Brian Cowen (Laois-Offaly, Fianna Fail)

It is important to point out that we are at the start of a process here rather than at the end of one. We have proposals from the Commission and we are anxious to ensure it is a fair and transparent system that provides a fair measure of burden-sharing consistent with the criteria that have been outlined. These targets are part of a number of proposals that were released last week but they represent the start of a process that may take some time. We are analysing the impact of those proposals from an Irish perspective and this process is being mirrored in all other member states as well.

As with other finance Ministers, I have concerns about any initiatives that increase costs. However, this must be balanced by the findings of the reports produced by Stern and the IPCC that long-term costs of inaction may be substantial and hence the need to act. However, we have to be still mindful that there are also substantial economic and fiscal implications for the implementation of policies to tackle and adapt to climate change. Our challenge is to ensure that the transition to a low carbon economy is handled in a way that is consistent with competitiveness, supports sound and sustainable management of public finances and contributes to broader growth objectives.

At this stage we have not completed our assessment of the domestic impact of the Commission's proposals. While the Commission has modelled some scenarios on the basis of their proposals, we do not have the detail behind those calculations. In any event, much depends on what measures we as a country take in the future and what will be the policy mix. Long-term economic forecasting, of its nature, is imprecise and projections have to be treated with caution. The Commission indicated that there would be costs in terms of investment but that these would vary with the measures chosen and would fall on a wide variety of players in the economy. In addition, the forecast for any possible reduction of GDP by 2020 is indicative only. To bring about the reductions will mean choices being made and it will be a matter for all citizens to play a part.

We will robustly test the proposals coming from the Commission to see whether they represent a fair and transparent process in so far as Ireland is concerned. We will bring particular Irish considerations and circumstances to the Commission's attention.

As regards the emissions trading scheme, it is part of the process. It is often suggested that in some way it is an illegitimate part of the process but it is a legitimate means by which burden-sharing can be efficiently handled by way of buying carbon credits from countries where there is not the same problem. It is a question of finding a mix in terms of all the mechanisms that are available to us and this represents a serious challenge.

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