IRELAND MAY have purchased more carbon credits than necessary to meet the country’s Kyoto targets for greenhouse gas emissions, Minister for the Environment John Gormley has said.
The recession has had a significant impact on carbon emissions, which have fallen because of lower activity in areas such as transport and construction. Current projections are that Ireland will need to purchase far fewer carbon credits than anticipated as recently as 18 months ago.
The Government is required to purchase carbon credits to offset the amounts by which Ireland exceeds its targets under the Kyoto protocol.
However, Mr Gormley says the National Treasury Management Agency, which buys carbon credits on behalf of the State, has been asked to put its purchasing programme on hold for the foreseeable future.
The information was contained in a reply to a parliamentary question tabled by Labour Party environment spokeswoman Joanna Tuffy, which asked how much was paid by the State during 2008 and 2009 for exceeding carbon emissions targets under the Kyoto protocol.
“The total cost of purchasing carbon units for Kyoto compliance purposes in the commitment period 2008-2012 is estimated at €99.6 million,” Mr Gormley states in his reply. He continues that this is made up of two components. The NTMA had spent a total of €73.7 million in 2008 and 2009 on credits that were equivalent to 5.3 million tonnes of carbon dioxide.
In addition, provision has been made for a further €25.9 million of credits to be delivered prior to 2012 from investments made in the carbon funds operated by the World Bank and European Bank for Reconstruction and Development. In 2008, the NTMA purchased 3.455 million carbon credits at a cost of some €52.1 million. In 2009, it purchased 1.8 million units at a cost of some €21.6 million. The breakdown shows the value of credits reduced between 2008 and 2009 from €15 per credit to €12 per credit.
“The economic downturn has implications for the carbon credit purchasing programme. Recent EPA projections suggest that, with full implementation of all announced emission reduction measures, sufficient carbon units may already have been purchased or contracted for, to meet our Kyoto commitments,” said Mr Gormley.
He also disclosed the NTMA has been asked to suspend its purchasing programme in light of the most recent assessments.
Ms Tuffy has said the reduction was mainly due to the effects of the recession and the consequent fall of emissions across many sectors.
“The Government should ring-fence any money saved and direct it towards small but concrete projects to improve our environment and reduce emissions. For example, they could give money to help primary schools save energy and recycle their waste,” said Ms Tuffy, a deputy for Dublin Mid West.
Under the Kyoto protocol, Ireland needs to limit its greenhouse gas emissions to 62 million tonnes per annum. During the peak of the economic boom, emissions were close to 70 million tonnes, but they have fallen since then.