A parliamentary response to a question from Peadar Tóibín revealed that the Government has spent approximately €5 million on carbon credits and emissions allowances to meet previous EU climate targets. This includes €2.1 million on international carbon credits between 2019 and 2021, and a further €2.9 million paid in 2023 to purchase emissions allowances from Slovakia for compliance with 2020 targets.
The figures highlight that public money has been used to cover missed emissions targets, rather than being invested in domestic climate measures that could reduce costs for households and businesses.
The Deputy said “This is taxpayers’ money being used to pay for the Government’s failure to meet its own targets. Instead of investing in practical supports here at home, millions are being sent abroad with no direct benefit to Irish families or workers.”
“Aontú supports sensible climate action that reduce emissions and help families and businesses. They must deliver real value. Funding should be directed towards measures that reduce energy costs and improve efficiency here in Ireland, not on buying compliance after the fact. There must also be full transparency on these costs and what lies ahead if targets continue to be missed.” concluded the Deputy.
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For Written Answer on : 24/03/2026
Question Number(s): 244 Question Reference(s): 21723/26
Department: Climate, Energy and the Environment
Asked by: Peadar Tóibín T.D.
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QUESTION
To ask the Minister for Climate; Energy and the Environment the amount spent by the Government on carbon credits for each of the past five years.
REPLY
The EU Effort Sharing Regulation (ESR) establishes a national target for each EU Member State for the reduction of greenhouse gas emissions for the period 2021-2030.
Under ESR, Member States can meet their targets through direct emissions reductions, as well as through additional compliance options provided in the framework. However, it does not provide for the use of carbon credits or payments to international carbon offset schemes.
For compliance under the preceding EU Effort Sharing Decision (ESD) 2013 to 2020, Ireland used both certified emissions reduction units and excess annual emissions allowances (AEAs) from other Member States. As mandated by the Government, direct purchases of credits on international markets were carried out by the NTMA. Such purchases were made on instruction from the Minister and based on the agency’s analysis of prevailing market conditions. During the period 2019 – 2021, the NTMA purchased almost 2.95 million certified emissions reduction units at a cost of €2.1 million. As AEAs may only be obtained directly from other EU Member States, my Department, following Government approval, entered negotiations on behalf of Ireland with several Member States for the purchase of AEAs for compliance with our 2020 targets. Following analysis of all offers received, based on several criteria, including total cost and the use of funds for Climate Action, Ireland entered a bilateral agreement with Slovakia to obtain all required AEAs. In early 2023, 4.15 million AEA units were purchased at a cost of €2.9 million for retrospective compliance.
The National Treasury Management Agency (NTMA) was appointed, under the Carbon Fund Act 2007, as the designated purchasing agent on behalf of the State. It administers and manages all carbon credit transactions. The NTMA is also required to prepare an annual report to me, as Minister, on the activities of the Fund, and to prepare annual financial statements. These statements can be found on their website https://www.ntma.ie/publications
