Determining the Distribution of National Greenhouse Gas Emissions for Emissions Trading in Ireland

Indecon International Economic Consultants in association with Enviros Consulting

Summary: The EPA appointed Indecon International Economic Consultants and ENVIROS Consulting to assist it in determining the distribution of greenhouse gas emissions to the various industrial sectors and participants involved in the National Allocation Plan 2008-2012

Published: 2004

ISBN:

Pages: 238

Filesize: 2,446KB

Format: pdf

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Executive Summary

This study makes recommendations to the National Allocation Authority (NAA) on the most economically efficient apportionment of Ireland’s assigned amount units (AAUs) under the Kyoto Protocol among those participating in emissions trading in Ireland. This involves proposing the most appropriate approach that Ireland should adopt to its National Allocation Plan (NAP). Previous work undertaken for the Department of Environment and Local Government advised the Government on the actual AAUs that would be available for the trading sector and this Study focused on the actual allocation to sectors and installations.

In deciding on our recommended approach to the development of the NAP we have examined a range of options and evaluated these against the specific criteria specified under Annex III of the Directive. We have also considered other qualitative criteria such as practicality and transparency. As the EPA has a limited amount of time to prepare this plan in advance of the trading period 2005-2007 we believe that a relatively straightforward approach that is non-discriminatory between sectors and installations is preferred.

A number of options for the development of the NAP are available. These relate to the metric to be applied, the time period to be used and the specific formula to adopt. Some of the key issues for decision are summarised in the figure below. We have undertaken a detailed consideration of these issues having regard to the efficiency of the ETS in terms of minimising compliance costs and equity considerations.