Bernard Durkan (Kildare North, Fine Gael)
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Question 161: To ask the Minister for the Environment, Heritage and Local Government if it is expected to meet European targets in respect of carbon emission reduction; and if he will make a statement on the matter. [24342/09]

Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 163: To ask the Minister for the Environment, Heritage and Local Government if he will bring forward new proposals to meet Kyoto climate change targets here; the number of carbon credits and the estimated cost of buying same during the Kyoto timeframe; and if he will make a statement on the matter. [24253/09]

John Gormley (Dublin South East, Green Party)
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I propose to take Question Nos. 161 and 163 together.

All relevant Government Departments are working on the development of further measures to reduce Ireland's greenhouse gas emissions. This work is overseen by the Cabinet Committee on Climate Change and Energy Security, which is chaired by the Taoiseach. I have been reporting progress to the Oireachtas on an annual basis when I present the Carbon Budget to this House. While the measures are relevant to our Kyoto compliance over the 2008-2012 period, their longer-term impact is of even more importance. Significant structural change is required across all sectors of our economy if we are to meet the much more demanding targets to which we are now committing ourselves. Under the recent EU climate and energy package, Ireland has taken on a target of a 20% reduction in emissions between 2005 and 2020, and this target will increase further when a new global agreement on climate change is reached, hopefully in Copenhagen next December.

The EPA is responsible for emission projections. Its most recent analysis, which reflected the ESRI's then assessment of the changed economic situation, was published in March 2009. The updated figures indicated a Distance to Target for the Kyoto period 2008-2012 in the range of 1.3-1.8 million tonnes per annum, a reduction of around 3 million tonnes from the projections of Autumn 2008.

In the current economic climate, an unusually high degree of uncertainty attaches to all projections. It is now clear that the economic contraction will be deeper than assumed in the March projections. It is quite possible that Ireland will now meet its Kyoto target for the non-trading sector without using carbon credits.

The global economic downturn is also leading to a fall in the market price of carbon credits. While the Government's projections of the cost of the purchasing requirement had assumed an average unit price of €15, markets are currently operating at closer to €11. Overall, the cost to the Government will be much less than previously forecast due to the fall in both the volume and unit price of carbon credits.

The National Treasury Management Agency has, to date, purchased some 5.255 million credits at a cost of some €73.7 million. In addition, investments made by my Department in 2006 and 2007 in carbon funds operated by the European Bank for Reconstruction and Development and the World Bank are expected to yield some 3 million credits at a projected cost of some €27.6 million during the five-year Kyoto Protocol commitment period 2008 - 2012.

Our purchasing requirements are being kept under review and will be revised as necessary in the light of future projections. The National Treasury Agency (NTMA) has been asked to put its purchasing programme on hold for the foreseeable future. If it transpires that the credits which have been secured are not needed in the Kyoto period they can be carried forward for use in the next commitment period.

It is important to emphasise that the effect of the recession on our emissions is a short-term one and it would be a serious mistake to ease off on our efforts to address the underlying trend. When economic growth resumes, so too will our emissions grow unless we have the measures in place to reduce business. The Government remains focused on this work through the Cabinet Committee on Climate Change and Energy Security.