The Basque Country Greenhouse Gas Inventory 2020

The Basque Country
Greenhouse Gas
Inventory
2020 | EXECUTIVE SUMMARY

© Ihobe S.A., May 2022
PUBLISHED BY
Ihobe, Public Society for Environmental Management
Department of Economic Development, Sustainability
and Environment.
Basque Government
Alda. Urquijo, 36 6th
floor
48011 Bilbao
Tel: 900 15 08 64
info@ihobe.eus
www.ihobe.eus
CONTENTS
This document was prepared by Ihobe with the
collaboration of Investigación y Control de Calidad S.A.U.
DESIGN AND LAYOUT
dualxj comunicación y diseño
The content of this edition of the book are published
under licence: Creative Commons Attribution – Non-
commercial – NoDerivs 3.0 Unported (more information
http://creativecommons.org/licenses/by-nc-nd/3.0/deed.
es_ES).

The Basque Country Greenhouse Gas Inventory 2020 | 3
CLIMATE CHANGE IN THE
BASQUE COUNTRY
Climate change is one of the main envi-
ronmental challenges of the 21st
century, as
the United Nations has repeatedly stated.
According to the sixth assessment report
issued by the Intergovernmental Panel on
Climate Change in 20211
, the Earth’s clima-
te has already changed as a result of the
accumulation of greenhouse gases in the
atmosphere. As a consequence, the ave-
rage land surface temperature in the last
decade (2011-2020) was 1.09 °C higher
than in the pre-industrial era (1850-1900)
and sea level rose by 20 cm between 1901
and 2018. Although this report includes
climate change scenarios which result in
temperature rises of between 1.5 and 4.5
°C, international commitments are focu-
sed on containing this increase to between
1.5 °C and 2 °C. The consequences of cli-
mate change2
include, among others, an
increased risk of river and coastal flooding
that will affect people, the economy and
infrastructure, health impacts due to high
temperatures, disruptions to ecosystems,
droughts, and losses in agricultural pro-
duction as a result of all of the above.
After the Kyoto protocol, which regulated
the reduction of greenhouse gas (GHG)
emissions in the countries that signed the
protocol for the period 2008-2012, the
Paris agreement was signed by 175 parties,
i.e. 174 countries and the European Union,
with a view to “holding the increase in the
global average temperature to well below
2 °C above pre-industrial levels, and pur-
suing efforts to limit the temperature in-
crease to 1.5 °C above pre-industrial levels”.
The Basque Country
Greenhouse
Gas Inventory
2020 | EXECUTIVE SUMMARY
1 Climate Change 20201: The Physical Science Basis. Contribution of Working Group I to the Sixth Assessment Report of the
Intergovermental Panel on climate Change.
2 In its report “Climate Change 2022: Impacts, Adaptation and Vulnerability”.

4
The European Union pledged to reduce its
emissions by 20% by 2020 and 55% by
2030 compared to 1990 levels under the
“2020 climate and energy package” and
the EU’s updated contribution to the Paris
Agreement, in the form of the “Fit for 55”
legislative package. In the long term, the
“2050 Long Term Strategy”, the European
Green Deal, European Regulation 2021/119,
which sets out a framework for achieving
climate neutrality, and the “European Cli-
mate Law” lay down the need to achie-
ve climate neutrality by 2050, or earlier if
possible, i.e. to reduce emissions to such
an extent that they are offset by removals.
The reduction of emissions in the European
Union is divided into two large blocks:
– Sectors regulated by the European Emis-
sions Trading Scheme (EU-ETS). In gene-
ral, these are large, emission-intensive
industrial or energy plants. Their emis-
sions are regulated by the EU by alloca-
ting emission allowances. The reduction
in allowances and, therefore, emissions
will be 21% by 2020 and 61%3
by 2030.
– Diffuse sectors, (housing, agriculture,
waste, transport, etc.) with binding state
emission reduction targets. The EU ave-
rage reduction target is 10% by 2020 and
40%4
by 2030 compared to 2005 levels.
The proposed regulation also sets bin-
ding individual targets for reducing diffu-
se emissions.
In the Basque Country, the Klima 2050
Climate Change Strategy was approved in
2015. After an initial planning cycle (2015-
2020), a review process has started in a
context where Europe is setting more am-
bitious climate commitments.
On July 30, 2019, the Basque Government
presented its “Declaration on the Climate
Emergency”, in which it proposed making
this issue a central objective of the Basque
Country.
In October 2021, the Basque Energy Tran-
sition and Climate Change Plan 2021-2024
was approved, featuring 15 flagship mi-
tigation and adaptation initiatives. The
Plan pledges to reduce emissions by 30%,
achieve a 20% share of renewables in final
energy, and ensure the region’s resilience
by adapting coastal municipalities and in-
frastructures in readiness for the climate
challenge, and providing solutions based
on nature, sinks and the Natura 2000 net
work.
Work on the draft Energy Transition and
Climate Change Law will continue throu-
ghout 2022, aimed at “establishing a sta-
ble legal framework to achieve climate
neutrality in the Basque Country by 2050
at the latest and to increase its resilience to
climate change..” by setting out obligations
and organising the role of the different cli-
mate action actors.
3 COM (2021) 551 Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Directive
2003/87/EC establishing a system for greenhouse gas emission allowance trading… 2021/07.
4 COM (2021) 555 Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending
Regulation (EU) 2018/842 on binding annual greenhouse gas emission reductions by Member States… 2021/07/14.

RESULTS
Historically and in absolute terms, emis-
sions in the Basque Country were 20.8 mi-
llion tonnes of CO2
eq. in 1990, 25.3 million
tonnes of CO2
eq. in 2005, while the results
obtained in this inventory were 16.4 million
tonnes of CO2
eq. in 2020. If we compare
these absolute values, we can see the fo-
llowing:
– A 35% reduction in emissions compared
to 2005.
–
A 21% reduction in emissions compared
to 1990.
–
A 12% reduction in emissions compared
to the year before, 2019.
It is worth mentioning that emissions in
2020 were greatly affected by the SARS-
CoV-2 pandemic and the restrictions re-
sulting from it. This year, when GDP fell by
10%, there was a general fall in emissions
in almost all sectors, with the exception of
a slight increase in the agriculture sector,
but this had little impact on the overall re-
sult.
The Land Use, Land Use Change and Fo-
restry (LULUCF) sector has seen removals
of 0.96 million tonnes set in 2020.
Evolution of GHG emissions
and removals
2005 was an important milestone in the
Basque Country’s climate policies, as it
was designated as the base year for the
Klima 2050 Strategy. In light of the results
outlined above, it can be confirmed that
GHG emissions are below the projected
pathway for meeting the targets set out in
the GHG strategy.
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
-40
-35
-27
2017 2018 2019 2020
120
100
80
60
40
%
GHG Index for Spain GHG Index for the Basque Country GHG Index for the EU
Figure 1.
Evolution index of greenhouse gas emissions in the Basque Country,
European Union-27 (EU-27) and Spain (2020) (2005 = 100)
Source:
Compiled by the author from data provided by:
Eurostat: All sectors and indirect CO2
(excluding LULUCF and memo items,
including international aviation).
EEA: Approximated estimates for greenhouse gas emissions (2020).

6
-40
-35
Total Emission Index Klima 2050 target
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
120
100
80
60
40
20
0
%
80
180
160
140
120
100
80
60
%
GHG Index for Spain GHG Index for the Basque Country GHG Index for the EU EU target
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
-7
-21
-31
Figure 2.
Evolution of emissions compared to the target set in the Climate Change Strategy 2050
Figure 3.
Greenhouse gas emissions trends in the Basque Country, the European Union-27
and in Spain (2020) (1990 = 100)
Source: Prepared in-house.
Source:
Eurostat: All sectors and indirect CO2
EEA: Approximated estimates for greenhouse gas emissions (2020).

Diffuse emissions
Diffuse emissions are emissions genera-
ted by sectors not covered by emissions
trading regulations, i.e. emissions from
the agriculture, waste, residential, servi-
ces, transport and unregulated industry
sectors. The European Union sets binding
emission targets for each country in accor-
dance with the Effort Sharing Decision.
Diffuse emissions in the Basque Country
have been reduced by 16% since 2005,
meaning that the Basque Country would
have reached the average binding target
set for member states for 2020 (10%), as
already seen in the 2019 inventory.
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2020
2019
110
100
90
80
70
60
50
%
Spain EU-27 Basque Country Calculated allocation for the Basque Country
-25%
-16%
-16%
Figure 4.
Evolution of diffuse emissions in the Basque Country, EU-27 and Spain (2005 = 100)
Source:
Emissions in diffuse sectors (Eurostat).
Emission trading rights of companies in the Basque Country.

8
Regulated emissions
Emissions in regulated sectors, i.e. those
covered by the European Emissions Tra-
ding Scheme (EU-ETS) (mainly the ener-
gy sector and energy-intensive industrial
sectors) have dropped by 18% compared
to 2019. Compared to 2005, the first year
in which this scheme was in operation,
emissions have fallen by 49%.
IPCC 1.5 ºC Emissions Pathway
Report
Compared to 2010, the reference year for
the IPCC’s special report entitled “Glo-
bal warming of 1.5 ºC” published in 2019,
emissions in the Basque Country in 2020
have been reduced by 24% compared to
2010, and we are therefore on the pro-
jected reduction path towards contai-
ning global warming to 1.5 ºC. It is worth
mentioning that 2020 was an abnormal
year due to the SARS-CoV-2 pandemic. If
we look at the 2019 inventory, the perfor-
mance of emissions in the Basque Country
was on a 2 ºC containment path, meaning
greater efforts were needed to achieve the
1.5 ºC path.
Removals
In the LULUCF sector, in general there has
been a net removal of CO2
over all of the
years studied, with an average of 1,922 kt
2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
120
100
80
60
40
20
0
%
Emissions in the Basque Country Target of 2 ºC Target of 1.5 ºC
-24%
Figure 5.
Evolution of emissions and targets in the IPCC 1.5 ºC report (2010 = 100)

CO2
-eq/year set, ranging between 415 and
2,930 kt CO2
-eq/year. The removal in 2020
was 964 kt CO2
-eq.
Emission indicators
Emission indicators are set as parame-
ters that allow us to compare results year
on year, while also taking both population
and economic growth in the region into
account. In this case, CO2
equivalent emis-
sions per GDP and per capita were selected
as indicators, as both are considered to be
highly representative of the evolution of
the Basque Country.
Emissions generated to produce one unit
of GDP have fallen by 40% compared
to 2005 and by 55% compared to 1990,
which reflects the degree of decoupling
of the Basque economy in terms of emis-
sions generated.
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
130
120
110
100
90
80
70
60
50
40
%
Evolution index of GDP Evolution index
of total GHG emissions
Evolution index of total emissions
per gross domestic product
+8
-35
-40
Figure 6.
Evolution index of total GHG emissions, in relation to the GDP
of the Basque Country since 2005
Source: Compiled by the author from data provided by the Basque Statistics Institute (Eustat).

10
The intensity of our emissions is also below
the European average, in terms of purcha-
sing power parity, and our emissions per
capita are slightly below the EU-27 ave-
rage, both for total and diffuse emissions.
There are large differences in per capita
emissions in the European Union, which
may be due to many different factors - the
structure of the production system, the le-
vel of per capita income, the type of energy
consumed, the average annual temperatu-
re, etc.
250
200
150
100
50
0
%
Bulgaria
Poland
Czech
Republic
Estonia
Cyprus
Greece:
Slovakia
Croatia
Hungary
Slovenia
Lithuania
Latvia
Belgium
Romania
Finland
The
Netherlands
Germany
Portugal
Austria
Italy
EU-27
Basque
Country
Spain
Ireland
Luxembourg
France
Denmark
Malta
Sweden
98
100
Figure 7.
CO2
index per GDP-PPP (in purchasing power parity) for the Basque Country and EU-27
countries (2020) (UE-27 = 100)
Source:
Eurostat: all sectors and indirect CO2
The Basque Statistics Institute (Eustat) and European Statistics Office (Eurostat).

16
14
12
10
8
6
4
2
0
t CO2
/inhabitant
Luxembourg
Czech
Republic
Ireland
Poland
The
Netherlands
Belgium
Cyprus
Estonia
Germany
Finland
Austria
Slovenia
EU-27
Bulgaria
Basque
Country
Slovakia
Lithuania
Denmark
Greece:
Italy
Hungary
Croatia
France
Latvia
Spain
Portugal
Romania
Sweden
Malta
7.6 7.5
Figure 8.
Per capita CO2
emission ratios for the Basque Country and EU-27 countries (2020)
Source:
Eurostat: all sectors and indirect CO2
The Basque Statistics Institute (Eustat) and European Statistics Office (Eurostat).

12
14
12
10
8
6
4
2
0
t CO2
/inhabitant
Luxembourg
Ireland
Czech
Republic
Belgium
Poland
Austria
The
Netherlands
Finland
Denmark
Germany
Lithuania
Slovenia
EU-27
Hungary
France
Cyprus
Estonia
Latvia
Basque
Country
Italy
Romania
Bulgaria
Croatia
Greece
Portugal
Spain
Slovakia
Sweden
Malta
4.7 4.3
Figure 9.
Per capita diffuse CO2
emission ratios for the Basque Country and EU-27 countries
Source:
The Basque Statistics Institute (Eustat).
The European Statistics Office (Eurostat).

Emissions in socio-economic
sectors
The sectors with the largest contribu-
tion to the GHG emissions inventory are
the energy, transport and industry sec-
tors. They account for approximately 85%
of the emissions. However, since energy
sector emissions are due to the energy
supply of other sectors, this breakdown
was analysed by including the emissions
for each sector due to their electricity con-
sumption.
From this perspective, emissions from
the industrial and transport sectors are
approximately 30% each (32% and 35%
respectively), the energy transformation
sector (refining, domestic consumption,
losses...) contributes 9% and the combined
residential and services sectors account
for 16%. The agricultural and waste sectors
emit less emissions in both aspects.
Transport: 35%
Housing: 5%
Services: 3%
Agriculture: 3%
Waste: 5%
Energy transformation: 32%
Industry: 17%
Figure 10.
GHG emissions by sector in the Basque Country in 2020

14
As far as the historical evolution of emis-
sions is concerned, the sectors that have
reduced emissions the most are the in-
dustrial sector (48% compared to 2005
and 61% compared to 1990) and the ener-
gy sector (49% compared to 2005 and
32% compared to 1990). The agricultural
and waste treatment sectors also saw a
decrease in their emissions, although, as
mentioned above, their contribution is
small. The residential and services sectors
have increased their emissions in percen-
tage terms since 1990 (22% for the resi-
dential sector and almost double for the
services sector) while the residential sec-
tor’s emissions have fallen 18% since 2005
and the services sector, which had increa-
sed in previous years, has fallen 8% this
year compared to 2019.
The transport sector has increased its
emissions the most, both in relative and
absolute terms, having doubled its emis-
sions to about 3 million tonnes since 1990.
Both freight and passenger transport were
responsible for this increase. The evolution
since 2005 is noteworthy, as the transport
and services sectors were the only sectors
that had increased their emissions (trans-
port by 14% and services by 3%) by 2019.
Emissions for 2020 have dropped by 10%
and 9%, respectively, compared to 2019,
leaving emissions at +2% and -5%, respec-
tively, compared to 2005. The transport
sector’s evolution has seen changes. Fo-
llowing a drop in emissions after the 2008
crisis and an increase in emissions in the
period 2011-2017, there appears to have
been a change in trend in 2018-2019, prior
to the pandemic.
Transport: 35%
Housing: 9%
Services: 7%
Agriculture: 4%
Waste: 5%
Energy transformation: 9%
Industry: 32%
Figure 11.
GHG emissions by sector in the Basque Country in 2020, allocating the emissions
resulting from electricity consumption to each sector

5 This executive report only summarises the main findings for the main emitting sectors. It is aimed at providing a simple,
understandable approach regarding the situation and evolution of emissions. As a result, it simplifies the analysis, which
can be completed with the detailed data and information for all sectors included in the full inventory report.
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
130
120
110
100
90
80
70
60
50
40
%
Transport Housing Services Agriculture Waste
Energy sector + Imported electricity
Industry
-49
-40
-5
+2
-18
-49
-48
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
250
200
150
100
50
0
%
Transport Housing Services Agriculture Waste
Energy sector + Imported electricity
Industry
-32
-32
+85
+105
+22
-47
-61
Figure 12.
Evolution index of emissions per sector (2005 = 100)
Figure 13.
Evolution index of emissions per sector (1990 = 100)
The situation and evolution of the main emitting sectors can be summarised as follows5
.

ENERGY SECTOR
This sector represented 32% of emissions
in the Basque Country in 2020.
Emissions in the last year fell by 13%, com-
pared to 2019. This year electricity con-
sumption has decreased by 19%, primarily
due to a reduction in industry and services.
Emissions have decreased due to lower
domestic combined cycle production and
a reduction in the electricity mix due to
lower coal-fired production across Spain.
Emissions in this sector fell by 49% and
32% compared to 2005 and 1990 figures.
As regards CO2
emissions per kWh produ-
ced, there was a reduction of 19% and 53%
compared to 2005 and 1990, respectively.
TRANSPORT SECTOR
This sector also accounts for 35% of emis-
sions, being the largest source of emissions
in the Basque Country. Approximately 96%
of emissions in this sector are associated
with road transport. In 2020, emissions in
this sector were 11% lower than in 2019.
Compared to 2005, emissions were prac-
tically the same, increasing by only 1.8%.
Therefore, levels have returned to values
of fifteen years ago
Compared to 1990, emissions associa-
ted with freight transport and passenger
transport have practically doubled.
INDUSTRIAL SECTOR
This sector represents 17% of the Basque
Country’s emissions (direct emissions), al-
though if emissions related to electricity
consumed (indirect emissions) are consi-
dered, this percentage would increase to
32%.
Direct emissions in 2020 were reduced by
16% compared with the previous year, in a
context of industrial GDP growth.
Since 2005, emissions have decreased by
48%, and by 61% compared to 1990, which
is a demonstration of the sector’s transfor-
mation.
The efficiency of the industrial sector has
improved by 53 percentage points in terms
of GHG emissions/GDP since 2005 and by
74 percentage points compared to 1990.
RESIDENTIAL AND SERVICES
SECTOR
The residential and services sector emits
7% of the Basque Country’s greenhouse
gases (direct emissions). If the emissions
associated with the electricity consumed
(indirect emissions) were taken into ac-
count, this percentage would increase by
up to 17%.
Direct emissions have fallen by 8% in the
services sector compared to 2019 as a re-
sult of lower consumption of natural gas
and oil derivatives in both sectors, and the
almost complete shutdown of the services
sector.
The residential sector has reduced its
emissions by 18% since 2005, but in-
creased them by 22% compared to 1990.
Meanwhile, the services sector has redu-
ced emissions by 5% and increased them
by 85% compared to 2005 and 1990 res-
pectively.

18
AGRICULTURE, LIVESTOCK
AND FISHING SECTOR
This sector represents 3% of emissions in
the Basque Country.
In the last year, emissions in this sector in-
creased by 1% due to a slight increase in
fuel consumption in the sector.
Compared to 2005 and 1990, emissions
have fallen by 49% and 47% respectively,
linked on the one hand to decreases in
energy consumption (oil derivatives and
natural gas) and on the other to a decrease
in the number of livestock and a reduction
in mineral fertiliser doses.
WASTE SECTOR
Emissions in this sector represent 5% of
the Basque Country’s total emissions. In
2020, emissions in this sector were 7%
lower than in 2019. Compared to 2005 and
1990, these emissions have decreased by
40% and 32% respectively.
This reduction in emissions is due to seve-
ral factors, including a lower landfill rate re-
sulting from increased levels of recycling,
pre-treatment in landfills, recovery, com-
post production, etc. It is also the result of
lower diffuse emissions due to improve-
ments in landfill gas capture and combus-
tion.
Table 1.
Total GHG emissions by sector (thousands of tonnes of CO2
equivalents)
Sector 1990 2005 2010 2015 2016 2017 2018 2019 2020
Energy sector 7,800 10,522 7,702 6,945 6,239 6,604 6,289 6,089 5,314
Industry 7,247 5,489 5,534 3,626 3,580 3,720 3,486 3,378 2,833
Transport 2,799 5,634 5,243 5,890 6,158 6,551 6,463 6,423 5,733
Housing 632 946 890 764 694 860 911 840 772
Services 224 438 485 476 413 444 461 453 415
Agriculture 1,071 1,114 763 668 636 594 562 566 571
Waste 1,088 1,237 1,070 961 921 865 821 802 742
Total 20,862 25,380 21,687 19,330 18,641 19,638 18,993 18,551 16,379

METHODOLOGY
The Basque Country Greenhouse Gas In-
ventory is constituted as statistical opera-
tion number 090205 in accordance with
Law 8/2019, of June 27, on the Basque Sta-
tistics Plan 2019-2022. The methodology
used is consistent with the inventory re-
porting guidelines6
in the United Nations
Framework Convention on Climate Chan-
ge (UNFCCC), its Common Reporting For-
mat (CRF) tables and the methodological
guidelines for estimating and compiling
inventories of the Intergovernmental Pa-
nel on Climate Change7
(IPCC Guidelines
2006).
As part of the continuous improvement
process, an inventory verification process
has been carried out to ensure quality
control equivalent to that of the national
inventories reported to the UNFCCC. This
verification was carried out by an external
team of experts in the different areas (ge-
neral criteria, energy, industrial processes,
forestry and other land uses, agriculture
and waste), following the inventory repor-
ting guidelines of the United Nations Fra-
mework Convention on Climate Change
(UNFCCC).
This review concluded that the Basque
Country inventory “estimates greenhou-
se gas emissions and removals using ge-
nerally appropriate methods with a high
degree of thoroughness”. This team also
“positively valued the fact that the Basque
Country has regularly compiled its inven-
tory and made it public since 2000, even
though the autonomous communities are
not obliged by national regulations or in-
ternational agreements to prepare and
report these inventories”. A number of im-
provements, many of them procedural,
were proposed following the review, main-
ly related to documentation, traceability,
justification of thoroughness in some ca-
tegories and quality control/quality mana-
gement. These improvements have been
phased into the inventories, starting with
the 2018 inventory.
6 LGuidelines for review under Article 8 (adopted by Decision 22 / CMP.1 and amended by Decision 4 / CMP.11), the UNFCCC
guidelines for review, in particular in Part III thereof, namely “Guidelines for the technical review of greenhouse gas
inventories by Parties included in Annex I to the Convention” (Decision 13 / CP.20).
https://unfccc.int/resource/docs/2013/cop19/eng/10a03.pdf.
7 The compulsory methodological guidelines to be used by the countries in Annex I, and therefore by the Basque Country,
are the “2006 IPCC Guidelines for National Greenhouse Gas Inventories”.
https://www.ipcc-nggip.iges.or.jp/public/2006gl/spanish/index.html.

info@ihobe.eus
www.ihobe.eus
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