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Climate Change Policy

Dáil Éireann Debate, Thursday - 5 May 2022

Thursday, 5 May 2022

Questions (111, 115)

Richard Bruton

Question:

111. Deputy Richard Bruton asked the Minister for the Environment, Climate and Communications 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]

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Richard Bruton

Question:

115. Deputy Richard Bruton asked the Minister for the Environment, Climate and Communications 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]

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Written answers

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.

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