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Summary of main principles on which basis allocations will be made



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Summary of main principles on which basis allocations will be made






The Bulgarian Government determines that 49 651 606 allowances for СО2 emissions will be allocated in the Scheme for the First period.



Allocation of allowances will be carried out in two stages: first, allowances will be allocated by sectors and subsequently to installations within each sector.



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.



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.





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.



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.



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.





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.



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.




1. Determination of the total quantity of allowances

1.1 Obligation of Bulgaria under the Kyoto Protocol


1.1 What is the Member State’s greenhouse gas emission limitation or reduction obligation under the Kyoto Protocol?

Bulgaria has committed to limit greenhouse gas emissions by 8 % in the period 2008-2012 compared to the base year 1988 (as a transition economy – Art.3.6. of KP). The base year for carbon dioxide (СО2) and methane (СН4) is 1988, and the base year for perfluorocarbons, hydrofluorocarbons and sulphur hexafluoride is 1995.

The latest calculation of greenhouse gas emissions for Bulgaria (2003) is 69167 Gg of CO2 equivalent, and the estimate of net emissions after taking into account the removals from the land-use change and forestry sector - 62 111 Gg. This is more than 50 % below the obligation under the Kyoto Protocol.



Assessment of the fulfilment of the obligation under the Kyoto Protocol and determination of the total quantity of emissions

For the purposes of assessing the level of fulfilment of the obligations under the Kyoto Protocol, the estimated aggregated emissions at macroeconomic level (row 1 of Table 11) are compared to the Kyoto Protocol commitment corrected by emission reductions within approved and supported JI projects, and assessment is carried out:



  • On the extent to which the obligation is fulfilled;

  • If the obligation is not fulfilled, the quantity of the necessary total emission reduction is determined.

The results are presented in Table 1:

Table1. Planned anthropogenic emissions of greenhouse gases, Gg

 Year

2007

2008

2009

2010

2011

2012

Overall anthropogenic GHG emissions in the country, Gg CO2 eqv.

80 135,78

84 305,74

89 382,27

98 268,94

102 274,72

103 826,91

Overall GHG emissions from sectors, not covered by the Scheme, Gg CO2 eqv

24 815,00

26 501,00

27 424,00

28 523,00

29 181,00

29 778,00

Overall GHG emissions from sectors, covered by the Scheme, Gg CO2 eqv

55 320,78

57 804,74

61 958,27

69 745,94

73 093,72

74 048,91

Overall CO2 emissions from sectors covered by the Scheme, Gg CO2

50 743,95

53 020,62

56 814,08

63 927,82

66 935,58

67 834,47

Energy activities, including:



















-electric power

22 326,04

22 415,13

24 028,10

27 580,62

30 252,25

29 086,36

-combined production of heat and electric power

9 123,85

9 210,26

9 299,67

9 494,08

7 884,58

8 002,88

-heating – public sector

905,77

953,17

1 000,57

1 047,97

1 095,37

1 142,77

-heating for industrial purposes and other CP, incl.:



















Production of chemical products and rubber

432,05

452,96

473,37

493,35

512,98

532,31

Production of food and beverages

601,31

630,16

658,91

687,39

715,96

744,34

Production of wood material and wood articles (expect wood furniture)

208,52

225,68

242,84

260,00

277,15

294,31

Production of textile and textile articles (except for apparel)

188,31

201,05

213,80

226,55

239,30

252,04

Production and casting of non-ferrous metals

156,68

160,29

163,63

166,74

169,65

172,39

Production of machines, equipment and household appliances

105,21

108,86

112,28

115,51

118,56

121,46

Healthcare and social activities

353,20

371,68

390,17

408,65

427,13

445,62

Agriculture and hunting and related to them services

219,18

230,65

242,12

253,59

265,06

276,53

Distribution of natural gas

219,00

219,00

219,00

219,00

219,00

219,00

Refineries and oil products

2 389,74

2 533,13

2 685,11

2 846,22

3 017,00

3 198,01

Cement production

4 588,08

4 933,63

5 376,48

7 139,70

7 359,82

7 579,94

Lime production

1 596,71

1 692,56

1 779,31

1 866,07

1 952,82

2 039,57

Cellulose and paper production

530,72

582,32

663,69

706,58

748,70

788,49

Glass production

371,94

375,68

379,81

383,57

387,04

388,42

Ceramics production

199,20

202,96

206,90

210,12

213,12

215,95

Ferrous metallurgy

5 897,92

6 045,62

6 166,23

6 261,12

6 350,20

6 434,28

Unknown new entrants

0,00

1 000,00

2 000,00

3 000,00

4 000,00

5 000,00

Correction compulsory measures

330,53

475,82

512,08

560,99

729,91

899,81

Correction JI




3 200,87

3 200,87

3 200,87

3 200,87

3 200,87




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