I call on Deputy Cregan to resume his contribution. He has ten minutes remaining.
Carbon Fund Bill 2006: Second Stage (Resumed).
Question again proposed: "That the Bill be now read a Second Time."
Acting Chairman
I welcome the opportunity to discuss this important issue. I compliment the Minister, Deputy Roche, and the Government on the responsible manner with which they have dealt with this issue heretofore. I also compliment industry on the responsibility it has shown in reducing carbon emissions over the past number of months. Substantial progress has been made.
It is not necessary to have the Green Party in Government to protect the environment. Fianna Fáil has a strong record in environmental protection over a number of years and particularly under the current Administration. It introduced the farm plastics scheme, the plastic bags scheme, the smoking ban and the tax on white goods. These are commendable measures. In addition, the country's water quality has never been higher and the country is 90% compliant with EU directives. That is commendable and shows how responsible the Government has been in dealing with this issue.
Kyoto gives us two choices, reduce emissions or buy credits. We are entitled to buy credits despite the myths being put forward by others. We have managed substantial reductions in emissions, and more can and will be done. Ireland is committed to combating global warming and will meet its Kyoto Protocol target. Already, major progress has been recorded in reducing emissions across all sectors. Further reductions will be achieved. If the Government did not act to reduce greenhouse gas emissions, Ireland's emissions in the period 2008 to 2012 would have been 78.2 million tonnes per year. Our Kyoto Protocol target is 63 million tonnes. The emissions reductions required is 15.2 million tonnes. Emissions reductions of 8 million tonnes will be achieved from existing policies, 3 million tonnes from participation by Irish companies in the EU emissions trading scheme and 3.6 million tonnes by the purchase of carbon allowances in lieu of emission reductions. The total reduction from these steps amounts to 14.6 million tonnes. That leaves a final reduction of 0.6 million tonnes to be achieved.
Ireland is fully committed to meeting its responsibilities under the Kyoto Protocol. It has ratified the protocol and will reduce its emissions by 11 million tonnes per annum through measures already in place, including the 3 million tonnes from power plants and large industry participating in the EU emissions trading scheme. A range of further policy commitments will further reduce Ireland's emissions between now and 2012. We are fully committed to, and supportive of, the EU emissions trading scheme and agree with the Stern report that the scheme has the potential to become a global carbon trading system.
We have committed to purchasing a further 3.6 million tonnes in credits if required. We have successfully decoupled our economic growth from growth in emissions between 1990 and 2004. During that period our emissions grew by 23% but our economy grew by almost 150%. Ireland was one of the first member states to submit its national allocation plan for 2008 to 2012, which will provide the basis for the participation of Irish business, to the Commission.
The effect of measures already taken will be to reduce Ireland's annual greenhouse gas emissions by 14.6 million tonnes on average in the period 2008 to 2012. This will bring us to within approximately 0.6 million tonnes of our Kyoto Protocol target. A range of additional measures which are currently being put in place will bring national emissions down to our Kyoto target and below it. These include an increase in the amount of electricity generated from renewable sources and the greener homes grant scheme, which assists home owners to switch to renewable energy based heating systems.
The renewable energy support system is facilitating the connection of more renewable energy to the national grid. Ireland will meet its EU target to generate 13.2% of electricity from renewable sources by 2010, removing 1.3 million tonnes of emissions. The EU emissions trading scheme will deliver reductions of 3 million tonnes per annum from both industry and power generation participants. The CAP reform and the nitrates action programme will reduce emissions from agriculture by 2.4 million tonnes. A total of 2.08 million tonnes of emissions will be removed annually from the atmosphere by Irish forests. New, more challenging building regulations aimed at conserving energy will reduce emissions by 300,000 tonnes per annum. Energy certification for all buildings for sale or rent is also being introduced.
We must buy carbon credits and we are entitled to do so under Kyoto. I have no desire to see the closure of heavy industry along the Shannon estuary in my constituency of Limerick West, as is proposed by the Green Party, and particularly by Deputy Cuffe from the comfort of his Dublin constituency. I will not allow that to happen while I am a Member of this House. Aughinish Alumina is a responsible employer on the Shannon estuary and it has taken its responsibilities with regard to emissions seriously. I commend the firm for doing so. There are 500 jobs in Aughinish Alumina and a further 500 people are indirectly employed by the company. Moneypoint and Tarbert are also playing their part in reducing emissions. They are good employers.
If the Green Party wishes to close those industries, it should say so in the course of the next election campaign. However, I will not stand for it. Those industries are being responsible and are playing their part with regard to emissions.
Debate adjourned.
Sitting suspended at 1.30 p.m. and resumed at 2.30 p.m.