Brian Stanley (Laois-Offaly, Sinn Fein)
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Question 178: To ask the Minister for the Environment, Community and Local Government the actions he will be taking to ensure his Department will spend only €1.9 million for 2012, as opposed to the €4.2 million spent in 2011, on the carbon fund. [6037/12]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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As part of an overall approach to meeting Ireland's Kyoto Protocol target in the commitment period 2008-2012, the Government entered into an agreement with the World Bank in January 2007 to invest €20 million in two of their managed carbon funds by way of promissory notes, for the acquisition of carbon credits. €10m was invested in the BioCarbon Fund and €10m in the Carbon Fund for Europe.

Under the Carbon Fund Act 2007, the National Treasury Management Agency is the designated purchasing agent for the State. The cost of purchases is met through the Carbon Fund. Each drawdown by the NTMA on the Carbon Fund is reimbursed to the Central Fund in the following year from my Department's Vote. In 2010, €4.1m was paid by NTMA from the Carbon Fund to cover drawdown demands from the World Bank. This €4.1m was reimbursed from subhead D4 of my Department's Vote in 2011. In 2011, a payment of €1,930,386 was made by NTMA to the World Bank in respect of the BioCarbon Fund. This amount will be refunded from my Department's Vote in 2012.

While the overall level of financial commitment to the World Bank Funds is fixed at €20m, the timing and actual amount of the annual drawdowns are not. The quantum and timing of drawdowns are agreed by the participants at the annual general meetings of the Funds and depend, in the main, on progress made with the various projects, which make up the investment portfolio.