The government plans to reduce projected greenhouse gas emissions from 78.2m tonnes to 63m tonnes between 2008 and 2012. This is one component of a global promise in the Kyoto Protocol to deal with environmental damage. There is a long way to go to meet the targets. Still last week Minister Roche insisted he had a positive story to tell. "I do not want there to be the slightest doubt that we will meet our Kyoto commitment, " he predicted.

Under the Kyoto rules a country producing carbon can achieve reductions by actually reducing emission levels or by buying credits from other countries that have less harmful carbon rates.

Roche is adopting a combination of both options. But in getting Dail approval for an initial 20m investment in carbon credits last week, Roche told only part of the story. "A fairytale, " Labour's Eamon Gilmore said as he clinically dissected the environment minister's analysis.

The Labour TD listed the missed opportunities over the last decade as the Fianna Fail/PD coalition failed to deal with the problem in a co-ordinated way. Ireland's greenhouse gas emissions could have been reduced by measures including greater energy conservation regulations in new houses, reducing reliance on the private car, and paying farmers to produce crops for biofuels rather than giving them handouts to produce nothing and refocusing the sugar industry into the production of biofuels.

Now this lack of attention is about to cost an awful lot of money. The European Commission is set to increase the price of carbon which will dramatically increase the cost of buying carbon credits. In addition, the annual 3.6m tonnes that Roche says Ireland needs to buy is probably a serious underestimation. "At a conservative estimate it will cost 500m between now and 2012, which might otherwise be available for hospitals, schools, care of the elderly and many other social requirements, " Gilmore said.