AN IRISH carbon exchange launched yesterday could prevent “leakage” of up to €500 million a year from the domestic economy by the end of the decade, as well as providing a fresh source of funding for the green sector.
The Irish Carbon Trading Platform, established by Kilkenny-based Cosain in partnership with Australian firm Carbon Trading Exchange (CTX), will enable Irish businesses to offset their CO2 emissions by purchasing locally generated carbon credits through an online exchange. Until now, the availability of carbon credits produced in Ireland has been very limited.
“Buying carbon credits is the best way to offset unavoidable CO2 emissions,” Cosain chief executive Niall McManus said. “Purchasing carbon credits online is the most efficient way a business operating in Ireland can manage this process, considerably reducing the cost of trading.”
The latest data indicates that Ireland will miss its carbon emissions reduction targets for the period 2013 to 2020. If this happens, the State will have to purchase credits costing more than €500 million a year by the end of the decade. By providing businesses with a platform to trade local credits, Cosain believes the country can reduce and offset much of its emissions internally.
“Generating domestic carbon credits allows for a mechanism for investment into Irish renewable energy projects,” CTX chief executive Wayne Sharpe said.
Companies that engage in buying carbon credits invariably increase their focus on reducing emissions, which leads to a direct saving “far in excess” of the original cost of offsetting their emissions, Mr Sharpe added.
The new exchange is also expected to stimulate employment growth, both in terms of carbon credit validation work and jobs arising from the carbon reduction projects themselves.
A number of community-led projects are already under way, and a suite of credits will be available for trading through the Cosain platform. The carbon credits generated through Cosain are recognised by the Markit Environmental carbon registry.
