Ms Karen Egan:

I am the principal officer in the environment and climate action plan delivery division of the Department of the Environment, Climate and Communications. I am part of the team responsible for the preparation of the sectoral emissions ceilings. I am accompanied by two of my colleagues from the climate division, Mr. Frank Maughan, who works in just transition and sectoral policy; and Mr. Marc Kierans, who works in the land use and sectoral policy division. I will use my opening remarks to outline the process that the Department has undertaken for the preparation of sectoral emissions ceilings in accordance with the Climate Action and Low Carbon Development (Amendment) Act 2021.

The Climate Action and Low Carbon Development (Amendment) Act 2021 commits Ireland to a legally binding target of a climate neutral economy not later than 2050 and a reduction in emissions of 51% by 2030 compared with 2018 levels.

Following the process set out in the Act, the carbon budget programme proposed by the Climate Change Advisory Council was approved by Government on 21 February 2022 and subsequently adopted by the Oireachtas on 6 April 2022. This carbon budget programme comprises three successive five-year carbon budgets as follows: for the period 2021 to 2025, 295 million metric tonnes of CO2 equivalent, which equates to an average reduction of 4.8% per annum for the first budgetary period; for the period 2026 to 2030, 200 million metric tonnes of CO2 equivalent, an average reduction of 8.3% per annum for the second budgetary period; and for the period 2031 to 2035, 151 million metric tonnes of CO2 equivalent, an average reduction of 3.5% per annum for the third provisional budgetary period.

Under the Act, the Minister for the Environment, Climate and Communications must prepare, within the limits of the agreed carbon budget programme, the maximum amount of greenhouse gas emissions that are permitted in different sectors of the economy during a budget period, and different ceilings may apply to different sectors. These sectoral emissions ceilings shall be determined by the Government and are not subject to an Oireachtas process. The Act requires the Minister to submit sectoral emissions ceilings to Government for approval as soon as may be after a carbon budget takes effect. The Minister intends to take a proposal to Government on sectoral emissions ceilings shortly.

The Department has considered a number of scenarios to support the preparation of the sectoral emissions ceilings. It is being supported in this work principally by McKinsey and Company and MaREI at University College Cork. Key inputs have also been received from the Environmental Protection Agency, EPA, the Sustainable Energy Authority of Ireland, SEAI, Teagasc, EirGrid, the Economic and Social Research Institute, ESRI, University College Dublin and other contracted support. The Act provides that the Minister shall, when preparing a sectoral emissions ceiling, consult such Ministers of the Government as he or she considers appropriate. Over the past two months, extensive consultation with relevant stakeholders has taken place. In terms of the engagement to date, the Department of the Environment, Climate and Communications has been sharing analysis, including through bilateral meetings and workshops with key Departments. There has also been a series of meetings at Secretary General and ministerial level.

I thank the committee for inviting me and my colleagues to come before it and I am happy to answer any questions.