Fiona O'Malley (Dún Laoghaire, Progressive Democrats)
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The Stern Review on the Economics of Climate Change, published yesterday, marks a significant milestone in global co-operation. The report should be compulsory reading for every Government in the world. The threat of climate change is global and the response must be on a global scale. The comprehensive research conducted by Mr. Nicholas Stern is of such international significance and application that it is important we in Ireland take the opportunity to discuss it and I welcome that opportunity tonight.

Economics do not change with international boundaries. We have much to be thankful to the British for and we do not need to conduct our own research into the phenomenon now. This report provides the evidence, as if we need it, of the economic cost of global climate change. It is important that we respond to and act upon the findings of the review. It is comforting to note what the author said yesterday:

The conclusion of the review is essentially optimistic. There is still time to avoid the worst impacts of climate change, if we act now and act internationally. Governments, businesses and individuals all need to work together to respond to the challenge. Strong, deliberate policy choices by governments are essential to motivate change.

But the task is urgent. Delaying action, even by a decade or two, will take us into dangerous territory. We must not let this window of opportunity close.

It is not too late. That is the message, essentially, but we must act now.

Our Kyoto obligations are indeed onerous. That our economic growth took place between the benchmark year of 1990 and the present accentuates the challenge before us. However, this fact does not absolve us, particularly those of us in government, of the responsibility to implement policies which will permit us to respond positively to the task before us. The cost of doing nothing is prohibitive. Risk modelling forecasts a minimum cost of 5% of global GDP, rising to a possible 20%. In contrast, Mr. Stern predicts that the cost of taking action to reduce the worst effects of climate change could be limited to 1% of global GDP.

Tackling climate change will have consequences for our lifestyles. Should we continue to be able to take flights with impunity? The review suggests that the carbon costs of our actions should be transparent to increase our awareness of the problem and I would welcome that move. Developing new, cleaner and more efficient technologies offers enormous opportunities for Ireland. As has been stated on numerous occasions, we are ideally located to develop wind energy in particular. We could realise my own personal ambition of making Ireland the research capital for renewable technologies. We must have that ambitious target.

We must take action to stimulate energy efficiency. We must inform and educate people about the cost of their lifestyles so they can respond to the challenge. Last year, when measures were taken in the budget in this area, people could not get enough. People will respond to measures to create efficiencies, particularly those that will make their homes more energy efficient. I hope the forthcoming budget will go a step further to meet the appetite that is clearly there among people. We must realise that people want to change. If we inform and educate them about the cost of climate change, they will want to take mitigating measures themselves.

Tackling climate change is a pro-growth strategy. Ignoring it will ultimately undermine economic growth.

Batt O'Keeffe (Cork South Central, Fianna Fail)
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I thank Deputy O'Malley for raising an appropriate, pertinent and opportune issue and, as always, for making an incisive contribution to the discussion. I am glad to have an opportunity to respond to the Stern report.

The Stern Review on the Economics of Climate Change published by the British Government this week puts the global warming debate centre stage in economic terms and reminds all countries that the costs of inaction far outweigh the cost of tackling climate change now.

The review stresses that global climate change is an international problem and that the actions required to tackle the issue effectively must be multilateral. Any one country is only part of the problem. However, a sustained and effective collective response is necessary from all countries to avoid the worst effects of climate change in the future.

The review suggests that three elements of policy are required for an effective response. The first is carbon pricing, through taxation, emissions trading or regulation, so that people are faced with the full social costs of their actions. The aim should be to build a common global carbon price across countries and sectors. The second is technology policy, to drive the development and deployment at scale of a range of low-carbon and high-efficiency products. The third element is action to remove barriers to energy efficiency and to inform, educate and persuade individuals about what they can do to respond to climate change. A shared understanding of the nature of climate change and its consequences is critical in shaping behaviour, as well as in underpinning both national and international action.

Within the EU, Ireland is performing well in terms of greenhouse gas emissions relative to other member states and our position is by no means the worst in the EU. Ireland ranks mid-table with seven of the EU 15 further away from their Kyoto Protocol targets than us. Per capita emissions, while high, are not much higher than in many EU countries. Ireland's per capita carbon dioxide emissions were approximately 11 tonnes in 2004 compared to an EU 15 average of nine tonnes. Belgium, Denmark, Finland and Luxembourg had higher per capita CO2 emissions than Ireland. Most importantly, Ireland has achieved a decoupling of its emissions from economic growth, so that while our emissions grew by 23% since 1990, our economy grew by almost 150%.

The challenge of global climate change is a critical element of the global and EU energy landscape, along with the backdrop of high energy demand and volatile oil and gas prices. The energy policies we adopt for the future must play a substantial role in Ireland's response to this issue. The principal policy options set out in the recent Green Paper on energy are designed to deliver a more sustainable energy future for Ireland. These are well aligned with the review of the national climate change strategy, Ireland's Pathway to Kyoto Compliance, published by the Minister for the Environment, Heritage and Local Government, Deputy Roche. As part of an overall strategy for the energy sector, these principles stress the importance of increasing our use of renewable energy as the key to sustainability and future security of supply. We must also tackle energy demand itself through systematic energy efficiency strategies.

The energy Green Paper envisages an ambitious target of 30% of electricity produced by renewable energy by 2020. There are differing views on whether such a target is too much or too little, but it is proposed as a realistic ambition and one for which a solid foundation has been laid with the recently announced REFIT programme.

The Government intends that by 2020 the best commercial ocean energy technology should be Irish. Our ocean energy strategy is aimed to position us at the cutting edge of development.

Bio-fuels and biomass will play a major role by 2020, underpinned by the new bio-energy strategy that is led by the ministerial task force.

Séamus Pattison (Carlow-Kilkenny, Labour)
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The Minister of State should conclude.

Batt O'Keeffe (Cork South Central, Fianna Fail)
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Through greater energy efficiency, individuals and businesses have the power to contribute to the 2020 vision. This will mean a change in behaviour and attitudes to achieve the target set out in the Green Paper of a 20% reduction in energy demand by 2020. The recently launched national energy efficiency campaign, The Power of One, is aimed at encouraging such behavioural change. The agenda will include setting higher standards, regulating for change and, where necessary, incentivising change. The campaign will also target individual sectors and for example, the public sector must set the pace.