Denis Naughten (Roscommon-Galway, Independent) | Oireachtas source

I thank the Senator for raising this important matter. The 2009 renewable energy directive established a common framework for the promotion of energy from renewable sources. It set Ireland a target of 16% of all energy consumption to be from renewable sources by 2020, with a target of 10% for the transport sector. Ireland aims to meet the 10% transport target through the increased use of sustainable biofuels, with electric vehicles also making a contribution. The deployment of biofuels through the biofuels obligation scheme will be the primary mechanism to ensure that Ireland's renewable energy target of 10% for transport will be met. Provisional figures for 2017 indicate that approximately 7% of our energy needs in the transport sector were met from renewable sources, mainly through biofuels.

The European Commission published the Clean Energy for All Europeans package in November 2016. The focus of this package of eight legislative proposals, which includes an amendment to the renewable energy directive, is on the period post-2020. The provisions of the proposed renewable energy directive build on the existing directive to provide a framework for the development of renewable energy out to 2030. Currently, the share of biofuels produced from crops grown on agricultural land that can be counted towards the 2020 renewable energy targets is capped at 7%. The level of these biofuels in Ireland is currently about 1%. The proposal put forward by the European Commission for the revised renewable energy directive is that the 7% limit would be reduced to 3.8% by 2030. The negotiating position agreed by the European Parliament is that the cap would be set at the level reached by member states in 2017, subject to a maximum of 7%.The general approach agreed by Ireland and other member states at the European Council in December 2017 is that member states may maintain the 7% limit to 2030. Along with a number of member states, Ireland supports the maintenance of the 7% cap for crop-based biofuels as set out in the Council's general approach. The trilogue negotiations on the proposed renewable energy directive are currently under way. Agreement has yet to be reached on a number of issues, including the cap for crop-based biofuels and targets for advanced biofuels.

Ireland's biofuels obligation scheme is a crucial policy measure that increases the use of renewable energy and decreases emissions in the transport sector. It was introduced in 2010 and requires fuel suppliers to ensure that biofuels make up a certain proportion of the fuel used in the road transport sector. Biofuels must meet strict sustainability criteria to qualify under the scheme. We discussed this issue at length at the joint Oireachtas committee. Progressive increases in the obligation rate, which is currently set at 8%, have led to the increased use of biofuels.

In December 2017, my Department held a public consultation seeking views on the implementation of increases in the biofuel obligation rate in 2019 and 2020 and on how the scheme will be developed into the future. A key theme of the responses received was the need to provide certainly to industry and stakeholders to allow longer term planning. Taking this into consideration, last month, I published a policy statement setting out the proposed future development of the biofuels obligation scheme in this country. The statement set out the following six actions: continue the biofuels obligation scheme until at least 2030 with progressive increases in the level of obligation and to develop the scheme in line with EU energy policy; increase the biofuel obligation rate to 10% by volume from 1 January 2019; increase the biofuel obligation rate to 11% by volume from 1 January 2020; reduce the carryover of biofuel certificates from 25% to 15% from 1 January 2020; work with industry and stakeholders to further increase the use of biofuels post-2020; and carry out public consultations on future obligation rate increases every two years post-2020. The scheme currently contributes an estimated 450,000 tonnes in carbon emission reductions each year towards our national targets. The changes I announced last month will increase this contribution to over 600,000 tonnes annually.

The policy statement will provide clarity for stakeholders and facilitate the longer term planning required to increase the use of biofuels. Similarly, the general approach agreed by Council to maintain the existing 7% cap on crop-based biofuels, which Ireland continues to support, will provide certainty for the industry and other stakeholders.