Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 1: To ask the Minister for the Environment, Heritage and Local Government if he will bring forward new proposals to meet Kyoto climate change targets here; the number of carbon credits and the estimated cost of buying same during the Kyoto timeframe; and if he will make a statement on the matter. [4168/09]

John Gormley (Dublin South East, Green Party)
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Since the publication of the national climate change strategy in 2007, the relevant Departments have been working on the development of further measures to reduce Ireland's greenhouse gas emissions. This work is overseen by the Cabinet committee on climate change and energy security, which is chaired by the Taoiseach. I have been reporting progress to the Oireachtas on an annual basis whenever I present the carbon budget to the House.

The focus of the 2007 document was very much on Kyoto compliance over the 2008-12 period. While the measures now being developed will support this, their longer-term impact is of even more importance. Significant structural change is required across all sectors of our economy if we are to meet the much more demanding targets to which we are now committing ourselves. Under the recent EU climate and energy package, Ireland has taken on a target of a 20% reduction in emissions between 2005 and 2020, and this target will increase further when a new global agreement on climate change is reached, hopefully in Copenhagen next December.

The last carbon budget showed a requirement for Government purchases of up to 4.6 million allowances per year over the 2008-12 period. I noted at the time that this was based on EPA emission projections which assumed economic growth rates similar to those published in the ESRI's medium-term review in May 2008, and that it was already apparent that these forecasts were now over-optimistic. Since then, in light of the changed economic outlook, the EPA, with the assistance of the ESRI and other relevant agencies, is revising its emission projections. While this work is not yet complete, I understand that the new projection will be significantly reduced.

The global economic downturn is already leading to a fall in the market price of carbon credits. While the Government's projections of the cost of the purchasing requirement had assumed an average unit price of €15, markets are currently operating at closer to €11. Overall, the cost to the Government will be much less than previously forecast, due to the fall in both the volume and unit price of carbon credits.

I must emphasise that the use of carbon credits must be supplementary to emission reductions and that we must not, under any circumstances, allow the option to purchase credits to deflect from the fundamental objective of taking the necessary actions towards a low-carbon trajectory in the longer term.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The Minister has indicated that the recession and the contraction of the economy are what he is depending on in order to meet our Kyoto targets——

John Gormley (Dublin South East, Green Party)
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I did not say that.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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——and that there will, as he rightly pointed out, be a serious change from the ESRI's forecast. There is an estimated contraction of 8% or 9% in the economy in 2009. Nevertheless, we must still do certain things in order to ensure that we achieve our objectives. When will work begin on a new national climate change strategy? Will the Minister indicate, notwithstanding the economic situation, what the likely, if any, purchase of credits will be over the next few years until 2012?

John Gormley (Dublin South East, Green Party)
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I would like to correct the misleading statement made by the Deputy that we are relying on the recession. I said no such thing. What we are relying on is Government action. We have said over and over again that the climate change strategy will be implemented and have taken the necessary steps to achieve that, through the creation of the Cabinet climate change committee and the Oireachtas committee which is chaired by a member of the Fine Gael Party. These will oversee the changes we are making and ensure that we make the necessary changes. I hope Members will support those changes, some of which may be perceived to be unpalatable.

Some fiscal instruments are required and the taxation commission is looking at putting a price on carbon. This is necessary, as are the other changes we have introduced on building regulations and the changes that allow people opt for low-emission vehicles. Furthermore, there will be new changes relating to more sustainable methods of travel. The sustainable transport action plan was launched today.

These combined changes will mean that we will reduce our emissions. The Deputy will be aware that we have, for the first time, reduced our emissions by approximately 1%. I am confident that these combined measures will mean we will comply with our targets for the Kyoto period, 2008 to 2012. The much more onerous target comes beyond that, the post-Kyoto period. That is the period when it will be much more difficult to comply with our targets.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I am anxious that the Minister would pursue direct Government action. However, the action taken to date does not inspire confidence, with only 700,000 tonnes of a reduction out of a 7 million target. The Minister's initiative on light bulbs seems to have gone from the radar and has been brought into the context of an EU strategy.

The Minister mentioned transport. How does he reconcile what he has just said about a sustainable transport plan with the massive number of buses to be taken off the road in Dublin by Dublin Bus? This is happening in a city that has few alternative options for people other than car use. If we are anxious to obtain a reduction in car transport, the policy pursued by the Government of removing buses out of circulation will result in more people driving their cars rather than less.

John Gormley (Dublin South East, Green Party)
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Once again, I must correct the misleading comments put forward by the Deputy. With regard to the European Union, it has congratulated Ireland on leading the way on energy efficient light bulbs.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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What happened to the 1 January target?

John Gormley (Dublin South East, Green Party)
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The fact is we have led the way and are supported by Mr. Verheugen and Greenpeace. However, I do not want to go over that again or to boast.

With regard to Fine Gael's transport policy——

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I asked about the Minister's policy.

John Gormley (Dublin South East, Green Party)
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Our policy is working, while Fine Gael's is about building more roads. Fine Gael is at sixes and sevens. On the one hand, the Deputy's colleague, Deputy O'Dowd, says we should double the amount of roads——

Ciarán Lynch (Cork South Central, Labour)
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On a point of order——

Brendan Howlin (Wexford, Labour)
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I call Deputy Lynch on a point of order.

Ciarán Lynch (Cork South Central, Labour)
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This is time for questions to the Minister, not for questions from the Minister. The Minister should follow Standing Orders and respond to the questions that are being put rather than engage in a slagging match.

Brendan Howlin (Wexford, Labour)
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That is very interesting, but it is not a point of order. I call on the Minister to conclude.

John Gormley (Dublin South East, Green Party)
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I thank the Chair for pointing out that is not a point of order. I must be in a position to correct statements that are made by Opposition Deputies.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Are the buses off the road or not?

Brendan Howlin (Wexford, Labour)
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Please allow the Minister to conclude.

John Gormley (Dublin South East, Green Party)
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What is required in Dublin Bus is radical reform, and that is what we have put forward. We are introducing measures to achieve that. Fine Gael, on the other hand, just wants to privatise transport and to build more roads. It wants to double the amount of roads being built. That is Fine Gael policy.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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What is the Minister's policy?