Liz McManus (Wicklow, Labour)
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Question 50: To ask the Minister for the Environment, Heritage and Local Government the amount of money estimated, allocated, owing or spent, on the purchase of carbon credits in respect of Kyoto Protocol commitments for the years 2008, 2009 and 2010; and if he will make a statement on the matter. [15962/10]

John Gormley (Dublin South East, Green Party)
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The National Climate Change Strategy signalled the possibility of supplementing greenhouse gas emission reductions with the purchase of up to 3.6 million carbon credits on average each year in the five-year Kyoto Protocol commitment period 2008-2012 or 18 million credits in total, costing an estimated €270m.

Under the Carbon Fund Act 2007, the National Treasury Management Agency (NTMA) has been designated as purchasing agent for the State.

In 2008, the NTMA purchased 3.455m certified emission reduction units at a cost of some €52m exclusive of VAT. In 2009, they purchased 1.8m units at a cost of some €21.6m exclusive of VAT.

Prior to the designation of the NTMA 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. Periodic drawdown is a feature of these investments and since enactment of the 2007 Act payments are made through the Carbon Fund process as they arise. The amount to be paid each year is not predetermined and in general payments are made as purchasing transactions progress. In 2008, my Department refunded €3.72m to the Carbon Fund. No refunds arose in 2009 and, to date, my Department has refunded €2.3m in 2010.

The economic downturn has implications for the purchasing programme. Recent EPA projections suggest that, with full implementation of all announced emission reduction measures, we may already have purchased or contracted to purchase sufficient carbon credits to meet our Kyoto commitment. In the circumstances, the NTMA has been asked to put its purchasing programme on hold for the foreseeable future. In the current economic climate an unusually high degree of uncertainty attaches to all projections. Accordingly, purchasing requirements to ensure Kyoto compliance are being kept under review.