Dáil debates

Thursday, 10 July 2008

Priority Questions

Alternative Energy Projects.

4:00 pm

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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Question 2: To ask the Minister for Communications, Energy and Natural Resources his views on the concerns of non-governmental organisations in relation to the impact of bio-fuels production on food supplies in view of his failure to publish a bio-fuels policy; his further views on concerns of haulage interests here in relation to bio-fuels supply; and if he will make a statement on the matter. [28812/08]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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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.

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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I thank the Minister for his very nice reply. However, it does not add any insight into what is a central issue in energy policy worldwide. The impression one gets is that the Minister has run for cover. Perhaps he will elucidate in respect of his position on the Commission directive under discussion? Is he aware that already the environmental sub-committee of the European Parliament has rejected the Commission's view because of its concerns about the impact on the poor and starving in the world?

Will the Minister explain why he has delayed the publication of his bio-fuels obligation scheme, which he has promised many times but has delayed and about which he has kept us in the dark? Has there been any change to acknowledge the fact that we have a serious problem? Will he state what percentage of bio-fuels used in this country are imported? I have asked this question a number of times without getting an answer.

The Minister talks about sustainable principles, which is lovely talk, but how, particularly with regard to the WTO requirements, does he intend to ensure that we know the origin of the imports and whether they have been produced in a sustainable way? How will he do that?

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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Policy in this area must be consistent. A year and a half ago, I said during a debate in the Dáil on a motion moved by the opposite side of the House that we had to be very cautious and apply scientific evidence because there were environmental and other social concerns. I wanted to hear from my ministerial colleagues and the rapporteur from the European Parliament in advance of setting out our consultation document.

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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I am sure they wanted to hear from the Minister. That is the point. What did he tell them?

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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It is right to do it that way, to take in the evidence and listen to what people are saying. My understanding of the European Parliament's position, which is one I support, is that it is still supportive of the proposed target of 10% renewable energy in transport by 2020. It is very important to highlight that this involves not just bio-fuels but includes electricity. It is right to hold to that target because in its absence, the overall renewable energy target would not be met and the overall climate change package would run into difficulties.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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I will take a brief supplementary from Deputy McManus.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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I wish to finish the point. To answer the question——

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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The Minister should answer the percentage question, which is what concerns me most.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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On what? Will Deputy McManus repeat the question?

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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It relates to the percentage of imports into Ireland.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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We do not have a figure for imported fuels because we often import oil from the UK which is already mixed with a bio-fuel component. The industry does it.

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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The Minister cannot even tell me.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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In respect of Deputy McManus's earlier question about when we intend to have the sustainability criteria, the advantage of us supporting and working with the European Commission on this is that it alone will be able to put in the labelling and tagging system so that we clearly know where bio-fuels have come from and that there are real emissions reductions which do not lead to food poverty or destruction of native habitats. I understand that those details should be agreed by October as the French Presidency seeks to have the renewables package in its overall climate change package agreed. We can fit in with that European sustainability criteria programme to ensure that the bio-fuels we develop are sustainable.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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I will try to get in the last question in the five minutes remaining.