Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 415: 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. [22820/10]

Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 416: 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. [22821/10]

John Gormley (Dublin South East, Green Party)
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I propose to take Questions Nos. 415 and 416 together.

Ireland will meet its target for the purposes of the Kyoto Protocol through a series of national measures to reduce greenhouse gas emissions, supplemented as necessary by the purchase of carbon units on the international market. Government policy in this regard is set out in the National Climate Change Strategy 2007-2013.

Since 2007, the Government has introduced a number of measures, including the carbon levy, aimed at reducing domestic emissions across the economy. In addition to ensuring compliance with Kyoto Protocol obligations, these measures constitute important preparations for more stringent emission reduction requirements in the post-2012 period, initially to 2020 but ultimately to 2050. The planned Climate Change Bill 2010, the Heads of which I intend to publish shortly, will provide a statutory framework for the core national priority of major and continued reduction in greenhouse gas emissions in the context of transition to a low carbon economy.

The Environmental Protection Agency (EPA) is responsible for greenhouse gas emission projections. The latest projections in its report Ireland's Greenhouse Gas Emissions Projections 2010-2020 (April 2010) show the distance to target in the Kyoto Protocol commitment period (2008-2012) at 2.5 million tonnes CO2e per year, or 12.7 million tonnes for the five year period. It is significantly lower than the original expectation in the National Climate Change Strategy published in April 2007. At that time, it was estimated that up to 18 million credits would be required to ensure compliance over the five-year commitment period under the Kyoto Protocol at an estimated cost of €270m.

The National Treasury Management Agency, as designated purchasing agency for the State, has, to date, purchased some 5.255m credits at a cost of some €73.7m. 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 3m credits at a projected cost of some €27.6m during the five-year Kyoto Protocol commitment period 2008 - 2012.

As outlined in the EPA's most recent projections under the National Allocation Plan 2008-2012, the EPA established a New Entrant Set-Aside where allowances were set aside for new entrants coming into the EU Emissions Trading Scheme and for the expansion of existing installations over the 2008-2012 period. It is currently estimated that there will be around 5 million allowances remaining in the New Entrant Set-Aside at the end of the Kyoto period which will be available for the State to use towards Kyoto compliance. Based on these projections, it is likely that the remaining allowances in the New Entrant Set-Aside will cover the remaining 'gap' of 4.4 Mtonnes of CO2e and no further purchase of carbon credits will be needed.

In the current economic climate, an unusually high degree of uncertainty attaches to all projections. Requirements to ensure Kyoto compliance are being kept under review and will be revised as necessary in the light of future projections.