Eamon Gilmore (Dún Laoghaire, Labour)
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Question 160: To ask the Minister for Communications, Marine and Natural Resources the details of the economic instruments planned in order to drive the achievement of the targets set under the national climate change strategy for the energy supply sector; the details of these instruments which have been initiated to date in 2005; the timeframe for further economic instruments to be initiated in relation to the energy sector under the national climate change strategy; and if he will make a statement on the matter. [37152/05]

Noel Dempsey (Meath, Fianna Fail)
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Details of the key energy drivers in terms of meeting the sector's obligations under the national climate change strategy are set out in chapter 4 of that document. The primary economic instrument for dealing with the NCCS targets is the EU's emissions trading scheme. Since the NCCS was published, the emissions trading scheme has been agreed and commenced operation on a pilot basis. It covers all thermal installations of 20 MW or more and all electricity generating stations.

The scheme involves a cap and trade system under which installations are granted allowances to emit a certain level of greenhouse gases and are required to limit their emissions to that level or purchase additional allowances from other installations to cover any additional emissions of greenhouse gases. The level of allowances granted is set to ensure the installations in question make an appropriate contribution to meeting Ireland's overall obligation under the Kyoto Protocol.

The NCCS, which is the responsibility of my colleague, the Minister for the Environment, Heritage and Local Government, is under review. In addition, the emissions trading scheme proper is to begin in 2008 and the Department of the Environment, Heritage and Local Government is conducting an exercise aimed at producing Ireland's national allocation plan for that period.