Eamon Ryan (Dublin South, Green Party)

On behalf of the Green Party, I am pleased to support this Bill. I commend Fine Gael on its introduction, which allows us to debate this important issue. I support the development of bio-fuels for several reasons. In the first instance, I support the principle of having our own secure energy supply which, in the event of a shock in global oil supply production, would ensure we have a baseline fuel supply source to provide for public transport, essential machinery and other elements of society's fuel necessities. Within the objective of promoting bio-fuels, I also support endeavours to place a requirement on all oil suppliers to provide a certain blended mix. This is preferable to us trying, by tax reductions alone, to promote the introduction of separate fuels away from the ordinary mix.

Having expressed my support for the Bill, I wish to impart some words of caution. We must be clear, concise and scientific as to what are the likely future outcomes and directions in this area. One future direction of which we must take cognisance and be concerned about is the likelihood that in any support system we devise for the development of bio-fuels, the latter may well come from imported sources. We must recognise that under existing World Trade Organisation, WTO, rules, it is difficult, if not impossible, for any country to devise support mechanisms or set market conditions that require the use of domestic supplies only. Such practice is precluded under WTO rules. Within the EU framework, countries such as Germany and Holland are attempting, if not to set specific national regulations in terms of which fuels can be supported, but at least to tie into support mechanisms the requirement that certain environmental or other standards are met in terms of new fuels. In this way, there is at least an attempt to ensure products come from a sustainable source.

My second caveat is that as well as the possibility that such fuels will be imported rather than grown by Irish farmers, the likelihood is that they will come from countries such as Brazil, which have a significant competitive advantage in this area by dint of their warmer climate, economies of scale and their experience of working in this industry for several years. I have seen figures for crops grown in Brazil, whether bioethanol or palm oil crops, which show they can be produced for a fraction of the costs of similar crops grown in the United States, for example, such as wheat-based bioethanol. One can only assume the same would apply to similar bioethanol or other bio-fuel crops grown here.

We must be aware of the possibility that any supplier who avails of legislation or Government support systems in this area may by right and with the protection of international trade rules order those fuels from a distant country. The reason I support the German and Dutch attempted restrictions in this regard is that there is also an environmental concern regarding such imports in that they may involve the generation in countries such as Brazil of crops in a manner that has a detrimental effect on their environment and, therefore, on the global environment, particularly in respect of the decimation of rain forests.

The second area of caution relates to the amount of carbon reduction that cones with the production of any particular bio-fuel or biodiesel crop. Where we are using a waste oil and converting it, a 100% reduction can be gained because otherwise it is a waste product. Various international reports show, however, that for some biodiesel and bio-fuel crops, the level of reduction is relatively low as a consequence of the inputs required for growing the crop.

There are two actions we must take. We must take a scientific approach in terms of the reductions that will be achieved, and we must develop our support mechanisms in a way that supports Irish farmers within the existing WTO framework. Notwithstanding these caveats, I support efforts to generate a secure bio-fuel supply, separate to the general oil supply which will peak and be subject to dramatic variations in coming years. I support the Bill's intentions in this regard.

See this speech in context