Written answers

Tuesday, 15 September 2020

Department of Communications, Climate Action and Environment

Renewable Energy Generation

Photo of Gerald NashGerald Nash (Louth, Labour)
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161. To ask the Minister for Communications, Climate Action and Environment the status of the purchase of environmental compliance, that is, statistical transfers from other members states; the anticipated cost in 2021; and if he will make a statement on the matter. [23751/20]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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The 2009 EU Effort Sharing Decision established binding annual greenhouse gas emission reduction targets for Member States for the period 2013 to 2020. For the year 2020 itself, the target set for Ireland is that emissions should be 20% below their value in 2005. According to the Environmental Protection Agency’s latest projections published earlier this year, our 2020 emissions could be 2 to 4% below 2005 levels, and we will need to avail of flexibilities in order to comply with our obligations. Covid-19 will undoubtedly impact our 2020 emissions, and this is not reflected in these projections. Pre-Covid estimates of the additional costs of this compliance requirement were in the region of €6m to €13m, depending on the price and final quantity of credits required. The Department is currently in discussion with the NTMA in relation to purchasing additional carbon credits from the market to make up the expected shortfall.

The EU Renewable Energy Directive 2009/28/EC set Ireland a legally binding target of meeting 16% of our energy demand from renewable sources by 2020. Latest projections by the Sustainable Energy Authority of Ireland show that between 12.5% and 13.2% of Ireland’s energy requirements are expected to be met from renewable sources by 2020. This is a very significant increase since 2005, when renewable energy was at just 3.1%. Nevertheless it is accepted that Ireland will not meet the 16% target.

The Department is exploring the potential mechanisms and cost of addressing our renewable energy targets within the framework of the Directive. Any requirement for statistical transfer purchases will be undertaken against a background of discussions with the EU Commission and relevant Member States.  The public data on trades in statistical allowances in 2017 between Luxembourg, Lithuania and Estonia suggest potential costs for Ireland  in the order of €110m, while the more recent agreement between the Netherlands and Denmark would suggest a significantly lower figure. However the cost of purchasing statistical transfers will depend on a number of factors, particularly the availability of supply and market costs at the time of the agreement.

The Programme for Government sets out our commitment to further increase our ambition, and halve our national carbon emissions over the course of the coming decade. As Minister for Climate Action, I will lead on delivering our shared commitment to achieve an average 7% per annum reduction in overall greenhouse gas emissions from 2021 to 2030, and to achieving net zero emissions by 2050. The 2050 target will be set in law in the Climate Action Bill, which I aim to publish within the first 100 days of government. The Bill will define how five-year carbon budgets will be set and will make the adoption of five-year carbon budgets, setting maximum emissions by sector, a legal requirement.

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