EnBW Trading GmbH, Germany CDM / JI Project Partnership www.enbw.com

1. EnBW Trading GmbH,GermanyCDM / JI Project Partnershipwww.enbw.com

2. - Who is EnBW?- Some Topics on the European ETS- EnBW‘s Role in CDM Projects- Approach to Pricing- EnBW‘s Interest & Strength- EnBW‘s Expectations

3. EnBW at a glance

4. EnBW AG – Companies & Value Added Chain EnBW AG / Holding Generation Distribution Sales Trading / Purchasing EnBW Kraftwerke AG EnBW Kernkraft GmbH EnBW Trading GmbH EnBW Transportnetze AG EnBW Regional AG EnBW Vertriebs- und Servicegesellschaft mbH Yello Strom GmbH Electricity EnBW Trading GmbH Gasversorgung Süddeutschland GmbH EnBW Gas GmbH Gasversorgung Süddeutschland GmBH EnBW Vertriebs- und Servicegesellschaft Gasversorgung Süddeutschland GmbH EnBW Gas GmbH Gas Companies with interdepartmental functions Energy & Environmental Services

5. Generation mixElectrical output March 2008

6. National Burden Sharing within EU for the Period 2008 to 2012 8% goal of EU 15 will be achieved through national burden sharing=> reduction goal of EU 15 Länder is the result of negotiations within the EU => reduction goal of joining countries is their Kyoto commitment

7. European Union Emission Trading Scheme (EU ETS), NAP 2 – 2008 to 2012 estimated annual CO2-Emissions 100% Gap Emission Unit Allowances (EUAs) assigned in National Allocation Plan 2 (NAP 2) Gap compensable by CERs amounting to 22% of assigned EUAs:

8. EnBW Trading’s Role in CDM Projects EB DNA DOE Contact Project-Developer Project-Owner Project Management Technology-Supplier CDM-Project Technology / Know How Capital Financing € CERs Bank CER – Buyer Investor

9. Primary-Market Value Added Chain of the CDM/JI-Process Financing Trading with Secondary-CERs (EnBW Trading) ERPA, Portfolio-Balance (EnBW Trading) ( Fonds ) (EnBW Trading) Project-Development Technology / Engineering Risk CER-Price

10. Participation of EnBW Trading GmbH in CDM Projects – Project Risks • CDM – Risks: • post-Kyoto uncertainty • price risk • volume of delivery • market risk • country • technology • project specific risk • non-specific CDM-risks • approval of DNA • approval of methodology / technology • validation risk • registration risk • monitoring risk • verification risk

11. Participation of EnBW Trading GmbH in CDM Projects – Country Selection Criteria for Host-Country-Check: • World Bank Criteria • voice & accountability • political stability & absence of violence • government effectiveness • regulatory quality • rule of law • control of corruption • foreign investments • legal system • conflicts in law of nations • travel-warnings (by Department for Foreign Affairs)

12. The CDM Project Cycle price category 1: project is still at concept or has developed a PIN sign ERPA early in the project cycle price category 2: PDD is developed and submitted to a DOE for Validation decreasing risk in advanced state of project cycle price category 3: project has received a LoA from the DNA and is registered by the EB price category 4: project has issued its first CERs Source: German CDM Manual – Guidance for Applicants, Umwelt Bundes Amt DEHSt

13. EUA & Secondary CER Price EUA / CER price history since May 07

14. Participation of EnBW Trading GmbH in CDM Projects • EnBW’s interests: • Partnership with a project owner in developing a project • Sign emission reduction purchase agreement (ERPA) with a project owner of the host country • Long term commitment to a CDM project early in the project cycle • Focus on projects related to EnBW core-activities • project size: approx. 20,000 < x < 150,000 CERs/year • small scale projects are also of interest

15. Participation of EnBW Trading GmbH in CDM Projects – Project Types • Focus on energy efficiency, fuel switch, cogeneration, renewable power generation • Other sectoral scopes / methods accepted that are supported by external assessment • Sustainability according to the current requirements of the UNFCCC and Linking Directive of the EU • Project types of interest: • Biogas • Biomass energy • Cement • Coal Bed/Mine Methane • Energy distribution • Energy efficiency • Cogeneration • Fossil Fuel Switch • Hydro Power • Solar Power • Wind Power

16. Participation of EnBW Trading GmbH in CDM Projects • EnBW’s strength as CER buyer: • Compliance buyer as power plant operator under the EU Emissions Trading Scheme (EU ETS) • Strong credit rating • Highly reliable partner • Possibility to arrange flexible pricing models • Professional trading partner in commodities • In-depth technical expertise in electricity and heat generation – technology and knowledge transfer • Technical & financial support in CDM project development

17. Participation of EnBW Trading GmbH in CDM Projects • EnBW’s expectations on a seller of CER’s: • Reliable business partner • Technology of the CDM project is acceptable • Project activity has been planned and documented under CDM (additionality) • EnBW intends to be: • named as buyer of CER’s in the PDD • named and registered as focal point in “Modalities of Communication” at UN • has the right to initiate monitoring at any time • wants to be closely involved in the monitoring process

18. Thank You! Contact:Hans-Jürgen Mielisch, “Hans”++49 172 7333127h.mielisch@enbw.com