Ahead of next week’s Summit on Climate Change in Copenhagen

IBERDROLA SETS COMMITMENT TO KEEP EMISSIONS AT LEAST 20% BELOW THOSE OF EUROPE’S ELECTRICITY SECTOR IN 2020

• The Company has set specific objectives in combating climate change in line with its focus on clean energy technology
• Chairman Ignacio Galán urges an “ambitious international agreement” in Copenhagen and believes a far-reaching transformation of the global energy model” is needed

IBERDROLA has undertaken a commitment to bring its CO2 emissions to at least 20% below those of the European electricity sector in 2020 and will continue to focus on clean energy technology to achieve this.

The specific objective comes ahead of next week’s Copenhagen Summit on Climate Change, where delegates will seek to agree a common strategy against climate change after 2012 when the Kyoto Protocol expires.

In order to achieve this objective, IBERDROLA will focus future investments on energy projects with zero emissions and on developing carbon capture technology.

IBERDROLA has already laid the foundations for meeting this challenge, with a project pipeline for wind power totalling 57,400 MW, hydroelectricity projects totalling 3,000 MW in Spain, Portugal and Brazil, and through its participation in the new nuclear build programme in the United Kingdom. It is also is in the vanguard of new technology to capture and store CO₂ at coal-fired generation plants.

Chairman Ignacio Galán said “IBERDROLA is fully aligned with the clear move towards a new global energy system, founded on low carbon emissions and on clean and efficient energy sources.” He said a new energy model, based on sustainable, competitive and secure supplies to replace dependence on fossil fuels with clean sources, is the way forwards towards drastically reducing greenhouse gas emissions.

He said the Company has consistently been a pioneer among electricity companies in combating global warming with one of the lowest emissions levels in the sector, and intends to continue with its sustainable energy programmes in all its markets.

Galán said Copenhagen is an ideal opportunity for governments to lay the foundations for a new green economy, providing incentives for environmentally responsible investment and designing a global energy model that can be a powerful engine for economic recovery and job creation. Despite the difficulties in achieving this agreement, the move towards a far-reaching energy sector transformation is irreversible, he said.

IBERDROLA had 43,311 MW of installed capacity worldwide at the end of 2008, of which 22,367 MW (52%) were emission free compared with 20,163 MW the year before, an improvement of 11%. In Spain clean energy capacity came to 17,060 MW, 64.7% of total capacity in the country.

New section in corporate website on climate change

In the context of its commitment on combating climate change, IBERDROLA today launched a special section (www.togetheragainstclimatechange.com) within its corporate website, offering visitors information on the Group’s main initiatives in combating climate change. The new microsite includes sections devoted not only to the role played by the Company but also to information related to the upcoming Summit.
 
The microsite includes a video and letter from the Chairman, Ignacio Galán, explaining IBERDROLA’s objectives in reducing emissions, as well as environmental tips, frequently asked questions on climate change and information on clean energy.

IMPORTANT INFORMATION

This communication does not constitute an offer of purchase, sale or exchange or a request for an offer of purchase, sale or exchange of values. The shares of Iberdrola S.A. cannot be offered or sold in the United States, except if this is carried out through a declaration of effective notification of what is laid out in the Securities Act or under the protection of a valid exemption of the need for notification.