Climate Action and Low Carbon Development (Amendment) Act 2021

Carbon budgets

9. The Principal Act is amended by the insertion of the following sections after section 6:

“Preparation of carbon budgets

6A. (1) A carbon budget, consistent with furthering the achievement of the national climate objective, shall be proposed by the Advisory Council, finalised by the Minister and approved by the Government for the period of five years commencing on 1 January 2021 and ending on 31 December 2025 and for each subsequent period of five years (in this Act referred to as a ‘budget period’).

(2) A carbon budget shall be made for three sequential budget periods so that, at any one time, there is a series of three carbon budgets which have effect under section 6B (in this Act referred to as a ‘carbon budget programme’).

(3) The carbon budget relating to the third budget period in a carbon budget programme shall be made in draft form and may be amended in accordance with section 6B (in this Act referred to as a ‘provisional carbon budget’).

(4) The Advisory Council shall prepare and submit a proposed carbon budget programme to the Minister as soon as may be after the coming into operation of section 9 of the Climate Action and Low Carbon Development (Amendment) Act 2021.

(5) The first two carbon budgets proposed by the Advisory Council shall provide for a reduction in greenhouse gas emissions such that the total amount of annual greenhouse gas emissions in the year ending on 31 December 2030 is 51 per cent less than the annual greenhouse gas emissions reported for the year ending on 31 December 2018, as set out in the national greenhouse gas emissions inventory prepared by the Agency.

(5A) (a) The Government shall make regulations for determining the greenhouse gas emissions to be taken into account, and the manner of calculating and accounting for such emissions (including any reductions), for the purpose of—

(i) the first 2 carbon budgets referred to in subsection (5), and

(ii) every carbon budget thereafter.

(b) The Government shall, when making regulations under paragraph (a), have regard to the rules applied by the European Union in relation to the matters referred to in paragraph (a).

(5B) The Government may make regulations to specify the base year in relation to the reduction of greenhouse gas emissions for budget periods after 31 December 2030.

(6) Not less than 12 months prior to the expiry of the first carbon budget in a carbon budget programme, the Advisory Council shall prepare and submit to the Minister—

(a) a proposed carbon budget in respect of the budget period following the third budget period in the carbon budget programme, and

(b) proposed amendments, if any, to the provisional carbon budget.

(7) The Advisory Council shall provide the reasons for its proposed carbon budget programme under subsection (4), a proposed carbon budget under subsection (6)(a) and any proposed amendments to a provisional carbon budget under subsection (6)(b), in writing to the Minister.

(8) Not more than 30 days after submitting a proposed carbon budget programme, a proposed carbon budget or any proposed amendments to a provisional carbon budget to the Minister under this section, the Advisory Council shall publish the proposed carbon budget programme, the proposed carbon budget or any proposed amendments to the provisional carbon budget, as the case may be, in such manner as the Advisory Council considers appropriate.

(9) The Advisory Council shall—

(a) carry out its functions under this section in a manner—

(i) that is consistent with the ultimate objective specified in Article 2 of the United Nations Framework Convention on Climate Change done at New York on 9 May 1992 and the matters specified in subparagraphs (i) and (ii) of section 3(3)(a), and

(ii) which takes account of—

(I) the most recent national greenhouse gas emissions inventory and projection of future greenhouse gas emissions, prepared by the Agency,

(II) relevant scientific advice, including with regard to the distinct characteristics of biogenic methane,

(III) international best practice on the reporting of greenhouse gas emissions and removal, and

(IV) in so far as practicable, the need to maximise employment, the attractiveness of the State for investment and the long term competitiveness of the economy,

(b) have regard to climate justice when carrying out its functions under this section, and

(c) the Advisory Council shall comply with regulations under subsection (5A) when carrying out its functions under this section.

(10) (a) The Minister shall, when preparing a carbon budget and a sectoral emissions ceiling, recommend to Government to decide that a Minister of the Government may comply with the carbon budget, and a sectoral emissions ceiling for which that Minister of the Government has responsibility, by the removal of greenhouse gas emissions.

(b) Where the Government approves the recommendation of the Minister under paragraph (a), the Minister of the Government concerned shall, when complying with the carbon budget and the sectoral emission ceiling for which that Minister of the Government has responsibility, comply with regulations made by the Government under subsection (11).

(11) (a) The Government shall make regulations for the purpose of—

(i) determining how the removal of greenhouse gas emissions may be taken into account, and in particular the method of calculating and accounting for such removals, including the base year to be applied to such removals, when complying with a carbon budget and a sectoral emissions ceiling,

(ii) specifying which removals may be used for the purposes referred to in subparagraph (i), and

(iii) determining the mechanism by which such removals are to be effected.

(b) When making regulations under paragraph (a) the Government shall have regard to the rules applied by the European Union in respect of the matters specified in subparagraphs (i) to (iii) of paragraph (a).

Approval of carbon budget

6B. (1) The Minister, within four months of the receipt of a carbon budget under section 6A, shall—

(a) cause a copy of the carbon budget to be presented to both Houses of the Oireachtas,

(b) consider the carbon budget,

(c) amend, if appropriate, and finalise the carbon budget,

(d) submit the carbon budget to the Government for approval in accordance with subsection (6), and

(e) lay a copy of the carbon budget before both Houses of the Oireachtas for approval in accordance with subsection (7).

(2) Dáil Éireann may refer a carbon budget to a joint committee which shall consider the carbon budget and provide a report in writing containing its recommendations to both Houses of the Oireachtas within two months from the date it is presented to Dáil Éireann under subsection (1)(a).

(3) The Minister shall, at the written request of the joint committee to which a carbon budget has been referred under subsection (2), attend before it and provide such information in relation to the carbon budget as the joint committee may reasonably require.

(4) When finalising a carbon budget, the Minister shall consult with—

(a) any other Minister of the Government as he or she considers appropriate, and

(b) members of the public and such persons as he or she considers appropriate.

(5) Where the Minister amends the carbon budget proposed by the Advisory Council, the Minister shall set out his or her reasons for doing so.

(6) The Government may—

(a) approve, or

(b) approve, subject to such modifications as they consider appropriate,

a carbon budget submitted to them under subsection (1)(d).

(7) Where the carbon budget is approved by the Government under subsection (6), the Minister shall cause a copy of the carbon budget to be laid before each House of the Oireachtas, which shall consider the carbon budget as soon as may be, and the carbon budget shall have effect from the date on which a motion approving the carbon budget has been passed by the second such House.

(8) Where the motion is not approved by both Houses of the Oireachtas under subsection (7), the Minister shall within a period of two months—

(a) consult with any other Minister of the Government as he or she considers appropriate,

(b) consult with the Advisory Council,

(c) amend the carbon budget, if appropriate, and

(d) submit the carbon budget to the Government for approval to lay the budget before each House of the Oireachtas in accordance with subsection (11).

(9) Where the Minister does not amend the carbon budget under subsection (8)(c), the Minister shall, in submitting the carbon budget to the Government under subsection (8)(d), set out the reasons for his or her decision.

(10) The Government may—

(a) approve, or

(b) approve, subject to such modifications as they consider appropriate,

a carbon budget submitted to them under subsection (8)(d).

(11) Where a carbon budget is approved by the Government under subsection (10), the Minister shall, as soon as may be, cause a copy of the carbon budget to be laid before each House of the Oireachtas and it shall have effect from the date on which it is laid before the Houses, or the second such House if it is laid before the Houses on different dates.

(12) Not more than 30 days after a carbon budget takes effect under subsection (7) or (11), as the case may be, the Minister shall publish the carbon budget in such manner as the Minister considers appropriate.

(13) A Minister of the Government shall, in so far as practicable, perform his or her functions in a manner consistent with a carbon budget that has effect under subsection (7) or (11), as the case may be.

(14) This section applies to the first carbon budget programme and to an amendment to a provisional carbon budget in the same manner as it applies to a carbon budget, and a reference in this section to a carbon budget shall, where the context admits, be construed as a reference to the first carbon budget programme or to an amendment to a provisional carbon budget, as the case may be.

Sectoral emissions ceiling

6C. (1) The Minister shall prepare, within the limits of the carbon budget, the maximum amount of greenhouse gas emissions that are permitted in different sectors of the economy during a budget period (in this Act referred to as a ‘sectoral emissions ceiling’) and different ceilings may apply to different sectors.

(2) The sectors of the economy to which each sectoral emissions ceiling shall apply shall be determined from time to time by the Government.

(3) The Minister shall, when preparing a sectoral emissions ceiling, consult with such Ministers of the Government as he or she considers appropriate.

(4) The Minister shall, as soon as may be after a carbon budget takes effect under section 6B, finalise and submit each sectoral emissions ceiling to the Government for approval.

(5) The Government may—

(a) approve, or

(b) approve, subject to such modifications as they consider appropriate,

a sectoral emissions ceiling.

(6) Where a provisional carbon budget is amended under section 6B or a carbon budget is revised under section 6D, the Minister shall—

(a) consult with such Ministers of the Government as he or she considers appropriate, and

(b) revise, if appropriate, a sectoral emissions ceiling for the budget period concerned.

(7) Where the Minister revises a sectoral emissions ceiling under subsection (6)(b), he or she shall, as soon as may be, submit the revision to the sectoral emissions ceiling to the Government for approval.

(8) The Government may—

(a) approve, or

(b) approve, subject to such modifications as they consider appropriate,

the revision to the sectoral emissions ceiling.

(9) A Minister of the Government shall, in so far as practicable, in the performance of his or her functions, comply with the sectoral emissions ceiling that applies to the sector for which that Minister of the Government has responsibility.

(10) For the purposes of performing their respective functions under this section, the Minister and the Government shall have regard to the matters specified in paragraphs (a) to (n) of section 4(8).

Revision of carbon budgets

6D. (1) The Minister may revise a carbon budget in the circumstances set out in subsection (2), (4) or (5).

(2) The Minister may revise a carbon budget where—

(a) new obligations are imposed on the State under the law of the European Union or any international agreement referred to in section 2, or

(b) there are significant developments in scientific knowledge in relation to climate change.

(3) As soon as may be after the end of each budget period, the Agency shall provide the greenhouse gas emissions inventory for that budget period to the Minister and the Minister shall review the greenhouse gas emissions during that budget period.

(4) Where the total greenhouse gas emissions for a preceding budget period are less than the carbon budget for that period, the Minister may carry forward the surplus from the preceding budget period to the current budget period and the current carbon budget shall be increased by the surplus carried forward.

(5) Where the total greenhouse gas emissions for a preceding budget period exceed the carbon budget for that period, the Minister shall carry forward the excess greenhouse gas emissions from the preceding budget period to the current budget period and the current carbon budget shall be decreased by the amount of greenhouse gas emissions that are carried forward.

(6) The Minister shall consult with and consider the advice of the Advisory Council prior to requesting the approval of the Government in relation to a revision of a carbon budget under this section.

(7) The Minister shall, as soon as may be, submit the revision to a carbon budget under subsection (2), (4) or (5) to the Government for approval and the Government may—

(a) approve, or

(b) approve, subject to such modifications as they consider appropriate,

the revision to a carbon budget submitted to them under this subsection.

(8) A revision to a carbon budget under this section shall have effect from the date on which it is approved by the Government.

(9) Not more than 30 days after a revision to a carbon budget takes effect under subsection (8), the Minister shall publish the revised carbon budget in such manner as the Minister considers appropriate.”.