Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 591: To ask the Minister for the Environment, Heritage and Local Government if he will provide a breakdown of the Government's emission reduction targets for 2008 to 2012 between the EU emissions trading and non-emissions trading sectors; and if he will make a statement on the matter. [4478/08]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 592: To ask the Minister for the Environment, Heritage and Local Government the way actual emissions, as opposed to their allocated allowances, by organisations here participating in the EU's emissions trading system in 2008 to 2012 will impact on the Government's domestic 3% average annual reduction commitment; and if he will make a statement on the matter. [4479/08]

John Gormley (Dublin South East, Green Party)
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I propose to answer Questions Nos. 591 and 592 together.

Ireland's commitment under the Kyoto Protocol is to limit national emissions to 13% above 1990 levels on average in the period 2008-2012, which equates to an annual average of approximately 63 mt (i.e. million tonnes of CO2-equivalent). The National Climate Change Strategy 2007-2012 provides a framework for meeting this commitment through reducing emissions across all sectors of the economy. The Strategy sets out a series of measures that, inclusive of the purchase of credits through the Kyoto Protocol flexible mechanisms, will achieve emissions savings of over 17 mt each year over the period 2008-2012.

Approximately 3 mt of these savings are attributable to the EU emissions trading scheme, in which some 100 large industrial and power generation installations in Ireland are participating. These installations accounted for approximately 30% of national emissions in 2006. Following a Government decision on the total quantity of allowances that should be made available to these installations during the Kyoto Protocol period (2008-2012), the Environmental Protection Agency (EPA) has prepared a National Allocation Plan. This sets out the proposed allocation of approximately 22,280,000 allowances to each installation for each year covered by the Plan. The Plan is available to download from the website of the Agency at www.epa.ie. The scheme enables participating installations to emit in excess of their allocation provided they purchase additional allowances in respect of any excess emissions. Alternatively, an installation may choose to reduce its emissions to the level of its allocated allowances. In this regard, the scheme provides the flexibility for installations to meet their obligations in the most cost-effective manner available to them.

Each installation's emissions are recorded by the EPA for the purpose of compiling an annual national emissions inventory. Any emissions above the total annual allocation of 22,280,000 mt to the emissions trading scheme must be covered through trading arrangements by the installations concerned and will not therefore be counted in assessing Ireland's compliance with the Kyoto Protocol. In other words, the emissions trading sector will account for just over 22 mt of the approximately 63 mt which Ireland is allowed under the Protocol as an annual average in 2008-2012, and the remainder of the economy will account for about 41 mt.

Progress towards achieving the Government's domestic 3% average annual reduction commitment may be measured with reference to net national greenhouse gas emissions. While this includes emissions from installations in the EU emissions trading scheme, the control of emissions within the scheme is primarily a matter for the scheme participants.