John Gormley (Dublin South East, Green Party)

I thank the Leas-Chathaoirleach and Senators for inviting me today to discuss the Oireachtas joint committee's report on the EU climate package. Before addressing the report, I wish to make a few general comments on climate policy.

The 7 October was a milestone in terms of the people of Ireland and Europe taking responsibility for the future of the climate. On that day, the European Parliament's environment committee voted overwhelmingly to support the 2020 emissions targets set out in the climate package. Earlier on the same day, the Oireachtas Joint Committee on Climate Change and Energy Security published this report supporting the overall framework of the climate package. It is clear to me that there is a strong democratic mandate, at national and European levels, to seriously tackle greenhouse gas emissions. It is up to governments to respond to and match the ambitions of that democratic mandate.

I also want to covey my appreciation of the work of the Oireachtas joint committee and, in particular, its Chairman, Deputy Seán Barrett, which held more than a dozen public sessions to discuss the package and to listen to the views of the many stakeholders in climate change policy.

I want to make clear that I welcome the committee's all-party endorsement of the 2020 greenhouse gas targets that are contained in the climate-energy package. When I entered Government, as the leader of the Green Party, I made it clear that our priority was to agree an all-party approach to climate change. I applaud the committee's Chairman and its members for moving beyond party politics to address the most serious environmental challenge that will affect us all and future generations.

I agree with the Oireachtas committee members that we should accept the proposed 20% reduction target for Ireland by 2020 compared to 2005 and that we should move to a 30% reduction target as part of a comprehensive and global climate change agreement, provided the overall package is robust and balanced.

This decision cannot be taken lightly. I assure the Members of this House as well as the members of the committee that our 2020 climate change policy is being treated as a matter of top priority across all of Government. The Taoiseach chairs the Cabinet committee on climate change and energy security, which ensures a whole-of-Government involvement in the negotiations on the EU's 2020 climate-energy package. All relevant Departments are involved intensively in assessing the implications of the overall package as well as various elements of the proposals. These issues, many of which have been identified also by the committee, form part of Ireland's negotiating mandate for the ongoing discussions on the package.

The Cabinet committee, and its supporting officials' groups, is engaged also in ongoing extensive analysis of policy options that will form the basis of our strategy to reach the eventual target that Ireland takes on for 2020. At this stage, there is still some uncertainty about the ambition level, shape and rules of the international climate change agreement which is due to be reached by 2009 in the negotiations under the auspices of the United Nations. None the less, the work we are carrying out now across all Departments will underpin the implementation of our 2020 international commitments.

A key issue for Ireland will be the identification and implementation of measures in all sectors across the economy as a whole which will deliver the required cuts in the most cost-effective way. As we have seen, the Oireachtas joint committee has endorsed, on an all-party basis, greenhouse gas emissions reductions for Ireland of 20% under the a balanced EU package and 30% as part of a global climate agreement. These are challenging targets to be met by all sectors in Ireland. I encourage the committee to build on this all-party approach and to consider and support the necessary policies that will need to be implemented to reach the targets they have endorsed. To this end, I look forward to myself and my Department working with the members of the committee.

Turning to the committee's report, which examines in detail the European Commission's climate-energy proposals, it is a timely and very welcome contribution. Given the scale of the challenge we face and the commitment that will be required from all sectors and citizens, the proposals should be examined and debated at every level of society. This report makes an important contribution to this process of broadening the debate and informing the national position.

On numerous occasions I have said we are facing one of the biggest challenges ever to face humanity and we, this generation, will be judged on how we respond. The proposals put forward by the European Commission in January 2008 provide us with the context within which Ireland's efforts will become part of the greater European and international whole. It is consistent with the EU's goal of limiting the increase in global temperatures to 2° Celsius. It is worth keeping in mind that even this best case scenario will have a significant impact on the climate system.

The proposals put forward by the Commission are based on the most up-to-date science available as set out in the IPCC fourth assessment report. We must make very significant reductions in greenhouse gas emissions. To meet the 2° Celsius goal, we will have to stabilise global emissions within the next decade or so and then cut them by at least 50% below 1990 levels by 2050. This means that developed countries will need to reduce their emissions by 80% to 95% by 2050.

Last year, the European Union set out its aims for a comprehensive and fair international agreement to come into force by the end of 2012. The EU made an independent commitment to reduce emissions by at least 20% by 2020 and agreed to increase this to 30% as part of an effective international agreement. The EU will expect other industrialised countries to take on reduction targets that put them on a similar level of ambition so that developed countries as a whole reduce their emissions by 30% by 2020. Commitments to take action on rising emissions will be required also from developing countries, and the assistance they will need to make those commitments will need to be agreed also as part of the international negotiations.

Ireland's emissions are, at 17 tonnes of carbon per capita, the second highest in the EU and it is right, as the committee acknowledges, for Ireland to play the fullest role possible in finding workable solutions. The Government considers the package to be both comprehensive and integrated and feels it will provide a credible framework for climate and energy policy within the EU.

The Government fully supports the European Union's greenhouse gas emissions goals and the architecture of the proposals. However, we have raised some concerns, especially with regard to the effort-sharing proposals. We also recognise that agriculture contributes a significant proportion of the emissions in the non-ETS sector. Taking into account the difficulty in reducing emissions in this sector, the Government has been pursuing discussions with the Commission to ensure proper account is taken of these factors. We accept that ambitious reductions are required of member states and, along with other member states, have proposed various flexibilities within the overall EU reduction to ensure these targets can be met in the most cost-efficient manner possible.

I welcome the committee's support for the proposals in general and its positive views on auctioning for the ETS sector. The Government's position is to have auctioning to the maximum extent possible as it is the most efficient means of allocation and the most effective means of ensuring least cost emissions reductions by encouraging appropriate investment by industry. The Government believes the step up to the EU's 30% target should be subject to a new legislative proposal accompanied by a full impact assessment — I am pleased to see the committee has come to the same conclusion — to ensure the EU has the best chance of success in meeting its ambitious, world-leading targets. A rigorous assessment must be applied to ensure member states' targets are fair and equitable and can be achieved at the least cost.

The joint committee has proposed flexibility with regard to effort sharing and the idea that member states could trade non-ETS entitlements is receiving careful consideration by member states. The Government believes that open, market-based trading of effort-sharing allocations between member states is an important and necessary flexibility that will help Ireland and all EU member states to reach their ambitious targets in the most cost-effective manner.

Ireland has proposed also an additional flexibility of using ETS allocations to comply with a member state's effort-sharing target, although we recognise there is some concern over possible risks to the ETS market. None the less, we believe it will be possible to negotiate a range of flexibilities that are consistent with the overall reduction target and permit its achievement at low economic cost. Ireland has made clear throughout this process that the inclusion of sinks is essential if we are to meet our effort-sharing target. However, the Government is not in favour of extending the use of forestry credits to the ETS given the difficulties in accounting for such credits and the often temporary nature of those credits.

Concerns about potential carbon leakage are shared by all players. The relocation of industry emissions and jobs outside of the EU is not in anyone's best interests since it will not reduce global emissions and could result in increased emissions. Obviously, the risk will be lessened in the context of a global agreement. However, discussions on how best to assess the risk of carbon leakage and the measures which may be appropriate are ongoing. The Government is seeking to ensure all sectors at risk are assessed. To this end, we have raised concerns about the potential for carbon leakage in non-energy intensive industries, including from agriculture. Discussions on the best means of addressing this issue are ongoing as part of the overall negotiation process.

I very much welcome the positive all-party endorsement by the Oireachtas joint committee of the overall package of climate proposals, the 20% reduction target for Ireland under the current EU package as well as a 30% reduction as part of a global agreement. I look forward to continuing on this all-party approach when we need to make the difficult decisions to implement measures to reach these targets.

Some valid suggestions have been made by the committee and many of these are reflected in the Government's position. These proposals and the related internal EU negotiations form the basis for a future international agreement and represent the best means of tackling the significant climate change challenge that faces us.