Thomas Pringle (Donegal South West, Independent)
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5. To ask the Minister for Environment, Community and Local Government the way he sees Ireland benefitting from the green economy and climate change opportunities; the way the carbon tax will assist this; and if he will make a statement on the matter. [20695/13]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The Government’s ambition for growth and job creation in the green economy, as well as a range of associated actions, are set out in the policy statement on Delivering our Green Potential which was published by my colleague the Minister for Jobs, Enterprise and Innovation in November 2012. Publication of the statement followed on from a commitment under the Action Plan for Jobs 2012 and must also be seen in the context of the Government’s new sustainable development framework, Our Sustainable Future, published in June 2012. It is estimated that well over 10,000 extra jobs could be created in the green economy sector over the next number of years.

A key element of the context for the emerging global green economy is the gradual emergence of new technologies and practices that are responding to the threat of climate change and the need for a significantly more efficient approach to using natural resources.

In meeting our international climate commitments, greenhouse gas mitigation policy in the EU is being developed around early and cost-effective transition to a competitive low-carbon economy in 2050. In Ireland, policy is being developed on an equally progressive approach, as borne out both by the outline heads of the climate action and low-carbon development Bill and the ambitious policy initiative on sectoral mitigation roadmapping for 2050 which I announced recently. Our commitment to environmental sustainability, including climate protection, will be fundamental to our success in shaping and engaging competitively in the emerging global green economy.

The carbon tax is one of the key policy responses to support the transition to a low carbon economy. Responsibility for the carbon tax rests with my colleague, the Minister for Finance.

Thomas Pringle (Donegal South West, Independent)
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I thank the Minister for his response. On the day the carbon tax comes into play and many low income households see significant price increases in fuel to heat their homes, it may have been some consolation for them if the revenue generated from the carbon tax was used to develop alternative green energies that could possibly provide them with carbon neutral energies for home heating. That the carbon tax is going into the central Exchequer and there is no ring-fencing for the development of the green economy is a retrograde step that needs to be reversed. We should be looking to develop green energy with biomass for home heating and converting large parts of the country to that which is carbon neutral, contributes to the green economy and also would provide people with a carbon neutral and carbon tax free heating source for their houses. The Minister should focus on that and ring-fence the carbon tax for those developments but unfortunately the carbon tax is going into the Exchequer and there will be no benefit in terms of developing the green economy.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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In terms of the overall taxation policy, the Government will want to ensure it can limit taxation increases on labour. If there are environmental taxes that can be deployed for the purpose of ensuring we do not increase tax on labour and work, that is a noble aspiration and a reality to date during this Government's term of office, however, it is not true to say that no money goes into matters relating to the climate change agenda to which the Deputy referred. Some €35 million has been allocated for an energy efficiency fund and €9 million has been allocated for research and development in the Department of Jobs, Enterprise and Innovation in respect of new technologies along the lines mentioned by the Deputy. While initiatives have been taken, I agree we could do more. We are working on proposals on the energy efficiency side and on home improvements that may assist some of the measures advocated by the Deputy between now and the end of the year. I am conscious that people will respond to some of the initiatives being taken, whether it is grant assistance or they may be in a position to benefit from lower energy costs in their homes arising from better insulation or better energy efficiency standards. The carbon tax is a tax for the purposes of the Central Fund but the Government is equally conscious of the need to meet our climate change objectives on the energy side. We will continue to invest some of that money in the context of the proposals I have mentioned.

Thomas Pringle (Donegal South West, Independent)
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As Minister for the Environment, Community and Local Government it would have been important that the carbon tax be ring-fenced. The carbon tax is a revenue generating vehicle rather than for the purpose of dealing with climate change or moving to carbon neutral technologies. A great deal more investment is needed in the area and the Government should move quickly to ensure we change over and become carbon neutral. It appears from his response that the Government has a vested interest because the more carbon neutral home heating is provided the less is generated in carbon tax.

The Minister will not cut off his own source of revenue but that is the sad situation many home owners are facing.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I do not agree with the Deputy in any way in regard to his last assertion. More has been done in the past year and a half in developing our green economy potential than happened under my predecessors. We have now set out a road map as to how jobs can be created in the green economy and how we can reduce the costs of business in terms of energy efficiency. There was a €4 million investment by 24 companies in recent times which received a return of €3.5 million during the course of a year in energy efficiency savings and water conservation savings made. Those are examples of pilot schemes we have been carrying out around the country and are a clear indication that people want to engage in both the green economy and the energy efficiency agenda. Each Minister must draw up a sectoral plan in regard to how they can meet our climate change objectives and targets by the end of this year and I am sure that will spark off new initiatives they will have to take in order to meet those objectives.