Dáil Éireann Debate, Wednesday - 1 June 2022
70. Deputy Jennifer Whitmore asked the Minister for the Environment, Climate and Communications the estimated cost to the Exchequer of the purchase of international project credits, where relevant, to meet Ireland’s 2019 and 2020 targets, under the EU Energy Efficiency Directive and for greenhouse gas targets under the EU Effort Sharing Decision; and if he will make a statement on the matter. [28354/22]
Amharc ar fhreagraThis reply addresses the purchase of international project carbon credits to meet greenhouse gas emission reduction targets under the 2009 EU Effort Sharing Decision (ESD). The use of international project credits is not required under the EU Energy Efficiency Directive.
The ESD set annual binding emissions reduction targets for EU Member States for the period 2013-2020. These targets cover emissions from sectors outside of the EU Emissions Trading System, such as agriculture, transport, buildings and waste.
Other than domestic emissions reductions, Member States can achieve their annual targets via a number of compliance options set out in the legislative framework of the ESD, including banking any excess allowances for future years, purchasing ESD-eligible international credits, and trading excess allowances between Member States.
Ireland availed of the compliance option to purchase international credits to meet the 2019 target and since 2019 has spent €2.1m purchasing international carbon credits. Ireland currently holds 2.9 million international credits. In the context of a gap to our 2020 target of about 6.75 MtCO2eq., according to the latest estimates of greenhouse gas emissions published by the Environmental Protection Agency, Ireland will need to purchase an additional c. 4m credits (from the international market) or allowances (from other Member States) to comply.
The most recent estimates of the additional costs of purchasing credits for compliance with these targets were in the region of €6 million to €13 million, depending on the price and final quantity of credits/allowances required.
As the designated purchasing agent on behalf of the State, the National Treasury Management Agency (NTMA) administers and manages purchases of carbon credits. Details of all transactions entered into by the NTMA are published annually in a Carbon Fund Report at www.ntma.ie in accordance with section 6 of the Carbon Fund Act 2007.
