Brian Cowen (Laois-Offaly, Fianna Fail)

I refer the Deputy to my previous replies regarding the proposals published by the Commission that will lead to an agreement on the contributions of individual member states towards meeting the EU targets agreed at the 2007 spring Council. The Commission proposes that Ireland reduce its greenhouse gas emissions by 20% by 2020 based on 2005 emissions figures and achieve an overall target of 16% of final energy consumption from renewable energy by 2020. The proposals will take effect from 2012 after the current Kyoto arrangements.

The proposals set out by the Commission are complex and far-reaching and require detailed analysis and discussion at EU and domestic level and negotiations on the suite of directives are currently under way. The cost in budgetary terms and the economic impact will depend on the methods used to achieve whatever target is set and the framework agreed in the final directives. Obviously, we will try to be as fiscally neutral as possible.

As we have made clear, the Government supports the overall objectives agreed and the leadership shown by the EU's ambitions in respect of climate change. It is important that national circumstances and competitiveness impacts are considered in the context of finalising the EU's measures. In making decisions on what policies would best achieve the final targets, we must have regard to national competitiveness and the impact of policies on different sectors. The Government, through its actions on taxation of motor vehicles, new building regulations and the energy efficiency promotion, has begun the process of adapting the economy to a lower carbon footing. This is a challenge for all citizens, not just the Government, and will involve choices and changes in behaviour being made to realise the ambition of reducing greenhouse gas emissions.

In recent years, the Government has been acting to begin to address the challenge and we will continue to work towards reducing emissions. These are Commission proposals and there is still some way to go before they become agreed policy. The Cabinet sub-committee on climate change and energy security, chaired by the Taoiseach, has met a number of times to co-ordinate our negotiation approach.

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