John Deasy (Waterford, Fine Gael)
Link to this: Individually | In context

Question 432: To ask the Minister for the Environment, Heritage and Local Government his target greenhouse gas emissions under the Kyoto Protocol in each of the years 2008 to 2012; the emissions in 2008 and the projected emissions for each year 2009 to 2012; and if he will make a statement on the matter. [42764/09]

John Gormley (Dublin South East, Green Party)
Link to this: Individually | In context

The Environmental Protect Agency is responsible for compiling the national inventories of greenhouse gas emissions for Ireland and for reporting these to the European Union and to the United Nations Framework Convention on Climate Change (UNFCCC). These inventories are compiled on an annual basis using the good practice guidelines established by the Intergovernmental Panel on Climate Change. The results become available in preliminary form about 11 months after the end of a calendar year, and they are then finalised and submitted as required to the EU and to the UNFCCC over the following 5 months.

The National Inventory Report 2009, which reports on actual emissions in 2007 and previous years, is available on the Agency's website (www.epa.ie). Preliminary greenhouse gas emissions data for 2008 are expected to become available from the Agency towards the end of 2009. Data for 2009 will not be available until late 2010.

The Agency also has responsibility for developing annual national emission projections for greenhouse gases (GHG) for all key sectors of the economy, in collaboration with relevant State and other bodies. Emission projections serve to inform national policy initiatives, such as the annual Carbon Budget, and allow Ireland to comply with EU reporting obligations on projections (e.g. Council Decision 280/2004). The Agency produces GHG emission projections annually as this allows the most recent environmental and other policy developments to be taken into account as well as updates to key assumptions (such as revisions to anticipated economic growth).

The Agency released projected emissions figures in March, 2009, updating those published in September 2008, and taking account of the sensitivity analysis used in the ESRI's Economic Shock scenario, which assumed that GDP will contract by 8% between 2007 and 2010, grow by 33% between 2010 and 2015 and 25% between 2015 and 2020.

Based on this, the Agency has projected that, with full implementation of all announced emission reduction measures, the "distance to target" for Kyoto compliance will now be between 1.3 and 1.8 million tonnes per annum over the 2008-2012 period.

A report entitled Ireland's Greenhouse Gas Projections 2008-2020 is available on the Agency's website (www.epa.ie).

John Deasy (Waterford, Fine Gael)
Link to this: Individually | In context

Question 433: To ask the Minister for the Environment, Heritage and Local Government the cost to the Exchequer of each tonne above the target greenhouse gas emissions under the Kyoto Protocol; the projected cost of failure to meet targets in the period 2008 to 2012; and if he will make a statement on the matter. [42765/09]

John Gormley (Dublin South East, Green Party)
Link to this: Individually | In context

I do not accept the premise on which this question is based: there is no failure to meet the targets set under the Kyoto period 2008-2012. The National Climate Change Strategy signalled the possibility of supplementing greenhouse gas emission reductions with the purchase of up to 3.6 million carbon units on average each year in the five-year Kyoto Protocol commitment period 2008-2012 or 18m units in total costing €270m, at a projected unit price of €15. Use of the flexible mechanisms available under the Kyoto Protocol provides a valid means towards meeting the legally binding targets.

Under the Carbon Fund Act 2007, the National Treasury Management Agency has been designated as purchasing agent for the State and in 2008, the Agency purchased 3.455m certified emission reduction units at a cost of some €52m. To date in 2009, they have purchased 1.8m units at a cost of €21.6m. No carbon units were purchased in 2007.

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

In January 2007, 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 by the Agency 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. Further payments of €1.9m to the World Bank have been made to date in 2009. Periodic drawdowns are a feature of these investments. The amount to be paid each year is not predetermined and in general payments will be made as purchasing transactions progress.

These investments with the World Bank and the European Bank for Reconstruction and Development are expected to yield some 3m carbon units at a projected cost of some €26m during the five-year Kyoto Protocol commitment period 2008 - 2012. The monies invested in actual purchases or committed to international carbon funds are therefore expected to yield in total, some 8.3m units in the 2008 to 2012 period, at an average cost of about €12 per unit.

The economic downturn has implications for the purchasing programme. The most recent EPA projections suggest that with full implementation of all announced emission reduction measures the purchase requirement for carbon units will now be between 1.3 and 1.8m units per annum or between 6.5m and 9m units in total over the 2008-2012 period. In the circumstances, the National Treasury Management Agency has been asked to put its purchasing programme on hold for the foreseeable future.

Ireland is on course to meet its targets for the Kyoto period with significantly fewer carbon credit purchases than had been envisaged originally. Purchasing requirements to ensure Kyoto compliance are being kept under review and will be revised as necessary in the light of future projections. If it transpires that more credits have been bought than are needed in the 2008-2012 period, they can be carried forward for use after 2012 in the next commitment period.