The Energy Efficiency Strategy 2004-2012, whose basic objective will be to improve the energy intensity ratio, was approved by the Delegated Commission of the Spanish Government for Economical Affairs. To carry out the Energy Efficiency Strategy, six inter-ministerial working groups were created, corresponding to the areas of energy transformation, transport, building, tertiary and residential, industry and public services. Another group on institutional co-ordination was created that will describe the horizontal objectives, the relations with the autonomous communities (Spanish regions) and the local institutions, as well as the development of the objectives with institutional character. The Institute for Diversification and Saving of Energy (Instituto para la Diversificacón y Ahorro de la Energía, IDAE) guarantees the co-ordination of all these groups. The process will involve firstly, an assessment of energy supply and demand of the various sectors in order to determine potential energy efficiency improvement. Secondly, the Strategy will be developed based on specific sectoral programs and targets to be reached. The strategy will include a portfolio of measures including economical instruments, financial incentives, legislation, voluntary agreements, RD&D, and information dissemination. Monitoring and control of the effectiveness of the strategy and its objectives are also included in the process.