AENOR INTERNATIONAL THE CHALLENGE OF THE KYOTO PROTOCOL At present, AENOR is completing validation of the first three Spanish CDM projects - Las Vacas, by Iberdrola in Guatemala; Los Algarrobos, by Unión Fenosa in Panama; and La Ventosa, by Gamesa in Mexico. AENOR is also offering new projects all over the world in support of the challenge facing Spanish Industry to meet the commitments taken on with ratification of the Kyoto Protocol. AENOR is also keen to continue internationalising its activities through its team of professionals who meet the demanding, world-level requirements of the United Nations Framework Convention on Climate Change (UNFCCC). UNITED NATIONS FRAMEWORK CONVENTION FOR CLIMATE CHANGE In 1979, during the first World Conference on the Climate organised by the World Meteorological Organisation, scientists from all the countries belonging to this organisation noted the change in climate caused by anthropogenic emissions of greenhouse gases and the danger that climate change represents for humanity. This first landmark amounted to a clear warning for governments in all developed countries, and a call for measures to help mitigate the possible negative impact of climate change for the world’s population. The United Nations took up the scientists’ warning and, through the United Nations Programme for the Environment and together with the World Meteorological Organisation, in 1988 set up the Intergovernmental Panel on Climate Change (IPCC). Governments from all the United Nations countries participated in this panel as well as members of the scientific community. The Mandate given to the Panel by United Nations covered three areas: on-going compilation of all information available throughout the world on climate change; study of possible environmental and socio-economic impacts caused by climate change: recommendation of response strategies to the United Nations. The Panel’s first report in 1990 warned the United Nations of the real danger of climate change, and this led to talks being set up to establish a framework convention on climate change (United Nations Resolution A/RES/45/212 of December 1990). These negotiations amongst all the member countries resulted in the United Nations Framework Convention on Climate Change (UNFCCC). The UNFCCC was launched in 1992 during the Earth Summit held in Rio de Janeiro (Brazil). Once it was opened to signature, the UNFCCC became operative on 21 March 1994 and, eight years later, became the most widely accepted international treaty in the history of humanity. 188 countries, plus the European Union, undertook to meet their commitments. These are laid down, but not quantified, in the Convention and are based on the principles of equity and precaution and on the concept of sustainable development. The developed countries therefore have to contribute actively to reducing their emissions of greenhouse gases and to help the less developed countries to grow using clean technologies. They bear greater responsibilities for the consequences of climate change so they have to contribute most to mitigating its consequences. The UNFCCC meets towards the end of every year at the Conference of the Parties to the convention (COP), the parties being the members of the UN which belong to the Convention. During the third Conference of the Parties (COP 3) held in Kyoto in 1997, a Protocol was drawn up to implement the commitments of the UNFCCC and to quantify them for the developed countries. This was the Kyoto Protocol. THE KYOTO PROTOCOL The Kyoto Protocol was opened to signature in 1998 and has now been ratified, approved or accepted by 136 countries (37 included in the UNFCCC Annex I and 99 not in Annex I). These account for 61.6% of emissions in the base year (1990) for the Convention’s Annex I countries. In both the Kyoto Protocol and the UNFCCC, the parties are divided into three groups: Annex I parties - the member countries of the Organisation for Economic Cooperation and Development (OECD) in 1992 plus transition countries; Annex II parties – only OECD countries; non-Annex I parties – other countries. In the Kyoto Protocol, the emissions reduction commitments for Annex I parties are quantified in Annex B. According to article 25 of the Kyoto Protocol, it enters into force once it has been ratified, approved or accepted by at least 55 parties representing 55% of base year emissions. This objective was reached on 20 January 2005 with ratification by Russia, and the Kyoto Protocol became operative on 16 February 2005. Thus the emissions reduction commitments acquired by all the Annex I countries became legally binding. Spain, together with the European Member countries, has ratified the Kyoto Protocol in order to contribute to the reduction in greenhouse gases (GHG) in the atmosphere and to the mitigation of the adverse effects of climate change. Annex B of the Protocol establishes the commitment for emissions reduction for each of the Annex I Parties to the UN Framework Convention on Climate Change and this commitment for the European Union as a whole is 8% with regard to the base year of 1990. This obligation has been shared out amongst all the member countries depending on the degree of development of each of them. Spain is not allowed to exceed 15% of the base year emissions (1990). Three mechanisms are established by the Kyoto Protocol to help the Annex I countries meet their commitments. These flexibility mechanisms complement the internal actions that are to be carried but by the developed countries to reduce their emissions and may not substitute them. In turn, within each country, emissions may be shared out amongst each of the sources of greenhouse gases to establish appropriate emission limits for each of them and to meet the Kyoto commitment. This distribution was carried out in Spain by Royal Decree 1866/2004 dated 6 September, which approves the National Allocation Plan for Emission Rights for the first period of 2005-2007. This document organises the amount of emission rights (in tons of CO2) for each sector of industrial activity and for other sectors which cannot be broken down plant by plant such as transport, the residential, commercial and institutional sectors and agriculture. Implementation of the National Allocation Plan takes into account the provisions of Directive 2003/87/EC of the European Parliament and Council, transposed to Spanish legislation by Act 1/2005. This Directive establishes the industrial and electricity generation sectors to which individual emission allowances have to be allocated, plant by plant. Also, the Spanish Office for Climate Change continues to work to clarify the emission allowances for each of the plants involved. At the end of November 2004, it published the Proposal for allocation of individual emission allowances for the period 2005-2007 which indicates the criteria for free allocation of emission allowances for plants covered by Act 1/2005. Through this document and in compliance with the law, the OECC submits the draft allocation to a process of public notification during which allegations may be presented. Once these have been duly studied and any necessary changes or adjustments made, the Government, at the proposal of the Ministers of Finance, industry, Tourism and Trade, and Environment, adopts the final decision on allocation. According to the Proposal for allocation of individual emission allowances, a total of 1054 applications were received within the time limit. After due consideration, these led to the provisional allocation of emission allowances to 957 plants. The need for verification by an independent third party of data on CO2 emissions by companies within the European emissions system is laid down in article 6-1.d of Directive 2003/87/EC of the European Parliament and Council dated 13 October 2003. This establishes a scheme for trading in greenhouse gas emission allowances within the Community. It also establishes the Obligation to submit within four months after the end of each calendar year emissions allowances equivalent to total emissions for the plant during this year, verified in compliance with article 15. This Directive, as stated above, has been transposed to Spanish legislation by Act 1/2005 (March) in its article 22: The report shall be verified in compliance with the provisions of Annex IV by accredited verification bodies in line with the terms of the regulations implementing this Royal Decree Law. Both Annex V of the Directive and Annex IV of the Royal Decree Law briefly lay down both verification criteria and minimum requirements for verifier competence. Clearly, as established in article 22 of Act 1/2005, the annex has to be regulated, especially with regard to verifier accreditation. Since its ratification on 16 February this year, the Kyoto Protocol has become a legally binding treaty for all its signatory countries. It is also becoming one of the main driving forces for technological development on a worldwide level because many companies, in the energy sector and others, are carrying out R&D activities to resolve their problems and meet GHG emission commitments. José Luis TEJERA OLIVER Manager of AENOR’s Strategic and Corporate Development Division of AENOR cheredia@aenor.es +34 91 432 6004