Wednesday, 4 October 2006
Department of Environment, Heritage and Local Government
Greenhouse Gas Emissions
Question 175: To ask the Minister for the Environment, Heritage and Local Government the expected cost of the purchasing of carbon credits as envisaged by the upcoming Carbon Fund Bill; and if he will make a statement on the matter. [30966/06]
I refer to the reply to Question No. 114 of 4 May 2006. The Government has stated its intention to purchase up to a maximum of 3.607 million allowances per annum over the Kyoto Protocol commitment period 2008-2012. The Government will seek to minimise this purchasing requirement through the achievement of further emissions reductions in the economy. The ultimate cost to the Exchequer will therefore depend on the final purchasing requirement and the price of carbon when the allowances are actually purchased.
In the context of updating national projections of greenhouse gas emissions in the 2008-2012 period, independent consultants ICF Consulting with Byrne Ó Cléirigh have assessed the average price of carbon during the period to be €15 per allowance. At this price, the maximum purchasing requirement would cost €54.1m per annum over the five-year period. The price of carbon allowances in the EU Emissions Trading Scheme on 2 October 2006 was €12.95.