Jack Chambers (Dublin West, Fianna Fail) | Oireachtas source

The Senator's first question is very pertinent. In the wider environmental and climate action context, as an island economy we need to ensure that we maintain and strengthen international connectivity within Dublin, which the Senator is close to, and our regional airports. Our wider aviation policy speaks to that. It is about keeping the central economic context of aviation as a core pillar of our wider strategic economic planning. That is the case.

With that being said, consumers internationally expect countries to move with the wider ambition we are seeing in Europe and internationally. This is why Ireland, through the European files, and through the international structures that are there, is seeking to have that climate and vision but not make ourselves uncompetitive. We are clear about this in the context of our current aviation policies, which speak to the factual position of where Ireland sits as an island economy and needing to meet that climate ambition as well. This moves us on to SAF and the pathway there. When we look at the wider projections in the context of ReFuelEU, I will set out some of the obligations to give members context for where we are on SAF. We are mandated at the moment to have a share of 2% in 2025 and to increase to 70% by 2050. This shows the scale of what we have to achieve across the European Union. At the moment the production capacity is at .05%, sitting beside overall jet kerosene. There is a huge amount to go in scaling up production. The regulatory signals that have been made within the EU will provide certainty for industry to invest and develop the production capacity. It will also make sure, in a wider regulatory context, that Ireland is not isolated. A flexibility mechanism is being integrated in the European files. It allows for a ten-year transition period where suppliers can supply the required level of SAF as a weighted average across the EU, rather than at each airport within the scope.

That gives us time to build that transition. We are establishing a structure in the autumn, with a combination of industry experts and experts within the State, from an energy perspective, to look at the tier points. If one looks at what the US has done on price incentives, around production and consumption, Europe has provided more of a regulatory signal than doing the direct incentives. We must look at this, however, as an island economy with respect to what is realistic as regards SAF consumption and at what the potential financial triggers are, which would enable greater production of SAF to meet our wider European obligations. I have engaged with many stakeholders in different airports and airlines and with industry experts and people in the energy sector, and many have a different view as to what Ireland should do in the medium- to long term when it comes to SAF production or consumption and with regard to what the market signals we have to give. We must get a rounded view on that and bringing everyone together will help meet our overall European ambition.

This also speaks to the wider context and the opportunities for Ireland around SAF production. Senator Dooley was present at the Shannon Estuary task force event. There is potential around green hydrogen and potential around the fuel mix we will have beyond 2030, together with the opportunities there from an Irish context. We are working to build a pathway on SAF which will address some of the questions asked by Senator Doherty, but we have existing obligations.

Some of the airlines have moved ahead and have set their own targets. Aer Lingus has a target of 10% SAF by 2030 and Ryanair has a 12.5% target. They are moving ahead with their own ambition and some have signed contracts in Europe and in the US. The flexibility mechanism which has been integrated in the European files allows for a more level playing field as airports and countries manage that transition.

On the Senator's final point on pricing, we have a liberalised deregulated market in aviation. The most important thing is to ensure we have a level playing field and a very competitive market. People can see the benefit of that in our airports. Once we have a level playing field in the European regulated segment to this environmental file, providing any type of indirect or direct supports to consumers would not be the appropriate mechanism. This is about ensuring the transition is realistic and possible and that we have a competitive aviation sector to protect and grow our economy.

Under the EU regulations, it would not be possible to intervene by way of distorting market competition when one takes in the wider European context. I hope that addresses some of the Senator's questions.