMAGE, PAGE 30633)

A i

cog

= PE s X E i

cog

being PEs a factor representing the evolution of emissions from the reference period to 2006.

Note that the second member of this equation represents the expected emissions of the facility assuming an evolution of its historical reference emissions in line with the expected trend in the sector in which the cogeneration. The above equation translates into a "sufficient" allocation to the generations, as they are given as many rights as emissions are foreseen.

Process Emissions: Finally, in the installation-level allocation, the problems of reducing process emissions are recognized. This methodology assumes an assignment that in the current context translates into applying a formula of the type:

(SEE IMAGE, PAGE 30633)

A i

proc

= PE s X E i

proc

that is, as for cogeneration, the sector's projection factor is applied to the reference emissions (in this case, only those in the process). It's what we could call a sufficient allocation that implies a compliance factor of 1.

Recap: We go on to explain how the step-by-step assignment is performed. As has already been mentioned, the sectoral ceiling, As, is a fundamental condition in the process. The following are the following steps:

1. Reference emissions for new installations are reconstructed, distinguishing between combustion emissions and process emissions:

(SEE IMAGE, PAGE 30633)

proc

= FE s

proc

X C i X U s

E i

comb

= FE s

comb

X C i X U s

As of this moment, all installations have reference emissions to continue the allocation procedure.

2. It is allocated to cogeneration installations, as follows:

(SEE IMAGE, PAGE 30633)

A i

cog

= PE s X E i

cog

3. The part corresponding to the process emissions of all non-co-generating facilities is calculated:

(SEE IMAGE, PAGE 30633)

proc

= PE s X E i

proc

4. The sectoral allocation is recalculated after the corresponding rights to cogeneration and process emissions installations are discounted,

obtaining A's. :

(SEE IMAGE, PAGE 30633)

A's = A s-R i A i

cog

-R i A i

proc

5. The remainder is allocated according to the weight of the installation reference combustion emissions:

(SEE IMAGE, PAGE 30633)

comb

= A's X

E i

comb

E's

where E' s is the sum of the reference combustion emissions:

(SEE IMAGE, PAGE 30633)

E's = R i E i

comb

Note that in the previous summatorium, both the combustion emissions of installations with historical information and those that were necessary to reconstruct for new installations are included.

The favourable treatment of cogeneration may not result in excessive penalties for installations in the sector which do not have this technology. Therefore, installations belonging to sectors with PE sT 1 (growing trend from the reference period up to 2006) will in any case receive an allocation equal to or greater than 95% of the Ei emissions (average annual emissions of the the installation in the period 2000-2002).

4. B If historical emissions have been used, the guidelines used must be indicated and if the data has been verified

Sector historical emissions data, and those of installations that make up large pun foci

issue items come from the national inventory. In this sense, the guidelines used are those of the IPCC and EMEP/CORINAIR. The verification procedures are the own of the compilation of the national inventory (3).

As for information provided by facility holders along with allocation requests, verification procedures are provided for in relation to:

The information contained in the EPER record.

The information contained in the National Emissions Inventory database.

The information provided by the industry associations during the process of elaboration of the NAP.

The production/consumption data provided by the facilities ' own owners.

4. C Indication of whether "early action" has been considered and specific treatment has been given to clean technologies

See Section 5.B.

4. D When the unilateral inclusion of installations occurs, the details must be given here

As of 2005, this plan has provided for the possibility of unilateral inclusion of additional activities and gases. The unilateral formal inclusion of facilities has not been expressly requested, nor has it been specifically requested to include other gases other than carbon dioxide.

4. E If installations are to be temporarily excluded, it is necessary to justify compliance with the requirements of the directive

The procedure for the temporary exclusion of the Community emissions trading scheme from installations until 31 December 2007 will have to be regulated in the transposition legislation of the Directive.

The temporary exclusion procedure requires the prior authorisation of the European Commission. It will be necessary to establish that the installations are subject to a control and limitation regime for GHG emissions equivalent to the installations covered by the Directive.

The level of demand for control, declaration and verification of emissions shall be equivalent to those laid down for installations which do participate in the Community emissions trading scheme and shall also be subject to subject to sanctions at least equivalent to those referred to in the sanctions for the emissions trading scheme.

5. Technical aspects

5. To Reduction Potential: Methodology and Results

The following sections address the industrial sectors and activities covered by the Directive:

refining of fuels, steel, cement, lime, tiles and bricks, ceramic tiles, glass, and pulp and paper.

(3) For further information, please see the report on the latest in-depth review of the National Inventory under the United Nations Framework Convention on Climate Change.

5. A. a Refino of fuels.

The capacity of refining installed in Spain now reaches almost 66 Mt a year (there are nine refineries, plus one tenth dedicated exclusively to the production of asphalts), which is a slight increase in the refining capacity in relation to the European Union, which is about 9.7%. While the national refiner had in the early 1990s a surplus production (ZZ10%), this situation has become loss-making in recent years (ZZ-16%). Thus, the Spanish refineries have an importer net balance, except in the case of gasolines, a surplus product on the Spanish market.

Refineries consume a lot of energy, as oil needs to be fractionated to transform lower demand (heavier) products into higher demand (lighter and more efficient).

Thus, the energy can assume in the set of costs about 40% of the total. This is why the refineries are making a great effort to improve their energy efficiency, although, on the other hand, the obligation to meet more stringent criteria of quality of the products-taxes for environmental reasons to reduce air pollutants emitted by transport (Directive 2003 /17/EC on the quality of petrol and diesel fuels, and Royal Decree 1700/2003 of 15 December), such as sulphur and nitrogen oxides, solid particles, (i) the development of the energy sector and the growing demand for oil products. increase in energy consumption.

The rationalization in the use of energy, which is a constant in the refineries, has been realized in improvements in the thermal integration of process units, optimization of heat exchange trains, installation of Air heaters in furnaces and boilers, and improvements in instrumentation and process control systems; in addition to the increased efficiency experienced by the increase in cogeneration in the sector. These measures have resulted in a rough reduction of 1% per year of energy consumed and, although energy efficiency improvements will continue to be present, it will probably do so in minor ratios. As regards refining capacity, no major changes are expected, although it will continue to adapt to the production of products with higher added value and to the new product specifications resulting from the rules on protection of the environment. environment.

GRAPHIC:

(SEE IMAGE, PAGE 30634)

Also in recent years there has been an important phenomenon such as the "dieselization" of demand, that is, the increase in demand for gas oils.

and the reduction of gasoline. The optimal energy in the refining is produced with a balance in the production of gasoline and diesel that is not the defendant currently. This phenomenon forces us to change the balance sheet, which leads to an increase in energy consumption for higher diesel production. One of the results is that the environmental advantages of the diesel-versus-gasoline engine are decreasing; although the moment remains at the advantage, but the continued increase in demand for diesel can change the situation.

With regard to this phenomenon, the latest data provided by the Spanish Association of Automobile and Truck Manufacturers indicates that the percentage of diesel vehicles registered for the total has increased in the last ten years, from 13% in 1991 to more than 57% in 2002.

5. A. b Steel.

The steel sector manufactures products that use other sectors of industrial activity with great weight in the economy and the level of national development (construction and public works, metal or mechanical construction, construction and construction). shipbuilding, automotive, household appliances, etc.). All of them have strong implementation in Spain and are basic to the welfare state and the process of convergence with the European Union. This is why the activity of these sectors has an impact on the development of the Spanish steel industry.

in recent decades, the Spanish steel industry has experienced two profound changes, which currently allow it to be a competitive sector, having eliminated inefficient and modernized facilities with the Latest technologies available. A major research effort has also been made on steel products, resulting in a continuous improvement in the quality and new performance of the products. While obtaining these steels and their degree of finish implies greater energy consumption, their use by other sectors offers quantitative and qualitative improvements in their performance, with a consequent reduction of emissions in the life of the product.

In addition to the aforementioned modernization of facilities, the increase of the participation rate of the production of electric steel in front of the integral, the increase of the injection of pulverized coal in the blast furnaces and the greater The use of less carbon-intensive fuels makes it possible to reduce the sector's specific emissions, with a specific energy consumption value of 0,203 tep/t of steel being achieved by 2010.

GRAPHIC:

(SEE IMAGE, PAGE 30635)

5. A. c Cement.

Cement manufacturing is linked to the evolution of the construction sector, more specifically to civil work and construction. Construction activity has increased in recent years, resulting in an expansive phase of cement consumption that has been maintained since 1997 (growth rates between 2002 and 2001 are 2% in residential construction, 3% in the non-residential construction, 5% in rehabilitation and maintenance of buildings, and 9% in civil work). Thus, Spain is one of the largest consumers and cement producers in Europe, with a per capita consumption of slightly more than 1 t; although it is expected that in the medium term this value will decrease as a result of the slowdown in the construction, both in construction and in civil work.

The sector is making improvements to its facilities to optimize energy efficiency and to develop processes and products that require less energy.

For this purpose they have modified furnaces, cooling systems of the "clinker" and heat recovery of the gases of the oven, in addition to employing mineral additions that, ground together with the "clinker", give rise to cement of performance Similar or improved, which reduces the manufacture of "clinker". All these improvements have reduced specific cement manufacturing emissions in the period 1975-2002 by 36% for energy consumed and 22% per product. These continuous improvements in energy efficiency, the use of alternative fuels and the manufacture of cement with less percentage of clinker will continue to reduce the specific emissions, reaching 0.677 t CO2/t in 2010 manufactured with national "clinker."

GRAPHIC:

(SEE IMAGE, PAGE 30635)

5. A. d Cal.

The lime is used in the steel, metallurgical and chemical industries, and for the stabilization of clay soils, as well as in the restoration of ancient monumental buildings. The per capita consumption of lime in Spain (45 kg) is still far from the European Union averages (85 kg in Germany, 110 kg in Belgium and 52 kg in France).

In recent years, the lime industry has changed its facilities, replacing and modernizing old ovens with modern ovens, as well as grouping production in furnaces with higher capacity and energy efficiency. which has meant the closure of small and less efficient ovens. In addition, given that energy costs account for 50% of the total cost for this sector, the change in fuels is a reduction option, the penetration of which depends on the unit cost of the energy. Despite these improvements, it is still possible to reduce combustion emissions by switching to fuels with higher calorific power and lower carbon content, and by installing regenerative parallel flow furnaces, which increases the energy efficiency.

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5. A. e tiles and bricks.

The manufacture of tiles and bricks in Spain is directly and almost immediately linked to the evolution of the national economy, and in particular the construction sector, so active in recent years. In addition, the products that this sector manufactures are the fundamental and inevitable basis of the construction activity, with special importance in the construction in all its varieties: residential, commercial and institutional. Historical, cultural and social considerations are added to this, since in some areas the traditional mode of construction is linked to the use of this type of materials.

In recent years there has been a substantial improvement in several aspects related to the cooking and drying stages of the products, both in the installations by means of improvements in the thermal insulation of furnaces, ducts and other elements, and the progressive introduction of automation systems, as in the use of less carbon-intensive fuels, replacing the units that use petroleum derivatives with natural gas combustion units (if The natural gas distribution infrastructure allows for this. All of these measures, together with the replacement of obsolete equipment, have led to a significant reduction in the energy consumption associated with production.

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Although improvements in energy efficiency and fuel substitution become progressively more technically and economically more costly, average values of 480 termine per tonne of product can be reached in the year 2010, figures that would be achieved by replacing equipment and introducing additional improvements in isolation and processes in facilities with lower benefits. The aim is to reduce the consumption of petroleum coke up to 10% and that of fuel to 28%, increasing the share of natural gas to 62%.

5. A. f ceramic tiles.

Spain is at the forefront of the global ceramic tile industry in production, design, technology and trade, assuming more than 11% of world production, comparable to that of Italy and only surpassed by China (more than 36%). %). In addition, the domestic market absorbs approximately half of the production-mainly in residential construction, both new and replenishment-and the rest is devoted to export, where Europe accounts for half of this. market.

The production of ceramic tiles is based on cooking at temperatures around 1,000 C, so the predominant consumption is of thermal energy, being the natural gas the main fuel for feeding the furnaces (88% (i) total energy consumption), whereas other fossil fuels account for only 3% of this consumption, either liquefied gas or fuel where the gas pipelines do not arrive, or gas oil for generators. To this must be added the electric power of external generation, which is consumed in mill engines, movement in ovens, sorting and packaging machines, etc.

Since the energy cost is between 12% and 18% of the total cost of production, the improvement of energy efficiency has been a stimulus for the reduction of costs, which has also been favoured by the progressive extension of the natural gas distribution network and internal and international competition. Thus, energy saving measures have been applied in wet milling, drying of raw parts and cooking, at the same time as cogeneration has been significantly boosted.

As for the forecasts, the measures envisaged by the ceramic tile sector are grouped into three categories. The first, generalizing the use of natural gas as fuel (already consumed by 98% of the facilities), by reconversion to fast cycle monocoction, and with measures of optimization of the process and recovery of the heat of the gases combustion. The second, increasing the solids content in the suspensions for atomization, also incorporating moisture measurements of the atomized granule and the flow rate of the gas streams, optimizing the pressure in the furnaces, improving the management of the The production of new plants and the use of more productive capacity furnaces.

Finally, the third category would be the extension of cogeneration as a method for generating heat and electricity.

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5. A. g Glass.

In the glass manufacturing sector, three different subsectors have to be distinguished: hollow glass, flat glass and fried glass.

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Hollow glass: The manufacture of glass containers in Spain (60% of the national total) is structured in a similar way to the rest of Europe, with a strong concentration of capital, modern technologies with a high degree of automation and high energy consumption that can reach 30% of total costs. In addition, glass is an undifferentiated product-the packaging of different suppliers is not distinguished-the demand is the content and not the continent-and a low unit cost, so sales are limited to the environment. In this way, exports are not the empty container but a packaged product.

In terms of the measures implemented by the sector, the reform and replacement of furnaces (the decrease in energy efficiency is 15% during its useful life), the increase in the use of the glass hull as a raw material (saves 2% energy every 10% increase in the rate), improvements in heat transfer from the vault to the load, the change towards natural gas as main fuel (in the Canary Islands the use of fuel is maintained for lack of infrastructure (b) the reduction of the amount by the increase in quality. The implementation of these measures has led to a reduction in energy intensity of 20% in the period 1990-2002, with the forecast to reach around 0.405 t CO2/t of melted glass in the year 2010.

Flat glass: The production of flat glass accounts for about 25% of the total production of the sector, while demand is closely linked to the evolution of the sectors of the construction and manufacturing of automobiles, which does the last few years have had a remarkable and steady growth, it is to be expected that this trend will slow in the medium term; although it will remain superior to the European average.

As in most sectors, energy consumption is a critical factor, as it reaches 20% of the costs. Thus, energy optimization has come from the employment of refractory materials of last technology, the improvement of insulation and the engineering of the process, the recycling and the use of by-products from other industries. Thanks to these measures, energy consumption is similar to the European average, i.e. about 6.6 GJ/t of molten glass. For specific emissions, a reduction of 10% is expected in the period 1990-2010, reaching 0,557 kt CO2/t of molten glass in 2010.

Fries: Part of the spectacular growth that the Spanish ceramic sector has had in recent years is due to the immediacy of the fried sector, which, being the world leader and carrying out its research, development and innovation in the proximity of the manufacture of ceramic products, has allowed the latter to benefit from this leadership. The turnover of the sector has been multiplied by 4 since 1990, and more than half of the production is dedicated to export. Domestic sales are fully assumed by the manufacturers of ceramic pavements and coatings, so the evolution of the sector is closely linked to that of these and the construction sector in general.

As for the measures taken by the sector, since 1990 all the factories already use natural gas as fuel, so although improvements have been applied in energy efficiency, quality of the burners and In addition, the large reduction in specific emissions occurred before this year (at present it is around 0.62 kt CO2/kt).

5. A. h Pasta and paper.

The Spanish paper sector is in open expansion, at a higher rate than the EU and the national GDP itself. Thus, by 2012, it will almost double the production of 1990 (+ 91%), while in the last five years its growth doubles the EU average. In addition, its development contrasts with that of the main competing countries in our economic environment (the United States, Canada and Japan), whose production decreased in 2001 from the previous year. A number of reasons to explain this different development may be the notable improvements in productivity, which has grown by 71% over the past 10 years, and the concentration of production, as only 4% of the production of the products in the past decade. Paper mills and 28% of the pulp mills had a capacity of more than 100 kt per year, today 14% of the paper mills and 47% of the pulp plants exceed that annual production. In this development, it is also necessary to consider that per capita consumption in Spain (171 kg) is still below the countries of our environment, such as France (193 kg), Italy (190 kg), Germany (233 kg) or the United States (332 kg), which implies Important opportunities for development. Finally, it should be stressed that pasta and paper are developed in globalized markets where the product can bear transport costs of great distances, so the sector is subject to stiff international competition.

The efficiency of the Spanish pulp and paper industry is very high given that it competes with countries where the size of the factories is much higher, so it has to take care of the energy aspect. Thus, the pulp and paper sector has implemented various energy efficiency measures-performance improvements in process and equipment renewal-, use of renewable fuels and cogeneration. Thus, the energy generated by the sector for self-consumption by cogeneration accounts for 16% of the energy produced in Spain, while energy efficiency has improved by more than 13% in the last 10 years and almost 40% of the fuels that are use are renewable (biomass).

Given the expectations of sustained growth in demand and production of pulp and paper (109% in the period 1990-2010 and 52% in the period 2001-12), as well as the implementation of at least 5 new factories in the biennium 2006-07, it is to be expected an increase in total emissions that would be partially offset by improvements in energy efficiency, fuel change and the increased penetration of cogeneration in the sector. Thus, the specific energy consumption would show a noticeable change with the start of the most modern factories, with an estimated saving of 26 ktep in the year 2012, which means a potential of 0.83%.

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5. B Early Action

Explicitly, early action has not been considered in this NAP.

6. Community legislation

6. A Pool of installations ("pooling")

On a general basis, national legislation will allow applications for grouping authorisation to be submitted for all categories of activity, ensuring that competition is maintained, except for the generation of electricity. public service; if the pool of cogeneration facilities is allowed.

This exclusion has its reason to be in the particular structure of the Spanish electricity generation sector, in which a small number of companies concentrate a large number of installations of different technologies.

In this context, allowing the pool to restore liquidity and transparency to the emission rights market, due to the high degree of concentration of rights in a few companies.

This transparency, which derives from the transfer of rights through the market, is considered essential in a highly concentrated sector, such as the electric generation, since it contributes to the maintenance of a effective competition. In addition, it is estimated that the NAP might not incentivise the least emitting technologies.

The regime setting out the transposition rule will prevent the application from being accompanied by documentation proving that the affected holders have granted sufficient power to a trustee. The total allowances for the holders, allocated by installation, shall be issued to that trustee, who shall be responsible for the delivery of a quantity of allowances equal to the total of the emissions from the grouped facilities, in accordance with the provisions of the regulatory framework on emissions trading. In the event that the report of a holder of the allowances for the pool of installations has not been deemed satisfactory, the trustee shall be prevented from continuing to transfer allowances from that operator.

The trustee will be subject to sanctions in case it infringes the requirement of delivery of a sufficient amount of allowances to cover the total number of emissions from the pooled facilities, in accordance with the legal framework for emissions trading.

6. B New entrants

Spain has opted for the establishment of a free reserve for new entrants, in order to guarantee new entrants access to rights, thus respecting the application of this criterion on the basis of the the principle of equal treatment, and the provisions of the EC Treaty relating to the right of establishment in the internal market.

A free reserve of 3.5% on emissions from the baseline scenario is set, representing 5.42 Mt/year, which will be distributed between the electricity generation sector (already included in the sector allocation) and the sectors industrial. The total amount of allowances to be set aside for industrial sectors is 3.58 Mt/year, distributed in an indicative form, in accordance with the estimates of the increase in emissions between 2002 and the forecasts for 2006. The final allocation of the reserve shall be in accordance with the criteria laid down for the management of the reserve. 50% of this reserve is foreseen for cogeneration facilities associated with the industrial sectors listed in Annex I to the Directive. This would add an additional bag of 0,92 Mt/year exclusive for new entrants corresponding to the category of other co-generations, i.e. those which serve in sectors not listed in Annex I of the Directive.

Access to the rights of the reserve shall be subject to the order of receipt of applications for all installations which are covered by the definition of new entrant regulated by Directive 2003 /87/EC. That is, any installation that carries out one or more of the activities listed in Annex I to Directive 2003 /87/EC, which applies for GHG emission authorisation, or a renewal of the GHG emission permit due to a change in the character or the operation of the installation or an extension of the installation, after 30 September 2004.

In the event that, as of June 30, 2007, the rights of the unassigned reserve will be left, the State will be able to dispose of them in accordance with the provisions of Law 33/2003, of 3 November, of the Heritage of Public Administrations.

The assignment to new entrants will be calculated:

1. On the basis of the CO2 emissions projections and the best available technologies, the same compliance factor that has been used in the initial repair for the NAP shall be applied. The rights to be allocated to new entrants will not be proportionally greater than those allocated to existing facilities within the same sector.

2. Taking into account the production capacity of the plant, the average production capacity of the installations already existing in the sector, the BAT and the reduction load fulfilling the sector in which the new facility is to be established.

The allocation of the rights will require the prior obtaining of a GHG emission authorization.

The failure to operate within three months immediately after the date provided for in the authorisation shall determine the extinction of the authorisation and, consequently, the return to the reserve of the non-issued rights.

The NAP 2005-2007 will not consider new entrant to any installation whose extension or operation is planned for the period of validity of the plan that has accredited to have all the authorizations and permits that it are required under the applicable legislation and have applied for the authorisation of GHG emission and allocation of rights before 30 September 2004. Installations complying with the above requirements may have an allocation of rights in the initial NAP. On the other hand, those who, on 30 September 2004, do not have any authorisation required by the legislation applicable to them or have not applied for authorisation or initial allocation of rights, will be considered new entrants and, as They will have to request allocation of rights from the reserve.

6. C Community legislation considered

The Community legislative framework which can significantly influence the upward trend in carbon dioxide emissions in the future has been analysed in the context of each of the sectors of activity affected by the the emissions trading directive, as well as those in the sectors not covered by the Directive, but which have also been studied for their foreseeable upward projection of what would be purely trend-based emissions without the application of these standards.

The following rules have been taken into account:

Directive 96 /61/EC IPPC for integrated prevention and control of pollution and waste incineration, as regards the compatibility of IPPC licences. The co-incineration of waste which is practised in certain EU Member States in the case of activities such as, for example, the combustion of waste (other than biomass) in the whole sector has been raised by the sector in the corresponding working groups, highlighting the desirability of the use of a factor 1, to this effect.

Council Directive 2003 /96/EC of 27 October 2003 on the restructuring of the Community system for the taxation of energy products and electricity.

Directive 99 /32/EC of 26 April 1999 on the reduction of the sulphur content of certain liquid fuels amending Directive 93 /12/EEC and Directive 2003 /17/EC of the European Parliament and of the Council of 3 Directive 98 /70/EC on the quality of petrol and diesel fuels is amended in March 2003. This last directive particularly concerns the refining sector, which is obliged to produce virtually no sulphur fuels (less than 10 ppm), which, with the currently available techniques, leads to an increase in energy consumption in the Community. the sector, and therefore the measure will increase CO2 emissions, as already recognised in the negotiation of the directive itself.

Directive 2002/91/EC of the European Parliament and of the Council of 16 December 2002 on the energy efficiency of buildings.

Directive 2001 /77/EC of the European Parliament and of the Council of 27 September 2001 on the promotion of electricity generated from renewable energy sources in the internal electricity market.

Directive 2001 /80/EC of the European Parliament and of the Council of 23 October 2001 on the limitation of emissions of certain pollutants into the air from large combustion plants. (As regards this Directive, while the date of application for existing installations begins on 1 January 2008, the early introduction, prior to 2008, of selective and selective catalytic reduction systems is assessed in an environmentally positive manner. desulphurisation in large combustion plants in the energy generation sector in the context of Directive 2001 /80/EC, which has therefore been assessed in a way that does not penalise the increase in associated CO2 emissions.)

Council Directive 1999 /13/EC of 11 March 1999 on the limitation of emissions of volatile organic compounds due to the use of organic solvents in certain activities and installations. In the exchange of information with the sectors, some said that thermal oxidation is an accepted method of reducing the emissions of COV. But the waste gas stream varies in caloric content. Therefore, an additional energy input is required to maintain the temperatures required for such thermal oxidation. The control guidelines provide for this additional fuel input. In the medium term, however, it is necessary to think of the best available technologies to avoid this system.

Directive 2001 /81/EC of the European Parliament and of the Council of 23 October 2001 on national emission ceilings for certain air pollutants. The objectives of limiting the national emissions of pollutants sulphur dioxide (SO2), nitrogen oxides (NOx), volatile organic compounds (VOCs) and ammonia (NH3) to amounts not exceeding the emission ceilings laid down in the Annex I to this Directive means the implementation of additional measures in specific sectors affected by Annex I of the Emissions Trading Directive and in sectors not affected by this Directive.

7. Public information procedure

I) How the plan is made accessible to the public, how it is guaranteed to take account of comments submitted

The NAP was brought online dated July 8, 2004 on the website of the Ministry of the Environment.

The corresponding announcement was also published in the "Official Gazette of the State".

The public ordered until July 19 at 5 p.m. to make their observations. A summary of the comments made is presented below, with the indication that these comments are considered.

In parallel the text of the draft was forwarded to the business associations of the sectors included in the scope of the directive, to the autonomous communities, to the Spanish Federation of Municipalities and Provinces, and to the main NGOs, trade unions and consumer organisations.

The text was also presented to the Economic and Social Council, the Environment Advisory Council and the National Climate Council.

In addition, the social dialogue will remain open for the duration of the NAP so that all the parties concerned can make clear the comments and assessments they consider relevant.

In order to analyse the potentially adverse social effects, and in particular those relating to employment, the creation of dialogue tables at the global level and in each sector of activity, in which they are present together with the administration of the trade union and representative organizations of the same.

II) Consideration of public comment

The international commitment to limit the increase in GHG emissions in the context of the terms laid down in Council Decision 2002/358/EC of 25 April 2002 on the approval, on behalf of the The European Community, the Kyoto Protocol to the United Nations Framework Convention on Climate Change and the joint implementation of the commitments made under it, had a unanimous ratification of the Convention on Climate Change. Members.

Spain has a quantified emission limitation commitment, agreed in accordance with Article 4 (1) of the Kyoto Protocol, of not exceeding by more than 15% its emissions from the following GHGs: carbon (CO2), methane (CH4) and nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6), in the period 2008-2012, compared to 1990 levels in the case of CO2, CH4 and N2O, and 1995 levels in the Case of HFCs, PFCs and SF6. The content of this compromise was unanimously ratified by the Congress of Deputies.

A. Assessment of the comments received in the pre-draft stage of the draft plan.

Since 2002, and within the framework of the commitments referenced, identification exercises were initiated, with sectors and agents involved, policies and measures for climate change mitigation.

Later, during the years 2003 and 2004, in the framework of Directive 2003 /87/EC, various ad hoc inter-ministerial preparatory groups, chaired by the Ministry of Economy and with secretariat in the Ministry of the Environment Environment through the Spanish Office of Climate Change, they have gathered the information for their subsequent analysis in the corresponding working meetings held with the sectors, their associations and agents involved.

In these meetings the available data and the characteristics of each of the sectors included in the directive and the non-included have been collected for the performance of the work leading to the decision-making in the relationship to the initial allocation of allowances between the sectors affected by the Directive.

In this exercise, the directive and non-directive sectors provided, inter alia, the following information, for the purposes of the NAP, in response to a questionnaire drawn up by the inter-ministerial ad hoc groups:

Emissions data and annual projections up to 2012 of its sector, of the six GHGs.

Identification of discrepancies and/or gaps in the official inventories and adjustments required for their adaptation from official GHG inventories, series 1990-2001 initially, and series 1990-2002 thereafter, in view of their (i) to take account of the requirements of the emissions trading directive.

Information on the potential for reduction of each gas until 2007 and between 2007 and 2010.

Figures or referential elements of approximation to the number of allowances that the sector understood necessary, for the period 2005-2007 and for 2008-2012.

Concerning productive and energy strategies in the sector.

Industry forecasts in the context of the flexibility mechanisms.

The exposure of the sector to external competition, and how to consider competition from countries outside the European Union.

The situation of the sector in the European Union and globally.

The listing of the sector's installations affected by the emission rights market.

Industry-specific data on production processes and their emissions.

Data from the sector in the field of cogeneration and positioning on treatment of this in the NAP.

Forecasts of new entrants in the sector and positioning on treatment of these.

Treatment of plant and rights closures.

Treatment of early action.

Scope of the combustion installation definition.

The unilateral inclusion of activities.

The temporary exclusion of certain installations.

The facility pool: Industry forecasts and positioning.

Identification of unavoidable emissions associated with compliance with other environmental standards.

The use by the best available technology sector in terms of minimizing GHG emissions in absolute value or per unit of product, and positioning and benchmarking in the European and international Union context (s) technology (s).

Other written comments.

The GICC, once revised all the preparatory work of the inter-ministerial groups and consultations of the Administration to sectors and agents, in particular the one developed between the months of October 2003 and first trimester of 2004, has carried out further consultations with the groups, sectors and actors, in order to identify, following the analysis of allocation methods by sectors and activities, the decision elements for the basic agreement and the criteria for the elaboration of the NAP, in which they have been taken into account the contents of each and every indication emanating from the operators, competent departments and interest groups affected by the proposal.

B. Comments to the draft plan.

On June 21, 2004, the Minister of the Environment presented to the media, sectors and agents involved, trade unions, companies and NGOs, the basic agreement and criteria for the elaboration of the NAP, while the The Council of Ministers of the European Communities, the Council of Ministers of the European Communities, the European Parliament, the Council, the European Parliament, the Economic and Social Committee, the Committee of the Regions and the Committee of the Regions. Environment, National Climate Council and request for a report to the Economic and Social Council.

A first round of consultations with affected sectors, NGOs, trade unions and autonomous communities was held at the time.

During the process of public information, more than 300 allegations have been received. In general terms, the allegations are positively assessed, as they have provided interesting observations that have been used to improve the plan. The typology of the allegations received and their impact on the text of the plan are then presented.

Facilities listing:

Allegation: A very high percentage of the allegations received have been requests for correction of the facility listing. This percentage is around 80%. Applications cover the inclusion or exclusion of installations, the modification of data relating to installations already detected, and the provision of additional information in general. Issues relating to the definition of the scope of the emissions trading have also been raised in this context.

Response: All these requests have been taken into account, incorporating them to the extent that they are consistent with the scope of the directive and have been deemed to be duly accredited.

Sectoral emissions:

Allegation: The emissions data for the manufacture of lime and the manufacture of bricks and tiles do not respond to the best available knowledge.

New data is contributed.

Answer: New estimates represent methodological improvements and modify the previous ones in a quantum that has been considered significant. For both reasons, it has been decided to accept the revised figures.

Degree of aggregation of sectoral allocations:

Allegation: the grouping of sectors in the sectoral allocation is excessive, not responding to criteria of homogeneity and limiting transparency.

Answer: The sectoral allocations table has been unbundled in this definitive plan version.

Assignment to installation:

Allegation: the allocation of rights to each of the affected facilities is missing.

Answer: In the framework of the individualized allocation procedure established by the law, a new public information procedure will be put in place so that the facilities can submit their comments.

Individual allocation methodology-industry sectors-lack of clarity:

Allegation: The individual allocation methodology is explained inadequately.

Response: The wording of paragraph 4.A.b has been modified, improving the notation and adding additional details, for example in relation to facilities that do not have significant reference information.

Individual allocation methodology-industrial sectors-homogeneous growths:

Allegation: the individual allocation methodology is considered to be inadequate, while it is uniformly moving the growth of the sector to each of the facilities.

Answer: It is not necessary to enter into an analysis of forecasts of individualized activity, because it is subjected to greater error and subjectivity.

Allocation Methodology

individual-"benchmarks"-early action and clean technologies:

Allegation: several allegants have questioned the allocation methodology by understanding that a "benchmarking" approach is preferable or considering that the treatment of clean technologies and early action is preferable. insufficient or non-existent.

Answer: It is not appropriate to introduce a profound change in the individual allocation methodology at this stage. The option taken has advantages in terms of the verification possibilities, and incorporates a favourable treatment for cogeneration as clean technology. As for early action, it is true that it is not explicitly contemplated if it is partially done implicitly. The processing of the process emissions will reward the facilities that have invested in energy efficiency, although they did so before 2000-2002.

Comparatively, these facilities will have a higher process emissions ratio, that is, a higher percentage of emissions with preferential treatment. Finally, the best available techniques will be taken into account in the allocation to new entrants.

Individual allocation methodology-industrial sectors with very high percentage of cogeneration:

Allegation: the methodology severely penalizes facilities that are not cogeneration in sectors with high percentage of cogeneration.

Answer: A safeguard clause has been introduced that will avoid excessive loading for these installations.

Reference period 2000-2002-Lack of representativeness:

Allegation: some installations raise objectively exceptional situations during the reference period, so that the allocation based on a pro-rata basis according to historical emissions would lead to a clear allocation insufficient.

Answer: A safeguard clause has been introduced that will avoid excessive loading for these installations.

Reference period 2000-2002-Capacity augments at end of period:

Allegation: installations that increased their capacity at the end of the reference period have reference data that does not respond to current emissions.

There is no talk of new entrants, as capacity increases are prior to the elaboration and publication of the NAP.

Answer: A safeguard clause has been introduced that will avoid excessive loading for these installations.

Allocation to non-Annex I-sectors:

Allegation: to be clarified as assigned to the non-associated cogenerations to industries listed in Annex I.

Response: The treatment of these facilities is now specified in section 3 of the plan.

Misprints:

Allegation: errata has been detected in several sections of the plan, including the table in paragraph 3 (historical emissions) and the lack of content in section 4.B.

Answer: Errors have been remedied.

Application-clause scope "and/or" in the ceramic sector:

Allegation: as in other countries in our environment, "and" in determining the scope for the ceramic sector should be used:

" Facilities for the manufacture of ceramic products by baking, in particular of tiles, bricks, refractory bricks, tiles, ceramic stoneware or porcelains, with a production capacity exceeding 75 tonnes per day, and a baking capacity of more than 4 m and more than 300 kg/m of load density per oven. '

Answer: it is accepted that this interpretation is in line with the provisions of the directive and only affects very small installations.

The impact on emissions, which is very limited, calls into question the burden on these small installations for inclusion in the market.

Application scope-combustion installation definition:

Allegation: The definition of combustion installation is confusing.

Answer: Additional clarifications are included in the table on page 6.

Scope-frits, enamels, and ceramic colors:

Allegation: avoid all reference text to ceramic glazes and colours; they are outside the scope of the directive.

Answer: Correct. Conform to the text

conveniently.

8. Other allocation criteria

No additional basic criteria have been used for those listed in Annex III of the Directive.

ANNEX A

Facilities listing

The current draft list of installations was built from the following sources of information:

Questionnaires of the main organizations for the electrical generation sector and the industrial sectors listed in Annex I of the Directive, delivered in the framework of the contacts maintained to develop the NAP.

The State Register of Emissions and Pollutant Sources (EPER), established in accordance with the provisions of the Decision of the European Commission 2000 /479/EC.

The Register of electrical power production facilities under ordinary and special arrangements.

Database of large points of the national inventory of gas emissions to the atmosphere.

According to the directive, and at the request of the holder, the greenhouse gas emission authorization could cover one or more facilities provided that they are located in the same location, they will have a relationship of technical nature and have the same holder. Thus, several of the installations listed in this draft could finally appear grouped in the definitive list.

As already explained in paragraph 7 of the plan, the public consultation procedure has contributed significantly to the purging of the draft list initially prepared. However, it should be recalled that the list of installations will be final only once the procedure laid down by the law for the allocation of rights to installations has been completed.