Michael D Higgins (Galway West, Labour)
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Question 13: To ask the Minister for the Environment, Heritage and Local Government the amount of money estimated, allocated, owing or spent by the Government on the purchase of carbon credits in respect of Kyoto Protocol commitments for the year 2008; and if he will make a statement on the matter. [3922/09]

John Gormley (Dublin South East, Green Party)
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I refer to the reply to Question No. 1 on today's Order Paper.

Under the Carbon Fund Act 2007, the National Treasury Management Agency has been designated as purchasing agent for the State. In 2008, the Agency purchased some 3.5m certified emission reduction units at a cost of €53m; these units were generated under the Clean Development Mechanism provided for in Article 12 of the Kyoto Protocol. Further purchases of these type of units for Kyoto Protocol compliance purposes in the commitment period 2008-2012 is a matter for the Agency in accordance with the purchasing framework set out in Annex III to the National Climate Change Strategy 2007-2012. However, they may be influenced by any international emissions trading agreement which the Government may enter into under Article 17 of the Kyoto Protocol and my Department is liaising with the Agency on prospect of such a trading agreement or agreements.

Prior to the designation of the National Treasury Management Agency as purchasing agent, my Department committed €10 million each to the Carbon Fund for Europe and the BioCarbon Fund operated by the World Bank. Management of these investments is a matter for my Department and, since enactment of the 2007 Act, payments are made through the Carbon Fund process as they arise. In 2008, my Department refunded €3.72m to the Carbon Fund in respect of these investments in the World Bank in 2007.

In December 2006, my Department entered into an agreement with the European Bank for Reconstruction and Development to invest €20 million in the Multilateral Carbon Credit Fund. The investment was made in 2006 on foot of a once-off provision from the Department's vote.