Dáil Éireann Debate, Tuesday - 18 May 2021
192. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications the status of Ireland’s compliance or non-compliance with each of the international greenhouse gas emissions and renewable energy targets; and if he will make a statement on the matter. [25527/21]
Amharc ar fhreagra193. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications the financial penalties Ireland has already been subject to and will be subject to from 2021-2030 for failure to meet international greenhouse gas emissions and renewable energy targets; and if he will make a statement on the matter. [25528/21]
Amharc ar fhreagraI propose to take Questions Nos. 192 and 193 together.
The 2009 Effort Sharing Decision 406/2009/EC (ESD) sets annual binding emissions reduction targets for EU Member States for the period 2013 to 2020. These targets cover emissions from sectors outside of the EU Emissions Trading System, such as agriculture, transport, buildings and waste. For the year 2020 itself, the target set for Ireland is that emissions should be 20% below their value in 2005. The latest greenhouse gas emissions report, published in January 2021 by the EPA, indicates that emissions from those sectors of the economy covered by the ESD could be around 8% below 2005 levels by 2020. The ESD allows Member States to meet their targets by means of unused emissions allowances from earlier years, or through purchasing allowances from other Member States or on international markets. According to the EPA’s latest report, Ireland will cumulatively exceed the carbon budget implied by our ESD targets by 11 to 12Mt and we will need to avail of these flexibilities in order to comply with our obligations. Pre-Covid estimates of the additional costs of purchasing carbon credits for compliance with these targets were in the region of €6 million to €13 million, depending on the price and final quantity of allowances required.
The EU Effort Sharing Regulation EU/2018/842 (ESR) established binding annual greenhouse gas emission targets for non-ETS sectors in Member States for the period 2021 to 2030. The ESR sets Ireland a target of 30% reduction in emissions by 2030 compared to 2005 levels. It is important to note that this target will be amended following the European Council’s decision to increase ambition from its existing EU-wide 2030 target of a 40% reduction to at least 55%, compared to 1990 levels. Legislative proposals to implement the new EU 2030 target, including revising Member States’ existing targets for 2030, are expected to be presented by the European Commission by July 2021.
In order to meet Ireland’s obligations for 2020 under the Renewable Energy Directive, there are mechanisms under the EU Framework that allow Member States to purchase ‘statistical transfers’ from other Member States where required to comply with their 2020 obligations. Given that existing policy measures across the electricity, transport and heat sectors will not be sufficient to achieve compliance with the 2020 target, contingency planning had been underway in my Department for some time on statistical transfers with other Member States. Intensive engagement with a number of Member States took place during 2020. This led to the successful conclusion of negotiations and terms being agreed with two Member States (Denmark and Estonia), which provide for the purchase by Ireland of specified quantities of renewable energy through statistical transfers.
The total cost of statistical transfers in 2020 was €50 million consisting of:
- The purchase of a statistical transfer of 1,000 GWh from Denmark costing €12.5 million; and
- The purchase of a statistical transfer of 2,500 GWh from Estonia costing €37.5 million.
Additional volumes may be required to be purchased under the Agreements in 2021, depending on the final energy statistics for 2020.
Under the EU’s Clean Energy Package, Member States must, from 2021 onwards, maintain the 2020 renewable energy baseline figure (16% in Ireland’s case). In addition, Member States should progress along an indicative trajectory with reference points in 2022, 2025, and 2027. If a Member State falls below its baseline, or falls below one or more of its national reference points, the Member State will be required to ensure that additional measures are implemented within one year to cover the gap. These additional measures include increasing the national deployment of renewable energy in the electricity, heating and transport sectors, as well as making a voluntary financial payment to an EU renewable energy financing mechanism, and purchasing of statistical transfers from other Member States.
It is ultimately the responsibility of each Member State to determine the cost-effective level of renewable energy it should achieve by 2030, as long as it contributes to the achievement of the Union’s 2030 target of 32% renewable energy as set out in National Energy and Climate Plans. It is expected that the EU-wide 2030 target for renewable energy will increase as part of the forthcoming revision to the Renewable Energy Directive under the EU Commission’s ‘Fit for 55 package’ to reduce emissions by at least 55% by 2030.
