Ulick Burke (Galway East, Fine Gael)
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Question 598: To ask the Minister for the Environment, Heritage and Local Government the reason the Government has adopted a policy to purchase carbon credits abroad and does not have a policy to develop a market for carbon trading here. [4534/08]

John Gormley (Dublin South East, Green Party)
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The National Climate Change Strategy 2007-12 signalled a potential purchasing requirement 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 obligations as far as possible by emission reductions through domestic action and achieve a 3% annual reduction on average over the Protocol's five-year commitment period 2008-2012. As I set out in this year's carbon budget, meeting this objective would enable the Government to limit the purchase of allowances to no more than 1 million per annum for the purpose of compliance under the Kyoto Protocol.

While the purchase of an amount of allowances by a party to the Protocol eliminates the need for that party to reduce its greenhouse gas emissions by an equivalent amount, the Kyoto Protocol recognises the equivalence in impact of reductions in greenhouse gas emissions that take place anywhere in the world. The flexible mechanisms provide an essential nucleus for the development of a global carbon market and also promote the transfer of clean technology to developing countries. Within the overall framework provided by the National Climate Change Strategy, approximately 100 large industrial and power generation installations in Ireland are participating in the EU Emissions Trading Scheme. I refer to the reply to Question Nos. 591 and 592 on today's order paper.