Ireland’s target to reduce emissions under the revised Effort Sharing Regulations (ESR) is 42% compared to 2005 levels by 2030. This Regulation covers those sectors of the economy that fall outside the scope of the current EU Emissions Trading System (EU ETS) including transport, buildings, agriculture, light industry and waste.
Under the existing compliance arrangements, Member States can meet their targets through direct emissions reductions, as well as through additional compliance options provided for in the framework.
The framework does not provide for the imposition of direct fines or penalties. However, it does allow for the purchasing of surplus allowances from overperforming Member States which could have significant costs. Estimating these costs requires working with significant data limitations as, at this point, there is no established market or set cost for allowances. This was noted by the CCAC and IFAC in their report and Government officials will continue to monitor developments and provide annual updated figures to Cabinet.