PRESS RELEASE
Comhar Sustainable Development Council - Ireland

Friday, 14th December 2007

MAJOR RESEARCH INTO CURBING IRELAND’S
GREENHOUSE GAS EMISSIONS SET TO COMMENCE

Comhar Sustainable Development Council has announced today (14.12.07) that it will conduct a major piece of research into how Ireland can reduce its greenhouse gas emissions.

The research will focus on how the ‘Cap and Share’ mechanism can be used to cut greenhouse gasses in those sectors which are excluded from the EU Emissions Trading Scheme, such as the transport sector and households.

Under Cap and Share, a limit is placed on national greenhouse emissions every year. Every adult resident in Ireland is given a share of this cap as their threshold for emissions. Fuel importers, refineries and other suppliers of fossil-fuel energy would be required to purchase sufficient entitlements to match the emissions from their operations. This cap would correspond to the national target (e.g. 20 per cent below 1990 levels by 2020).

A contract to conduct an analysis of the feasibility and potential economic effects of the Cap and Share scheme was signed today (14.11.07) with AEA Energy & Environment. The project will run until July 2008 and will provide the first indication of this scheme’s ability to mitigate Ireland’s greenhouse gas emissions. This project is co-funded by the Department of Transport and the Environmental Protection Agency.

According to Comhar’s Chairperson, Frank Convery, “Ireland needs to look creatively and strategically at how it can cut greenhouse gas emissions. The Government has committed Ireland to reductions of, on average, three per cent every year. This will contribute to the European Union’s overall target of at least 20 per cent below 1990 levels by 2020.

“How Ireland will realise these reductions has not yet been decided. The 2008 Budget and Ireland’s first Carbon Budget introduced some innovative policy approaches, including reforms of Motor Tax and Vehicle Registration Tax to reflect CO2 emissions and a ban from 2009 on traditional incandescent light bulbs. There is now an opportunity to consider additional policy measures that will help Ireland make the transition to a low-carbon economy in an efficient and socially equitable way. The Cap and Share model could be an effective measure that will ensure we meet our targets on time.”

Under the Cap and Share scheme, the following outcomes would arise:
• The price of fossil fuels would rise throughout the economy, giving a powerful and long-term signal that
greenhouse gas emissions must come down.
• Residents would be compensated for the price rise by selling their emission entitlements to energy producers.
• Those who use an average amount of fossil fuels will be no worse off than before. Those who use more fossil fuels will face higher costs, whereas those who reduce their fossil fuel consumption will be better off.

Comhar SDC will publish the findings of the research in the latter part of 2008 and host a public discussion about the potential contribution of Cap and Share to Ireland’s climate change strategy. Input from stakeholders and the general public is welcome. For further information, please contact Lisa Ryan lisa_ryan-at-environ.ie (replace -at- with @)

ENDS