National Programme for Ireland under Article 6 of Directive 2001/81/EC for the progressive reduction of national emissions of transboundary pollutants by 2010 1.0 Introduction This document should be read in conjunction with the discussion paper on a Strategy to Reduce Emissions of Transboundary Air Pollution by 2010 published by the Department in June 2003. The discussion paper initiated a public consultation process with stakeholders, inter alia, on the most appropriate policies and measures for Ireland to adopt to achieve its commitments under directive 2001/81/EC to deliver the interim environmental objectives in relation to acidification, health- and vegetation- related ground-level ozone exposure as set out in Article 5. The discussion paper effectively constitutes a draft national programme as required under Article 6 of the directive. Together with this document it now forms the final national programme for Ireland to be reported to the Commission under Article 8 of the directive. The programme will be updated and revised as necessary by 1 October 2006 as required by Article 6(3) of the directive in the light, inter alia, of: 2.0 on-going monitoring and review of the efficacy of implemented and planned policies and measures, improvements in emissions estimates for the inventory and projections, the evolution of national projections for the main drivers of transboundary emissions consistent with projections underpinning climate change policy. Background The environmental, health and legal backgrounds to directive 2001/81/EC as well as an economic assessment and graphical profiling of various indicators of emission trends for Ireland are presented in detail in the 2003 paper. It also describes the integrated approach adopted in developing the national emission ceilings, which aims to exploit the potential for synergies in tackling multiple environmental objectives simultaneously in a coordinated balanced and cost effective manner. The analytical basis for the integrated approach was provided by IIASA using the RAINS integrated assessment model1. The discussion paper presented two scenarios for likely future emissions for 2010 and these quantitative estimates form the basis for the final national programme but they will be subject to a comprehensive review as part of the process to update and revise the programme by 1 October 2006. The national programme now includes inventories for the years 2002 and 2003 (see Annexe 2) available since publication of the 2003 paper. 1 IIASA (International Institute of Applied Systems Analysis) applied the Regional Acidification Integrations (RAINS) model for the integrated assessment underpinning the original NEC directive. 2 3.0 Consultation Process A total of twelve submissions were received in response to the discussion paper from a range of stakeholders across the economy including, trade representative bodies, environmental and business NGOs, electricity generators, Government Departments and agencies, and one community group. A list of the respondents is provided in Annexe 1. All submissions may be viewed in full on the Department’s website (www.environ.ie). The submissions set out the views of certain key sectoral stakeholders in relation to the specific pollutants, the national emission ceilings and the measures outlined in the paper. Respondents generally welcomed the consultation process and recognised the need for Ireland to fulfil its commitments under the directive and the importance of reducing the level of tranboundary pollutant emissions to minimise damage to human heath and the environment. Several respondents commented on the assumptions underpinning the projections and one respondent from the electricity supply industry submitted alternative estimates for likely future emission levels of SO2 and NOx. Several respondents highlighted the need for an integrated approach to national policies to address emissions to air and in particular highlighted the synergies with climate change policies. There was a general view that for the pollutants SO2, NH3 and VOCs the measures outlined in the paper would achieve the national emission ceilings. The main focus of the submissions was in relation to NOx and its national emission ceiling which it was generally agreed presents the most significant challenge for Ireland. Several respondents highlighted national competitiveness concerns and the importance of adopting a cost effective approach to implementing the directive at national level, in line with the principle of the integrated approach underpinning the directive. One respondent proposed that consideration should be given to seeking to rebalance the specific national NOx target to avoid excessive costs for Ireland while still respecting the directive’s interim environmental objectives, by adjusting the ceilings for the other acidifying emissions which it is generally agreed can be more cost effectively achieved. 4.0 Progress and Developments Since Publication of Discussion Paper This section outlines progress and significant developments that have occurred since the publication of the 2003 paper and which need to be further considered in the national programme as it is implemented over the period to 2010. In many cases definitive quantitative estimates are not currently available but will be developed as appropriate for the update and revision of the national programme in 2006. 4.1 Power Generation Sector 4.1.1 National Emission Reduction Plan (NERP) under Directive 2001/80/EC Ireland has opted to develop a national emissions reduction plan (NERP) under Article 4 (6) of the Large Combustion Plants directive (2001/80/EC)2 to address emissions from ‘existing plant’ as defined in the directive. The NERP provides flexibility for plant operators to identify the most cost effective abatement options available, across a portfolio of plant, while still achieving the environmental objective of directive 2001/80/EC. The NERP option was 2 Large Combustion Plants Directive (2001/80/EC) on the limitation of emissions of certain pollutants into the air. 3 chosen because it provides both an environmentally ambitious and a cost effective compliance route for Ireland. Many existing plant, particularly those in the electricity supply industry will be operated at low load factor in the future to cater for reserve requirements including back up capacity for wind generation. Low-load factor plant have limited potential for emission reductions and make the installation of advanced abatement technologies very costly per tonne of pollutant abated. Estimates developed in the preparation of the plan indicate potential costs of up to € 50,000 per tonne of NOx abated for some existing plant if the plant-specific emission limit value compliance route was chosen. The NERP developed by Ireland sets limits for emissions of SO2 and NOx from existing plant which are significantly more ambitious than the minimum requirements of directive 2001/80/EC. In the period from 2008 - 2016, the NERP is 27 % more ambitious for SO2 and 46 % more ambitious for NOx emissions. Detailed emission projections for SO2 and NOx were developed by the interested sectoral operators in consultation with relevant Government Departments and agencies to prepare the NERP using industry system models based, inter alia, on merit order dispatch and catering for system constraints. The NERP emission projection estimates vary from those included in the 2003 discussion paper and further consultation will be required to inform ‘best’ estimates for the update and revision of the national programme in 2006. 4.1.2 Commissioning of New Power Plant Since publication of the discussion paper the Commission for Energy Regulation has announced contracts for additional electricity generation capacity to be delivered by two new state of the art gas fired plant, a 400 MW combined cycle gas turbine plant and a 150 MW CHP plant, both due to be operational by early 2006. The 400 MW plant will be located in the west of the country which will help to address existing geographic network constraints and the CHP plant will largely replace the existing oil fired boilers at the largest industrial emitter of both SO2 and NOx in Ireland. These new plant will further reduce the NOx intensity of electricity generation continuing the downward trend shown in Graph 17 of the discussion paper and further decoupling NOx emissions from electricity generation. 4.2 Transport Sector 4.2.1 Sulphur free fuel excise differential The discussion paper indicated that consideration would be given to the incentivisation of sulphur free fuels for the full road transport market. To this end, on 1 December 2004 Ireland’s Budget 2005 indicated that an excise duty differential would be introduced to incentivise sulphur free fuels. The excise duty differential will be introduced during 2005 and should result in a total market switch to sulphur free petrol and diesel within a matter of months. This will result in lower SO2, NOx and particulate matter emissions from vehicles, improve the efficacy of advanced NOx abatement technologies and thus also promote climate change policies to reduce greenhouse gas emissions by improving vehicle efficiency. Total market conversion will place Ireland in the forefront of sulphur free road fuels usage at least 3 years ahead of EU legal requirements. 4 4.3 Industry Sector Major industrial installations in Ireland are regulated by the Environmental Protection Agency (EPA) under the Integrated Pollution Prevention and Control (IPPC) directive (96/61/EC). The directive has been in force since 1999 and requires that older installations, existing before 1999, be licensed by October 2007. The EPA is currently reviewing arrangements for these installations with a view to drawing up IPPC licences by the required date. This will provide an opportunity to consider and apply appropriate emission controls to reflect the best available techniques to these older industrial installations. 4.3.1 Feasibility Study of Advanced NOx Abatement in Cement Sector The discussion paper indicated that consideration would be given to the application of advanced NOx abatement techniques in the cement sector. The EPA in co-operation with plant operators in the cement industry is currently assessing the feasibility of selective noncatalytic reduction (SNCR) abatement techniques in the cement sector. Since 2001 NOx emissions from this sector have increased by 59% and by 2003, the cement sector accounted for 57 % of total industry NOx emissions and 7% of total national emissions. The EPA assessment is not yet complete but application of SNCR abatement techniques could result in significant NOx savings. The Integrated Pollution Prevention and Control BREF3 notes cite abatement performances for SNCR of 80% - 85% and indicate a cost for SNCR of €0.6 per tonne of clinker produced. Assuming a more conservative abatement performance of 60% the cost per tonne of NOx abated is € 400 per tonne. 4.4 Residential Sector 4.4.1 Solid Fuel Trade Group Voluntary Agreement The voluntary agreement to reduce the sulphur content in coal and petcoke was signed by the Minister for the Environment, Heritage and Local Government in 2002. To date the agreement has been working well with sulphur levels for coal in the 2003/4 heating season 0.48 %, below the 0.7 % required by the agreement. The sulphur levels in petcoke averaged 2.55 %, above the 2.0 % set out in the agreement. This resulted from a general shortage of petcoke on the world market. The agreement is scheduled for review during 2005 and any revision to increase the ambition level will need to be included in the update and revision of the national programme. 4.5 Agriculture 4.5.1 Full Decoupling under CAP The discussion paper adopted a conservative approach to assessing likely future ammonia emission reductions in 2010 as there was at that time a lack of certainty as to what approach Ireland would opt for under the EU CAP reforms. Since publication of the discussion paper, Ireland has formally opted for full ‘decoupling’ of direct support payment and this is projected to result in significant decreases in the livestock population in the period to 2010. It should be noted that the Luxemburg Agreement that provides the framework for CAP reform is based on a ‘freedom to farm’ regime and so while reductions in livestock numbers (and hence emissions) are highly likely they are not fully guaranteed. 3 BAT (Best Available Techniques) Reference Document known as BREF 5 Major revisions are currently underway to improve the methodology applied to ammonia estimates in Ireland by moving to a more detailed estimation methodology. These revisions will be finalised in the latter half of 2005 and applied to both the inventory and to the updated projected activity data to inform the update and revision of the national programme. 4.6 Cross-cutting Issues 4.6.1 Institutional Arrangements Ireland made regulations in 20044 giving a national legal framework to Directive 2001/81/EC. The regulation provides a statutory basis for the preparation of the emission inventories which will continue to be undertaken by the EPA. The regulation also provides a statutory basis for emission projections, which for the first time will be undertaken by the EPA on an annual basis to track progress towards the national emission ceilings by 2010. To facilitate this work, arrangements are being put in place with the Government Departments responsible for national energy and agriculture policy and statistics to provide national projections for activity data for these sectors. Taken together the sectors encompassed are responsible for the majority of total national emissions. The provision of relevant data in a timely fashion is vital for the establishment of robust inventorying and projections development. A national inventory system is currently being established to meet the requirements for greenhouse gas reporting under the Kyoto Protocol and improvements accruing from this system will be applied progressively to the transboundary emission estimates. 4.6.2 Emission Inventories Development of national emissions inventories is an ongoing process of continuous improvement. Since the publication of the discussion paper in 2003 there have been a number of improvements made to the estimates including the more extensive sourcing of measured emission data from the industrial sector; improvement to methodology applied in relation to aviation emissions and development of a methodology to quantify the effect of fuel tourism. Ireland will formally submit an adjustment to the national inventory for the 2005 reporting cycle to reflect the effect of fuel tourism. Initially this adjustment will be applied to the NOx inventory and then progressively to all affected emission estimates. As noted above, work to revise the ammonia estimates from the agriculture sector is under way. A review of VOC emissions from solvent applications, the single largest emission source, will help improve the robustness of VOC emission estimates. Such improvements can result in either an increase or decrease of the previous estimate though the ceilings in directive 2001/81/EC are set in absolute terms. 4.6.3 Emission Projections Emission projections provide an analytical basis to inform the choice of the most appropriate national policies and measures to be adopted and implemented to achieve future emission levels. They depend on a wide range of assumptions, including, future economic growth, structural changes in the economy, the penetration rate of cleaner technology as well as global factors including world economic trends and international fuels prices which are outside the scope of national influence. Their accuracy and efficacy can 4 European Communities (National Emission Ceilings) Regulations 2004 (S.I. No. 010 of 2004) 6 only conclusively be judged ex poste so it is important that they are reviewed on a regular basis. A number of policy developments noted above particularly in the power generation and agriculture sectors require that the national projections be updated to reflect these developments. National greenhouse gas projections to inform national allocations under the EU CO2 emissions trading scheme for the period 2008 - 2012 will be developed in the second half of 2005. It is considered important that updated projections to inform the update and revision of the national programme are consistent with greenhouse gas projections used to inform national climate change policy. 4.6.4 EU Review and Proposed Amendment of Directive 2001/81/EC. The European Commission is currently reviewing Directive 2001/81/EC (as required under Article 9) in the context of the Clean Air For Europe Programme (CAFE). The review is based on revised analysis using integrated assessment modelling and updated data in consultation with the Member States. The European Commission is also preparing a separate new legislative proposal to revise both the national emission ceilings and other aspects of the directive. This proposal will further develop the analytical work under CAFE and is scheduled to be available by mid-2006. To further improve the integrated assessment model, it is expected that bilateral consultations with Member States will commence in April 2005 as this best fits with Member States’ obligations to prepare and submit new projections of greenhouse gases under Decision 280/2004/EC on greenhouse gas monitoring and reporting. 4.6.5 EU Emissions Trading Scheme for CO2 (EU-ETS) The EU-ETS came into operation on 1st January 2005 and provides for emission trading of CO2 amongst those installations covered by directive 2003/87/EC. The key economic rationale behind emission trading is the use of market mechanisms to ensure that CO2 reductions take place where the cost of reduction is the lowest. Those Member States with comparatively high CO2 abatement costs are likely to be net purchasers of carbon credits as it will not be cost effective to make domestic emission reductions. Given the synergies between CO2 and transboundary emissions reductions noted above, there are implications for national transboundary emissions from the EU-ETS. There has been no assessment of the likely effects of the scheme on transboundary emissions in Ireland though this will need to be considered in the light of experience of the scheme in the update and revision of the national programme 5.0 Update in Emission Trends The national programme now includes national inventories for the years 2002 and 2003 in Annexe 2 produced since the publication of the discussion paper. There has been a progressive reduction of national emissions for all four NEC pollutants since 2001. With regard to NOx emissions, Ireland will formally submit an adjusted inventory to reflect fuel tourism as part of the 2005 reporting cycle. It is important from a national viewpoint to understand the main domestic drivers of emissions in the transport sectors, so that appropriate policies and measures can be designed to reduce emissions most effectively. 7 5.1 Sulphur Dioxide (SO2) Total emissions of sulphur dioxide have been progressively reduced in recent years falling from a high of 176 kt in 1998 to 76 kt in 2003. Between 2001 and 2003 total emissions have fallen sharply by 40%, largely resulting from a 42% fall in the power generation sector reflecting both the use of lower sulphur fuels and a move from heavy fuel oil to gas-based generation. There were also significant falls in the industry and commercial sectors, down 54%, and 37% respectively for similar reasons. Projections in the discussion paper suggest that the NEC for SO2 will be achieved on the baseline5 scenario with further significant falls expected in the power generation and industrial sectors. This projection appears to be confirmed by the trends evident in the inventories of recent years. 5.2 Oxides of Nitrogen (NOx) Current estimates for NOx emissions show that they have been progressively reduced from a high in 2001 with a 7% reduction in 2002 and a further 4% reduction in 2003. The trend reflects the continued decline in emissions from the power generation sector with the introduction of new, more efficient generation plant and a change in fuel mix which resulted in a sharp fall of 9% in emissions from the sector in 2002 and a further fall of 10% in 2003. Emissions from the transport sector show a reduction of 5.2 % in 2002 and 5.6 % in 2003 following the introduction of more stringent Euro III vehicle emission standards6. Emissions from the industry sector have risen in recent years, up 21 % on 2001, reflecting primarily increased output from the cement sector. The discussion paper presented a baseline scenario estimating total national emissions for 2010 of 94.0 kt. More recent estimates7 for equivalent scenarios provide estimates in the range 93 kt – 100 kt. This is in contrast to the original baseline estimate of 70 kt. underpinning the directive proposal. This significant revision to the estimate for the 2010 baseline has significant implications for the practicability of achieving the NOx ceiling. An indication of this is that the more recent RAINS analysis8 indicated that the maximum technical feasible reduction at 69.9 kt. is above the NOx ceiling. Whereas the original analysis indicated that additional measures would be required to reduce emissions from the baseline estimate of 70 kt. to 65 kt., the more recent analysis implies that further additional measures would now be required to reduce emissions from the revised baseline of c. 94.0 kt . to 65 kt. The further additional measures required would involve further additional costs, over and above those envisaged at the time the national emission ceiling was agreed. A robust assessment of any additional costs will be required for the update and revision of the national programme in 2006. The term ‘baseline’ is used here to denote the scenario which includes adopted or planned policies and measures. The term “with measures”, used for greenhouse gas projections and defined in the UNFCCC reporting guidelines is used in the discussion paper and can be considered equivalent to the baseline scenario and to the RAINS CLE scenario. 6 This data has not been adjusted to reflect the effect of fuel tourism (see para. 57 of 2003 discussion paper). An adjusted inventory will be submitted to UNECE as part of the 2005 reporting cycle. 7 Estimates contained in consultation submission (2003), EPA/SEI study (2004) and RAINS BL_CLE_Aug04(Aug04). 8 RAINS CP_ MFR_Nov04(Nov04) 5 8 5.3 Volatile Organic Compounds (VOCs) Total emissions for VOCs have been progressively reduced in recent years falling from a high of 117.74 kt in 1999. Between 2001 and 2003, total emissions fell by10% from 86.7kt to 77.8 kt reflecting a decrease in both tail pipe and evaporative emissions in the road transport sector. Projections in the discussion paper suggest that the national emission ceiling for VOCs could be achieved by implementing additional measures to abate emissions from vehicle refuelling. It should be noted that the VOC inventory (and hence the projection) is considered uncertain and, as indicated above, further research is to be conducted to improve its robustness. 5.4 Ammonia (NH3) Total emissions for ammonia have been progressively reduced in recent years falling from a high of 127 kt in 1999. In 2003 the agriculture sector was responsible for 98% of all ammonia emissions. Between 2001 and 2003 emissions fell by 5% and further reductions can be expected in line with projected livestock reductions associated with the implementation of full decoupling. Projections in the discussion paper indicate that the national emission ceiling for ammonia will be achieved on the baseline scenario with the estimate for 2010 returning approximately to 1990 levels. As noted above, a conservative approach was taken to the estimation of likely future emission reductions from the sector and the projection will need to be revised for the update and revision of the national programme. 6.0 National Emission Ceiling Challenge for Ireland As can be seen from the previous section, Ireland has achieved progressive reductions in emissions of all four pollutants in the period 2001 to 2003 and current best estimates for projections indicate that the NEC targets for SO2, ammonia and VOCs set out in Annex I of the directive should be cost effectively achieved. However, it is clear that the NOx ceiling presents a significant difficulty for Ireland and that measures to achieve the specific ceiling could be disproportionately costly. Recent integrated assessment modelling conducted for the CAFE programme using updated data sets for Ireland and other Member States indicates a revised 2010 baseline estimate for Ireland for NOx which is comparable to that presented in the 2003 discussion paper. More recent national estimates were also comparable. The analysis for the original directive proposal assumed a baseline scenario (known as the ‘REF’ scenario) significantly below this at 70kt and a modest additional cost to achieve the original proposed NOx ceiling of 59 kt. Based on the analysis for CAFE (August 2004), the potential cost to Ireland of achieving the NOx ceiling in the directive has increased very significantly and it seems clear that the NOx ceiling does not represent a cost effective route for Ireland to make its contribution to the attainment of the directive’s interim environmental objectives. 9 A recent preliminary national study9 reviewed the current data for Ireland for the integrated assessment model and highlighted some areas where the data sets could be further improved to better reflect national circumstances. Clearly, it is crucial that data sets should be robust if the model is to develop cost effective ceilings for Member States. It is intended to further develop this preliminary study to ensure that data for Ireland is as robust as possible to provide a robust and cost effective basis for future national emission ceilings. 7.0 Conclusion The national programme for Ireland has been compiled to comply with the requirements of Article 6 of Directive 2001/81/EC. There has been a progressive reduction of national emissions for all four NEC pollutants since 2001, which reflects the on-going implementation of policies and measures outlined in the discussion paper. This document sets out a number of significant developments in policies and measures in the power generation, transport, industry, and agriculture sectors since the 2003 paper. The downward emissions trend evident since 2001 is projected to continue to 2010, though it is clear that the NOx ceiling as set out in Annex I of the directive presents a significant difficulty for Ireland and that measures to achieve the specific ceiling could be disproportionately costly. The legislative proposal to revise the national emission ceilings and other aspects of the directive by mid-2006 will, as before, be based on integrated assessment modelling and consultations to update the model are due to commence with Member States in April 2005. It seems clear, based on available updated data sets, that the current ceilings for Ireland do not represent the most cost effective route for Ireland to make its contribution to meeting the directive’s interim environmental objectives. It is anticipated that this will become evident during the analytical preparations for the new legislative proposal. This National Programme will be updated and revised as necessary in 2006 to take account fully of all relevant policy and legislative developments particularly the proposal to revise the national emission ceilings and other aspects of the directive. 9 Preliminary study to develop and validate input data for integrated assessment modelling for Ireland under the CAFÉ Programme. EPA/SEI (2004) 10 ANNEXE 1 RESPONDENTS TO THE 2003 DRAFT STRATEGY Commission for Electricity Regulation Department of Agriculture and Food Department of Communications, Marine and Natural Resources Department of Enterprise, Trade and Employment Electricity Supply Board Friends of the Irish Environment Greenhouse Ireland Action Network (GRIAN) Irish Business Employers Confederation Solid Fuel Trade Group Sustainable Energy Ireland United Portmarnock Residents Opposed to Another Runway (UPROAR) Viridian Power and Energy 11 ANNEXE 2 2002 Final and 2003 Provisional National Emission Inventories 2001 2002 2003 Amounts in Kt Sector Combustion in Energy & Transformation Industries Non-Industrial Combustion Combustion in Industry SO2 77.2 21.9 22.8 Production Processes NOx 42.0 7.9 12.7 0.4 NH3 0.0 49.8 22.1 1.9 0.1 Extraction and Distribution of Fossil Fuels Solvent and Other Product Use Road Transport Other Mobile Sources and Machinery 1.7 2.4 VOCs 0.3 5.1 0.5 1.4 5.3 34.8 33.3 2.8 SO2 62.0 16.4 14.6 1.5 1.8 NOx 38.5 7.8 14.1 0.2 NH3 0.0 47.3 17.5 2.2 0.0 VOCs 0.3 5.0 0.5 1.2 5.5 35.0 28.1 2.3 SO2 45.0 17.8 10.6 1.5 1.5 NOx 34.4 7.8 15.3 0.0 NH3 0.0 44.6 17.6 2.2 0.0 VOCs 0.2 4.3 0.5 1.3 5.5 35.6 24.9 2.3 Waste Treatment and Disposal Agriculture Total 126.1 134.9 120.6 3.4 122.7 87.0 96.2 125.3 116.8 3.5 119.0 81.4 76.4 119.8 114.0 3.4 116.3 77.8