EC rejects Ireland's emissions plan

The European Commission has demanded changes to Ireland's plan to cut greenhouse gas emissions after the Government was revealed as being among the EU's worst performers on tackling climate change.

The EC said today it was cutting the level of emissions rights that ten European Union states had sought to give industry under the EC's emissions trading scheme (ETS).

The amount of allowances that the countries had applied for was cut by almost seven per cent over current levels for the period from 2008 to 2012.

The Government's National Allocation Plan (NAP) on greenhouse gas emissions was accepted solely on condition a number of modifications were adopted.

Most significantly, Ireland's application for 22.6 million allowances per year was cut to 21.15 million. One allowance gives the holder the right to emit one tonne of carbon dioxide.

The EC based the 6.4 per cent cut in Ireland's allowance on two factors - the expectation that Ireland's transport emissions will increase by more than shown in Ireland's projections and the fact Ireland has made insufficient progress in its arrangements for Government purchases of allowances.

Minister for the Environment Dick Roche said the Government would resubmit an amended NAP by December 31 ^st.

Mr Roche said the issue of purchases was being addressed.  "I believe we will be able to demonstrate sufficient progress to deal with the Commission's concerns on this issue and reach agreement on an allocation closer to what we originally proposed."

On transport, Mr Roche said the Government's application was based on comprehensive, independent analysis of the situation in Ireland.  "We will be reinforcing this in our response to the Commission. This work will also be done immediately, so it can also be taken into account in our response to the Commission."

The ETS is the EU's key tool to meet targets for reducing greenhouse gas emissions under Kyoto and puts a limit on the amount of carbon dioxide that big emitters such as power plants and oil refineries can emit.

Under the scheme, governments are allowed sell rights to large greenhouse gas producers. Companies buy more rights to emit if they overshoot their target or sell them if they come in below the cap. They face fines if they do not have enough rights to cover their actual emissions.

In a statement this morning, the EC said Ireland will be almost 16 per cent off its Kyoto Protocol target for reducing carbon emissions unless new measures were introduced.

The EU target is to reduce emissions to eight per cent below 1990 levels by 2012. Ireland has a special dispensation to increase emissions by 13 per cent in the period under the EU "burden sharing" mechanism.

However, the EC estimates that without additional measures, Irish emissions will rise by 29.6 per cent over the period. Irish emissions are currently 23 per cent above the level produced in 1990.

Only Spain, Portugal and Greece are faring worse in efforts to tackle pollution, the EC added.

The EC says the 15 states that were members of the EU when the Kyoto Protocol was signed "may just about" reach the targets set in the treaty. It says the eight per cent overall reduction in carbon dioxide emissions will only be reached by an increase in forestation and reforestation activities.

Decisions were handed down today on ten countries - Ireland, Britain, Germany, Greece, Latvia, Lithuania, Luxembourg, Malta, Slovakia and Sweden. France withdrew its plan from consideration.

These ten states accounted for 42 per cent of the allowances allocated in the first phase of the EU's emissions trading scheme between 2005 and 2007.

Additional reporting: Reuters