Eamon Ryan (Dublin South, Green Party)

The Government is firmly committed to the sustainable development and deployment of bio-fuels in line with the EU commitments agreed by the European Council in March 2007. We have committed to achieving a target of 5.75% market penetration by 2010, in accordance with the current EU bio-fuels directive and Commission proposals in this area. We have also committed to achieving 10% market penetration of bio-fuels by 2020 which is the target proposed by the EU Commission. These targets will be underpinned by the introduction of a bio-fuels obligation in 2009. The proposed obligation will require all fuel suppliers to ensure that bio-fuels represent a certain percentage of their annual fuel sales. By moving to an obligation market players will be given the long-term certainty to make appropriate investment decisions. Eleven other member states have chosen obligations as their preferred policy option.

My Department is actively engaged in the EU Council Working Group, which is working to agree the sustainability criteria. Currently, the feed stocks used for bio-fuels production are generally sourced on the open internationally traded commodities market with little or no information attached to these with regard to their origins. It is only through setting stringent sustainability criteria that Ireland and other member states will be able to trace the source of these fuels, and obviate the cumulative effect of unsustainable practices on developing countries. I wholeheartedly support the Commission's commitment to ensuring that rigorous sustainability criteria are put in place and complied with under the new directive.

The obligation will build on the 2005 and 2006 mineral oil tax relief schemes for bio-fuels. A total of 18 projects have been awarded excise relief between 2005 and 2010. The schemes, valued at more than €200 million aim to ensure that Ireland reaches an initial target of over 2% market penetration of bio-fuels this year. The schemes are geared towards those producing bio-fuel. As a result of the excise relief schemes, bio-fuels are already being mainstreamed in blends of up to 5% at a number of existing petrol and diesel pumps.

Ireland's national bio-fuels obligation will take full account of EU developments on bio-fuels and related sustainability. Ireland is working closely with other member states in the negotiation of the directive to ensure that all bio-fuels placed on the European and Irish market are verifiably produced by reference to appropriate environmental and social sustainability criteria.

Additional information not given on the floor of the House.

The motive for promoting bio-fuels is to reduce our greenhouse gas emissions from the transport sector and to ensure we have an alternative fuel supply to power essential transport, agriculture and industrial services in the event of a disruption in conventional oil supplies.

I will shortly be launching the public consultation process on the proposed obligation which will allow all interested stakeholders to submit their views on the proposal. Specific details of the obligation will be finalised on foot of the consultation process and will reflect EU developments over the coming months.

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