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IHOBE aims to explore the feasibility of using an emission trading scheme to improve the environmental performance of local authorities in the Basque region. It falls under the project "Methodology for Design of a System for the Reduction of Emissions from GHGs from Local Government Bodies in the Basque Country".

The main objective of the project "Methodology for Design of a System for the Reduction of Emissions from GHGs from Local Government Bodies in the Basque Country" is to explore the feasibility of using an emission trading scheme to improve the environmental performance of local authorities in the Basque region.

The project partner responsible for this task is Metroeconomica Limited. Acting as leader of this task, Metroeconomica Limited has stipulated an agreement with FEEM according to which FEEM is resposible to provide:

  • Background information on local activism to address climate change;
  • Background information on the project "Local governments for Kyoto";
  • Suggestions and models for inventorying local emissions of greenhouse gases;
  • Report on the options available to participating municipalities for reducing GHGs emissions and evaluating them in terms of cost effectiveness and feasibility;
  • Report on available means of financing interventions at the local level;
  • Report with recommendations of how the ETS scheme for local governments can be designed in the Basque country.

FEEM has worked in close cooperation with Metroeconomica Limited to provide advice on the strategies and methodology documents developed by IHOBE, S.A. for estimating the emissions of GHGs from local authorities and allocating the initial permits. This work has greatly benefited from the experience that FEEM as acquired from the project "KYOTO CLUB – Emission Trading for Local Municipalities and Provinces in Italy", whose main aim was to build a system for the reduction of emissions from the public building sector and the transport fleet.