Noel Rock (Dublin North West, Fine Gael)
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626. To ask the Minister for Communications, Energy and Natural Resources if he will consider implementing here something similar to the UK’s carbon tax (details supplied); and if he will make a statement on the matter. [16686/17]

Denis Naughten (Roscommon-Galway, Independent)
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I understand the Deputy is referring to the Carbon Price Support Scheme introduced in the United Kingdom which applies to UK installations participating in the EU Emissions Trading System (ETS) and which tops up the carbon price in the EU ETS to a published UK ‘floor’ price.

The ETS is one of the main policies of the European Union to reduce greenhouse gas (GHG) emissions in a cost-effective manner. Emissions Trading is a "cap and trade" scheme, whereby an EU wide cap or limit is set for participating installations. This cap is reduced over time so that total emissions are reduced. Within this cap, "allowances" for emissions are auctioned or allocated for free. Individual installations must report on their emissions on an annual basis and surrender sufficient allowances to cover their emissions, purchasing additional allowances if necessary.

The ETS includes 11,000 installations (101 in Ireland) and accounts for roughly 45% of EU emissions (25% of Irish emissions). The ETS was launched in 2005 and is currently in its third phase, covering the period 2013 to 2020.

Negotiations are currently under way regarding the design of the ETS for the post-2020 (Phase IV) period. On the basis of European Commission proposals, Member States in the Council, including Ireland, have been engaged in negotiations to ensure that the reformed ETS is able to meet its GHG reduction objectives in a cost-effective manner. The proposed reforms to the ETS are also aimed at, inter alia, addressing persistently low prices within the ETS over recent years.

At a meeting of the Environment Council on 28 February, which I attended, agreement was reached on a general approach on the revised ETS proposal, a position Ireland was able to support. This will now enable the Council to begin negotiations with the European Parliament on the proposal. It is currently anticipated that this process will reach a conclusion later this year.

On the basis that negotiations to reform the ETS currently underway at EU level are aimed at addressing current weaknesses, I do not have any plans to adopt any additional carbon price support measures to apply to ETS installations in Ireland.