Dáil Éireann Debate, Tuesday - 17 June 2025
166. Deputy Carol Nolan asked the Minister for Climate, Energy and the Environment the legal basis for the threatened €26 billion in fines related to Irish climate targets, both in domestic and Irish law; when the Government and Dáil Éireann agreed to accede to the instruments which expose the State to such fines; and if he will make a statement on the matter. [32079/25]
View answerThe Question is taken as referring to climate targets under both domestic and EU law.
Under the European Climate Law which entered into force on 29 July 2021, the EU and Member States have committed to reduce net GHG emissions by at least 55% by 2030, compared to 1990 levels.
To deliver on this commitment, a legislative package known as the ‘Fit for 55’ package was agreed and includes measures such as a regulation on LULUCF (Land Use, Land Use Change and Forestry) and the revised Effort Sharing Regulation (ESR).
Member States' national GHG emissions reduction targets out to 2030 are set by the revised ESR which entered into force on 16 May 2023. This covers those sectors of the economy that fall outside the scope of the EU Emissions Trading System (EU ETS) including transport, buildings, agriculture, light industry and waste. Ireland’s target under the Regulation is to reduce our GHG emissions by at least 42% by 2030, relative to 2005 levels. The Regulation also provides for the introduction of annual targets (annual emissions allocations – AEAs) for each year 2021 – 2030.
Member States can meet these targets through direct emissions reductions, as well as through additional compliance options provided for in the ESR framework. This approach enables flexibility among Member States to help achieve targets as efficiently as possible.
The ESR governance framework does not provide for the imposition of direct fines, however, partially purchasing compliance, as outlined above, could have significant costs. Estimating these costs requires working with significant data limitations as, at this point, there is no established cost for purchase of allowances from other Member States.
These EU targets are also in line with domestic commitments as set out in the Climate Action and Low Carbon Development (Amendment) Act 2021.
