Liechtenstein National Climate Report, 2001

United Nations Framework Convention on Climate Change Liechtenstein National Climate Report, 2001 October 2001 Government of the Principality of Liechtenstein

Contents 2 Contents Foreword... 4 1. Executive Summary... 5 2. National Circumstances... 11 2.1. Geography and economy... 11 2.2. Political structure in Liechtenstein... 14 2.2.1. Organization... 14 2.2.2. Direct democratic rights... 14 2.2.3. Relations with Switzerland... 15 2.2.4. Liechtenstein and the European Union... 15 3. GHG-inventory information... 16 3.1. Overview of sources and sinks... 16 3.1.1. Methodology... 16 3.1.2. CO2... 17 3.1.3. CH4... 17 3.1.4. N2O... 18 3.1.5. Other greenhouse gases (HFC, PFC, SF 6 )... 18 3.1.6. Precursor gases and SO2... 19 3.1.7. 1999 summary... 19 3.2. Recent emissions trends... 20 3.2.1. CO2... 20 3.2.2. CH 4... 20 3.2.3. N2O... 20 3.2.4. Precursor gases and SO 2... 20 3.3. Overall emissions... 21 3.3.1. CO2 equivalents by gas... 21 3.3.2. CO2 equivalents by sector... 21 4. Policies and measures... 23 4.1. Climate-related policy areas in Liechtenstein... 23 4.1.1. Environmental policy... 23 4.1.2. Energy policy... 24 4.1.3. Transport policy... 24 4.1.4. Agriculture... 25 4.1.5. Forestry... 25 4.1.6. International cooperation... 25 4.2. Summary tables of measures... 26 4.3. Measures implemented... 31 4.3.1. Energy... 31 4.3.2. Transport... 31 4.3.3. Industry and waste... 32 4.3.4. Agriculture and forestry... 32

Contents 3 4.4. Measures adopted and planned... 32 4.4.1. Climate policy... 32 4.4.2. Energy... 33 4.4.3. Further measures... 33 5. Projections and total effect of measures... 36 5.1. Methodology... 36 5.2. CO 2... 37 5.3. CH4... 38 5.4. N2O... 38 5.5. Aggregate projections... 39 5.6. Precursor gases and SO2... 40 6. Vulnerability assessment, impact and adaptation... 42 6.1. Expected impact of global warming... 42 6.2. Adaptation policy... 42 7. Financial resources and transfer of technology... 44 7.1. Competent bodies and legislative frameworks... 44 7.2. Overview of financial contributions... 44 8. Research and systematic observation... 46 8.1. Research... 46 8.2. Systematic observation... 46 9. Education, training and public awareness... 48 Annex... 50 National greenhouse gas inventory for Liechtenstein: summary tables... 50 Inventory tables, 1999... 51 SUMMARY 1.A SUMMARY REPORT FOR NATIONAL GREENHOUSE GAS INVENTORIES (IPCC TABLE 7A)... 51 SUMMARY 1.B SHORT SUMMARY REPORT FOR NATIONAL GREENHOUSE GAS INVENTORIES (IPCC TABLE 7B)... 54 SUMMARY 2 SUMMARY REPORT FOR CO 2 EQUIVALENT EMISSIONS... 55 Abbreviations... 58

Foreword 4 Foreword In 2001 the international group of experts on climate change (IPCC) issued the results of its third study on the effects of global warming. The results of the study are clear: emissions caused by human activities are influencing our climate and could have a serious impact on it in the future. The Principality of Liechtenstein is also affected by this process, and has therefore taken up its responsibility and has ratified the United Nations Framework Convention on Climate Change (1995) and signed the Kyoto Protocol (1998). Liechtenstein is therefore obligated to establish a periodic inventory of climate-altering emissions and report on its policies and measures in this area, in accordance with the guidelines established by the United Nations secretariat for climate-related activities. Its first national report was submitted in 1995. Since then, various new instruments have been developed and implementation measures introduced. The present report fulfils Liechtenstein s obligations as an Annex 1 party to the United Nations Framework Convention on Climate Change. It contains information on the current status of activities in climate-related areas. Given Liechtenstein s small size and its bilateral and multilateral cooperation agreements, cooperation with other States (in particular under its customs treaty with Switzerland) is an important factor. Vaduz, October 2001

Executive Summary 5 1. Executive Summary Introduction This report provides a summary of the activities, and the basis therefore, of the Principality of Liechtenstein as regards climate. With a population of 32,400, Liechtenstein is a small central European country situated in the Alpine region. Its structure is comparable to that of its neighbours Switzerland and Austria. Liechtenstein is a constitutional hereditary monarchy with democratic, parliamentarian principles. Cooperation with Switzerland (customs and monetary union) is regulated by a customs treaty, which has a considerable impact on environmental and fiscal strategies. Many Swiss taxes (such as transport or environmental taxes) and regulations for special areas (for example, environmental standards) are adapted for application in Liechtenstein. Liechtenstein has also implemented European Union legislation since joining the European Economic Area in 1995, and has participated in various European Union programmes. Current and future emissions The elaboration of the 1999 climate inventory has been closely coordinated with the air pollution register. Work on the inventory is still ongoing, so that only a preliminary status report is possible at this time. With the exception of transport, for which detailed information is already available, data quality is, generally speaking, average, and will be greatly improved in coming years. In 1999 Liechtenstein s CO 2 emissions stood at 196.2 gigagrammes (Gg), virtually all of which were caused by energy-related processes: 26 per cent each in the transport sector and in trade and industry. A large proportion (approximately 45 per cent) was caused by residential heating systems. Emissions levels remained practically constant as compared to 1990 figures. In regard to forests, it is a cautious assumption that carbon fixation and emissions more or less offset each other, so that the forests do not constitute a specific sink. Methane (CH 4 ) emissions levels stood at 0.71 Gg, most of which were generated in the agriculture sector (89 per cent). These emissions are down by 13 per cent as compared to 1990 levels, the result of a reorientation towards environmentally sound production methods. Nitrous oxide (N 2 O) emissions for 1999 stood at 0.023 Gg and originated in agriculture (62 per cent) and transport (27 per cent, after the introduction of catalytic converters for passenger vehicles). Owing to the more widespread use of catalytic converters with the aim of lowering specific air pollutants, emissions levels rose slightly by 13 per cent between 1990 and 1999. Expressed in CO 2 equivalents, emissions totals stood at 218.5 Gg. The following figure shows the composition of these emissions. GHG-emissions such as HFCs, PFCs or SF 6 may play only a very limited role in Liechtenstein.

Executive Summary 6 CO 2 equivalents (Gg) 250 218 Gg 218 Gg 200 Industry 27% N 2 O 3% CH 4 7% 150 Agriculture 8% Gg 100 Residential, commercial, Institutional 40% CO 2 90% 50 Transport 24% 0 Gross emissions by sector Gross emissions by gas Figure 1-1: 1999 emissions in CO 2 equivalents by sector and by gas The following changes have been predicted for 2010: CO 2 emissions will rise by 8 per cent as compared to 1999 levels, due in particular to the dynamics of the transport sector; CH 4 emissions will drop by 4 per cent as a result of further improvements in the agriculture sector; N 2 O emissions will drop by 11 per cent compared to 1999 levels to reach 1990 levels, due to improvements in the transport sector. The following figure shows the evolution of the situation in this area, expressed in CO 2 equivalents. Total emission levels remain almost constant. This forecast takes into account, in general terms, the effects of implemented measures in Liechtenstein, but does not consider adopted or planned measures. The projections represent, in the first instance, calculations based on predictions for Switzerland. Development of GHG-emissions in Liechtenstein 250 218.3 218.5 218.7 CO2-Equivalents (Gg) 200 150 100 50 194.6 196.2 197.8 1990 1999 2010 0 CO 2 17.2 14.9 14.3 CH 4 6.6 7.4 N 2 O 6.6 Total Figure 1-2: Predictions for GHG-emissions, 1990 2010

Executive Summary 7 Detailed information on emissions levels for precursor substances and SO 2 up to 2010 was calculated only for the transport sector. Emissions levels for all gases have dropped markedly as a result of emissions regulations. Policies and measures Liechtenstein s climate policy is deeply rooted in its sectoral policies, in particular as regards energy, the environment, transport, agriculture and forestry. Policy in all these areas include measures which help to reduce the levels of GHG-emissions. Because of its small size, Liechtenstein places great emphasis on international cooperation, and its relations with Switzerland are particularly important in this regard. The Government model (1995) calls for conservative use of resources, the preservation of the quality of life and the introduction of sustainable policy, while affirming that the Government should play a role in finding a solution to global environmental problems. In the latest government programme, climate is considered a priority area. These fundamental dictates are further consolidated through development, national and guideline planning. Environmental policy: The core elements of this policy are the Air Pollution Prevention Act (1985) and the Waste Prevention and Disposal Act (1988). Liechtenstein is connected to Switzerland as regards technical implementation of these provisions in several areas, for example, regulations governing various substances and VOC and SO 2 emissions. Air pollution targets are also the same as in Switzerland. Energy policy: Liechtenstein has introduced a modern energy savings policy which lays down guidelines, establishes financial incentives for the promotion of renewables (wood-based and solar energy) and sets out energy conservation measures. Public information activities are also conducted by an energy office. Transport policy: Policy in this area is determined by the principles of sustainability, and makes public transport a priority. The introduction of the distance- and weight-dependent heavy goods vehicle fee means a turnover as regards the real costs of freight transport by road. Agriculture: Liechtenstein s agriculture sector is devoted mainly to animal husbandry (70 per cent of revenue). Liechtenstein promotes the trend towards more eco-friendly agricultural practices. In addition to maintaining soil productivity, environmental pollution is to be kept to a minimum. Environmentally sound agriculture production methods, whether low input or organic farming, are actively promoted. Landscape protection is also considered a responsibility of agriculture which will become increasingly more significant. Forestry: Liechtenstein s forests are very important. Forested areas account for 43 per cent of the country s area, and this figure is rising. Therefore, forestry has been highly sustainable ever since the introduction of the forestry regulations in 1865. Sustainable forest management, the preservation of forest cover and the promotion of nature-friendly forest management are important goals of this policy. All of Liechtenstein s forests have SGS-FM/COC-0764 certification from the Forest Stewardship Council (FSC). International cooperation: This is a principal element of Liechtenstein s climate policy, which, given the small size and limited capabilities of the country, creates significant synergies. In addition to cooperation with Switzerland, various international treaties (air pollution prevention conventions, the International Convention for the Protection of the Alps, signature of the Kyoto Protocol, etc.) play an important role in this area. The following table sets out the principal measures implemented, adopted and planned. Details and information on further measures are given in section 4.

Executive Summary 8 Policy/Measure Goals/Orientation Type of instrument Status a) Energy Energy Conservation Act Photovoltaic promotion programme Heating regulations Heat insulation regulations b) Transport Distance- and weightdependent heavy goods vehicle fee Promotion of solar, electric, gas-driven and/or hybrid vehicles Promotion of the use of public transport c) Stationary installations and waste Emissions regulations Waste disposal regulations for the construction sector d) Agriculture Ecological incentive payments in the agriculture sector Promotion of the renovation of old buildings, heating systems (wood, solar energy, heat pumps), as well as promotion of renewable energies and demonstration installations Promotion of approx. 20 photovoltaic arrays 8,500 CHF/kWh Prohibition of electrical heating and heating of outdoor areas and ramps Heating cost deductions (dependent on consumption) Periodic monitoring of ventilation systems Planning of buildings and installations must, as far as possible, aim to conserve energy (minimum insulation value) in accordance with Ordinance/SIA Norm 380/1 Shifting of freight traffic from road to rail and reduction of road traffic in the trans-alpine region Exemption of electric, gas-driven and/or hybrid vehicles from the vehicle tax Establishment of the Liechtenstein Bus Authority and introduction of frequent-service regional trains Emissions regulations for stationary installations (heating, industry) Waste: Proof of recycling and waste disposal plan required before beginning construction Payment of subsidies, in accordance with production levels, to encourage switching to ecologically sound agricultural management methods Fiscal measure (subsidy) Fiscal measure (subsidy) In effect since 1996 Launched on 1 July 2001 (for a period of two years) Regulation Introduced in 1993 Regulations to be tightened in late 2001 Regulation Introduced in 1993 New regulations expected in late 2001 Fiscal measure (internalization of external costs) In effect since 1 January 2001 Fiscal measure In effect since 1999 Institutional measure In effect since 2000 Regulation In effect since 1987 Revised in 1992 Regulation In effect since 1993 (Ordinance accompanying the Construction Act) Fiscal measure (direct payments) In effect since 1996

Executive Summary 9 Policy/Measure Goals/Orientation Type of instrument Status Preservation of agricultural lands Water Pollution Prevention Act e) Planning Energy register Spatial Planning Act f) Forests Forest management regulations contained in the Forestry Act Ordinance on forest reserves and special forest areas Agriculture: Long-term protection of land used for agriculture from being used for other purposes Establishment of maximum numbers of cattle and horses per given area Establishment of a national energy register Reconciliation of various user interests Regulation In effect since 1992 Regulation Envisaged for 2002 Planning measure Envisaged for 2002 Planning measure, regulations Planned (under study in Parliament) Sustainable forest management Regulation Implemented in 1991 Mandate Regulation Implemented in 2000 Table 1-1: Overview of the principal measures implemented, adopted or planned Liechtenstein has commissioned a basic report (Factor 2000) for future climate strategy (implementation of the Kyoto Protocol), the findings of which affirm that a purely national strategy is difficult to implement and, given the already high level of climate-related measures, the marginal costs of additional reductions are relatively high. The report recommends a strategy with an international focus based on the Kyoto mechanisms (joint implementation and clean development mechanisms, emission trading and the bubble mechanism 1 ), thereby allowing for considerably improved cost-effectiveness of its climate policy. Liechtenstein is currently examining its commitment and participation in these international instruments. National measures are also the subject of further study. It is conceivable that Liechtenstein will adopt appropriate measures from Switzerland s climate policy This could, in the first instance, lead to the introduction of a CO 2 tax beginning in 2004, should the voluntary measures envisaged for Switzerland prove ineffective. Other activities Adaptation measures It is difficult to translate the effects of global warming into reality in Liechtenstein using modelling principles. Available climate models are not yet able to predict detailed effects at the regional level. Generally speaking, however, the following overall effects may be expected should CO 2 concentrations double: temperatures will rise (particularly in winter) by 2 to 3 degrees, total winter precipitation levels will rise by 10 to 20 per cent, summer precipitation levels will drop, and there will be 10 to 20 fewer days of snowfall per degree Celsius temperature rise in areas over 2,500 metres above sea level. Strategies for dealing with this new risk differ greatly from sector to sector. With its laws governing nature and landscape, forests and agriculture, Liechtenstein has laid important 1 A bubble is an association of States with the same climate-related goals that have come together on the basis of agreements to pursue these goals. The member States of the European Union constitute one such bubble.

Executive Summary 10 groundwork for sustainable cultivation. Important activities are also being conducted in the tourism sector, where a new law seeks to establish sustainable tourism structures. Financial resources and technology transfer Liechtenstein participates in a number of projects run by the United Nations and the Council of Europe as part of its international humanitarian aid programme, and also cooperates closely with aid organizations in the neighbouring countries, for example, 'Hilfswerk Österreich' in Austria. On this basis, Liechtenstein provides support for development programmes. New guidelines and criteria for providing support to such projects were developed in 1998. Liechtenstein has a long history of involvement in social work. In this respect, its activities centre around poverty eradication, peace-building, rural development, small business promotion, training and education, health and improvement of the status of women. International humanitarian aid is funded out of the national budget. In 2000, as part of its development cooperation activities, Liechtenstein disbursed 10.4 million Swiss francs, equivalent to 1.5 per cent of total national expenditure. It also contributes some 200,000 CHF annually to international organizations. Research and systematic observation Liechtenstein does not have its own institutes for basic research, and therefore provides support for research activities in other countries (Switzerland, European Union research programmes, Interreg programmes, etc.). Its government agencies are also indirectly committed to activities in the area of technology. The Liechtenstein Technical University for Technology, Economics and Design provides training in this area with a budget that totalled 4.2 million CHF in 1999. Liechtenstein compiles various types of climate data, on the one hand through its own measuring stations, and on the other hand, through interregional cooperation, in particular with Switzerland. However, Liechtenstein does not have any large measuring stations as such which input their data into a network such as GCOS. International cooperation, in particular with Switzerland, also plays an important role in this area. Education, training and public awareness Liechtenstein promotes sustainable mindset and behaviour through various activities conducted in schools, among the public, in cooperation with non-governmental organizations (NGOs) and within the framework of specific programmes, such as: Appointment of environmental focal points in schools and organization of environment days ; Environmental conservation calendars and various public information events at the municipal and national levels; Collaboration with the Liechtenstein Society for Environmental Protection and various other NGOs and regional networks.

National Circumstances 11 2. National Circumstances 2.1. Geography and economy Geographical position The Principality of Liechtenstein covers an area of 160 km 2 and lies 47 02' to 47 16' north and 9 28' to 9 38' east in the centre of Europe, between Austria and Switzerland. The transport hubs joining Munich and Milan, and Zurich and Vienna cross each other close to Liechtenstein. Nevertheless, Liechtenstein s road system has no highways, only regional roads. The natural border with Austria is marked by the Alps, an elevated mountain range in the east, while the Rhine river marks the border with Switzerland. Two thirds of the country is mountainous terrain, while the remaining third consists of the heavily settled Rhine valley, where 9 of the country s 11 municipalities are to be found. Climate Liechtenstein has a continental climate, that is, it experiences considerable weather variations in the course of the year. The average temperature in the capital Vaduz, located at 433 metres above sea level, is 9.6 C. Average precipitation has not changed appreciably in the last 20 years, fluctuating by approximately 900 mm annually in Vaduz. Population In late 1999 the population of Liechtenstein stood at 32,400. One third were nationals of other countries (in particular, Switzerland, Austria and Germany). Population density for 1999 was 202.6 inhabitants per square kilometre, or approximately 500 inhabitants per square kilometre in the densely settled Rhine valley. Population 30000 20000 10000 0 1900 1920 1940 1960 1980 2000 Year Figure 2-1: Development of population, 1900 1999 (AfV, 1999)

National Circumstances 12 Land use Liechtenstein covers an area of approximately 160 km 2, of which forested areas account for 43 per cent, meadows and farmland 32 per cent, built-up areas 13 per cent, and fallow land 12 per cent. From 1950 to 1990, built-up areas more than doubled in size. Transport infrastructure covers almost 2.5 per cent of the country s area. The percentage of land under cultivation fell by 15 per cent between 1955 and 1995. Economy: GDP In 1998 Liechtenstein s nominal GDP stood at 3.6 billion CHF. Before that, data was calculated using a different method, so that no direct comparison is possible. Skilled trades and industry account for 64 per cent of GDP, and banking and insurance for 20 per cent. Real GDP has risen gradually since the 1960s. Figure 2-2 shows the difference in the evolution of nominal and real GDP between 1960 and 1998. Nominal and real GDP million CHF 4000 3000 2000 1000 1 2 0 1960 1970 1980 1990 2000 nominal GDP real GDP (1970) Figure 2-2: Nominal and real GDP (1970s prices), 1960 1999 (AfV, 1999) From the 1960s to 1998, nominal GDP rose steadily per capita (full-time positions). In 1998 it exceeded 169,000 CHF per full-time position. 200'000 150'000 GDP per capita 1 CHF 100'000 50'000 0 2 1960 1970 1980 1990 2000 real GDP per capita nominal GDP per capita Figure 2-3: Nominal and real GDP per capita (1970s prices) from 1960 to 1998 (AfV, 1999) Unemployment in 1998 stood at 2.6 per cent. Sixty per cent of Liechtenstein s work force are foreign nationals, two thirds of them commuters from Austria and Switzerland.

National Circumstances 13 Energy supply Liechtenstein has no fossil fuel resources of its own. It provides only 8.6 per cent of the energy it uses (AfV, 2000). From 1965 to 1998, gasoline and diesel consumption rose by a factor of 3.3, while electricity consumption rose by 5.4. Overall per capita energy use has risen by 60 per cent since 1970 and annual consumption now stands at 36.1 MWh per capita. Energy productivity has remained constant over the last decade, that is, the per capita energy index and the per capita GDP index have both risen steadily. Energy consumption per capita Index 1970 = 100 200 160 120 80 40 0 1970 1975 1980 1985 1990 1995 2000 Figure 2-4: Per capita energy end-use index from 1970 to 1998 (1970 = 100) (AfV, 1999) Energy prices Liechtenstein does not have any statistics of its own on the evolution of energy prices. Figures for Switzerland should, however, be comparable. From 1970 to 1993, the prices of energy sources fell, generally speaking, and have now reached an all-time low. Liechtenstein has only been using natural gas since 1990. 250 Real energy prices 1990 = 100 200 150 100 3 4 1 2 50 1965 1970 1975 1980 1985 1990 1995 2000 1 Light heating oil 2 Electricity 3 natural gas 4 Oil Figure 2-5: Real energy prices for the principal energy sources for the retail trade and household use (1990 =100) (BfE, 2000) Trade in electricity In 1999, electricity output to the country s network stood at 300 GWh. Approximately three quarters of the electricity consumed in Liechtenstein came from other countries. The country produces approximately 75 GWh on its own, of which 4 GWh are produced in its nine block heating plants, while the rest is produced in hydroelectric plants. Electricity consumption has risen by 50 per cent in the last decade (LKW, 2000).

National Circumstances 14 Transport The most important transport network in Liechtenstein is the road system. Apart from the Feldkirch Buchs route of the Austrian railway company (ÖBB), there are no other rail networks Public transport is provided by an extensive bus network. Liechtenstein has no highway network of its own, since there is already a highway running along the Swiss side of its border with Switzerland, and there is little room for a highway within Liechtenstein itself. Heavy goods traffic consists mainly of internal or cross border traffic (96 per cent); transit traffic accounts for only 4 per cent. Two thirds of all vehicles are foreign-made. In 1999 trucks travelled a total distance of approximately 5 million kilometres, while passenger cars covered 134 million kilometres. The number of passenger cars has quadrupled in the last 30 years. In 1998, there were 21,000 cars in use in Liechtenstein, that is, 0.65 cars per inhabitant. There has been a trend towards larger, heavier cars. Passenger Cars 25'000 20'000 >4000ccm Number of cars 15'000 10'000 5'000 <4000ccm <2050ccm <1250ccm 0 1970 1975 1980 1985 1990 1995 Figure 2-6: Registered passenger cars by cubic capacity (AVW, 1999) (under 1250 cm 3, 1250 2050 cm 3, 2050 4000 cm 3, over 4000 cm 3 ) 2.2. Political structure in Liechtenstein 2.2.1. Organization Liechtenstein is a constitutional hereditary monarchy with democratic and parliamentary traditions. The power of the State rests in the Prince and in the people. The 25-member Diet or Parliament is elected every four years by the people. The Diet makes proposals to the Prince regarding candidates to form the Government or Cabinet. Laws tabled by the Diet must be approved by the Prince in order to be promulgated. 2.2.2. Direct democratic rights In accordance with the Constitution of Liechtenstein, the people exercise their rights directly through elections and referendums, and may, under other democratic rights, submit initiatives and

National Circumstances 15 referendums on different laws and on the Constitution. Participation in elections and referendums is compulsory. The Prince, the Diet and eligible voters are entitled to propose initiatives on laws. (Initiatives pertaining to laws require 1,000 signatures or three municipalities; initiatives pertaining to the Constitution require 1,500 signatures or four municipalities.) The Constitution of Liechtenstein provides for referendums on international treaties, laws, finances and the Constitution itself (for laws and finances, 1,000 signatures or three municipalities; for the Constitution and international treaties, 1,500 signatures or four municipalities). A system providing for optional referendums on international treaties was introduced in 1992. (www.firstlink.li) 2.2.3. Relations with Switzerland Liechtenstein and Switzerland are partners in a customs and monetary union governed by a customs treaty. On the basis of this union, Switzerland formulates all foreign trade strategies, with few exceptions, such as trade with the European Economic Community, of which Liechtenstein is a member. The customs treaty impacts greatly on environmental and fiscal strategies. Many Swiss taxes (for example, transport or environmental taxes) and regulations for special goods (for example, environmental standards) are also adapted and applied in Liechtenstein. 2.2.4. Liechtenstein and the European Union Since joining the European Free Trade Association (EFTA) in 1991 and the European Economic Area (EEA) in 1995, Liechtenstein has implemented European Union (EU) legislation and has taken part in various EU programmes. Several projects and activities under the EU s former COMETT and ERASMUS training programmes have been successfully completed. Liechtenstein joined the Fifth Framework EU Programme for Research and Technical Development (1998 2002). References: AVW (Amt für Volkswirtschaft), 2000, Energiestatistik 2000, Vaduz. AVW (Amt für Volkswirtschaft), 1999, Statistisches Jahrbuch 1999, Vaduz. BFE (Bundesamt für Energie), 2000, Statistique globale suisse de l énergie 1999, Bulletin SEV/VSE, Nr 16/2000, Bern. LKW (Liechtensteinische Kraftwerke), 2000, Geschäftsbericht 2000, Schaan. www.firstlink.li (official website of the Principality of Liechtenstein).

GHG-inventory information 16 3. GHG-inventory information The standardized and technical inventory information, as given by the guidelines on preparing national reports by Annex 1 States parties and the revised IPCC guidelines for national greenhouse gas inventories (UNEP/WMO/IPCC, 1996), are reproduced in the annex to the present report. This section presents in detail and analyzes inventory data: principal sources (section 3.1), emissions trends since 1990 (section 3.2) and the role of CO 2, CH 4 and N 2 O in Liechtenstein s current emissions situation on the basis of 100-year GWP values (section 3.3). 3.1. Overview of sources and sinks 3.1.1. Methodology Work is currently under way to establish a climate inventory for the Principality of Liechtenstein. This involves, in particular, the elaboration of an emissions register for air pollutants. Comprehensive data is available only for individual sectors. The data below (as well as those for 1990 and 2010) is therefore based on estimates. The following tables show the main actions taken and the underlying assumptions. Area Procedure Data quality Energy-related processes (excluding transport) Transport Fuel sales statistics by energy sources (heating oil, natural gas, wood, liquid gas) and emissions factors as in Switzerland Assumption that distribution by sector for all fuels is similar to that for gas Detailed calculation of emissions by traffic link (based on results of traffic models and detailed estimates of emissions factors) For natural gas: Good For other fuels: Average Good Fugitive emissions Gas loss estimates Poor Solvent use Agriculture Land use and forestry (sinks) Waste Estimates of the most important activities and use of emissions factors as in Switzerland Data on activities (in particular, on livestock and land, and emissions factors as in Switzerland). Gross estimate of soil use Gross assumption of equilibrium (CO 2 emissions for biomass estimated on the basis of figures for Switzerland) Emissions from waste incineration by State authorities: none Emissions from illegal waste incineration (0.75% of waste generated) Average Good Soil emissions: Poor Poor Good Table 3-1: Overview of the most important methods used in elaborating the GHG inventory

GHG-inventory information 17 3.1.2. CO 2 In 1999, Liechtenstein produced a gross total of 196.19 Gg 2 in CO 2 emissions, or 6.05 tonnes per capita. Approximately one quarter (26 per cent) of these emissions were generated in the transport sector. Industry accounted for 20 per cent. Other sources, such as the service sector, public authorities and residences, accounted for 44 per cent of emissions, while still other sources such as agriculture and waste were insignificant. Forests were not previously considered CO 2 sinks. This means that the balance (CO 2 fixation in the forests and emission through rotting and burning) is now increasing somewhat. CO 2 Transport 26% Residential, Commercial, Industrial 44% Industry 30% Figure 3-1: 1999 CO 2 emissions by sector 3.1.3. CH 4 Total CH 4 emissions for 1999 stood at 0.7087 Gg. Approximately 90 per cent of this was generated by agriculture, with two thirds caused by ruminants. Other sources such as the service sector, public authorities, residential and waste account for 8 per cent. The small amount of CH 4 generated through the waste sector may be explained by the fact that Liechtenstein s waste is incinerated in Switzerland (Buchs waste incineration centre) and as such is not included in the inventory. 2 1 Gg = 1,000 tonnes.

GHG-inventory information 18 CH 4 Agriculture 89% Transport 1% Other 8% Industry 2% Figure 3-2: 1999 CH 4 emissions by sector 3.1.4. N 2 O About two thirds of the 0.023 Gg of N 2 O emissions for 1999 came from agriculture. Another important source was transport, which accounted for 27 per cent of these emissions. N 2O Industry 1% Other 10% Transport 27% Agriculture 62% Figure 3-3: 1999 N 2 O emissions by sector 3.1.5. Other greenhouse gases (HFC, PFC, SF 6 ) Emissions of HFC, PFC and SF 6 have been of only marginally significance in Switzerland to date (approximately 1 per cent of total gross GHG emissions). Similar figures should apply to Liechtenstein. Work is currently under way to compile comprehensive, reliable emissions statistics. There are no estimates available.

GHG-inventory information 19 3.1.6. Precursor gases and SO 2 Precise emissions data for NO x, CO, NMVOCs and SO 3 2 is available only for the transport sector. The following table shows emissions for all transport-relevant gases. Energy source Gasoline Emissions CO 2 CH 4 N 2 O CO NO x NMVOC SO 2 category (Gg) (Gg) (Gg) (Gg) (Gg) (Gg) (Gg) Exhaust 37.96 0.0084 0.0060 1.158 0.091 0.119 0.0048 Evaporation 0.037 Diesel Exhaust 13.25 0.0004 0.0005 0.034 0.126 0.017 0.0028 Total 51.21 0.0088 0.0065 1.192 0.217 0.173 0.0076 Table 3-2: Emissions in the transport sector,1999 3.1.7. 1999 summary IPCC Sources/sinks Category 1 All energy Fuel combustion 1) Fugitive emissions CO 2 (Gg) 196.11 (196.11) CH 4 (Gg) 0.0669 (0.038) N 2 O (Gg) 0.0074 (0.0074) HFC/ PFC/ SF 6 NO X 2) (Gg) NE 0.091 (0.091) CO 2) (Gg) 1.158 (1.158) NMVOC 2) (Gg) 0.173 (0.136) (NE) (0.029) (NO) (NO) (NO) (0.037) (NO) 2 Industrial processes NO NO NO NE NE NE NE NE 3 Solvent use NO NO 0.0015 NE NE NE NE NE 4 Agriculture NO 0.6403 0.0147 NE NO NO NO NO 6 Waste 0.08 0.0015 0.0004 NE NE NE NE NE Gross total emissions 196.19 0.7087 0.0239 NE 0.091 1.158 0.173 0.0076 5 Land use and forestry 0.00 NE NE NE NE NE NE NE Net total emissions 196.19 0.7087 0.0239 NE 0.091 1.158 0.173 0.0076 International bunkers NO NO NO NE NO NO NO NO 1) including transport 2) transport only NE not estimated NO not occurring SO 2 2) (Gg) 0.0076 (0.0076) Table 3-3: Overview of emissions and sinks for 1999 (categories based on the IPCC short summary table) 3 Unlike the precursor gases, SO 2 is not a climate-altering gas. SO 2 emissions even have the opposite effect.

GHG-inventory information 20 3.2. Recent emissions trends Figure 3-4 shows emissions trends for the three major GHG-emissions for the period from 1990 to 1999. 120 110 N 2 O 100 CO 2 90 CH 4 80 1990 1999 Table 3-4: Index of total CO 2, CH 4 and N 2 O emissions for the period from 1990 to 1999 (1990=100) 3.2.1. CO 2 CO 2 emissions stood at 194.56 Gg in 1990, and have risen only slightly (0.8 per cent) since then. The fluctuation of these levels from year to year may be explained, for the most part, by changing weather conditions (changes in the number of degree days per year) and inaccuracies in calculating fuel sales figures. These factors that are due to nature or are beyond researchers control must be taken into account in comparing agreed targets and results. At 196.19 Gg, CO 2 figures for 1999 were very close to 1990 levels. Liechtenstein has therefore reached its goal of stabilizing CO 2 emissions levels for the period 1990 2000. This success is due to two factors: climate-related policy measures and implementation measures (see section 4). 3.2.2. CH 4 Calculations show that CH 4 emissions fell from 0.82 Gg in 1990 to 0.71 Gg in 1999, that is, a drop of over 13 per cent. This trend was due mainly to changes introduced in the agriculture sector, where there is a strong correlation between livestock numbers and CH 4 emissions. 3.2.3. N 2 O Emissions of N 2 O have risen slightly from 0.021 Gg in 1990 to 0.024 Gg in 1999. This relative stability is the result of two contrasting trends. Whereas emissions from the agriculture sector are decreasing, emissions caused by transport are on the rise, owing to the use of catalytic converters in passenger vehicles. 3.2.4. Precursor gases and SO 2 Comparison data is only available for the transport sector. Improved exhaust gas technologies (in particular, catalytic converters) and reduced fuel sulphur content have brought about a drop in emissions levels during the period 1990 1999 as follows:

GHG-inventory information 21 CO NO x NMVOCs SO 2 down 45 per cent down 37 per cent down 62 per cent down 53 per cent 3.3. Overall emissions 3.3.1. CO 2 equivalents by gas Gross total emissions of GHGs in Liechtenstein for 1999 stood at 218.47 Gg in CO 2 equivalents, based on 1995 GWP values with a 100-year perspective (UNEP/WMO/IPCC, 1996). There were no significant differences in the proportion of the various greenhouse gases in total emissions levels as compared to 1990 figures. Gg CO 2 equivalents CO 2 CH 4 N 2 O Total Gross emissions 1990 194.56 17.14 6.55 218.26 Percentage 89.14% 7.86% 3.01% 100 Gross emissions 1999 196.19 14.882 7.395 218.47 Percentage 89.80 6.81 3.38 100 Table 3-5: 1999 emissions by gas in CO 2 equivalents 3.3.2. CO 2 equivalents by sector The following sectors are important for total emissions in CO 2 equivalents: transport (24 per cent), industry (27 per cent) and agriculture (8 per cent). Waste and solvents are not relevant. The remaining sectors (public authorities, services and residences) are not treated individually. The energy sector (fuels) accounts for 91 per cent of emissions in CO 2 equivalents. CO 2 equivalents (Gg) 250 218 Gg 218 Gg 200 Industry 27% N 2 O 3% CH 4 7% 150 Agriculture 8% Gg 100 Residential, commercial, Institutional 40% CO 2 90% 50 Transport 24% 0 Gross emissions by sector Gross emissions by gas Figure 3-4: 1999 Emissions in CO 2 equivalents by sector and by gas

GHG-inventory information 22 References: 1999 National Greenhouse Gas Inventory for Switzerland. UNEP/WMO/IPCC, 1996, IPCC Guidelines for National Greenhouse Gas Inventories, vols. 1 3. UNEP/WMO/IPCC, 1996, Climate Change 1995, The Science of Climate Change.

Policies and measures 23 4. Policies and measures 4.1. Climate-related policy areas in Liechtenstein Liechtenstein s climate policy is heavily entrenched in its other sectoral policies, with the main focus on its policies in the areas of energy, the environment, transport, agriculture and forestry. In all of these areas, measures have been taken which help to reduce the levels of GHG-emissions. International cooperation is of great importance, given the small size of the country. Relations with Switzerland are particularly important. Liechtenstein s customs treaty with that country facilitates cross-border activities and bilateral operations in several areas, so that Liechtenstein has in many cases implementation regulations that are similar to those applicable in a Swiss canton (e.g., mineral oil taxes, regulations governing ecologically relevant substances). Accordingly, most policy areas are closely linked to Swiss policy in terms of both content and implementation. Liechtenstein has set itself the goal of sustainability for its policies. The Government model (1995) calls for conservative use of resources, preservation of the quality of life and the introduction of sustainable policy, while affirming that the Government should contribute towards finding a solution to global environment problems. The most recent government programme makes climate a priority policy area. These fundamental issues are explored in greater depth in the new development, national and guideline planning schemes. A proposal currently before the Parliament calls for the elaboration of CO 2 legislation. In practical terms, there is a tendency towards Swiss practice (the Swiss CO 2 Act). Because of its close economic ties with Switzerland, it is envisaged that Liechtenstein will probably introduce a CO 2 tax in 2004 similar to that planned in Switzerland. 4.1.1. Environmental policy Liechtenstein has deliberately avoided introducing specific legislation on the environment. Appropriate provisions are to be found in the policies governing the various sectors. As regards the technical implementation of those provisions, Liechtenstein is often bound by the terms of its customs treaty with Switzerland (e.g., substances regulations, VOC taxes, SO 2 taxes see section 4.3). Air pollution targets are also the same as in Switzerland. Two pieces of legislation govern environmental and climate policy in Liechtenstein: The Air Pollution Prevention Act (1985) regulates, inter alia, emission targets for stationary installations, maximum air pollution levels, measures to be taken if emission targets are surpassed, as well as fuel requirements. Important factors are the polluter pays principle and an obligation to create public awareness in this area. The Ordinance accompanying the Air pollution Prevention Act was amended in 1999 to establish new requirements for gasoline and diesel oil and to set a new target for fine airborne dust particles. The average annual value for sulphur dioxide (threshold value) was reduced from 30 mcg/m 3 to 20 mcg/m 3. Under the terms of this Ordinance, leaded gasoline is no longer permitted as of 1 January 2000, the allowable lead content for unleaded gasoline has been reduced from 0.013 g/l to 0.005 g/l, and the proportion of carcinogenic benzol in gasoline has been reduced from 5 per cent to 1 per cent. The sulphur content for diesel has been reduced from 0.5 g/kg to 0.35 g/kg.

Policies and measures 24 The Waste Prevention and Removal Act (1998) establishes a sorting requirement for different types of waste. The Government is empowered to pass ordinances on recycling certain categories of waste if such recycling will serve to improve the ecological balance. This law is also based on the polluter pays principle. Generally, almost none of the waste generated is deposited in reactor dumps. All garbage is incinerated in the waste incineration plant in Buchs, in neighbouring Switzerland. 4.1.2. Energy policy The legal foundation for the goal of conserving energy was laid within the energy regulations in 1993 and expanded in 1996. The following are the key elements in this area: 1) Guidelines for installations such as heating systems (heat insulation regulations), air conditioning systems, ventilation systems, as well as the maintenance of such systems. These measures are set out in the revised Construction Act and its Ordinances. 2) An energy commission advises the Government on energy policy issues, providing its opinion on all basic energy policy issues. The commission brings together experts from all relevant fields (architecture, energy management, industry, trade, government offices, environmental organizations). 3) An energy division has been set up at the Office of the Economy to advise the municipalities and the private sector on all aspects of energy conservation. The division also provides technical and organizational processing of subsidy applications, and develops and implements energy policy models, as well as providing public information through lectures, radio discussions and face-to-face encounters. 4) The promotion of energy conservation is a central pillar of Liechtenstein s energy policy. Financial support is provided to facilitate energy saving in buildings, particularly as regards the renovation of old buildings, residential technical installations, block heating plants (natural gas and wood) and solar collectors. Liechtenstein is almost at full capacity as regards woodchip heating systems. 4.1.3. Transport policy Liechtenstein s transport policy is driven by the principles of sustainability. In signing the Transport Protocol to the Alpine Convention, to be ratified in 2001, Liechtenstein has established a legally binding basis for action in this area. To reverse the trend towards increasing traffic, the Government has developed or implemented a number of projects (development of the Liechtenstein Bus Authority and the 'Liechtenstein-Takt' train service, priority for buses at traffic signals, tax exemptions for solar-, hybrid-, electric- or natural-gas-driven vehicles, safety measures at school crossings, the 'Aktion Mobilität' initiative, studies aimed at ensuring the sustainable evolution of the transport sector). Freight transport policy has a pivotal role to play, in that Liechtenstein, following Switzerland s example, has introduced, as of 1 January 2001, a system of charges on heavy goods vehicles depending on their service category. These charges are based on the polluter pays principle and are determined by the distance travelled and the gross weight of the vehicle. This serves to increase productivity as regards road traffic and also helps to divert freight traffic from the roads to the railways, thereby easing the burden on Liechtenstein s roads. Under the terms of the customs treaty with Switzerland, Liechtenstein also contributes to importers efforts, in accordance with Swiss regulations, to reduce use of specific fuels, and is obligated to declare the use of such fuels under EU guidelines.

Policies and measures 25 4.1.4. Agriculture Agriculture in Liechtenstein is devoted mainly to animal husbandry (70 per cent of revenue). Liechtenstein promotes the trend towards more eco-friendly agriculture with the aim of maintaining the productive capacity of the soil, as well as keeping pollution at a minimum. Environmentally sound agriculture production systems, be they low input or organic farming, are specifically targeted and promoted. Preservation of the landscape is also considered as a responsibility of the agriculture sector which will become more and more significant in future. The Act on direct subsidies and the Act on ecological incentives for eco- and animal-friendly agricultural production (Compensation Act) and its accompanying Ordinance provide the framework for promoting the management of nature-friendly living spaces, of fields on moors and mixed soils, and of environment-and animal-friendly industry. As regards infertile lands, which it is particularly important to preserve from the point of view of nature conservation, require even greater efforts for ecological management. Parallel to Switzerland s efforts (2002 agricultural policy), new guidelines for environmentally sound and animal-friendly industry have been introduced. About four fifths of Liechtenstein s agricultural producers follow low input or organic farming guidelines. Direct subsidies are therefore paid only when production conditions conform to animal and environmental protection provisions. The use of agricultural aids (fertilizers, pesticides) is strictly regulated; use of these substances (with the exception of manure) in forested or Alpine areas is prohibited. A new law providing for the prevention of water pollution (comparable to Switzerland s provisions in this area) will determine threshold livestock numbers (GVE) per surface area unit when it is introduced in 2002. 4.1.5. Forestry Liechtenstein s forested area is of great significance to the country. Forests cover 43 per cent of the country s area, and this proportion is increasing. Sustainable forest management has therefore been afforded a high level of priority since as far back as the forestry regulations of 1865. Efforts in this area are aimed at sustainable forest management, conservation of existing forest stands and the promotion of nature-friendly forest management, on the basis of the current Forests Act (1991) and international conventions, inter alia, the 1993 Ministerial Conference on the Protection of Forests in Europe. For example, felling of timber is not permitted, and, if an exception is made, an area equivalent to that cleared must be afforested in the same place. Such efforts have made it possible in recent years to improve biological diversity in forest areas. Liechtenstein has an increasingly large area of forest reserves: one quarter of all its forested areas are reserves. In June 2001 a national forests programme was announced, which represents Liechtenstein s response to its international obligations to promote sustainable forest management. With a view to meeting Liechtenstein s sustainable development goals, the National Forests Programme provides the conceptual framework for the implementation of forest management measures. In particular, the National Forests Programme encompasses the following principles: respect for national sovereignty and responsibility for its own use of resources, compliance with domestic legislative provisions, compliance with obligations under international conventions and agreements, establishment of partnerships and participation by all interested groups, a global approach to forest conservation and management and choice of a long-term, iterative planning, implementation and monitoring process. All of Liechtenstein s forested areas have met the criteria established by the Forest Stewardship Council (FSC) and have therefore received FSC certification (SGS-FM/COC-0764). 4.1.6. International cooperation International cooperation is a key element of Liechtenstein s climate policy, since it creates synergies important for the country, given its small size and limited capabilities. Mention has already been made of Liechtenstein s commitment in the area of international climate policy and