Patricia Ryan (Kildare South, Sinn Fein)
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16. To ask the Minister for Communications, Climate Action and Environment the amount the State has spent on carbon credits in each of the years 2018 to 2020 and to date in 2021; the sources of these credits; if these credits were ethical; and if he will make a statement on the matter. [23555/21]

Eamon Ryan (Dublin Bay South, Green Party)
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The 2009 Effort Sharing Decision 406/2009/EC (ESD) sets annual binding emissions reduction targets for EU Member States for the period 2013 to 2020. These targets cover emissions from sectors outside of the EU Emissions Trading System, such as agriculture, transport, buildings and waste. For the year 2020 itself, the target set for Ireland is that emissions should be 20% below their value in 2005. The ESD allows Member States to meet their targets using surplus emissions credits from earlier years or through purchasing credits from other Member States or on international markets. Ireland has already met its emissions targets from 2013 to 2018. However, the latest greenhouse gas emissions report, published by the Environmental Protection Agency in January 2021, indicates that Ireland will cumulatively exceed the 2019 and 2020 annual targets by approximately 11 to 12Mt. Ireland will, therefore, need to purchase additional allowances to meet the projected shortfall.

Any requirement to use already purchased or additional credits for compliance under the ESD will be undertaken in accordance with all relevant regulations as set out by the European Union, the European Commission, the United Nations and all relevant international agreements.

Neale Richmond (Dublin Rathdown, Fine Gael)
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17. To ask the Minister for Communications, Climate Action and Environment the way in which the carbon budgets will be applied at an industry and sector level only under the Climate Action and Low Carbon Development (Amendment) Bill 2021; if there will be a mechanism to push targets down to individual companies; if the latter, the mechanism; and if he will make a statement on the matter. [23585/21]

Eamon Ryan (Dublin Bay South, Green Party)
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The Climate Action and Low Carbon Development (Amendment) Bill 2021 will establish a legally binding framework with clear targets and commitments set in law, and provide that the necessary structures and processes are embedded on a statutory basis to ensure Ireland achieves its national, EU and international climate goals and obligations in the near and long term. The Bill establishes a system of carbon budgeting with three 5-year economy-wide budgets included in each carbon budget programme. Each carbon budget represents the total amount of greenhouse gases that may be emitted in the State during each 5 year period, measured in tonnes of carbon dioxide equivalent. The first carbon budget programme will comprise carbon budgets for the following periods: 2021 to 2025; 2026 to 2030; and 2031 to 2035.

Under the legislation, the Climate Change Advisory Council will propose a programme of three successive 5-year carbon budgets to the Minister for the Environment, Climate and Communications. The Minister will, after consideration and consultation, present the budgets to the Government. Once approved by Government, the Minister will propose a motion in both Houses of the Oireachtas for approval of the carbon budget. The carbon budget shall have effect on and from the date on which a motion approving the carbon budget has been passed by both Houses. These budgets have not been set as yet.

After the carbon budget has been approved, the Minister will prepare sectoral emissions ceilings for each relevant sector in consultation with other Ministers. These sectoral emissions ceilings must also be approved by the Government. 

The sectors of the economy to which each sectoral emissions ceiling will apply will be determined by the Government. The process will build on the approach established for the 2019 Climate Action Plan, whereby actions and measures will be developed for each sector on the basis of technical and scientific analysis, but also now taking account of the detailed set of principles set out in the Bill in order to determine what the appropriate range of contribution is for each sector. These ceilings will be set at sectoral level and not on individual companies.

It is noted that approximately 70% of Ireland's enterprise sector greenhouse gas emissions are also subject to a separate target in the form of the EU Emissions Trading System (ETS). The EU ETS sets a price for carbon emissions, thereby making low emissions alternatives more attractive to enterprise. The ETS will function in a complementary manner to the forthcoming carbon budgets and sectoral ceilings.

Neale Richmond (Dublin Rathdown, Fine Gael)
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18. To ask the Minister for Communications, Climate Action and Environment the measures he is considering to encourage businesses and organisations to measure and report their carbon emissions under scope 1, scope 2 and or scope 3; the timelines for same; and if he will make a statement on the matter. [23586/21]

Neale Richmond (Dublin Rathdown, Fine Gael)
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19. To ask the Minister for Communications, Climate Action and Environment if he will provide and set a clear standard for organisations to follow in relation to scope 3 carbon emissions; and if he will make a statement on the matter. [23588/21]

Eamon Ryan (Dublin Bay South, Green Party)
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I propose to take Questions Nos. 18 and 19 together.

The current requirements under company law for large companies with more than 500 employees to disclose information on their environmental performance are contained in the European Union (Disclosure of non-financial and diversity information by certain large undertakings and groups) Regulations 2017 (S.I. 360 of 2017), as amended. The Regulations, which are managed by the Department of Enterprise, Trade and Employment,  are underpinned by non-binding guidelines for disclosure prepared by the EU Commission.

As one of the actions under the European Green Deal, to enhance further the disclosure by companies on climate and environmental data, the EU Commission initiated a review of the Directive. A proposal for a Corporate Sustainability Reporting Directive was published on 21 April 2021. Further details on the EU Commission proposal are available on their website. .

The proposal will revise the existing Directive and includes in its scope all large companies and listed SMEs, except microenterprises. It is also proposed that the European Financial Reporting Advisory Group, will be responsible for developing new standards for EU sustainability reporting. The final proposal will be subject to agreement between European Parliament and Council.

I launched a consultation in March 2021 on the Climate Action Plan 2021 which will identify the policies and measures needed to deliver on the increased climate ambition in the Programme for Government.  The consultation included an expert call for evidence seeking data-based technical proposals to support the development of the plan. This includes questions on the decarbonisation of the enterprise sector. The preparation of the plan itself will allow for consideration of the measurement of emissions in the enterprise sector.