I propose to take Questions Nos. 138, 157, 171, 197, 622, 655 and 682 together.
I refer to the reply to Question No. 409 of 12 October 2005. The Government's national climate change strategy, published in November 2000, provides a comprehensive framework for reducing greenhouse gas emissions in the most efficient and equitable manner and for ensuring that Ireland meets its commitments under the Kyoto Protocol to the United Nations Framework Convention on Climate Change. The strategy has provided the basis for Government policy and action in relation to climate change since 2000.
Latest available greenhouse gas emissions figures from Ireland's national inventory report, compiled by the Environmental Protection Agency, show overall emissions in 2003 to be 66.57 million tonnes carbon dioxide equivalent. This figure is equivalent to approximately 25% above 1990 levels, significantly down on the corresponding 31% in 2001 and 29% in 2002. These figures show that progress is being made towards the 13% target. Through a combination of actions, including emission reductions, participation by Irish industry in the EU emissions trading scheme and the purchase of carbon emission credits through the mechanisms provided for in the Kyoto Protocol, I am satisfied that Ireland is on a pathway to deliver on its emission limitation commitment for the purpose of the protocol.
In February 2004, on the basis of greenhouse gas emission projections available at that time, the Government announced an intent to purchase up to 3.7 million carbon credits per year in the first Kyoto commitment period 2008 to 2012. The projections are being updated and the actual purchasing requirement will be finalised over the coming months in the context of national policy to underpin participation by Irish installations in the EU emissions trading scheme in the Kyoto period 2008 to 2012.
On basis of an average price of €15 per carbon allowance during the period 2008 to 2012, the total annual cost to the Exchequer of purchasing 3.7 million carbon credits would be €55.5 million. The ultimate cost of purchasing carbon credits by the State will depend on the final purchasing requirement, which will not be finally estimated until early next year, and price of carbon when the credits are actually purchased.
The purchase of carbon credits is a valid option under the Kyoto Protocol to achieve emission reductions on a least-cost basis and should not be confused with failure by any party to meet its target or with any form of financial penalty. Ireland has no reason to contemplate fines or penalties under the Kyoto Protocol, and the focus of Government policy and action is to achieve our emission limitation target.
My Department, together with other Departments with sectoral responsibility for implementing the national climate change strategy, is reviewing the strategy with a view to updating it in light of developments since its publication in 2000. As part of that process, I intend shortly to publish a review document, which will take stock of developments since the publication of the strategy in 2000 and propose additional measures for Ireland cost effectively to meet its target for the purpose of the Kyoto Protocol. This document will inform the revision process and stimulate debate on further potential policies to reduce national greenhouse gas emissions and to prepare Ireland for more ambitious targets in the post-2012 period. The review will be completed and a new strategy published next year.