International Gas Union (IGU) outsourced to Intergas Marketing (IGM), two studies which were handled by 2 workgroups IGM1 and IGM2 IGM2

International Gas Union International Gas Union (IGU) outsourced to Intergas Marketing (IGM), two studies which were handled by 2 workgroups IGM1 and IGM2 IGM2 THE IMPACT AND OPPORTUNITIES ON NATURAL GAS MARKETING OF THE DECISIONS RESTRICTING POLLUTANT EMISSIONS Directed by the German Delegation ( head: Reinhart SCHÜLER ) September 2002

REPORT OF INTERGAS MARKETING STUDY GROUP IGM2 ( September 2002 ) THE IMPACT AND OPPORTUNITIES ON NATURAL GAS MARKETING OF THE DECISIONS RESTRICTING POLLUTANT EMISSIONS ABSTRACT This report from Study Group IGM2 is focusing on the role of natural gas compared to other energies and the meaning and influence of climate change policies on marketing activities. IGM as well as a number of IGU delegations were contacted by questionnaires and in a second step were interviewed by an international research institute. The final report refers to the following subjects: perspectives of energy policies such as national climate protection policies and energy taxes, emissions trading and joint implementation, natural gas and appliance technologies such as condensing appliances and combined heat and power and marketing activities. The report illustrates that natural gas in most of the countries that participated in the study today is the second most important energy. And the share is expected to increase, e.g. in power generation. On the other hand we see a national climate protection programme in ¾ of the countries calling upon industry and private households to save greenhouse gases and to use energy more efficiently. This development should further promote natural gas in the future due to its advantages compared to other energies. Environmental aspects are of significant importance to the marketing work. This results e.g. in campaigns illustrating the energy efficiency of the wide range of gas appliances or the business field of natural gas vehicles that save pollutants and CO 2. The report also explores common and coordinated marketing activities in general and approaches of the gas industry to cooperate with market partners. RÉSUMÉ Ce rapport du groupe d étude IGM2 traite du rôle du gaz naturel par comparaison aux autres énergies et la signification et l influence de la politique climatique sur les activités de marketing. Les délégations d IGM et certaines de l IGU ont été contactées au moyen de questionnaires et dans une deuxième étape interrogées par un institut international d étude de marché. Le rapport final concerne les sujets suivants : - perspectives de la politique énergétique, comme par exemple le programme national de protection du climat et la taxation des produits énergétiques - échanges de permis d émission et mise en oeuvre - gaz naturel et technologies d appareils tels que chaudières à condensation et cogénération - activités de marketing Le rapport illustre qu aujourd hui, dans la plupart des pays participants, le gaz naturel se place deuxième des énergies les plus importantes. Il faut s attendre à ce que sa part augmente, par exemple pour la production d électricité. Par ailleurs, dans ¾ des pays, des programmes nationaux de protection du climat demandent à l industrie et aux particuliers d éviter les gaz à effet de serre et de consommer l énergie plus efficacement. Ce développement devrait à l avenir être très favorable au gaz naturel en raison de ses avantages par rapport aux autres énergies. Les aspects environnementaux sont d une importance capitale pour le travail de marketing. Il en résulte par exemple les campagnes illustrant le bon rendement énergétique de la gamme étendue des chaudières à gaz ou le domaine d utilisation du GNV (Gaz Naturel Véhicule) qui émet moins de polluants et de CO 2. Le rapport étudie aussi les activités de marketing communes et coordonnées en général et les rapprochements de l industrie du gaz pour coopérer avec les partenaires du marché.

1 INTRODUCTION AND METHOD In Autumn 2000 INTERGAS MARKETING sent questionnaires to IGM and IGU delegations. The purpose of these questionnaires was to survey opinion on the following subjects: 1. The position of natural gas in the IGM member countries and the changes in the market position of natural gas due to climate protection policy measures. 2. The effect of aspects of climate protection and climate change on marketing work in the member countries. Due to the inadequate database from the first phase of the survey, the results were supplemented and regarded in the second phase by individual telephone interviews with the help of an international market research institute. To obtain the most complete and valid data, several interviews were generally conducted in each country. This final report is based upon the responses from the following countries: Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Hungary, Ireland, Italy, Japan, Netherlands, Spain, Switzerland, UK and USA. 2 ENERGY POLICY PROSPECTS Natural gas has a preferential position in the energy policy of the majority of countries surveyed. Around two-thirds of the countries have energy policy measures that favour natural gas over other energy sources. A particular role is played by tax advantages or direct subsidies, which came into play in 60% of cases. Regulatory policy in the form of legal regulations giving an advantage to natural gas also forms part of the energy policy of a minority of countries. This includes e.g. pollution control regulations. 2.1 Development and forecasts Shares of energy sources in primary energy consumption 60% 50% 40% 30% 20% 10% 0% GER NL I DK Ir J CH* E* Nat. gas Coal Lignite Oil Electricity

The shares of the various energy sources in primary energy consumption in 2001 are shown in the diagram above. 1 Oil dominates primary energy consumption with the exception of the Netherlands and Hungary while natural gas is in second place in the majority of cases. Official energy forecasts are available in the great majority of countries surveyed (around 2/3). Most of these assume an increasing importance of natural gas in future energy supply. 2.2 Energy taxation The survey showed that energy taxes exist in all the countries surveyed except for the Czech Republic and Ireland. It is worth noting, however, that the form of taxation varies widely making it very complicated to compare the individual taxes and tax systems directly with each other. There is also a range of exceptions and special regulations which again make comparison difficult. So far CO 2 output has played little part in the structuring of energy taxation. Other factors such as energy consumption come into play here. Harmonisation of taxation is not in prospect at this time. The majority of countries does not intend to change their energy tax systems at present. However, the European Union is currently discussing a directive proposal to ensure harmonised minimum taxation of all energy sources. To date minimum tax rates in the EU are only applied to oil products. 2.3 Climate protection policy A large majority of 75% of the countries surveyed reports that national programmes on climate protection have been launched. Around half the countries are among the states that have already ratified the Kyoto protocol and therefore incorporate the protocol targets in their national climate protection programmes. Translation of the respective obligations into national targets, however, does not appear to be uniform. For instance, only about half the countries have established specific industry CO 2 reduction targets. The choice of nationally affected industries varies and the same can be said of the programme instruments. They range from legal regulations and tax incentives to promotion of renewable energy sources. The instrument of voluntary agreements (self-commitments) by industry branches is also quite important. They are applied in 50% of the countries with a national climate protection programme and other countries are now preparing such self-commitments. In the majority of cases, voluntary agreements are not linked to concrete benefits from the government in return such as tax reductions etc. When assessing the success of the national climate protection programmes, the predominant view at present is still a wait-and-see attitude with a positive tendency. Nevertheless, 22% of the countries responding assessed their national climate protection programmes as successful or very successful. Overall, national climate protection is considered to be very important. 3 EMISSIONS TRADING AND JOINT IMPLEMENTATION PROJECTS Emissions trading still plays a subordinate role. Of 16 countries surveyed, only 4 gave an affirmative answer to the question about a national approach. The basic idea of emissions trading is as follows: Assuming a prescribed reduction target for CO 2 or a national limit for emissions, there will always be those who can reduce their emissions more easily, i.e. at lower costs, than others. Emissions trading enables both sides to trade rights for climate gas output among each other. Those who cannot easily achieve the reduction targets obtain (paid for) permission for higher emissions. In return, those who 1 Electricity here only from hydroelectric and nuclear power; Data with an asterisk (*) based on 1999 from the first survey phase.

have created the right technological or cost conditions emit less than they are actually allowed and receive additional income from the emissions trading. The small number of national strategies on emissions trading reflects the cautious assessment of this concept by the countries. None of the countries surveyed classified national emissions trading as a very important concept. A clear majority of 8 countries (11 replies) gave a negative or undecided response. A similar view is taken of joint implementation projects. Two-thirds of the countries surveyed stated that no projects of this kind are currently in place for industry. The idea of joint implementation projects originates from the fact that it makes no difference in global terms where greenhouse gases are reduced. There is also a considerable variation between countries in the costs incurred to reduce a tonne of CO 2 or other greenhouse gases. Against this background it may be more efficient to cooperate internationally on climate protection projects rather than acting and investing nationally. The incentive for the investor lies in the fact that the emissions saved are credited in the form of tradable certificates. In Germany there are already some joint implementation projects. For example, Ruhrgas is cooperating with Gazprom in Russia to reduce climate-relevant emissions associated with transportation of natural gas over long distances. In general, the most frequent type of project at present is pipeline construction and repair to reduce emissions. Research and development is likely to become increasingly important for this specific form of international cooperation in the future. 4 NATURAL GAS AND APPLICATION TECHNOLOGIES The use of natural gas in specific application and equipment technologies is supported by gas suppliers or government institutions in ¾ of the countries surveyed. A summary is given in the table below (multiple entries possible): Technologies supported Absolute entries Gas heating equipment 6 Heat pumps 4 Natural gas and solar power 6 systems Fuel cells 5 Combined heat & power 4 systems Air conditioning systems with 2 natural gas Overall, this support is considered very important by those questioned. 50% answered the relevant question with important: or very important. Categorisation of the support measures as generally successful must be particularly highly rated in this context. 4.1 Natural gas in power generation The share of natural gas in total power generation varies quite widely, as the table below illustrates. About 60% of those questioned anticipate a growth in the natural gas share in the coming years. The relative rate of growth expected, however, is largely dependent on national circumstances and varies between 2 and 22 percentage points for 2005 and 3 and 39 percentage points for 2010.

Share of natural gas in power generation E CH HG UK DK I NL GER 2,0% 1,5% 2,0% 8,6% 10,2% 13,0% 13,0% 21,7% 23,0% 24,1% 32,0% 33,7% 40,0% 50,0% 60,0% 0% 10% 20% 30% 40% 50% 60% 70% 4.2 The role of combined heat and power (CHP) systems The role of CHP in electricity generation varies from country to country. A good 37% of countries reported a share of less than 10% and in a further 25% the share was between 10% and 30%. Only 20% of countries reported that more than 30% of their national power supplies were generated by CHP. The remaining 20% of countries did not have the relevant data. The assessment of future prospects is still predominantly characterised by uncertainty. A good 50% of those surveyed did not want to express a view, but the great majority of those who did forecasted a future growth of CHP. This positive view could be due to the fact that a 2/3 majority of the countries have adopted measures to increase the use of CHP as a mainstay of power generation. 70% of replies mentioned direct promotion of CHP by legal provisions and/or reductions in the price of the respective electricity. The promotional measures are generally rated as successful. Natural gas as a fuel plays a significant part in CHP in the majority of countries as the following tables indicates.

Share of natural gas in CHP E 70,0% 52,0% J 1,0% 1,0% Ir 1,0% 27,0% B 95,0% 80,0% NL 85,0% 32,0% GER 44,7% 0% 20% 40% 60% 80% 100% 4.3 Prospects for gas condensing appliances The popularity of gas condensing appliances in the residential and small business sector is still quite variable, but about two-thirds of those questioned expect lasting growth in the share held by this system until 2010. This view is held irrespective of financial support programmes for gas condensing appliances. 62.5% of those questioned answered that there were no special conversion programmes or switchover bonuses from gas suppliers. Opinions are generally uneven when assessing the importance of these support programmes, but 36% of those who answered rated them as important or very important. Percentage share of gas condensing appliances in the residential and small business sector "30% to 60%" 13% "over 60%" 13% "no data" 19% "1% to 30%" 25% "0%" 30%

5 IMPORTANCE OF CLIMATE PROTECTION FOR NATURAL GAS MARKETING The survey did not just cover the national situation of natural gas and possible changes in line with climate protection policy, but also included questions on the effect on marketing activities. The delegations were therefore asked for their assessment of the importance of environmental aspects in general and in relation to marketing campaigns. The significance of environmental themes in customer communication is generally rated as very important or at least important for marketing work. Only one of the countries surveyed viewed the environmental theme as unimportant. The majority of delegations also expect this to continue in the future. This is obviously based on the expectation that the public demand for energy conservation is well suited to the product advantages of natural gas. Those questioned recommend among other measures to demonstrate this by stressing its efficient combustion properties and the potential for combining it with renewable energy sources e.g. solar heating. The latter case has great potential, as 1/3 of those surveyed consider that this combination potential has been communicated so far very little or not at all. The countries operations and campaigns are set in most cases in a concrete context on which they focus. Campaigns predominantly cover specific environmental aspects and new natural gas applications. Austria, Italy and Germany count promotion of natural gas vehicles among the most important current projects. Heating conversion campaigns come in the middle at 27% of the entries. There is a strong willingness to cooperate within the distribution chain and market partners. 80% of those questioned reported that market partners are integrated in their marketing activities. Equipment manufacturers and installers come top of the list with 80% and 60% of entries respectively. Chimney sweeps and others follow with some distance behind. The cooperation methods and importance can be seen in the table below (multiple entries possible): Form of cooperation Share of entries Joint marketing activities/advertising 70% Joint sales activities 60% Cooperation on research and development 30% Shows, fairs, conferences 30% Integration of market partners is given a high rating. 42% of replies to these questions were important or very important. General and coordinated gas industry marketing campaigns are only run in some of the countries surveyed. Where they do exist, the majority of the campaigns are organised by the national association or industry leader. Overall, it appears that the demand for joint campaigns is not yet covered. Nearly 55% answered the question How important are joint gas industry marketing campaigns? with important or very important, including countries that have no joint marketing campaigns at present. = = = = = = = = =

6 APPENDIX 6.1 Questionnaire Climate Change GENERAL QUESTIONS Question 1 Question 1.1 Please think about the energy policy in your country. Do you think there are measures that favour the use of natural gas, such as investment aide, tax reductions respectively tax exemptions? yes... Question 1.1 no... Question 2 What, from your point of view, are those certain measures that favour the use of natural gas and at the same time cause disadvantages for the use of other energies? APPLIANCE TECHNOLOGY Question 2 Do you know how large the current share of natural gas of the whole power generation in your country is? Natural Gas: %-share of power generation Question 3 Question 4 Question 4.1 Question 4.2 Do you think a change in the share of natural gas of the whole power generation is likely in the next years?... Question 6 no... Question 6 yes... Question 4 What do you think about the changes for the year 2005? Do you think the share natural gas holds of the whole power generation is more likely to increase or to decrease? more likely to increase... Question 4.1 more likely to decrease... Question 4.2... Question 5 Could you give me an estimation in per cent on how the share of natural gas is going to increase by the year 2005? 2005 % -change Interviewer: Go to Question 5 Could you give me an estimation in per cent on how the share of natural gas is going to decrease by the year 2005? 2005 % -change Question 5 Question 5.1 Question 5.2 What do you think about the changes for the year 2010? Do you think the share natural gas holds of the whole power generation is more likely to increase or to decrease? more likely to increase... Question 5.1 more likely to decrease... Question 5.2... Question 6 Could you give me an estimation in per cent on how the share of natural gas is going to increase by the year 2010? 2010 % -change Interviewer: Go to Question 6 Could you give me an estimation in per cent on how the share of natural gas is going to decrease by the year 2010? IGM2 Appendix page 1

2010 % -change Question 6 To what extend is combined heat and power (CHP) used for power generation? Please state the share in per cent power generation generated by CHP holds of the whole power generation. Combined heat and power: %-share of power generation Question 7 Question 8 Question 8.1 Do you think a change in the share for the use of combined heat and power (CHP) for power generation is likely in the next years?... Question 10 no... Question 10 yes... Question 8 What do you think about the changes for the year 2005? Do you think the share for the use of combined heat and power (CHP) regarding the whole power generation is more likely to increase or to decrease? more likely to increase... Question 8.1 more likely to decrease... Question 8.2... Question 9 Could you give me an estimation in per cent on how the share for the use of combined heat and power (CHP) is going to increase by the year 2005? 2005 % -change Interviewer: Go to Question 9 Question 8.2 Question 9 Question 9.1 Could you give me an estimation in per cent on how the share for the use of combined heat and power (CHP) is going to decrease by the year 2005? 2005 % -change What do you think about the changes for the year 2010? Do you think the share for the use of combined heat and power (CHP) regarding the whole power generation is more likely to increase or to decrease? more likely to increase... Question 9.1 more likely to decrease... Question 9.2... Question 10 Could you give me an estimation in per cent on how the share for the use of combined heat and power (CHP) is going to increase by the year 2010? 2010 % -change Interviewer: Go to Question 10 Question 9.2 Could you give me an estimation in per cent on how the share for the use of combined heat and power (CHP) is going to decrease by the year 2010? % -change Question 10 To what extend do you use natural gas for combined heat and power (CHP)? Please state the share in per cent for the use of natural gas for combined heat and power (CHP) regarding the use of all energies for combined heat and power. %-share of natural gas for combined heat and power (CHP) Question 10.1 Do you think a change in the use of natural gas for combined heat and power (CHP) is likely in the next years?... Question 13 no... Question 13 yes... Question 11 IGM2 Appendix page 2

Question 11 Question 11.1 What do you think about the changes for the year 2005? Do you think the share for the use of natural gas for combined heat and power (CHP) regarding the use of all energies for combined heat and power is more likely to increase or to decrease? more likely to increase... Question 11.1 more likely to decrease... Question 11.2... Question 12 Could you give me an estimation in per cent on how the use of natural gas for combined heat and power (CHP) is going to increase by the year 2005? 2005 % -change Interviewer: Go to Question 12 Question 11.2 Could you give me an estimation in per cent on how the use of natural gas for combined heat and power (CHP) is going to decrease by the year 2005? % -change Question 12 Question 12.1 What do you think about the changes for the year 2010? Do you think the share for the use of natural gas for combined heat and power (CHP) regarding the use of all energies for combined heat and power is more likely to increase or to decrease? more likely to increase... Question 12.1 more likely to decrease... Question 12.2... Question 13 Could you give me an estimation in per cent on how the use of natural gas for combined heat and power (CHP) is going to increase by the year 2010? 2010 % -change Interviewer: Go to Question 13 Question 12.2 Could you give me an estimation in per cent on how the use of natural gas for combined heat and power (CHP) is going to decrease by the year 2010? 2010 % -change Question 13 Did the government of your country impose targets for the extension of combined heat and power (CHP) for power generation? If so, please name those measures. no... Question 14 yes, as follows: Measures: Question 13.1 How successful do you think are those measures overall? Please rate on a scale of 1 = very successful to 5 = absolutely unsuccessful. You can use ratings in between to grade your opinion. Question 14 How important are those measures? Please rate on a scale of 1 = very important to 5 = unimportant. You can use ratings in between to grade your opinion. Question 15 Do gas suppliers and/or governmental institutions support the use of certain appliance technologies? yes... Question 15.1 no... Question 16 IGM2 Appendix page 3

Question 15.1 Question 15.2 What technologies are those exactly? I will now read out some appliances that may be applicable. Please tell me for each one if you think that appliance is supported by a gas supplier and/or governmental institution. Interviewer: Read out appliances, mark named ones; ask repeatedly (if suitable): Are there any other appliances you might think of? Gas condensing appliances Heat pumps Natural gas-/solarsystems other technologies, as follows: 1. 2. 3. I will read out those appliances again which you think are supported by a gas supplier and/or governmental institution. Please tell me which measures have been taken for each appliance. Gas condensing appliances: Heat pumps: Natural gas-/solarsystems: other technologies 1 (those in Question 15.1) other technologies 2 (those in Question 15.1) other technologies 3 (those in Question 15.1) Question 15.3 How successful do you think are those measures of supporting appliance technologies overall? Please rate on a scale of 1 = very successful to 5 = absolutely unsuccessful. You can use ratings in between to grade your opinion. Question 16 How important are those measures? Please rate on a scale of 1 = very important to 5 = unimportant. You can use ratings in between to grade your opinion. Question 17 How large is the share of gas condensing appliances in the housing and small business sector? %-share in the housing and small business sector Question 17.1 Question 18 Question 18.1 Do you think a change in the share of gas condensing appliances is likely in the next years?... Question 20 no... Question 20 yes... Question 18 What do you think about the changes for the year 2005? Do you think the share of gas condensing appliances is more likely to increase or to decrease? more likely to increase... Question 18.1 more likely to decrease... Question 18.2... Question 19 Could you give me an estimation in per cent on how the share of gas condensing appliances is going to increase by the year 2005? 2005 % -change Interviewer: Go to Question 19 IGM2 Appendix page 4

Question 18.2 Question 19 Question 19.1 Could you give me an estimation in per cent on how the share of gas condensing appliances is going to decrease by the year 2005? 2005 % -change What do you think about the changes for the year 2010? Do you think the share for gas condensing appliances is more likely to increase or to decrease? more likely to increase... Question 19.1 more likely to decrease... Question 19.2... Question 20 Could you give me an estimation in per cent on how the share of gas condensing appliances is going to increase by the year 2010? 2010 % -change Interviewer: Go to Question 20 Question 19.2 Could you give me an estimation in per cent on how the share of gas condensing appliances is going to decrease by the year 2010? % -change MARKETING ACTIVITIES Question 20 Question 21 Question 22 How good are environmental issues for the gas industry s marketing being considered? Please rate on a scale of 1 = very good to 5 = very bad. You can use ratings in between to grade your opinion. How important are environmental issues for the gas industry s marketing? Please rate on a scale of 1 = very important to 5 = unimportant. You can use ratings in between to grade your opinion. Please state the currents most important projects and campaigns from your point of view. Question 23 Question 24 Do you think the importance of environmental issues for the gas industry s marketing is going to increase, to decrease or to stay at the same level? going to increase going to decrease will stay at the same level How strong is the influence of the trend to save energy on the marketing activities for all industrial categories put together (e.g. in the building sector)? Please rate on a scale of 1 = very strong to 5 = not at all. You can use ratings in between to grade your opinion. Interviewer: Rating 5 go to Question 25 Question 24.1 How and in what fields of activities is this influence noticed? Question 25 Do you think the demand for energy saving - communicated by the legislation or media can be matched with the advantages of natural gas? yes... Question 25.1 partially... Question 25.1 no... Question 26 IGM2 Appendix page 5

Question 25.1 What could be a way in your opinion of bringing the demand for energy saving and the advantages of natural gas together? Question 26 How intensive are possibilities of combining natural gas and renewable energies communicated? Please rate on a scale of 1 = very intensive to 5 = not at all. You can use ratings in between to grade your opinion. Interviewer: Rating 5 go to Question 27 Question 26.1 Which possibilities of combining natural gas and renewable energies are communicated? Question 27 Question 27.1 Are market partners of the energy suppliers, e.g. producers of appliances integrated in marketing activities? yes... Question 27.1 no... Question 28 How strong is the integration of market partners of the energy suppliers regarding marketing activities? Please rate on a scale of 1 = very strong to 5 = not at all. You can use ratings in between to grade your opinion. Interviewer: Rating 5 go to Question 28 Question 27.2 Question 27.3 Question 28 Question 29 Question 29.1 Question 29.2 Question 29.3 Question 29.4 Which market partners of energy suppliers are integrated in marketing activities? How does the integration of the market partners work? How important is the integration of energy suppliers market partners regarding marketing activities? Please rate on a scale of 1 = very important to 5 = unimportant. You can use ratings in between to grade your opinion. Does the gas industry organise common marketing campaigns in your country? yes... Question 29.1 no... Question 30 Who organises these central campaigns? Who is financially involved in these campaigns? How large is the yearly budget circa (Euro/Year)? ( ) Euro/Year What are the current points and goals of focus of the campaigns? Question 29.5 What are the points and goals of focus of those campaigns in the future? Question 29.6 Question 30 How successful do you think are the common marketing campaigns of the gas industry overall? Please rate on a scale of 1 = very successful to 5 = absolutely unsuccessful. You can use ratings in between to grade your opinion. Are there any obstacles or difficulties in particular regarding the implementation of common respectively central marketing activities/campaigns? IGM2 Appendix page 6

Question 31 Question 32 Question 32.1 How important do you think are the common marketing campaigns of the gas industry overall? Please rate on a scale of 1 = very important to 5 = unimportant. You can use ratings in between to grade your opinion. Are there organisations especially for natural gas marketing in your country? yes... Question 32.1 no... Question 33 Which are these organisations specialised in natural gas marketing in your country? Question 32.2 Question 33 Question 34 Question 34.1 How successful do you think is the work of organisations specialised in natural gas marketing overall? Please rate on a scale of 1 = very successful to 5 = absolutely unsuccessful. You can use ratings in between to grade your opinion. How important are organisations specialised in natural gas marketing? Please rate on a scale of 1 = very important to 5 = unimportant. You can use ratings in between to grade your opinion. Do the gas suppliers provide investment aides, e.g. in the field for appliance technology when switching to a gas condensing appliance? yes... Question 34.1 no... Question 35 Which kind of investment aides are there? Question 34.2 What is the amount of gratification for those investment aides? Please state the range! from: to: Question 34.3 Question 35 How successful do you think are the investment aides by the gas suppliers overall? Please rate on a scale of 1 = very successful to 5 = absolutely unsuccessful. You can use ratings in between to grade your opinion. How important are investment aides by the gas suppliers? Please rate on a scale of 1 = very important to 5 = unimportant. You can use ratings in between to grade your opinion. CLIMATE CHANGE PROGRAM Question 36 Question 36.1 Question 37 Question 37.1 Did the government set specific targets for the CO 2 -reduction in your country, e.g. for certain branch of industries? yes... Question 36.1 no... Question 37 Is there a change of the reduction targets for the CO 2 -reduction planned for the next years? yes no Is there a national climate change program in your country? yes... Question 37.1 no... Question 38 Please describe the main aspects of the national climate change program. Question 37.2 Does the national climate change program focus on certain branch of industries, e.g. the building and housing sector? yes... Question 37.3 no... Question 37.4 IGM2 Appendix page 7

Question 37.3 What branch of industries are on focus? Question 37.4 Question 38 Question 39 Question 39.1 Question 39.2 Question 39.3 How successful do you think is the national climate change program overall? Please rate on a scale of 1 = very successful to 5 = absolutely unsuccessful. You can use ratings in between to grade your opinion. How important is a national climate change program? Please rate on a scale of 1 = very important to 5 = unimportant. You can use ratings in between to grade your opinion. Does your country have voluntary agreements of the industry regarding the CO 2 -reduction? yes... Question 39.1 no... Question 40 Have the goals of the voluntary agreements been fulfilled? yes no Are there agreements between your government and the branch of industries to compensate the consequences of the voluntary agreements? yes no How strong is the influence of the voluntary agreements on the marketing activities of the gas suppliers and/or associations? Please rate on a scale of 1 = very strong to 5 = not at all. You can use ratings in between to grade your opinion. Question 40 How important are voluntary agreements? Please rate on a scale of 1 = very important to 5 = unimportant. You can use ratings in between to grade your opinion. Question 41 Is there an independent monitoring of the measures taken for climate change? yes... Question 41.1 no... Question 42 Question 41.1 How successful do you think is the independent monitoring overall? Please rate on a scale of 1 = very successful to 5 = absolutely unsuccessful. You can use ratings in between to grade your opinion. Question 42 How important is an independent monitoring? Please rate on a scale of 1 = very important to 5 = unimportant. You can use ratings in between to grade your opinion. ENERGY TAXES Question 43 Question 43.1 Question 43.2 Does your country impose energy taxes? yes... Question 43.1 no... Question 44... Question 44 Have changes regarding energy taxes been agreed on or is it planned? yes, agreed on yes, planned no Are there principally tax reductions respectively tax exemptions for companies? yes... Question 43.3 no... Question 43.4 IGM2 Appendix page 8

Question 43.3 Question 43.4 Are the tax reductions/exemptions for companies linked to conditions such as energy-audits? yes no Is the tax imposed by the level of the energy consumption or the CO 2 -emission? energy consumption CO 2 -emission EMISSION TRADING Question 44 Question 44.1 Question 44.2 Question 45 Is there a national approach for an ET-System? yes... Question 44.1 no... Question 45 Does the ET-System focus on branch of industries or companies in particular? branch of industries companies in particular Does the ET-System imply absolute emission caps or is there a voluntary participation? absolute emission caps voluntary participation How important is a national approach for an ET-System? Please rate on a scale of 1 = very important to 5 = unimportant. You can use ratings in between to grade your opinion. JOINT IMPLEMENTATION (JI) Question 46 Question 46.1 Does the gas industry work with foreign partners on JI-Projects? yes... Question 46.1 no... Question 47 Please describe major JI-Projects shortly. Question 46.2 How successful do you think are JI-Projects overall? Please rate on a scale of 1 = very successful to 5 = absolutely unsuccessful. You can use ratings in between to grade your opinion. Question 47 How important are JI-Projects? Please rate on a scale of 1 = very important to 5 = unimportant. You can use ratings in between to grade your opinion. Question 48 Are (further) JI-Projects foreseeable in the future? yes no 6.1 Additional Questionnaire ( only to e-mail/fax ) GENERAL QUESTIONS Question 1 How large were the shares of natural gas, hard coal, lignite, fuel oil and electricity of the primary energy consumption in the year 2001 in per cent? IGM2 Appendix page 9

Energy 2001 (shares energies hold of the Primary Energy Consumption in %) Natural Gas Hard Coal Lignite Fuel Oil Power Generation by Nuclear Energy and Water Power Don t Know Question 2 And how has the share of the natural gas consumption developed through the past years? How large was the share of natural gas in per cent in the year...? Year Shares natural gas holds of the Primary Energy Consumption in % Don t Know 1996 1997 1998 1999 2000 2001 Question 3 Question 3.1 Are there official energy forecasts? yes... Question 3.1 no... Question 4... Question 4 What does the forecast estimate for the shares of natural gas, hard coal, lignite, fuel oil and electricity expressed as a percentage of the primary energy consumption for the years 2005 and 2010? Energy 2005 (shares energies hold of the Primary Energy Consumption in %) Don t Know 2010 (shares energies hold of the Primary Energy Consumption in %) Don t Know Natural Gas Hard Coal Lignite Fuel Oil Electricity IGM2 Appendix page 10

Question 4 Do you know how large the current CO 2 -Emission per capita is in your country? (in tons/year/per capita) tons/year/capita Question 5 Do you think there is a reduction in the CO 2 -Emission foreseeable? yes... Question 5.1 no... Close Questionnaire Question 5.1 How large do you estimate the possible reduction in per cent? Please state your forecast for the years 2005 and 2010. Year Share of Reduction in % Don t Know 2005 2010 =====+++++===== IGM2 Appendix page 11