The Irish Government will soon decide on setting new legally-binding limits for greenhouse gas emissions from industry, following advice in a new report recommending sharp cuts in current levels. The decision could leave Irish firms facing a bill of between 500M-1BN Euros between 2008-2012, as firms will be required to buy "carbon credits" under the emissions trading system if they want to continue their current emission levels. The move is the first significant financial impact on the economy of the Kyoto protocol, binding the Government to a series of measures aimed at reducing global warming. Under the protocol each EU country is required to draw up a National Allocation Plan setting out overall emissions large firms will be allotted between 2008-2012. Firms will have to buy "carbon credits" on the open market from 2008-2012 if they want to produce emissions above this level.
