Dáil Éireann Debate, Wednesday - 4 May 2016
314. Deputy Pearse Doherty asked the Minister for the Environment, Community and Local Government his views on the fiscal risks associated with a legally binding European Union effort sharing decision on climate change covering 2013 to 2020, which necessitates a 20% greenhouse gas reduction in certain sectors on 2005 levels (details supplied); and if he will make a statement on the matter. [9086/16]
View answer315. Deputy Pearse Doherty asked the Minister for the Environment, Community and Local Government the details of the projected purchases of carbon credits that he forecasts purchasing for failure to comply with the European Union effort sharing decisions which necessitates a 20% greenhouse gas reduction in certain sectors on 2005 levels, by amount, by year, by relevant sector in tabular form. [9087/16]
View answerI propose to take Questions Nos. 314 and 315 together.
For each year between 2013 and 2020, Ireland has a greenhouse gas (GHG) emission reduction target under the 2009 Effort Sharing Decision (ESD) No. 406/2009/EC. For the year 2020 itself, the target set for Ireland is that emissions should be 20 per cent below their value in 2005. This is jointly the most demanding 2020 reduction target allocated under the ESD and one shared only by Denmark and Luxembourg. The 2013 target is based on the average of emissions for the years 2008-2010. The target for each of the years 2014 through 2019 is on a straight-line trajectory between the targets for 2013 and 2020, and surpluses in one year can be used to cover deficits in any subsequent year. The average incidence of these targets is a 12% reduction relative to 2005.
The Environmental Protection Agency (EPA) published in March 2016 projected emissions for 2020 which indicate that Ireland’s emissions in 2020 could be in the range of 6-11% below 2005 levels. On a cumulative basis, Ireland will have a deficit of between 4 and 12 Megatonnes Carbon Dioxide Equivalent (MtCO2 e). The projections suggest that Ireland may have a cumulative deficit of units in 2018 or 2019. Some of this deficit can be addressed by means of the retirement of units carried forward from the 2008-2012 period, and some additional purchases may be required depending on the out-turn. It is not possible to quantify these at present, having regard to both the quantum and price of carbon units to be purchased at the time.
A Member State demonstrating compliance with an annual target retires Annual Emissions Allocations (or units from the Kyoto Protocol Flexible Mechanisms) approximately 18 months after the year end, so it is unlikely that any expenditure required will occur before 2020 at the earliest.
The extent of the challenge to reduce greenhouse gas emissions, in line with our EU and international commitments, is well understood by the Government, as reflected in the National Policy Position on Climate Action and Low Carbon Development, published in April 2014, and now underpinned by the Climate Action and Low Carbon Development Act 2015 which was enacted in December 2015. The National Policy Position provides a high-level policy direction for the adoption and implementation by Government of plans to enable the State to move to a low-carbon economy by 2050. Statutory authority for the plans is set out in the Climate Action and Low Carbon Development Act 2015.
In accordance with Section 4 of the Act, the Minister for the Environment, Community and Local Government must submit a National Mitigation Plan to Government for approval by June 2017 at the latest. Work is well underway on the development of the National Mitigation Plan, the primary objective of which will be to track implementation of measures already underway and identify additional measures in the longer term to reduce greenhouse gas emissions and progress the overall national low carbon transition agenda to 2050. The first iteration of the National Mitigation Plan will place particular focus on putting the necessary measures in place to address the challenge to 2020 but also in terms of planning ahead to ensure that appropriate policies and measures will be in place beyond that.
The ultimate objective of successive National Mitigation Plans is to incrementally achieve this low carbon transition vision by 2050. In that context, the National Mitigation Plan will have regard to Ireland’s obligations under the current 2009 Effort Sharing Decision and any likely future EU and international obligations that may arise, including new targets to be agreed under the 2030 climate and energy package.
