INPACT: Investigating National Policy Impacts on Atmospheric Climate Targets Back to Main dashboard

Ireland Greenhouse Gas Policy Impact Explorer

Explore greenhouse gas emissions, atmospheric pollutants, climate policies and policy effectiveness across Ireland.

Funded by Funded by the Environmental Protection Agency (EPA)
Ireland Climate Policy Timeline Greenhouse-gas mitigation policies in force 2000–2023

All policies / Industry / CAPMF_EU_ETS

EU Emissions Trading System

Instrument affecting the Industry sector, using a pricing mechanism; in force since 2005.

Industry Pricing Instrument Source: OECD only OECD match: Exact Selected as: OECD anchor
2005–start year; still open
0.38policy intensity in 2023
0.38peak intensity, 2000–2023
–no reported saving for this row

About this policy

The EU's cap-and-trade system. Power stations and large industrial sites must surrender an allowance for each tonne of CO₂ they emit; aviation was brought in from 2012.

Key milestones

  1. 2005Phase 1 (2005–2007): power stations and large industrial installations covered.
  2. 2008Phase 2 (2008–2012) begins, aligned with the Kyoto commitment period.
  3. 2012Aviation brought into the system.
  4. 2013Phase 3 (2013–2020): single EU-wide cap; auctioning becomes the default for power generation.
  5. 2019Market Stability Reserve starts to absorb surplus allowances.
  6. 2021Phase 4 (2021–2030) begins with a faster annual reduction in the cap.

Contextual milestones compiled from official sources. They are not used in the index.

About this type of instrument: carbon pricing: taxes and emissions trading

Emissions impose an external cost that market prices do not reflect. A single carbon price corrects this. Each emitter cuts emissions wherever doing so costs less than the price. So the overall cut is achieved at the lowest total cost. It also rewards continuing innovation.

Strengths
  • Cost-effective allocation of abatement across emitters
  • Continuous incentive to innovate
  • Generates revenue that can offset distributional effects
Limitations
  • Historical price levels were low relative to estimated social costs
  • Exemptions and free allocation weaken the signal
  • Short-run demand for fuels is price-inelastic
  • Regressive effects unless revenue is recycled

Measurement in this dataset. Implementation uses OECD price indicators (carbon-tax rate by sector, ETS price, aviation pricing). Pricing rows are split into those inside the EU ETS and those outside it (covered by the EU Effort Sharing Regulation, ESR). Bindingness is scored 0.75 (price or statutory obligation).

Read the full guide to pricing instruments

Year by year

Filled markers use a matched OECD score; hollow markers use assumed timing. Shaded bands show the policy's status. Select a year on the chart or the slider to see how its intensity is built up.

Data-quality notes

Methodological notes recorded for this series, grouped by theme.

Scoring conventions

  • The unweighted equal-weight index remains positive before the policy starts; use the gated version for timing analysis.
  • Bindingness is a normative score from the study rubric, not a measure of observed compliance.
  • Coverage is an ordinal scope score, not a measured share of activity or emissions.

Timing assumptions

  • The policy has no reported end date; its status after the reporting date is reconstructed as continuing.

Selection context

  • Policies were selected using recent (2024–2030) assessments, which can introduce retrospective selection bias.

Sources

  1. OECD. Climate Actions and Policies Measurement Framework (CAPMF) database, Ireland, 1990–2023. https://data-explorer.oecd.org/vis?df[ag]=OECD.ENV.EPI&df[id]=DSD_CAPMF@DF_CAPMF (accessed 25 September 2026)
  2. Environmental Protection Agency. EU ETS – Aviation. https://www.epa.ie/our-services/licensing/climate-change/eu-emissions-trading-system-/emissions-trading-system---aviation/ (accessed 25 September 2026)