Tony Killeen (Clare, Fianna Fail)

I welcome Deputy White to the House and compliment her on her contribution.

The development of Ireland's bioenergy sector is part of a comprehensive strategy to increase deployment of renewable energy across the three energy sectors — transport, heat and electricity. These sectors are almost equal in the amount of energy they use and their CO2 emissions.

Bioenergy policy is relevant across several areas of Government responsibility and has potential benefits across a variety of diverse areas. It addresses several cross-cutting policy objectives, including diversity and security of fuel supply, climate change, development of the rural economy, and enhancing competitiveness through the provision of cleaner, cheaper energy.

The development of our bioenergy resources thus requires an integrated "whole of Government" approach to policy development. In recognition of the complexities of the bioenergy challenge, a ministerial task force on bioenergy was established in 2006. Seven Departments were represented on the ministerial task force, reflecting the priority afforded to this area by Government.

The action plan sets out ambitious targets for the deployment of bioenergy in the heat, transport and electricity sectors. The targets are established to 2020, to provide a level of market certainty for prospective developers. A range of deployment strategies across several Departments was identified in the action plan, many of which are already being implemented.

The public sector, in particular, has been singled out to act as an exemplar for bioenergy deployment. The OPW has committed to using bioenergy in all new buildings, and to retrofitting 20 of its large buildings with bioenergy heating systems within the next 12 months. Schools too are to be targeted, with eight schools receiving funding to install bioenergy heating systems this summer, with a view to providing models that can be replicated in other schools.

Renewable energy will also be given increased emphasis in the leasing of buildings for the public sector, and energy efficiency programmes are to be introduced. In the transport area, the Government aims to use bio-fuel blends of 5% in its existing CIE and local authority fleets and to move towards 30% bio-fuel blends in new fleets, where possible.

In the past two years a range of renewable energy support programmes, including the greener homes domestic grants, reheat grants and CHP deployment programmes, valued at more than €400 million, has been introduced. The programmes are designed to be accessible to all energy users around the country, from householders, to community and voluntary groups, the commercial and industrial sector and renewable electricity producers. Funding of up to 40% is available under the reheat programme for organisations wishing to examine the feasibility of utilising the technologies funded under the programme. Grants have been made available to applicants in County Carlow under the greener homes and the reheat schemes. In addition, funding has also been provided to a developer in County Carlow under the house of tomorrow programme towards the development of 56 low energy design housing units. These programmes are backed up by strong investment in energy research and development, as well as the €10 million Power of One energy efficiency campaign.

In reaching out across all sectors of society, the renewable energy policy and this biomass action plan, which I stress is a national plan, empowers everyone to play their part in a cleaner and more competitive environment. The adoption of a "whole of Government" approach to this challenge will ensure its ability to maximise the national benefit of these policies.

The renewable electricity, heat and transport programmes offer a range of new opportunities for farmers and foresters. The action plan recognises the need to develop the entire supply chain, from producer to energy end-user and a range of schemes have been introduced by the Department of Agriculture, Fisheries and Food to incentivise energy crop production. The forestry machinery grants, bio-energy establishment scheme and top-up payment to the energy crop premium are proving popular and are designed to mitigate perceived risks and encourage investment in energy-related farm and forest businesses.

The action plan sets the scene for the establishment of new rural enterprises using raw materials that previously may not have had any value. Forest residues and thinnings, as well as dedicated energy crops and farm wastes, all provide new opportunities, while wastes such as used cooking oil and meat and bone meal that incurred disposal costs can now be converted into bio-fuels for transport or used to generate electricity.

The bio-fuels sector has seen a sharp rise in activity and interest in recent years and the Government has established ambitious targets in line with EU thinking. It aims to create a level of long-term certainty for potential investors through the establishment of targets for 2010 and 2020 and the announcement of the intention to move to a bio-fuels obligation. The Government intends to launch a public consultation process on Ireland's bio-fuels obligation later this year, which will give stakeholders an opportunity to have an input to the roll-out of this important policy initiative.

The action plan is a valuable first step in recognising the complexities of the bio-energy supply chain and providing cross-departmental support for development of bio-energy in Ireland. Together with the publication of the White Paper, Delivering a Sustainable Energy Future for Ireland, and the revised national climate change strategy, the Government has set an ambitious agenda for change.

The input of producers, processors and consumers will be a valuable part of the process to deliver the necessary changes and the Government will continue to engage with the various sectors and the diverse range of stakeholders on the roll-out of schemes and initiatives to incentivise production and demand. The Government will be glad to consider any proposals put forward by groups or individuals that would contribute to its aim. Deputy White's proposal will be considered and examined in that context.

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