Dáil debates

Thursday, 22 April 2010

Energy (Biofuel Obligation and Miscellaneous Provisions) Bill 2010 [Seanad]: Second Stage

 

2:00 pm

Photo of Peter KellyPeter Kelly (Longford-Westmeath, Fianna Fail)

The purpose of the Bill is to introduce a bio-fuel obligation in Ireland with the result that 4% of transport fuels would come from renewable sources. Along with all other EU member states, Ireland is required, under the 2009 renewable energy directive, to have a 10% penetration rate of renewable energy in transport by 2020. The Government programme and the White Paper on energy policy also contain a clear commitment to the introduction of the bio-fuel obligation. This Bill simply ensures that we deliver on these commitments.

We may ask why we should target the transport sector. The reasons are clear. Transport accounts for a significant and increasing proportion of energy use in Ireland. According to the EPA, transport accounted for 27.8% of energy use in 1990. By 2005, this figure had jumped to more than 40%. The transport sector is almost completely dependent on fossil fuels. This is not sustainable for the sector or for the environment. This great dependence on fossil fuels means that the sector is very exposed in terms of oil price fluctuations. It also means that the transport sector is responsible for over a third of energy related CO2 emissions. In this context, it is clear that the promotion and use of bio-fuels are to be welcomed.

Before delving further it is important to be clear about the nature of bio-fuels. These fuels are produced from biomass which, in turn, is any organic material of plant or animal origin that can be used as an energy source. It can be derived from agriculture and forestry production, their resulting by-products, and any renewable portion of industrial and urban wastes which can be used as feedstock for producing bio-energy.

The introduction of the bio-fuel obligation offers many advantages. First, it will help to lower our carbon emissions. We are all aware of the consequences of climate change. Bio-fuels have a central role to play in the delivery of reductions in greenhouse gas emissions, as one of the few available and effective means of reducing emissions from transport. Second, it will decrease our dependence on finite fossil fuels and improve our energy security. Fossil fuels supplies are finite and alternative forms of energy must be developed. At present, 90% of Ireland's energy requirements are imported, meaning that we spend more than €6 billion overseas every year. Third, it will encourage the exploitation of cleaner, renewable energy sources in the transport sector and, fourth, it will provide a boost to the bio-fuel industry generally. This obligation will provide a guaranteed market for the bio-energy sector. Fifth, it will provide a number of economic benefits, particularly to rural areas. Bio-fuels offer a supplementary outlet for agricultural products, thus enhancing farm incomes and possible spin-offs for rural communities.

Whereas the benefits of using bio-fuels are plain for all to see, we must endeavour to minimise any potential adverse consequences for consumers, the environment and for those living where the products needed are sourced. This is addressed by the sustainability criteria included in this Bill. In accordance with these criteria the bio-fuels used must produce 35% less greenhouse gases than their fossil fuel comparators. There are strict requirements on the type of land from which bio-fuel crops can be taken and there are also strict reporting requirements on social conditions; for example, water cannot be diverted from indigenous populations. Measures must be also taken to protect biodiversity, such as rainforests etc. It should be also noted that a number of review clauses are built into the Bill.

I very much welcome the fact that the use of bio-fuel will be monitored in terms of its market, environmental and social consequences. Furthermore, there is a requirement for a review before any change in the suggested penetration rate. There is no doubt that Ireland's future lies in green energy. The revised programme for Government has promised the creation of 127,000 green jobs over the next decade and the bio-fuel obligation introduced in this Bill will play an important part in delivering a greener Ireland.

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