The executive board of the Clean Development Mechanism (CDM), a body created under the United Nations Framework Agreement on Climate Change (UNFCCC), has registered the La Ventosa wind farm built by IBERDROLA Renovables in Mexico as “flexible mechanism” as defined by the Kyoto Protocol to reduce greenhouse gas emissions worldwide.

The wind farm in Mexico designated as a CDM in May, 2005 by Spanish environmental authorities for a 7-year period, renewable to 21 years, as of January, 2008.

Under the CDM scheme, industrialised countries pay for sustainable projects that cut or avoid emissions in poorer nations, and are awarded credits that can be applied to meeting their own emissions targets.

The 80 MW La Ventosa wind farm Mexico’s southern state of Oaxaca will avoid 185,000 tonnes of CO2 emissions annually.

The project submitted by IBERDROLA Renovables to Spain’s Ministry of the Environment certifies that this initiative meets requisites for designation as a CDM, contributing to the sustainable development of Mexico while reducing emissions of greenhouse gases.

The United Nations body also designated as a CDM the 45 MW hydroelectric plant built by the IBERDROLA group at Las Vacas, Guatemala, and commissioned in May, 2002.

Among other IBERDROLA projects for which the company may seek designation as CDMs are the 50 MW Río do Fogo wind farm in Brazil, now in operation, and the EL Recreo hydroelectric plant in Guatemala, which is still under construction.

Pioneer in the Fight Against Climate Change

These CDMs reflect the IBERDROLA group’s commitment to global sustainable development. IBERDROLA was the only Spanish utility to take part in the Global Round Table on Climate Change, and in 2007 the Climate Leadership Index designated its strategy to combat climate change as the best of any utility in the world. For eight consecutive years the company has been listed on the Dow Jones Sustainability Index as one of the world’s 100 most sustainable corporations.

In the first three quarters of 2007 IBERDROLA’s electricity generation activities around the world lessened their CO2 emissions to 280 grams per kWh, and within Spain they were cut to 179 grams/kWh, a 15% reduction from same-2006. In the same period some 43% of the company’s entire electricity output was produced with no CO2 emissions, and in Spain this proportion reached nearly 70%.

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IMPORTANT INFORMATION

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