Michael Creed (Cork North West, Fine Gael)
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Question 615: To ask the Minister for the Environment, Heritage and Local Government the way the carbon trading system operates as a balance sheet item for certain businesses; his views on extending its application to the agriculture sector which is the largest single contributor of greenhouse gasses; and if he will make a statement on the matter. [14900/08]

John Gormley (Dublin South East, Green Party)
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I refer to the reply to Questions Nos. 591 and 592 on 12 February 2008.

The European Commission has proposed a directive for revision to the current EU Emissions Trading System (ETS), which includes changes to the scope of the EU ETS, but is not proposing the inclusion of the agriculture sector as part of this new directive. Prior to its proposal, the Commission undertook a review of the ETS, including an extensive consultation process with key national, economic and environmental stakeholders. The EU ETS focuses, like all successful applications of cap-and-trade systems elsewhere have done, mainly on large stationary sources and only on carbon dioxide emitters. The question of whether new sectors and gases can be included would depend on whether certain criteria can be met, particularly requirements concerning the monitoring, reporting and verification of emissions. Practical difficulties are likely in these regards in relation to emissions from animal herds and individual farms.