Oireachtas Joint and Select Committees

Tuesday, 3 July 2018

Joint Oireachtas Committee on Communications, Climate Action and Environment

Scrutiny of Petroleum and Other Mineral Development (Amendment) (Climate Emergency Measures) Bill 2018: Discussion

3:00 pm

Mr. Matthew Collins:

I express our appreciation for being invited today to take part in this debate. The Paris Agreement aims to hold the increase in the global average temperature to well below 2° Celsius above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5° Celsius. The Paris Agreement does not specify that particular fossil fuels or other fuels must be either used or discontinued. Its focus is on reducing greenhouse gas emissions. According to the Intergovernmental Panel on Climate Change, IPCC, mitigation can be cost-effective if an integrated approach is used that includes measures to reduce the energy use and the greenhouse gas intensity of end-use sectors and to decarbonise energy supply. Most 2° Celsius or less scenarios involve the majority of primary energy being supplied by low-carbon sources, such as renewable energy, biomass and nuclear fuel by 2050. These scenarios also indicate declining use of oil and a wide range of usage of natural gas by 2050.

In this context, the IPCC also identified a key role for natural gas power generation as a bridge technology because energy supply greenhouse gas emissions can be reduced significantly by replacing coal-fired power plants with modern, highly efficient natural gas power plants.

The IPCC has not recommended a policy of prohibiting exploration for fossil fuels but it does advise that fugitive emissions from natural gas extraction and supply should be low or mitigated. The committee will also recall last week's presentation by the International Energy Agency, IEA, which outlined its sustainable development scenario. This scenario, which is consistent with the Paris Agreement, outlined the future growth in renewables, nuclear and natural gas in the global primary energy demand. This scenario sees a need for continued investment in oil and gas projects to meet energy demand, even in deep decarbonisation scenarios. It also identified a continuing and growing need for oil and gas as non-energy raw materials for many products.

The European Union has pursued an energy and climate strategy that is in line with the IPCC's advice on cost-effective mitigation. It is a combined approach of reducing emissions, improving energy efficiency and decarbonising electricity generation. The EU is committed to reducing its emissions by 80 to 95% of 1990 levels by 2050 as part of a collective effort by developed countries. Cost-effective ways of achieving reductions on this scale are described in the European Commission's roadmap for a low-carbon economy in 2050. Under a range of scenarios in the roadmap, renewables reach 41% to 60% of primary energy by 2050. At the same time, the oil and gas share of EU primary energy declines to a range of 33% to 41% of primary energy by 2050.

Nationally, Ireland has a long-term commitment to reduce carbon dioxide emissions by at least 80% by 2050, compared with 1990 levels, across the electricity generation, built environment and transport sectors and, in parallel, to pursue an approach to carbon neutrality in the agriculture and land-use sector, including forestry, which does not compromise capacity for sustainable food production. Our 2015 energy White Paper on Ireland's transition to a low-carbon energy future sets out a vision of a low-carbon energy system where emissions from the energy sector will be reduced by between 80% and 95% by 2050. The reduction will require a significant increase in the share of renewables in primary energy supply. However, fossil fuels will still make a significant but progressively smaller contribution to Ireland's fuel mix. Nonetheless, in this low-CO2 energy system scenario, oil and gas will account for around 24% to 48% of Ireland's primary energy supply in 2050.

In light of the ongoing and future requirement for oil and gas, the energy security objective remains important. Between 1995 and 2015, the EU 28's dependence on oil imports increased from 74% to 89%. The EU's dependence on natural gas imports increased from 43% to 69% over the same time. Ireland has had one of the higher energy imports dependencies within the EU - for example, Ireland is 100% dependent on imports for oil. However, the development of the Corrib gas field in 2015 demonstrates the positive impact that indigenous supplies can have on Ireland's import dependency. Ireland went from an energy import dependency of 88% in 2015 to 69% in 2016. In addition, this helped to lower our annual energy import bill from €4.6 billion to €3.4 billion in 2016. However, gas production from the Corrib field has peaked and will decline from now on.

The clear message, as we transition to a low-carbon energy system compatible with the Paris Agreement, is that natural gas and oil will be significant but progressively smaller components in Europe's and Ireland's energy mix and that there will also be increasing non-energy uses for oil and gas. The proposed ban on oil and gas exploration in Ireland can be evaluated in that context as well as against the three energy objectives of security, accessibility and sustainability. The proposed exploration ban represents a poor policy choice for Ireland for a number of reasons. A ban on Irish exploration fails to recognise that even as Ireland and Europe transition to a low-carbon, Paris Agreement-compatible energy system, we will still use oil and gas, most likely for aviation, marine and heavy goods transportation and for cleaner electricity, first without and later with carbon capture and storage.

Significantly, the proposed ban on exploration in Ireland would not reduce Ireland's greenhouse gas emissions. If the ban had already been law, it would not help Ireland reach its 2020 emissions and energy targets. The proposed ban will not help Ireland reach its 2030 targets or the 2050 emissions reduction goal. The proposal does not promote the decarbonisation of electricity generation as it does not encourage the use of renewable energy. Countries with active petroleum exploration and production can also have high shares of renewable energy. The proposed legislation would not support improved energy efficiency in any way. A ban on Irish exploration also fails to recognise that oil and gas will continue to be used as raw materials for many useful products, such as agricultural fertiliser and pesticides, manufacturing materials, pharmaceutical and medical products and others. In addition to the absence of any climate and energy benefits, the proposed legislation would worsen Ireland's energy security when the Corrib gas field goes into decline and leave Ireland more energy import dependent. If an exploration ban had prevented the development of the Corrib gas field, Ireland would have spent an additional €600 million on energy imports in 2016.

Ireland has been criticised for its lack of progress towards its 2020 targets. However, this Bill offers nothing to reduce emissions, increase renewables, improve efficiency, increase energy security or keep our economy competitive. In contrast, energy efficiency and renewable energy measures make essential contributions to all of the major objectives of climate and energy policies, including improved competitiveness, security of supply, sustainability and the transition to a low carbon economy. Members will be aware that the Citizens' Assembly recently agreed a thought-provoking set of 13 recommendations to tackle climate change. However, it was particularly notable that the Citizens' Assembly did not recommend a ban on Irish exploration for gas and oil. Nonetheless, there is more that Ireland can do. The national mitigation plan, the national development plan and Project Ireland 2040 represent a step-change in our approach to meeting the climate challenge. Project Ireland 2040 sets out a €22 billion climate focused investment plan over the next decade. Actions will include a major expansion of renewable energy to produce 55% of our electricity, the removal of coal and peat fuels from electricity generation by 2030, and energy efficiency upgrades in homes, public buildings and commercial premises.

Finally, the Department looks forward to further consideration by the committee of achieving climate and energy objectives, including improved competitiveness, security of supply, sustainability, and the transition to a low carbon economy.

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