Mick Wallace (Wexford, Independent)
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384. To ask the Minister for Environment, Community and Local Government the number of emission allowances (pollution permits) which have been issued here since 2008; the percentage of those that were free of cost; the percentage of those that were auctioned; the current total value of all emission allowances (pollution permits) here; and if he will make a statement on the matter. [13130/16]

Mick Wallace (Wexford, Independent)
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385. To ask the Minister for Environment, Community and Local Government if the State compensates companies for direct or indirect costs of the emissions trading scheme; if so, the total value of this compensation; and if he will make a statement on the matter. [13131/16]

Mick Wallace (Wexford, Independent)
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386. To ask the Minister for Environment, Community and Local Government if the State provides Emission Allowances (Pollution Permits) free of charge, for coal-fired power stations; if so, the total value of these permits; and if he will make a statement on the matter. [13132/16]

Simon Coveney (Cork South Central, Fine Gael)
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I propose to take Questions Nos. 384 to 386, inclusive, together.

The European Union Emissions Trading Scheme is one of the key policy measures used by the EU to reduce industrial greenhouse gas emissions in a cost-effective manner. Emissions Trading is a “Cap and Trade” scheme whereby an EU wide limit or cap is set for participating installations. The cap is reduced over time so that total emissions are reduced. Within that limit “allowances” for emissions are auctioned or allocated for free. Individual installations must report their CO2 emissions each year and surrender sufficient allowances to cover their emissions. If their available allowances are exceeded an installation must purchase allowances. If an installation has succeeded in reducing its emissions, it can sell its leftover allowances or keep these for a later period.

The ETS system is designed to bring about reductions in emissions at least cost, and to date has played an increasingly important role in assisting European industry implement the type of reductions envisaged in the EU Commission’s limit of at least an overall 20 per cent reduction of greenhouse gas emissions in the EU by 2020. The Scheme came into being in 2005, with Phase One introduced as a three-year pilot which ran until 2007. Phase Two operated between 2008 and 2012, and Phase Three from 2013 until 2020. A proposal for Phase Four, which will run from 2021 to 2030, was made by the European Commission in July 2015 and is currently being debated in the relevant committees and working parties of the European Parliament and Council. Under Phases One and Two, all installations were entitled to some free allocation based on historical emissions. The methodology is described in the National Allocation Plan as approved by Irish Government and the EU Commission.

Under Phase Three, there is no free allocation to the Power generating sector (except in ten of the newer Member States). Free allocation to industries (and aircraft operators) is on the basis of EU- wide rules and benchmarks. Verified production/activity data gathered by EPA from the installations and aircraft operators is forwarded to the EU Commission as the basis of the free allocation application from operators of installations and aircraft. The Commission approve a National Allocation Table and any amendments made to it subsequently as a result of closures, significant reductions in capacity or new entrant applications. The current National Allocation Table is available on the EPA website at: .

In relation to the number of Emission Allowances issued since 2008, allowances were auctioned under Phase One to cover administration costs, including a final auction in March 2008 of the left over allowances from installation closures and unused new entrant reserve allowances. Allowances from the pilot phase could not be used in subsequent phases of the ETS.

For Phase Two, the Government decision of 10 April 2006 stated that up to a maximum of 0.5% of the total allowances might be sold to defray the costs of administering the emissions trading scheme. The total amount of allowances sold in Phase Two was 575,000. These sales were administered by the National Treasury Management Agency.

Under Phase Three, allowances are auctioned on a Common Auction Platform co-ordinated by the Commission and run by EEX in Germany. Ireland has a share of allowances to be auctioned and revenue beyond that required for the administration of the scheme is returned to the National Exchequer.

It should be noted that the Aviation sector entered the ETS in 2010 in terms of reporting, but obligations in relation to surrendering allowances commenced in 2012.

In terms of the monetary value of Allowances, it is difficult to place a precise value on the numbers of units held in Ireland at any particular moment in time as the owners of these units can trade them on international markets, and as such the total volume of units fluctuates, as does the price per unit.