Eamon Ryan (Dublin South, Green Party)

The Government's policy objectives in respect of bio-fuels are clear. The energy policy framework and the programme for Government commit to the sustainable use of bio-energy resources in transport and to work with our EU partners to ensure that bio-fuels used in transport comply with sustainability criteria in terms of bio-fuels production. This is the policy context for the proposed introduction of a bio-fuels obligation scheme which will be published for consultation shortly and which will take full account of developments at EU level and globally.

The sustainable deployment of bio-fuels is proposed by the European Commission in the climate change and renewable energy package as a contribution to delivering the proposed target of 10% renewable energy in transport by 2020. The contribution of renewable electricity to transport is part of the solution also. This was very clearly confirmed by Commissioner Piebalgs, Energy Ministers and Members of the European Parliament at the informal Energy Ministers' meeting last week.

Five years after the European Union agreed the bio-fuels directive in 2003, there are growing concerns about the role of bio-fuels in rising food prices, accelerating deforestation and doubts about the climate change benefits from certain fuels. The issues and challenges are very complex and it is clear that we need a fully evidence-based approach which takes into account all factors in terms of developing a credible and sustainable European Union policy in respect of bio-fuels production and use. The rise in international food prices has been caused by a variety of complex and interrelated factors. We must make sure that the development of bio-fuels from potential food crops does not push food markets in developing countries into crisis.

The central question is not whether Europe keeps to the proposed 10% target for renewable energy in transport but how we quantify and implement comprehensive and mandatory sustainability criteria for European bio-fuels production and imports. It is only in that framework of strong controls that sustainable targets for the EU for 2020 can be delivered for renewable transport fuels. It is only in that context that a genuinely sustainable bio-fuels industry can be established. Meeting the 2020 target will require the accelerated development of advanced technologies delivering second generations bio-fuels. It will also include the development of fuels from bio-gas, the targeting of local crops for fuels in captive bus and lorry fleets and, as mentioned, the creation of new electric vehicle fleets.

Additional information not given on the floor of the House.

My Department is working intensively with the Commission and other member states to develop robust coherent and workable sustainability criteria. These criteria include a labelling system to ensure that any bio-fuel supply does not come from agricultural methods that involve the destruction of native woodland forest. They also require that the production method can show a clear reduction in greenhouse gas emissions of at least 35% compared to standard fuel oils. I welcome the French Presidency's priority commitment to progress the bio-fuels sustainability issue by October. I also welcome the bio-fuels review published this week by the British Government, which is a timely and useful contribution to the European bio-fuels debate.

My Department's excise relief scheme has led to progressively greater amounts of bio-fuels coming onto the Irish market, much of which is used in the road haulage industry. I am fully aware of the difficulties faced by that sector. It is my objective to deliver certainty for the Irish bio-fuels industry and for the transport sector. The bio-fuels obligation mechanism is proposed as a means of providing that certainty set strictly in the context of sustainability and taking full account of EU and global developments. Having access to a diverse fuel supply will be of strategic benefit in the event of any future oil supply shock. It will ensure we have access to transport solutions in critical areas such as food distribution and public transport.

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