Liz McManus (Wicklow, Labour)
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Question 120: To ask the Minister for the Environment, Heritage and Local Government the position regarding the issue of carbon credits; the cost and breakdown of carbon credits to the Exchequer; and if he will make a statement on the matter. [28984/07]

Brian O'Shea (Waterford, Labour)
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Question 125: To ask the Minister for the Environment, Heritage and Local Government the position regarding the use of flexible mechanisms of purchasing carbon credits by which over half Ireland's Kyoto carbon emission reduction targets are to be achieved as set out in the budget carbon emissions table; the way these carbon credits will be purchased and the location from where; the amount they will cost; and if he will make a statement on the matter. [35150/07]

John Gormley (Dublin South East, Green Party)
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I propose to take Questions Nos. 120 and 125 together.

I refer to the reply to Questions Nos. 61 and 70 on today's order paper. The Government has announced provision of €270 million for the purchase of carbon allowances over the period 2007-13. This sum is in addition to €20 million provided in my Department's Vote in 2006.

Following the enactment of the Carbon Fund Act in March 2007, the National Treasury Management Agency is now statutorily designated as purchasing agent for the acquisition of carbon allowances. The Agency is developing a purchasing programme on foot of the potential need indicated in the National Climate Change Strategy to purchase up to 18 million allowances in partial fulfilment of Ireland's obligations pursuant to the Kyoto Protocol. A national policy framework on the purchase of allowances, which is set out in Annex 3 to the National Climate Change Strategy 2007-12, provides guidance for the Agency in this regard.

In 2006, Ireland 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, namely the Carbon Fund for Europe and the second tranche of the BioCarbon Fund. No other commitments were made prior to the designation of the National Treasury Management Agency as purchasing agent.