A uniform allocation methodology is used for all sectors.
The allocation at sector level is based on historical emissions for the period 2002-2004, as a base year is selected. The base year is the average of the emissions in the two years with highest emissions from the years 2002, 2003 и 2004. For installations which have not functioned in two of those years, the base year is the last year of operations.
Based on submitted and verified data on the production activity of each installation, historical emissions of installations were calculated and data is determined for the “base year” for each installation. The application of the concept “base year” is necessary in order to avoid the effect of accidental reduction of emissions of installations due to incidental crises or long repairs and modernization. The base year is the average of the emissions in the two years with highest emissions from the years 2002, 2003 и 2004.
The calculated volume of the emissions from the installations for the “base year” is expressed as (i – serial number of the installation, g – number of the sector)
Emissions in the base year for each sector “g” are calculated as a sum of the emissions of all installations in the respective sector in the base year for each installation :
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The determination of the quantity of allowances to be allocated in each sector and their proportion to the emissions from sources outside the scheme is based on two sources of information:
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National GHG Inventory for the year 2003;
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Company data based on a questionnaire, filled in by the operators of the installations.
The total quantity of emissions from registered installations is determined as a sum of the emissions of the individual registered installations (submitted in the questionnaires and corrected during the verification with official data from the NSI, the integrated permits and other sources). This quantity is compared to the data from the inventory.
In addition to calculating the total quantity of emission volumes from participating installations, the data for registered installations is used for calculating emissions by sectors according to the IPCC classification in a way that the quantity of emissions is comparable to those from the inventory of the GHG emissions for 2003.
Emissions from the following groups of sources have been determined:
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Condensing TPP;
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District Heating Cogeneration Plants;
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District Heating Boilers
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Auto-generation;
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Refineries;
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Ferrous metallurgy (fuels);
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Production of cellulose and paper (fuels);
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Other productions (fuels);
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Production of ferrous metals (process emissions);
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Cement production (process emissions);
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Lime production (process emissions);
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Glass production (process emissions);
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Ceramics production (process emissions);
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Cellulose and paper production (process emissions).
The quantity of allowance allocated to a given sector is corrected with calculative reserves and is distributed between installations. The quantity of allowances allocated to each installation each year is proportional to the product of emissions from the installations during the base year corrected with the projected increase in emissions in the sector compared to the base year.
The calculated quantity of allowances for each installation is limited by the installation capacity. The surplus of allowances over the production capacity of the installation shall be re-allocated to the other installations in the sector proportionally to the volume of their emissions during the base year. Installation capacity means the maximum annual production output defined in the integrated permit, and when no permit is issued, 90 % of the annual projected capacity or of the reached maximum production in the period 1988–2004.
This method ensures equality between installations in the respective sector, and installations are provided equal opportunities (percentage equal to the average percentage of increase in emissions in their sector) to increase their production volume compared to the “base year” until reaching full production capacity.
At the second stage of allocation, the quantity of allowances of installations is corrected with the quantity of the reserves of emission allowances necessary for the implementation of compulsory measures, for standardisation of the degrees/day, for new entrants and delayed installations and for new cogeneration.
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