Dick Roche (Wicklow, Fianna Fail)

The National Climate Change Strategy 2007-2012, which I published earlier this week, includes limited provision for the purchase of Kyoto units by the State so as to assist compliance with the Kyoto Protocol in the period 2008 to 2012. Deputies will be aware that under the plan, 80% of the requirement will be met domestically. The strategy also sets out an explicit national policy framework for this purpose. This will inter alia guide the National Treasury Management Agency, which will act as a national purchasing agent for the State in the conduct of its role, as agreed in the Carbon Fund Bill. The framework requires that Kyoto unit purchases on behalf of the State shall be made with the objective of ensuring they contribute to the ultimate objective of the United Nations Framework Convention on Climate Change, which is stabilisation of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system; that risk is minimised, particularly in relation to the timely delivery of credits; and they represent good value for money.

In purchasing Kyoto units the agency will also be required to ensure Ireland does not use credits generated from nuclear facilities and any surplus units at the end of the 2008-12 commitment period can be banked and used in a subsequent period of the Kyoto Protocol or any successor treaty. To date, my Department has committed to investing €20 million in the multilateral carbon credit fund operated by the European Bank for Reconstruction and Development and a further €20 million in funds offered by the World Bank. In the latter case, €10 million is committed to the second tranche of the biocarbon fund and €10 million to a new carbon fund for Europe.

The Carbon Fund Bill 2006, which came into effect this week, makes provision for the designation of the National Treasury Management Agency as purchasing agent for the State. Further purchases will be a matter for the agency, having regard to the purchasing framework set out in the national climate change strategy.

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