Simon Coveney (Cork South Central, Fine Gael)
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Question 200: To ask the Minister for the Environment, Heritage and Local Government the process under which Ireland will decide the way in which to allocate carbon emissions capacity for companies that will be affected by the EU emissions trading proposals for 2004. [31348/03]

Martin Cullen (Waterford, Fianna Fail)
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I refer to the reply to Question No. 344 of 3 July 2003. To implement the emissions trading scheme, the Government will determine the total quantity of allowances to be allocated for each phase and the EPA will determine the allocation for individual companies.

The Government has engaged consultants to advise it on the most economically efficient apportionment of the national target between those inside and outside trading for the period 2008 to 2012, and derived from this, the quantity to be allocated to the trading system in the pilot phase, 2005 to 2007. The allocation for this period must take account of the progressive reductions of emissions required towards achievement of the national Kyoto obligation while also recognising the "learning by doing" nature of the pilot phase.

The EPA has been designated as the national allocation authority to design and implement, by 31 March 2004, a national allocation plan, in accordance with the requirements of the Directive 2003/87/EC, which will determine the amount of greenhouse gas allowances to be allocated to each participating installation. Finalisation of allocations to individual enterprises is a matter for the board of the EPA, who will take decisions in line with the methods and timeframes set out in the directive.