Robert Troy (Longford-Westmeath, Fianna Fail) | Oireachtas source

I thank Deputy Bacik for raising this important issue and giving us an opportunity to debate it. I also thank all speakers for their important contributions on this Bill. It is clear that we have some way to go to ensure that we all embrace climate change going forward.

As we transition to a low-carbon economy and society, we need to empower consumers to make good and informed choices. There is already a shift in consumer preference for climate-friendly products, which itself will further encourage innovation and creativity from product manufacturers and suppliers to provide products through decarbonised supply chains or new products that replace those with negative environmental impacts in their production, use, and waste.

The Government shares the intention of the Bill. We need product sustainability standards and labelling to drive down the carbon footprint of the goods we consume and to provide for evolving consumer preferences and the choice to select a low-carbon alternative when possible. These standards need to be the complete opposite of the greenwashing we often see and hear - where a product claims to be good for the environment but does not provide the rigorous analysis necessary to substantiate that claim. We need robust, and verifiable product sustainability standards, and in my view these need to be appropriate to the product category. That is why a European-level approach under the EU Green Deal is the most appropriate mechanism to deliver on this important objective. I would like to briefly emphasise the importance of the EU standards approach, under the sustainable product initiative that my colleague, the Minister of State, Deputy Ossian Smyth, outlined. The Single Market for products requires that any effective labelling standards for products are developed and implemented on an EU-wide basis. Ireland is a strong supporter of the Single Market. A unilateral national approach to carbon footprint labelling would undermine these efforts, and place an undue administrative burden on Irish producers and make them less competitive when exporting products. It would also make it more complex for manufacturers based elsewhere in the EU to sell into our market. As such, a standard EU approach is required to effectively balance the important objectives of informing consumers with the need to avoid placing an additional administrative burden on manufacturers.

Another EU instrument currently under negotiation at the Council working party, as part of the sustainable finance agenda, is a proposal for a corporate sustainability reporting directive, CSRD, which would impose mandatory sustainability reporting requirements on all large businesses. This is something I have a keen interest in from a company law perspective. It will substantially revise existing non-financial reporting rules. The proposal comprises environmental and social matters and introduces more detailed and mandatory EU sustainability reporting standards. It is expected that the new obligations will be phased in so that companies will publish their first reports according to mandatory standards in 2024.

Given the scale of the climate challenge, the interconnectedness of economies and the global nature of many manufacturing supply chains, the best approach will be to continue working closely with the European Commission and other member states on these legislative requirements relating to sustainability reporting. The Bill proposed by the Deputy suggests an amendment to existing legislation that governs the National Standards Authority of Ireland, NSAI, which falls under the remit of my Department, and so I want touch on the important role of standards to help measure emissions and positively change behaviour. The NSAI recognises the need to tackle climate change and the related environmental challenges as this generation's defining task and considers standards to be a critical enabler of the solutions needed for a green transition. There is great potential to apply the NSAI's toolset - certification, standards, and legal and national metrology.

The National Standards Authority of Ireland Act 1996, to a significant extent, facilitates what is proposed within the amendments to legislation suggested in the Bill, and enables the NSAI to develop standards and certification on any product. There are existing applicable standards in the area of carbon measurement. These standards are relevant, not only for their content, which is derived from global ISO standards, but also because they are official European norms, which are adopted as Irish standards. The NSAI is playing a key role, as Irish adoption of international standards in this area supports the shift towards a more sustainable future. On a national level, the NSAI is achieving significant traction in its extensive contributions to standards required under the climate action plan.

To provide robust carbon footprint information to consumers and compete in low-carbon supply chains, many businesses, and in particular smaller manufacturers, are going to need to educate their teams and equip themselves to meet these requirements. With that in mind, my Department, together with the Department of the Environment, Climate and Communications, is developing an online climate toolkit 4 business. This toolkit will give them an understanding of where carbon emissions arise in their activity, get them started on their journey to zero carbon and act as a signposting tool to the available State supports.

The Government is looking to amend the proposed Bill and defer its reading for a year, in order for progress on the detail to be made at European level. However, I highlight that there is plenty that businesses and consumers can and should progress in the meantime. For example, the NSAI can provide businesses with the EU Ecolabel, which is a label of environmental excellence that is awarded to products and services meeting high environmental standards throughout their life cycle. Many producers find that it gives them a competitive advantage. It allows companies that have made real commitments to sustainability demonstrate that to customers.

We also have a role to play as consumers when we are purchasing energy-consuming products such as dishwashers, fridges, or similar. We should be alert that manufacturers and retailers are legally required to provide consumers with information about the energy efficiency of these products. EU energy labelling helps consumers to choose the most energy-efficient product, lowering energy bills and reducing the impact on the environment.

The Government agrees that it is important that there is transparency and consumer choice around the carbon footprint of products. I hope that on further discussion of this Bill we can discuss the detail of the new product standards being developed at European level, and that Members can agree to a product-specific, robust and proportionate approach to sustainability and labelling requirements on products across the EU Single Market.

See this speech in context