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Ireland relied on buying 'credits' to reach climate and energy targets - EU audit

A report by the European Court of Auditors examined countries’ performance against 2020 targets and progress towards 2030.

IRELAND RELIED ON purchasing ‘credits’ from other countries to reach climate and energy targets in 2020, according to a new EU audit.

A report by the European Court of Auditors examined countries’ performance against 2020 targets and progress towards 2030, when the EU has promised to reduce greenhouse gas emissions to at least 55% of 1990 levels. 

The audit of Europe’s progress on climate and energy targets found that member states collectively achieved 2020 targets but only with the help of external factors like the effect of Covid-19 restrictions and the 2009 financial crash, both of which temporarily lowered energy consumption, the report has outlined.

The auditors found “little indication” that current actions put forward will be sufficient to reduce emissions by 55% by the end of this decade.

Ireland had the fifth lowest absolute reduction in emissions between 2005 and 2020, with a fall of just 18%, compared to the highest reductions of 45%, 40% and 38% in Greece, Estonia and Spain respectively.

Relative to GDP and the size of the population, though, the reduction was more significant at 57% and 31% respectively.

The audit identified a lack of transparency in how member states reached binding national targets through ‘flexible’ arrangements.

Some countries did not reduce their emissions as much as expected and instead used methods like purchasing allocations of emissions or renewable energy shares from other member states that did meet their targets.

Ireland was one such country that did not reach its 2020 target on its own, as well as Germany and Malta.

Between 2013 and 2020, the three countries bought 17 million tonnes worth of greenhouse gas emissions allocations from other member states that had overachieved their targets. Ireland used international credits for a total of 8.2 million tonnes of emissions. 

Additionally, Ireland was one of six member states that did not reach its renewable energy share target solely based on its own climate action, along with Belgium, France, Luxembourg, the Netherlands and Slovenia, which had to buy shares from other member states that equated to 22,137 million GWh of renewable energy.

Of those countries, Ireland was the second-furthest away from reaching its target (13.6% compared to 16%) after France (19.1% compared to 23%), while Slovenia was the closest (24.1% compared to 25%).

The auditors interviewed authorities from Ireland, Germany, Italy, Poland and Sweden about their climate and energy policies.

The countries were asked to provide data on the cost and effects of the policies they implemented to reach 2020 targets – however, “Ireland had no data on the cost and effects of its policies put in place to reach the 2020 targets”, according to the report. Overall, the countries were only able to provide data covering one-third of emissions reductions. 

“We need more transparency on the performance of the EU and its member states on their climate and energy actions” said Joëlle Elvinger, the lead auditor behind the report.

“We also believe that all greenhouse gas emissions caused by the EU should be accounted for, including those stemming from trade and international aviation and shipping,” she said.

“This is important as the EU has committed itself to being a global leader in the transition towards climate neutrality.”

The EU is performing relatively well at reducing emissions compared to other industrialised countries but that the bloc’s emissions would be around 10% higher if it accounted for emissions caused by trade, international aviation and shipping, which are not included in calculations, the report said.  

It found a lack of evidence that sufficient financing is being allocated to meet important climate targets by the end of the decade, particularly from the private sector.  

The audit noted that Ireland’s National Climate and Energy Plan “does not assess” investment needs that could be fulfilled through the public or private sector, “though it stresses the need to mobilise private investment”.

“No indication is provided [in Ireland's plan] on the scale of the private investment that will need to be mobilised,” it said.

“It is clear that EU funding such as the Connecting Europe Facility will remain an important source of funding for Ireland. Some details are provided on specific programmes, funds or projects and their budgets, but this is done in a rather ad hoc manner and it does not cover all policies, measures or ambitions.”

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