Dr. Rory O'Donnell:

Our December 2012 report to Government, "Ireland and the Climate change Challenge: Connecting ‘How Much’ with ‘How To’", sets out the NESC secretariat’s analysis of the climate-change mitigation challenge and proposals for a pragmatic approach involving early action along three tracks. I understand that the joint committee has been provided with a copy of this report.

This introductory statement draws particular attention to our thinking on the institutional arrangements which we believe to be necessary and which differ somewhat from those in the heads of Bill. We have discussed these with our colleagues of the Department of the Environment, Community and Local Government and look forward to discussing them with the joint committee.

Our report argues that the Irish Government and people should commit to the ambitious goal of becoming a carbon-neutral society by 2050. Achieving this would mean that economic activity in Ireland would, overall, make no addition to the stock of greenhouse gases in the atmosphere. Our work has led us to the view that fresh thinking is needed on the climate change policy challenge, both at national and international levels. Aiming for that point, carbon-neutrality, on the horizon, we believe that it is time to focus on "how to" achieve deep decarbonisation. On the one hand, nobody knows how fast a large economy can decarbonise - if by "know" we mean knowledge of both technological possibilities and how to get policy adopted and implemented at international level and within states. On the other hand, as discovered during our wide consultations on this project, there is a huge amount of innovation and fine-grained knowledge on decarbonisation in firms, public bodies and civil society organisations. In conducting our work, we were repeatedly struck by the ambition and capability of organisations to understand and reduce their carbon footprint. This "how to" project of decarbonisation is already a core skill for many Irish organisations such as Glanbia and Bord Bia, who assist farmers to increase efficiency and reduce emissions; Glen Dimplex in its smart electric storage heating system; Kilbarrack fire station, Ireland’s first carbon-neutral fire station, and the Sustainable Energy Authority of Ireland’s work in supporting local authorities and communities to move towards sustainable forms of energy use.

Our emphasis on "how to" does not imply a rejection of targets in climate change policy. An intelligent use of targets and indicators, focused on concrete action in the near term and which are demanding on the stakeholders in a given area, has a critical role to play. Targets on "how much" are effective only if they are part of a process that explores and improves the ability of organisations, technologies, farms and households to reduce emissions, increase efficiency and use clean technologies. At national and international levels, to get more real commitment and effective action on "how much", it is now necessary to put greater effort into finding out "how to" technically, politically and organisationally.

We have identified five strategic building blocks for Ireland’s carbon-neutral future: an energy system built on wind and other renewables, using a smart grid and integrated into a clean EU energy system; an energy-efficient society that uses renewable forms of energy for heating; a sustainable transport system; a world-class agrifood sector working within a carbon-neutral system of agriculture, forestry and land use; and an approach to resource management that gives Ireland a competitive and comparative advantage in a resource stressed world.

Much of our report is focused on how Ireland can make progress on these demanding building blocks. This is an enormous societal challenge. It requires a total transformation of the energy and transport systems underpinning global economic activity. Success depends on discovering and disseminating profound technological and behavioural changes in consumption, travel and heating.

To move Ireland towards becoming a carbon-neutral society, we propose a pragmatic three-track approach. All three tracks should begin immediatelyand proceed simultaneously. What distinguishes them is the kinds of action required in each. Track one is strategic and institutional under which Ireland must frame its ongoing engagement with EU and UN processes, create effective institutional arrangements and identify its strategic approach to decarbonisation, energy policy and green growth. Track two is to explore and experiment; in a number of areas it is necessary to consciously explore policy possibilities and experiment, building policy and organisational networks to test and scale new possibilities. We have identified six track two exploratory projects: working towards carbon-neutral agriculture; the smart grid; electric vehicles; the electrification of heat; biomethane and anaerobic digestion; and carbon capability. Track three is design and implement; where early action makes sense and is feasible, it is necessary to design and implement policies. In our two reports to Government we identify the scope for such action on energy efficiency, transport, agriculture, taxation and power generation.

Real political commitment across Government and strong leadership are a critical first requirement for the success of this transition. Our work suggests that to progress this agenda, Government needs to undertake a number of political and institutional steps, including embed the transition to carbon-neutrality, particularly the five strategic building blocks, within the core agenda of economic recovery and development ensuring that the allocation of resources reflects these new priorities and imperatives; create and direct a new policy process and entity, which we will discuss further later; continue the transparent process of periodic review of Ireland’s overall progress on carbon-neutrality, centred in the EPA and involving the Joint Oireachtas Committee on Environment, Culture and the Gaeltacht; actively engage with, and contribute to, new international thinking on designing more effective 21st century climate arrangements, identifying what distinctive contribution Ireland can make based on its resources and capabilities.

We focus here on the new process and entity that Government should create to drive this agenda. In broad terms, it should perform the following functions: assist central government in formulation of a new carbon-neutrality strategy and broad sectoral-departmental plans and targets; drive and oversee progress on the five strategic building blocks of Ireland’s transition to carbon-neutrality; deliberate on the progress and challenges in each of the main carbon-neutrality building blocks and project areas, as advanced by the relevant Departments, agencies and networks; and provide these agencies and their networks with upward reach or a clearing house to get the system to remove roadblocks whether technical, legal or political.

The main authority of this body would be Government’s power to convene the relevant actors and sanction those that resist engagement. Its central role is to ensure and organise the joint explorationof successes and failures and to push the agencies and networks to continually advance the boundaries of knowledge and practice on "how to" decarbonise. The new entity needs to have sight of the important innovations, progress and obstacles at the level of firms, agencies and localities that are critical in making progress.

In a number of other policy spheres there is increasing success in Ireland in creating interdepartmental and inter-agency entities that have this exploratory and problem-solving orientation. Some relevant models include the Food Harvest 2020 high level implementation committee, the recently established State bodies group on SME finance, the marine co-ordination group and new arrangements to govern the water framework directive. Most of the human resources that are needed are already in existence in Departments and agencies such as EPA, SEAI, Bord Bia, Coillte, Teagasc, IDA, Enterprise Ireland and in firms such as the ESB, Bord Gáis, Glanbia and many others.

We believe the new process and entity should be structured around three elements, as illustrated in figure 1 on page 5 of this introductory statement.

The first element is a national steering and oversight board, chaired by a high level actor, preferably a Cabinet Minister, and containing senior figures with a relevant track record of business and organisational achievement. It must be in a position to challenge Departments and provide the policy frameworks and resources that enable action to be taken in agencies and networks. The second element is a small technical reporting and monitoring group to work with the agencies in formulating framework goals, metrics and targets for each of the project areas of wind energy, the grid, energy efficiency, food, bio-fuels, smart travel, forestry and so on and assist them in reviewing progress. The third element of the new process and entity is the public agencies and Departments and the networks they animate. It is here that most of the action and real innovation will occur. The key feature of this kind of institutional arrangement is linking the front-line problem-solving of the agencies and networks with high level review and revision. This design reflects the way in which the Montreal Protocol which successfully addressed the international problem of the ozone layer is institutionalised.

We believe, based on our interaction with many actors in Ireland and elsewhere, that there is a new willingness in Ireland and internationally to rethink climate change policy, to focus more on "how to" bring about real and lasting reductions in carbon emissions. In the countries that are leading progress, the climate change challenge is increasingly seen as an opportunity rather than just a problem. For Ireland, becoming carbon-neutral presents an opportunity to address the critical issue of energy security, to reduce costs, create jobs in the green economy and tourism sectors, achieve better public health, quality of life and well-being. The new policy process and entity we have outlined will be capable of uncovering these opportunities through close collaboration with firms, public bodies and communities, while also identifying the costs involved. Our report argues that Ireland has an opportunity to be a real leader by building an institutional architecture suited to the nature of the climate change policy problem and the major ways in which progress on the issue of "how to" achieve decarbonisation can be achieved.