2008 – 2012
The Environmental Protection
Agency (EPA) submitted Ireland’s second National Allocation Plan
to the European Commission in Brussels as required under the Emissions
Trading Directive on 13 July 2006.
The plan sets out how Ireland will achieve its commitments
under the Kyoto Protocol on Climate Change and details how carbon
allowances in the trading sector will be distributed between participating
activities in the five-year period 2008-2012.
Ireland’s commitment under the Kyoto Protocol is
to limit greenhouse gas emissions to an average of 13% above base
year (1990) emissions in the period 2008-2012. Recent data shows
emissions for Ireland in 2004 at 23% above the base year emissions.
Emissions Trading is a cap and trade scheme where
participating installations are given a fixed allocation each year
and must either abate CO2 emissions to that
level - or purchase allowances to meet any exceedance. It is designed
to bring about reductions in emissions at least cost. In 2005, Ireland
was one of only four EU countries where allocations to the trading
sector were below actual emissions in the year.
Over 100 major industrial and institutional sites
in Ireland are covered by the plan. These include power generation,
other combustion, cement, lime, glass and ceramic plants and oil
refining. Also included are large companies in areas such as food
& drink, pharmaceuticals and semi-conductors - together with a number
of our larger institutions, such as universities.
Under this new plan, the total quantity of allowances
to be allocated in the period 2008-2012 represent 88% of forecasted
emissions in that period - with the burden falling mostly on the
power generation and cement sectors, due to their ability to pass
through the costs involved. New entrants to the scheme in the 5-year
period are catered for through specific set aside of allowances.
Dr. Mary Kelly, Director General of the EPA said -
“By submitting the National Allocation Plan to the EU Commission,
we have now achieved an important milestone towards finalising an
allocation plan for the key 'Kyoto' period 2008-2012. Emissions
Trading is a very important element of our national commitment to
achieve reductions in greenhouse gas emissions, in order to address
the ever more serious global problem of climate change. By allocating
just 88% of anticipated needs, the plan ensures that participating
installations will contribute to the reductions required.”
Dr Kelly particularly thanked the National Allocation
Advisory Group for their considerable input and valuable advice,
which had greatly assisted the timely completion of the Plan.
To view the National Allocation Plan 2008-2012 as
notified to the Commission - Click
The Commission has three months to carefully examine
national plans from the 25 EU Member States following their submission
and may reject any aspect of a Plan that they feel is not compatible
with the Directive.
Key Elements of
the National Allocation Plan (2008-2012)
- The total allocation of allowances is 113.19 million for the
second emissions trading period - an average of 22.638 million
allowances per annum for the five years 2008 –2012;
- Over 94 per cent of the these allowances will be allocated free
of charge to existing installations;
- Allocations will be made based on historical emissions from
- Approximately 5 per cent of the available allowances will be
held back by the EPA for issue to new entrants not in the scheme
as existing installations on 30 June 2006;
- Adjustment for increased use of renewables in electricity production,
Combined Heat & Power (CHP) to receive special treatment;
- Where companies close during the Kyoto phase, the EPA will withhold
the issue of allowances for future years to these companies (subject
to allowing installations that close retain 75 per cent of their
annual allocation - up to a maximum of 25,000 allowances per annum
- for the remainder of the period). Allowances retained in this
way will be added to the new entrant set aside;
- 0.5 per cent of allowances are to be sold to defray the expenses
of administering the emissions trading scheme.