Written answers

Tuesday, 27 April 2010

Department of Environment, Heritage and Local Government

Greenhouse Gas Emissions

12:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 311: To ask the Minister for the Environment, Heritage and Local Government his plans regarding the purchase of carbon credits in the future; and if he will make a statement on the matter. [17012/10]

Photo of John GormleyJohn 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. To date, the NTMA has purchased 5.255m certified emission reduction units at a cost of some €73.7m 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. In December 2006, my Department entered into an agreement with the European Bank for Reconstruction and Development to invest €20m in the Multilateral Carbon Credit Fund. This investment was made on foot of a once-off provision from the Department's vote. Management of these investments is a matter for my Department and they are expected to yield some 3m carbon credits at an estimated cost of some €26m prior to the end of the five-year Kyoto commitment period 2008-2012.

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.

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