Eoin Ó Broin (Dublin Mid West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

404. To ask the Minister for Communications, Climate Action and Environment the annual cost for the purchase of emissions allowances for each year that such allowances have been purchased in tabular form. [15090/19]

Richard Bruton (Dublin Bay North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Ireland’s strategy to meet its targets under the first commitment period of the Kyoto Protocol (2008-2012) included investments, between 2006 and 2007, in three multilateral funds: the Multilateral Carbon Credit Fund (MCCF) managed by the European Bank for Reconstruction and Development; and the Carbon Fund for Europe (CFE) and Bio-Carbon Fund (BioCF), both managed by the World Bank.

In addition to the State's investments in these funds, during 2008 and 2009 the NTMA, on foot of its powers under the Carbon Fund Act 2007, was directed by the then Minister to engage in a number of transactions for the purchase of carbon credits directly from the market in order to assist with compliance with Ireland’s obligations under the first period of the Kyoto Protocol.

Through the direct market purchases and investment in the three funds listed above, a total of 8,558,888 credits were received by the State. Of this total, 3,052,416 have been surrendered for compliance with the first commitment period of the Kyoto Protocol. The remaining number of carbon credits currently held by the State is 5,506,472.

Details of all transactions entered into by the NTMA are published annually in a Carbon Fund Report at www.ntma.ie in accordance with section 6 of the Carbon Fund Act 2007.

The following table details the level of expenditure on these funds and transactions in the period between 2006 and 2018. All amounts are in millions of euro.

For the period 2013-2020, the EU Effort Sharing Decision 406/2009/EC (ESD) has set binding annual emission reductions targets for each Member State. While credits currently held may be used towards compliance with these targets, Ireland will need to purchase additional credits to meet projected shortfalls against our annual targets. My Department currently estimates the additional costs of this requirement to be in the region of €6m to €13m, depending on the price and final quantity of allowances required.