Eamon Ryan (Dublin South, Green Party)

Increasingly, the response focuses on the cost factor and the economic consequences. I acknowledge there will be cost implications. The EU has estimated that the proposed measures could cost up to €90 billion. However, from an energy policy viewpoint the cost of not making these changes is huge. Leaving aside the environmental aspect, the over-reliance by the EU on fossil fuels is the key economic motive for introducing the measures. Based on the price of oil at $60 per barrel, the savings from the changes in terms of cost reductions in our fossil fuel bills are estimated at €50 billion. If oil costs $100 per barrel, we are looking at savings of €90 billion. In other words, the measures are cost neutral. The savings in fuel alone pay for the other costs of developing renewable alternatives. Therefore, those who seem obsessed at the cost to the Irish Government are missing the bigger picture of the geological reality that global oil production has reached the point where it will decrease rather than increase annually. With 90% of Ireland's energy consisting of imported fossil fuels, we are particularly exposed. We have the potential to cut our dependence by taking on the agenda of developing renewables and saving energy.

Energy efficiency has not received much attention even though it is the third and most important of the 2020 targets. The Government is due to publish an energy efficiency action plan this spring which will represent the start of a comprehensive and dedicated focus on energy efficiency in the public sector, where we want to achieve a one third reduction in energy use through efficiency gains, and the wider economy, where we want to achieve a 20% reduction. We have already engaged in the process by changing building regulations. A 40% improvement has been made to building regulations and we have committed to a 60% reduction within a short timeframe and will then move towards the objective of constructing all buildings to required housing standards within the timeframe of the EU project.

We have led the way in Europe on light bulb regulations. Many people have criticised the proposed changes but we have to take bold steps. When we told the European Union about our plans, it responded that we were right and that it should review its own level of ambition in that area.

I look forward to the publication today of the Finance Bill, which will include measures on tax breaks for businesses that invest in energy efficient equipment. This represents a crucial way of helping companies to make economies, reduce fossil fuel bills and cut emissions. The change we made to the motor tax system is a crucial first step in transport, which presents the biggest difficulties. While reductions are already being made in agriculture and power generation, they are being lost by the increases in the transport sector. The changes to motor taxation will affect the price of vehicles that are high in energy use but they are a crucial first step in a journey we will have to make in this area.

We have to reduce our emissions from the current 70 million tonnes to 63 million tonnes by the end of the Kyoto period in 2012. The new binding target, if it is agreed next year in Europe, will require further cuts to 56 million tonnes and if an international agreement is reached from Copenhagen we will be aiming for a target of 48 million tonnes. To make these reductions, we will have to go beyond what anyone has yet contemplated. We have no choice other than to start preparing and, rather than be dragged kicking and screaming into the process, we should embrace it as an opportunity to create jobs, become a technology leader and cut our fossil fuel bill.

The Government has established a Cabinet subcommittee and an Oireachtas joint committee on climate change and energy security, recognising this is a long-term project and sending the message that regardless of the results of the next election, an investment decision on energy efficiency will bring returns in the next ten to 20 years. These committees will have a crucial role in terms of exploring the options and opportunities of the new energy future. The Government has also established a technical analysis group which will bring the best brains in the State system together to report to the Cabinet subcommittee on technical and economic modelling for each sector. That analysis will feed into Government decision making on the project, which the Taoiseach correctly noted will present a significant challenge. It will have to be at the centre of every aspect of our economic, social and environmental thinking.

I welcome today's debate as part of the first stage in getting to grips with this complex emissions trading system. It is not easy to comprehend the various targets and their different base years but a debate which allows us to develop a better understanding is important.