Vol. 525 No. 2
720 Mr. Gormley asked the Minister for the Environment and Local Government if he has calculated the potential costs to Ireland if we exceed our permitted levels of greenhouse gas emissions by over 30% in terms of emissions trading costs; and if he will make a statement on the matter. [24877/00]
The potential for international emissions trading is set out in the report of the Consultation Group on Greenhouse Gas Emissions Trading which I published together with the National Climate Change Strategy on 1 November 2000. A copy of the report has been placed in the Library of the Houses of the Oireachtas.
The Sixth Conference of the Parties to the UN Framework Convention on Climate Change at The Hague later this month is expected to finalise negotiations on the principles, modalities and guidelines for the operation of the flexible mechanisms of the Kyoto Protocol, including international emissions trading. Emissions trading has the potential to reduce the costs to parties of meeting the targets of the protocol by identifying and prioritising the least-cost, most economically efficient greenhouse gas emissions reductions within economies and as between parties with targets. It has the potential, therefore, to reduce the costs of making reductions in greenhouse gas emissions. The EU negotiating position recognises also the need to undertake action at a domestic level and seeks to put a ceiling on the level of access to international emissions trading.
The cost of traded emissions units will depend on the operation of any market in such units and may vary over time. I cannot predict what the cost of units may be, but am satisfied that if it is cheaper to make reductions without trading, the preferred choice will be to make the reductions in this manner.
