Professor Frank Convery:

I agree very much with the spirit of what the Deputy said. There are two segments in the European system. Parts of all European economies are in the European emissions trading scheme which operates virtually independently of national policy. Then there are the non-traded sectors, namely, agriculture, transport and heat. We already have binding targets in Europe in the non-traded sectors. We have to reduce our emissions by 20% by 2020 in these sectors. We should definitely meet these legally binding targets, but introducing new, unilateral Irish targets does not make sense. We should stick with the European targets. Even with the recession and the effort we have made, we are not on target to meet these European obligations for the non-traded segment. These three sectors are key: agriculture, transport and heat. I agree completely that we should have an innovation strategy for them and they will interact. How can one really help people do new things and do them better? I strongly encourage the committee to have an ongoing watching brief on implementation because that is the key issue. We should alert people to the fact that somebody independent with expertise is watching.

There should be innovation, pricing and grant subsidy strategies and all the pieces should fit. In agriculture I mentioned Glanbia, which is very significant. One does not act unless one has real information. Glanbia is creating an information base and asking how it can do better, working with farmers and processors to work up a system. That all needs to be co-ordinated and integrated. All of the agencies need to work together, including SEI and the EPA. This is critical. The National Transport Authority is not included in the legislation, but I would include it. These agencies should meet regularly, interact and be brought before the committee if things are not happening, if there are blockages and stoppages.

As in many areas in Ireland, we are 80% of the way there and if we get the organisation, incentives and support right, we can become an international leader.