Mr. Paul Kelly:

I agree that we are not in favour of an emissions trading area scheme for agriculture. A Commission Green Paper is due out later this year or early next year on sustainable food and diet and it is an issue that is being examined in detail. The Common Agricultural Policy negotiations were concluded in recent weeks and a significant element of the budget, approximately 30%, under Pillar 1 which deals with direct payments is directed towards greening measures. The green chapter deals with land use and diversification. Pillar 2 deals with rural development and REPS and also has a very strong green element. The argument at European level is the same as that at national level and is on whether we want to produce food in a sustainable fashion. Policies and frameworks such as the CAP are very focused on sustainable methods of production.

With regard to legally binding targets, from a sectoral road map perspective, the initial work done to date is robust but indicates there is limited potential for mitigation in the food sector. As an economy we need to weigh up the growth potential of food produced in a sustainable fashion versus it shifting to overseas locations where it would be produced much more unsustainably.