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The Bulgarian Government determines that 49 651 606 allowances for СО2 emissions will be allocated in the Scheme for the First period.
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Allocation of allowances will be carried out in two stages: first, allowances will be allocated by sectors and subsequently to installations within each sector.
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Allocation of allowances at sector level will be based on average historical emissions during the base year. “Base year” comprises of the average emissions from the installations in the two years of 2002, 2003 and 2004 with highest emissions. For installations which have not functioned during two years of this period, the year in which they were functioning is applied as a base year.
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Allocation of allowances at installation level will be made on the basis of an allocation methodology approved by the WG, based on the historical emissions from installations and sectors and the forecasts for production volume and emission projections by sectors.
The sum of the allowances for all installations in one sector can not exceed the allowances determined for the respective sector.
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Allocation of allowances for unknown new entrants, defined in accordance with the Directive, will be made free of charge from a general reserve that was allocated for new entrants for the period 2008-2012 in an increasing amount of 1 to 5 million allowances by years, in accordance with the macroeconomic forecast for the development of the country.
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The reserve for planned and unknown new efficient co-generation installations is calculated on the basis of the indicative objective for the country for introduction of a new highly effective co-generation.
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Allowances to new entrants will be issued based on:
а) submission of an application to the competent authority;
b) holding a valid emission trading permit;
c) projected emissions are calculated on the basis of the lowest emission level in the sector.
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The calculative reserve equalling 5% of the emissions of registered installations and is intended for operators of installations which have delay in registering and submitting data before 30 November, 2005 (delayed installations). Those who submit data before 28 February 2006 receive allowances until the submission of the BNAP to the EC.
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Allowances to sleeping installations will be issued based on:
а) submission of an application to the competent authority;
b) holding a valid emission trading permit;
c) projected emissions are calculated on the basis of the average emission factor (emissions of CO2 by production unit) for the sector.
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