Failing to meet climate targets could cost Ireland up to €26 billion in EU sanctions

Ireland could be hit by up to €26 billion in EU sanctions if the country fails to meet its climate targets, a new report has revealed.

The Comptroller and Auditor General’s report on progress towards achieving climate neutrality in Ireland outlined a number of concerns.

The report states that whilst Ireland has made progress in reducing emissions, the rate of reduction remains insufficient to meet the country’s targets.

The Environmental Protection Agency (EPA) says that even if all planned additional measures are implemented, Ireland won’t achieve its goal of reducing carbon emissions by 51% by 2030.

At its current rate, the country is set to reduce its emissions by just 23% on 2018 figures by 2030.

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The report states that if Ireland fails to meet its national emissions reduction targets, the consequences will be significant, affecting the country legally, financially, economically, environmentally, and politically.

The EU’s targets for greenhouse gas emissions, as set out in the Emissions Trading System and Effort Sharing Regulation, are legally binding.

The EPA says that even if the Climate Action Plan is implemented in full, Ireland’s emissions will still exceed the binding target set in the Effort Sharing Regulation.

As a result, Ireland will likely need to purchase substantial emissions allocations from other EU member states, which will result in “significant financial liabilities and compliance-related costs.

The report adds that there is “significant uncertainty” around the value of compliance costs Ireland could face, with estimates ranging from €3 billion to €26 billion.

However, investment in initiatives that offer the highest potential for reducing GHG emissions in future years could mitigate the liabilities.

It is unclear which government departments will ultimately bear the costs of failing to deliver on agreed climate actions.