Mr. Marc Kierans:

I am the principal officer in the land use and sectoral policy division. I am part of a team responsible for the preparation of the sectoral emissions ceilings. I am accompanied by three of my colleagues: Mr. Robert Barnes and Dr. Niamh Gibbons from the land-use and sectoral policy division, and Mr. Neil Gannon from the environment and climate action plan delivery 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, which 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, that is compared to 2018 levels. Following the process set out in the Act, the carbon budget programme proposed by the Climate Change Advisory Council was approved by the Government on 21 February 2022, and subsequently adopted by the Oireachtas on 6 April 2022. This carbon budget programme consists of three successive five-year carbon budgets. The first budget, from 2021 to 2025 is 295 Mt CO2 eq., which is an average reduction of 4.8% per annum for the first budget period. The second budget period is from 2026 to 2030 involves a 200 Mt CO2 eq. which is an average reduction of 8.3% per annum. The third budget period is from 2031 to 2035 and involves a 151 Mt CO2 eq., which is an average reduction of 3.5% per annum. The upper ends of the emission reduction ranges in the Climate Action Plan 2021 are consistent with a 51% reduction in emissions by 2030 compared against 2018 levels. That is on the basis of full implementation of core measures and further measures, as well as allowing for unallocated savings.

The plan leaves savings of roughly 4 Mt CO2 eq unallocated in 2030 on an economy-wide basis, pending the identification of additional abatement measures. The Climate Action and Low Carbon Development (Amendment) Act 2021 requires that the Government approve an annual update to the climate action plan that is consistent with the carbon budget programme. Once the programme and associated sectoral emissions ceilings have been adopted, the climate action plan for 2023 will be prepared and published before the end of the year to ensure such consistency.

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, also known as sectoral emissions ceilings. 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 the 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 looked at a number of scenarios to support the preparation of these sectoral emissions ceilings. The Department is being supported in this work principally by McKinsey and Company and the centre for marine and renewable energy, MaREI, in University College Cork. Key inputs have also been received from the EPA, the SEAI, Teagasc, EirGrid, the ESRI, University College Dublin and others.

The Act provides that the Minister shall, when preparing a sectoral emissions ceiling, consult with such Ministers of the Government as he considers appropriate. Over the past four months, extensive consultation with relevant stakeholders has taken place. In the engagement to date, the Department 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.

As part of the proposal, the Minister will recommend to Government the sectors of the economy to which each sectoral emissions ceiling will apply based on the EPA emissions inventory, which breaks down emissions into a range of categories across the economy. A Minister must be assigned responsibility for each sector to meet the obligations under the Act. Section 6C of the Act gives a legislative underpinning to whole-of-government climate action by making responsibility for adherence to the carbon budgets and sectoral ceilings more diffuse across Government. Ministers will be required, insofar as is practicable in the performance their functions, to comply with the sectoral emissions ceiling for the sector for which they have responsibility.

I thank the committee for inviting myself and my colleagues here today. I am happy to answer any questions.