Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 241: To ask the Minister for the Environment, Heritage and Local Government his intentions in regard to the purchase of carbon credits in the future; and if he will make a statement on the matter. [18301/07]

John Gormley (Dublin South East, Green Party)
Link to this: Individually | In context

The Programme for Government sets a target of an annual average reduction of 3% in our greenhouse gas emissions. The achievement of this reduction through domestic measures would minimise the need for Government purchases of carbon credits in the future.

The National Climate Change Strategy 2007-2012 includes limited provision for the purchase of Kyoto Units by the State so as to assist compliance with the Kyoto Protocol in the period 2008-2012. The Strategy also sets out an explicit National Policy Framework for this purpose; this will inter alia guide the National Treasury Management Agency (NTMA), which will act as a National Purchasing Agent for the State in the conduct of its role.

The Framework requires that Kyoto Unit purchases on behalf of the State shall be made with the objective of ensuring: that they contribute to the ultimate objective of the United National 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

that they represent good value for money.

In purchasing Kyoto Units, the Agency will also be required to ensure that Ireland does not use credits generated from nuclear facilities, and that any surplus Units at the end of the 2008-2012 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 €20m in the Multilateral Carbon Credit Fund offered by the European Bank for Reconstruction and Development, and a further €20m in Funds offered by the World Bank. In the case of the World Bank, €10m is committed to the second tranche of the BioCarbon Fund and €10m to the new Carbon Fund for Europe.

The Carbon Fund Act 2007 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.