Dáil Éireann Debate, Tuesday - 25 October 2005
166 Mr. Eamon Ryan asked the Minister for the Environment, Heritage and Local Government his views on the cost to industry of companies having to pay for their excess carbon; and the measures he has taken to reduce the intensity of carbon emission going forward. [25494/05]
Amharc ar fhreagra181 Mr. Eamon Ryan asked the Minister for the Environment, Heritage and Local Government if he will report on the analysis his Department has made of higher than expected carbon trading costs; and the measures he proposes to take to offset their impact on industry here and on his Department. [25504/05]
Amharc ar fhreagraI propose to take Questions Nos. 166 and 181 together.
At this relatively early stage in the development of the international carbon market, the average price at which carbon credits will settle in the longer term is not clear. In the report made available by my Department on 11 October, a possible average price of €15 per allowance purchased in the EU emissions trading scheme is possible for the period 2008-12.
I understand that prices for allowances in the EU emissions trading scheme are currently trading in excess of €20 per allowance. However, the report distinguishes between the current price for allowances and that likely to prevail during the period 2008-12 and identifies a number of reasons for current trading prices which are particular to the present pilot phase of the emissions trading scheme.
With regard to sectors covered by the EU emissions trading scheme, it is for individual installations themselves to ensure compliance with the scheme and they may do so in the most cost-effective manner available to them. If emission reductions cannot be achieved through their own action, installations may meet their individual targets through emissions trading which permits access to least-cost emissions reduction opportunities across the EU and, ultimately, more widely. The cost of the actions taken is a matter for the installations concerned.
With regard to the possible impact on the Exchequer, I refer to the reply to Question No. 106 of 25 October 2005.
