Ossian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

I thank Senator Garvey. Indeed, the term “circular economy” is technical one. It is a challenge for me to get that concept clear to the public. We are bringing in a new circular economy Bill. The Senator is right. The Rediscovery Centre in Ballymun is a great way for people to understand this because it is so practical. It is doing four things: upcycling, paint, bicycles, furniture and clothing. It is very practical, it gives people employment and skills, and it keeps resources within the economy. It is great it is now being duplicated throughout the country. It is a fantastic scheme and I agree with the Senator on that.

The Government recognises that the current take-make-waste economic model is not sustainable, economically, socially or environmentally, and that a fundamental shift in our production and consumption patterns is now needed. We are committed to building a circular economy where waste is minimised, economic growth is decoupled from resource consumption, and the value of goods and materials is retained in our economy for as long as possible. This approach led to our 2020 waste action plan for a circular economy, which committed to a range of actions to make the transition to a circular economy a reality. This included the adoption of a high-level, whole-of-government circular economy strategy.

The strategy was launched last year in December 2021 and it has five main objectives. First is to provide a national policy framework for Ireland's transition to a circular economy. Second is to identify measures that can significantly improve Ireland's circularity rate relative to our EU peers. Third is to raise awareness across society about the circular economy. Fourth is to support increased investment in the circular economy in Ireland. Last is to identify and address the economic, regulatory and social barriers to Ireland's transition to a more circular economy.

My Department has commenced the implementation of the strategy, and this work will be carried out with a strong focus on stakeholder participation, and in co-operation with other policymakers across the Government. In addition, on 8 March, the Government approved the publication of the Circular Economy, Waste Management (Amendment) and Minerals Development (Amendment) Bill 2022. It is intended the Bill will be enacted before the summer recess. The Bill will underpin multiple actions committed to in the waste action plan and it will provide a robust statutory framework for adapting our national patterns of production and consumption.

The Bill provides for new environmental levies on items like single-use cups, food containers and food packaging to incentivise the use of reusable alternatives. The new levies will work in a similar way to the plastic bag levy with the proceeds ring-fenced in a circular economy fund for projects relating to environmental and climate action objectives. The various levies will be introduced incrementally. However, the initial focus will be on the introduction of levies on disposable hot drinks cups. Ireland currently sends millions of disposable coffee cups to landfill every year, and that needs to change. The figure is approximately 200 million per year.

The objective of the new levies is not to raise revenues. Indeed, the aim of introducing them is to encourage the use of reusable alternatives so that the consumer never incurs the levy in the first place. The precise details regarding the scope and rate of the levy on disposable coffee cups will be set out in secondary legislation following the enactment of the Bill, with the intention of bringing the levy into force as early as possible. The amount being considered is 20 cent. The new levies will build on Ireland's successful experience of the plastic bag levy and the landfill levy. I look forward to introducing this levy as soon as possible this year. I expect to see a rapid and significant surge in the use of reusable cups, as well as a decline in coffee cup litter throughout the country.

I recognise the role played by the environment fund since its inception and the need to align its objectives more closely with the promotion of the circular economy. The environment fund will be replaced with a new circular economy fund under the Bill. The fund will continue to support key environmental projects in the coming years. The circular economy innovation grant scheme, which was established last year, is currently funded from the environment fund and it will continue to be funded from the circular economy fund following the enactment of the Bill. This multi-annual scheme directly supports the growth of the circular economy in Ireland and provides examples of best practice to inspire others.

In 2021, ten projects were awarded some €490,000 in funding under the scheme. Applications for funding under the scheme in 2022 will be opening later in the year.