Shane McEntee (Meath East, Fine Gael)
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Question 109: To ask the Minister for the Environment, Heritage and Local Government the reason €10 million for Kyoto credits was in the voted budget of the Department of Environment, Heritage and Local Government and €50 million was in the non-voted capital expenditure in the White Paper; and if he will make a statement on the matter. [35252/07]

John Gormley (Dublin South East, Green Party)
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The National Climate Change Strategy 2007-12 indicated a potential purchase of up to 18 million carbon allowances in part fulfilment of Ireland's obligations pursuant to the Kyoto Protocol. However, my intention is that Ireland will meet its Kyoto commitments as far as possible by emissions reductions through domestic action, rather than the purchase of credits, and therefore achieve the 3% annual reduction on average between now and 2012. As I set out in this year's carbon budget, meeting this objective will enable the Government to limit its purchase of credits to no more than 1 million tonnes per annum during 2008-12.

Under the Carbon Fund Act 2007, a Carbon Fund has been established to fund the purchase of carbon allowances and the National Treasury Management Agency has been statutorily designated as purchasing agent. In practice, the cost of purchases in any year by the Agency will be refunded to the Carbon Fund from my Department's vote for the following year.

The provision of €10 million in my Department's Estimates for 2008 will be used to refund purchase costs incurred by the Agency in 2007. The provision of €50 million in the non-voted capital expenditure in the White Paper is an estimate of the amount set aside for any carbon allowance purchases that may arise in 2008. To the extent that any purchases are made in 2008, such costs will be refunded to the Carbon Fund from my Department's vote in 2009.