Seán Sherlock (Cork East, Labour)

The "green economy" is a term used to categorise a range of economic activities which contribute to lower greenhouse gas emissions, better resource usage, and respect for the environment. It covers a range of activities from carbon trading to energy efficient and environmentally friendly products, renewable energies and eco-tourism.

The programme for Government makes commitments to supporting the sector, including through increasing support for energy efficiency and renewable energy programmes, establishing Ireland as a renewable manufacturing hub to attract international and domestic investment, and expanding renewable energy generation to achieve our renewable energy targets. Clearly, implementation of this agenda spans several Departments and State agencies.

As part of the jobs initiative, the Minister for Finance announced that an additional €30 million would be invested in the national retrofit home energy efficiency and renewable energy programmes this year. The Minister for Communications, Energy and Natural Resources has indicated that this initiative will support an additional 2,000 jobs in 2011. Other measures announced in the jobs initiative help to promote jobs in green tourism, such as halving the lower rate of employer's PRSI until the end of 2013 on jobs that pay up to €356 per week, removing the travel tax and cutting the lower rate of VAT.

The green economy is an area which could become strategically important for Ireland at a global level. We have a number of particular strengths which can realise jobs and growth opportunities and contribute to export-led growth. The sector already employs 18,775 people and the value of the Irish market in these sub-sectors was estimated at €3 billion in 2010. However, the value of the sector globally is set to increase rapidly, driven by a range of factors, including EU directives and regulations, rising energy costs, increased investment in environmental services and infrastructure, consumer preferences, and climate change and international agreements.

Additional information not given on the floor of the House.

The Department's agencies, namely, Enterprise Ireland and IDA Ireland, have established units dedicated to working with both indigenous and multinational companies in the so-called cleantech sector. A practical example of the success of Enterprise Ireland's supports for the sector was seen in last week's announcement of the creation of 145 jobs in County Galway in the manufacturing of wind turbines. Another notable development is that green financial services are part of the new strategy for the IFSC which was launched by the Taoiseach last week.

A number of policy issues need to be addressed to realise the potential of the sector. Some relate to planning and licensing. Others relate to the capacity of the electricity grid and the price for delivery of renewable energy. I will work with other colleagues to develop this policy framework.

See this speech in context