Oireachtas Joint and Select Committees
Tuesday, 24 April 2018
Joint Oireachtas Committee on Communications, Climate Action and Environment
Implementation of National Mitigation Plan: Discussion
3:00 pm
Mr. Brian Carroll:
With regard to how much this will cost, over the compliance period, we had an annual emissions ceiling below which we had to remain. For a number of years, we were below the ceiling because of the economic downturn. We can bank that as credit for years we exceed the ceiling. The combination of being under it for an extended period and exceeding it now means that we have to purchase few allowances to ensure compliance by 2020. We have banked the amount under the ceilings which offsets us being over it, and there is a few years for which we will have to purchase allowances. We do not know yet how much they will cost. It will depend on supply and demand but we anticipate a surplus of allowances will be available and the cost of purchasing compliance will be relatively low.
Looking beyond that, the focus is very much on 2030. I will move on to Deputy Bríd Smith's questions and then return to other issues. She asked about the issue of industry and so on. Ireland's legally binding obligations arise in the non-ETS sector. Agriculture accounts for 45% of our non-ETS emissions. When transport emissions are added, that brings us up to 73%. When the built environment is then included, we are dealing with the bulk of the emissions. There are emissions from a variety of sources relating to manufacturing combustion and industrial processes and they are in the main regulated under the EU ETS system. That is a cap and trade system and, therefore, there is no legal obligation on the State. It is up to the installations to manage their emissions and to buy and sell allowances.
I will address Deputy Ryan's question and after that I will hand over to colleagues to address the question on data centres.
Reference was made to the national mitigation plan and the follow-on of the national development plan. I believe there is a significant commitment in the national development plan. The Exchequer and the fiscal arrangements are relevant. One thing we had to comply with as a result of the bail-out meant that the Exchequer's capacity to spend or borrow was limited over a period. We are coming out of that period now. The additional investment in the national development plan largely kicks in from 2021 onwards. There is a serious commitment. Over half of transport emissions come from private journeys. There will be a total of 500,000 vehicles by 2030 with additional charging infrastructure. There is a commitment to no non-zero emissions private cars to be sold in Ireland post 2030. There is a commitment to issuing no NCT certificates for non-zero emissions cars post 2045.