Consultants engaged to review Ireland's greenhouse gas emissions have estimated the country is facing a bill of more than €100 million for failing to abide by its Kyoto limits.
In what are described as 'preliminary projections', the consultants estimated the amount of carbon dioxide which would be produced by various sectors, like transport and industry, up to the year 2012.
Ireland has a limit on the amount of carbon dioxide it is allowed to produce under the Kyoto Agreement, and the consultants then projected how many tons of the gas would be produced above that limit.
In the best-case scenario, it was believed Ireland would produce 6.8 million tons of greenhouse gases above the Kyoto limit. In the worst-case scenario, it could be 8.1 million tons.
The consultants said Ireland will be hit with a penalty of €15 for every ton it is over the Kyoto limit. In other words, a €102 million bill, if not €121 million.
The environmental group, Greenhouse Ireland Action Network, has warned the market price for carbon dioxide is currently €22 per ton, meaning the worst-case scenario could be €180 million.
However, the Department of the Environment says it expects to pay for 3.7 million tons of gas, at a cost of €55 million, and reduce the other emissions through new Government policies.
