Richard Bruton (Dublin Bay North, Fine Gael)
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111. To ask the Minister for Communications, Climate Action and Environment if there is potential to create a carbon credit system for companies here to help lower emissions and to help this country reach its global climate targets; and if he will make a statement on the matter. [22416/22]

Richard Bruton (Dublin Bay North, Fine Gael)
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115. To ask the Minister for Communications, Climate Action and Environment if there is a potential market to expand the sale of carbon credits to other industries outside of the agricultural sector such as construction and aviation; and if he will make a statement on the matter. [22421/22]

Eamon Ryan (Dublin Bay South, Green Party)
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I propose to take Questions Nos. 111 and 115 together. I intend to take Question Nos 111 and 115 together.At EU level, Ireland participates in the EU Emissions Trading System (EU ETS). The EU ETS has established a carbon market, based on a cap-and-trade principle for carbon dioxide across a number of sectors such as electricity and heat generation, energy-intensive industries, as well as commercial aviation within the European Economic Area.

Annually, individual companies regulated by the EU ETS must acquire sufficient European Union Allowances (EAU) equal to their emissions. Some companies may receive a free allocation of EAUs, but most will buy EAUs from the market and through EU EAU auctions. If these companies do not comply with the regulation, heavy penalties are imposed. Sectors not included in the EU ETS, are covered by national policies under the EU’s Effort Sharing legislation.

In relation to agriculture, the European Commission recently adopted a Communication on Sustainable Carbon Cycles setting out how to increase removals of carbon from the atmosphere. The Communication details actions to support carbon farming and upscale this green business model to better reward land managers for carbon sequestration and biodiversity protection.

The Climate Action Plan 2021 includes a commitment for the Government to develop an enabling framework to facilitate the development of a carbon farming initiative in Ireland. The Department of Agriculture, Food and the Marine (DAFM) has convened a Carbon Farming Working Group to explore opportunities for the development of practices which encourage the removal of carbon in line with developments at EU level.

Richard Bruton (Dublin Bay North, Fine Gael)
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112. To ask the Minister for Communications, Climate Action and Environment the steps that can be taken to prevent companies from using carbon credits to buy themselves out of reducing their emissions; the steps that can be taken to prevent the use of carbon credits as a greenwashing technique; and if he will make a statement on the matter. [22417/22]

Richard Bruton (Dublin Bay North, Fine Gael)
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114. To ask the Minister for Communications, Climate Action and Environment if there are plans to introduce carbon credit schemes similar to the one introduced by Dublin City Council which would invest in carbon offsetting projects that would result in generating carbon credits; and if he will make a statement on the matter. [22419/22]

Eamon Ryan (Dublin Bay South, Green Party)
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I propose to take Questions Nos. 112 and 114 together. I intend to take Question Nos 112 and 114 together.Ireland partakes in the EU Emissions Trading System (EU ETS). Sectors not included in the EU ETS, are covered by national policies under the EU’s Effort Sharing Regulation.

Landowners and industry can pursue voluntary initiatives, such as those adopted by Dublin City Council, for the trading of carbon and other corporate social responsibility mechanisms. Such models provide all stakeholders with opportunities to review their climate impacts and take actions to mitigate them. Irish businesses have a crucial role to play in bringing down emissions. Some of these actions will be challenging and the Government is committed to helping businesses to adapt.

The recently launched ‘Climate Toolkit for business’ is a website which acts as a one-stop-shop for Irish business. The Toolkit directs users to advice, Government grants and other resources available from the Local Enterprise Offices, Enterprise Ireland, the Sustainable Energy Authority Ireland, Irish Water, the Environmental Protection Agency, the Industrial Development Authority and others.

Richard Bruton (Dublin Bay North, Fine Gael)
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113. To ask the Minister for Communications, Climate Action and Environment the number of carbon credits this country purchased in 2021; and if he will make a statement on the matter. [22418/22]

Eamon Ryan (Dublin Bay South, Green Party)
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The 2009 Effort Sharing Decision (ESD) set 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. To enable Member States to comply with their annual emissions targets, the legislative framework of the ESD provides for a number of compliance options, including banking excess allowances from earlier years, purchasing international carbon credits, and trading excess allowances between Member States.Generally, compliance is calculated 18 months after the year in question (e.g. compliance for 2020 will take place in late 2022). To date Ireland has complied with its obligations under the ESD through direct emissions reductions and availing of the options to bank allowances from earlier years and to purchase international carbon credits.

The latest estimates of greenhouse gas emissions, published in October 2021 by the Environmental Protection Agency, indicate that for 2020, the projected shortfall to Ireland’s target is 6.7 MtCO2eq.

As Ireland currently holds 2.9 million international credits, of which 1.4 million were purchased in 2021, the State will need to purchase an additional 3.8 million credits (from the international market) or allowances (from other Member States) to comply with the ESD target for 2020. As the designated purchasing agent on behalf of the State, the National Treasury Management Agency (NTMA) administers and manages purchases of carbon credits. Details of all transactions entered into by the NTMA are published annually in a Carbon Fund Report at in accordance with section 6 of the Carbon Fund Act 2007.