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CHAPTER 7 Cepsa and the environment Climate change

Our activities generate greenhouse gases (GHGs) at our facilities, which we measure and report.

On a European level, management of CO2 as a GHG is regulated by the European Emissions Trading Scheme (ETS) and facilities are subjected to continuous improve- ment to ensure compliance with the European 2020 and 2030 objectives for reducing CO2 emi- ssions.

Our plant in Canada is subject to the Quebec Cap & Trade System, as well as the Montreal plant until May 20154.

Our facility in Shanghai is sub- ject to a pilot ETS system as part of the Chinese Government s drive to use these Carbon Trading systems.

The rest of our facilities are not currently subject to any carbon trading system, although we cal- culate and monitor our emissions.

CLIMATE CHANGE

The management of carbon by the Company includes Optimization plans for the Refining and Petrochemicals areas.