John Gormley (Dublin South East, Green Party)
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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.

Joe O'Reilly (Fine Gael)
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Cuirim fáilte roimh an Aire. Glactar leis go bhfuil fadhb againn le athrú aeráide domhanda ag an bomaite seo. Tá seo le tabhairt faoi deara sa tír. Ba chóir dúinn níos mó béime a chur ar fhuinneamh glas inathnuaite. I join the Minister on his remarks to the all-party committee and his endorsement of its findings and support for EU and national targets. I am proud that one of the most senior and respected parliamentarians in the Oireachtas, a member of my party, Deputy Seán Barrett, chairs that committee. His approach and the insights he brings to discussion are a source of pride to the Fine Gael Party. I appreciate that Minister has acknowledged his contribution.

We no longer need to remind people that global warming is real or there is a problem because it is now accepted fact. There has been a gradual disappearance of Arctic Sea ice, we have heat waves and the risk of more and flooding and hurricanes, etc. The monsoon-type rains we have had and the change in our climate also suggest global warming. It is reasonable to begin the debate by accepting global warming as fact.

The EU target is a 20% reduction of carbon emissions by the year 2010. We must acknowledge the importance of that target and the greater emphasis on the use of renewable energy sources. Ireland currently achieves 3.1% use of renewables, but hopes to have a minimum 16% use of renewables by 2020. Our target for the use of bio-fuels is 10%, although there are issues with regard to the production of these fuels and food supply. Renewable energy sources must be given priority in the attempt to achieve our targets.

The Environmental Protection Agency has responsibility for developing annual network emission projections and assesses what we need to do to reach the Kyoto and European Commission targets. The EPA report released on 8 October 2008 is quite damning of our under-achievement to date. It predicts we will be 6.5 million tonnes over target by 2012, which will result in hundreds of millions of euro worth of taxpayers' money being used to purchase credits to fulfil our Kyoto obligations.

Fine Gael has argued we need to do more to deal with the problem of our carbon emissions. The criticism I would make of the Minister's speech is that it is high on aspiration but low on achievement. To date, Ireland has under-achieved in this area. I realise the Minister acknowledges this but it is an indictment of Government and its efforts that we have not done better on our targets. I will put forward practical suggestions in that regard later.

We had a 1% reduction in carbon emissions last year, a painfully slow rate of progress. The net reduction was 700,000 tonnes. This brought us from 69.6 million tonnes of carbon emissions to 68.9 million tonnes. This was aided by afforestation and by fewer carbon emissions from the agricultural sector. Obviously the slowdown in the economy is also assisting in this regard. It is one of the beneficial by-products of the reduction in economic activity.

There should be more radical efforts to deal with the question of carbon emissions. For example, throughout the country there could be feeder buses to central bus routes. Around my own nearest national road, the N3, feeder buses could bring people to the main route to connect with the main bus to Dublin, thereby reducing the number of cars on the road. There is a need for a new emphasis on rail freight and better use of the railway system, but there was no indication in the budget that this was being considered. In fact, the contrary is the case. This is of great concern.

I appeal to the Minister to address with urgency another major concern, which is the fact that it is not easy enough for producers of wind energy or other forms of renewable energy to gain access to the grid. The ESB seems to have a monopoly and to be blocking the entry of renewable energy. A great alternative enterprise would be for a group of farmers to come together and set up a local co-operative wind farm, but if they were to do so, they could not readily gain access to the grid. That is a critical omission in the current policy. I sincerely appeal to the Minister to consider this much more radically and to take a hands-on view. If a small industry sets up a micro-generator — for example, a wind turbine or water energy installation — to supply its own electricity at local level, it should be able to sell its excess electricity to the grid. These are the radical, practical steps that are needed immediately.

There is a commitment in the programme for Government to reduce carbon emissions by 3% per annum and to reach a target of producing 40% of our energy from renewables by 2020. It is clear that so far, if one were to adopt a school report approach to the Government's progress, one would have to say "Failed — but could do better". It is in the hope the Government can do better that we exhort it to deal with the issues as I suggest.

It is not clear what the impact of yesterday's carbon budget will be in terms of insulation of homes. I ask the Minister in his reply to be specific about this. For many months I have requested on the Order of Business that the Government consider the introduction of a comprehensive insulation programme, and have received a positive response from Senator Cassidy, who liaises with the Minister in Cabinet. On the premise that cavity wall insulation in a standard house should cost roughly €2,200, a grant of €1,000 per house would be realistic. I would like to hear the Minister spell out the provisions in the carbon budget in this regard. I understand the amount provided is in the region of €5 million. With 2 million homes in the country, the degree to which this is possible is questionable. Is it too much of a marginal effect? Can the Minister explain to us what he is proposing in terms of insulation projects and alternative energy?

The Fianna Fáil partners in Government have succeeded in sending the issue of carbon tax back to the Commission on Taxation, which is obviously an effort to get it outside the timeframe for the local elections. The Minister should not have acquiesced to this. Senator Glynn is looking across sceptically but he knows well it is the case. The objective is to make sure the commission will report around the time of the local elections and that the carbon tax will be introduced after that.

John Gormley (Dublin South East, Green Party)
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Does that mean the Senator supports the carbon tax?

Joe O'Reilly (Fine Gael)
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The point we are making——

John Gormley (Dublin South East, Green Party)
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I welcome the support of the Senator for the carbon levy.

Joe O'Reilly (Fine Gael)
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The Minister should have been up-front about this. It is a concession by his party in Government to let it go to the Commission on Taxation for a year.

John Gormley (Dublin South East, Green Party)
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So the Senator supports it.

Joe O'Reilly (Fine Gael)
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In conclusion, my proposition to the Minister is that we prioritise access to the grid for renewable energy projects. The ESB needs to be taken on head-on. If competition needs to be introduced to achieve this, it should be introduced. We also need to consider rail and buses as an immediate public transport alternative which will allow us to reduce emissions. We should examine the issue of micro-generation of energy by wind turbines for homes and factories, and the provision of access to the grid for these micro-generators. Enterprising people who want to generate green energy should be encouraged, but they are currently faced with obstacles such as an inability to access the grid or to obtain an outlet for their energy and the impossibility of making money from it. This is horrendous. I ask the Minister to deal with this as a matter of urgency.

Camillus Glynn (Fianna Fail)
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Ba mhaith liom fáilte a chur roimh an Aire go dtí an Teach. Gabhaim comhghairdeas leis agus leis an Rialtas as an dea-obair atá déanta acu ar son an chomhshaoil. Cuirim fáilte speisialta roimh na moltaí ón gcomhchoiste. Admhaím go bhfuil a lán déanta, ach tá a lán le déanamh fós. I welcome the Minister to the House and commend him and the Government on the initiatives they have taken with regard to protection of the environment. I especially welcome the proposals from the Joint Committee on Climate Change and Energy Security. To use the adage, there is a lot done but quite a bit more to do. This is an extremely important subject and I compliment the Minister, and the Government in general, on the proactive manner in which they have approached it. There is a dawning realisation in society in general that there must be a clear focus with regard to protection of the environment. We all share this planet and we have a collective responsibility to ensure it is maintained not only for the current generation but for those who live on it when we are long dead and gone.

I welcome this report from the Oireachtas Joint Committee on Climate Change and Energy Security, the first since it was established in November 2007. The report examines the potential implications for Ireland of the highly significant EU proposals on climate change and energy security. These include the reduction of greenhouse gas emissions by 20% by 2020, as has been mentioned, and a target of 20% renewable energy to be used throughout the EU by the same year.

Senator O'Reilly mentioned co-operatives and shared energy. I agree with him. We must look back at what happened in the old days when we had the old methods of farming. These were a practical way of ensuring that the amount of energy used was kept to a minimum and used with maximum efficiency. We are of course talking about asses and carts, ponies and carts or horses and carts, while today we are talking about tractors, combine harvesters and a whole range of farm machinery. In those days there were few of these around — in most places they did not exist at all. There was the reaper and binder and there was the mowing machine, which in some cases was horse drawn, and there was the hay buggy. We had the ass and cart or the horse and cart drawing home the hay. Five or six people — maybe more, maybe less — got together and helped each other out. That does not happen to any great extent now, and it is a pity. Especially in this mechanised age, it would be a good way to reduce atmospheric emissions from machinery.

There is great talk today about alternative energy. We have to examine it seriously. We are fortunate to be in Western Europe. We are fortunate, for many reasons, to be an island country. I will not elaborate but they touch on other strata of life that does not make good hearing. We can return to this aspect on another occasion.

We have some very important natural resources. Our peat bogs are a natural resource that is fast disappearing. There has been mention of the abolition of the farming of peat on a commercial but not a domestic scale. That is welcome but we must realise we are unique in Europe in respect of these resources. In many other countries they have disappeared. To borrow a phrase that might pertain to the north eastern part of the country, "What we have we will hold". We will not give them away. I have no apologies for saying that.

We must look at how we do our business. We have to look at how we travel to work. For example, the members of 20 households could travel to work in 20 cars, or more in some cases. Is that necessary? Are we putting public transport to its optimum use? The answer is "No". Are we making use of the Minister's modus operandi, the bicycle, as much as we should be? Again, the answer is "No". We are not walking as much as we should. The result of this is rising levels of obesity. We are the highest in the league for this, and must deal with all the attendant difficulties. That is a debate for another day.

Are we engaging in the appropriate education of our children and teaching them that our environment is the most important thing we have, and the poorest and most deprived, socially and economically, can make a serious bequest to prosperity by ensuring they do their bit to ensure they leave behind a clean environment? It is a common objective we should all share. We have not been doing so. We have been whistling past the graveyard, and now the graveyard is on both sides of the road. What are we doing to address this?

Senator O'Reilly raised the matter of insulation grants. The princely sum of €45 million has been provided this year for insulation. That is for all schemes. It is a sizeable amount of money. There are issues regarding house insulation and construction. We all live in houses; we have the highest home ownership in Europe. That is a proud boast. In making it we are not saying we are great but perhaps we agree with those who say we are.

We must adopt a more proactive approach to the matter of climate change and protecting the environment. We must also ensure the flora and fauna on this planet and island remains, and we do our bit to protect it. We must maintain the right ecological balance.

Ireland's greenhouse gas emissions represent only 1% of EU emissions, but our per capita emissions are the fifth highest in the world. It is not a great place to be. There is nothing to brag about. This indicates we need to play our role within the EU to find workable solutions to reduce our level of emissions. This report examined EU proposals regarding EU emissions trading, sharing of emissions, and reductions and promotion of the use of energy from renewable sources. I touched on that. As a country we must react to these proposals. There must be a cut in carbon emissions and a reduction in the use of fossil fuels. Adaptation is the key. I used the word "react". It is a pity we have to be reactive and it is a great pity we have not been proactive. It would be far better if we were.

It is becoming apparent that climate change is everybody's business, no matter who they are. It is nothing new. The world's climate has changed in the past due to natural causes. At present, however, our climate is changing due to human causes. The earth is heating up at a rate which poses a major challenge to all. There is no doubt human activities are adding greenhouse gases to the atmosphere, particularly carbon dioxide, methane and nitrous oxide. This enhances the greenhouse effect and is making the world warmer.

Experts suggest that over the last century, the average surface air temperature in Europe increased by almost 1° Celsius. The 20th century was the warmest century and the 1990s was the warmest decade of the past 1,000 years. That is not a great boast. Some reports predict a rise in temperature by 2100 of between 1.4° and 6.4° Celsius worldwide. The European environmental agency suggests it may be between 2° and 6.3° Celsius in Europe. As a planet, the probable consequences of global warming for our natural environment include more powerful and destructive storms and hurricanes, more flooding and natural disasters, more extreme heat waves, less productive agriculture and reduced availability of a very important factor in food production, fresh water.

There is also the challenge of endangered food security, more fires and drought, high sea-levels and increased coastal erosion, extinction of species and increased spread of vector bourne disease such as malaria. All of this highlights the importance of tackling this issue.

We have all inherited this planet. We can make a major contribution to those who follow. Hopefully they will take on the mantle that we have taken on board, doing our bit to ensure there is a clean and vibrant environment. The Government is doing its bit; let everyone else do theirs as well.

Feargal Quinn (Independent)
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I welcome the Minister. I am glad he is in office at this time because of his commitment and enthusiasm for this topic. I was on "Tubridy Tonight" on a Saturday night a number of years ago. I was asked if I was going into business now, what business it would be? Would I go back into the business I started with at the age of 23? I answered that I would look at alternative energies. There must be a future in it. I was amazed and delighted to receive, within weeks, letters and messages from all over Ireland from people who had ideas concerning not only wind but wave, tidal and solar energy. The ideas and concepts have come from the enthusiasm of the Minister and his colleagues.

Al Gore has stated: "Ireland, with its successful business model and unique political positioning, has a key role to play among developed nations in driving the environmental agenda". That message is getting across and I welcome the debate and this scrutiny report.

We must look at innovative ways to do this. What struck me about the scrutiny report was its emphasis on wind power and the country's stagnation in this area. Ireland's offshore area covers 900,000 sq. km of seabed. That is ten times the land area of the State. We must move with the times and invest in such projects. The scrutiny report found that our planning process hinders the development of such offshore projects and needs to be brought up to date. The National Offshore Wind Association stated that five companies are waiting to get the Government's go-ahead to develop projects worth €6 billion, which could provide 40% of the Republic's total electricity needs. Some of these were referred to by the Minister. In addition, a recent Indecon cost benefit analysis report of offshore wind in Ireland argued in economic terms for investment in this sector. The report suggested a potential return of €3.8 billion for the country from the deployment of 1,000 MW of offshore wind. There are, understandably, local concerns, not least from an aesthetic and tourism perspective, but there is evidence to back up the clear economic rationale for investment in this sector. We need movement on this issue. Considering our advantageous location — facing the windswept Atlantic — which other European countries cannot avail of, it seems a sin not to exploit this emission-free, quiet and renewable source of energy.

I recently heard an Irish man speak at a conference on this topic. He said it was taking him years to get permission to build three wind generators. He went to Texas and found an area suitable for his planned 120 wind generators. When he asked how long it would take to get permission to install them he was told he could be given permission in seven days. There must be a way around our planning difficulties. I do not have the answers. However, unless we commit ourselves to wind energy we will fall even further behind and miss a huge opportunity.

Agriculture and transport, what we call cows and cars, are sectors that contribute to climate change in Ireland. The scrutiny report found that agriculture must be addressed in order to meet climate change targets. Agriculture contributes 26.4% of Ireland's overall emissions, predominantly caused by methane from livestock, whereas the EU average is 9%. The report recommends that the EU include afforestation in its calculations for reducing greenhouse gases in the agricultural sector.

However, in the wider context, almost every EU country has found reasons why climate change promises may be impossible to meet in their current form. The European target to produce 20% of all energy, including transport, heating and electricity, from renewable sources by 2020 is ambitious, to say the least.

In a time of economic downturn, livelihoods of the farming community must be properly considered before setting targets which would cause them further hardship during the downturn. Farmers are concerned they will have to reduce the bovine herd and are worried that restrictions will force them to stop food production. I am not known as an advocate of farmers because I usually find myself representing the consumers. In this regard they have a very strong case and their concerns must be taken into account. However, in the broader context — the macro level — if we do not address climate change now, it could bring irreversible changes to agriculture in Ireland. Changes in temperature and rainfall and climatic extremes are already adding stresses to agricultural resources around the world at a time when food price rises and population growth are already major concerns.

At the end of August, I attended a meeting in Asia on this topic. I took part in a workshop on sustainable agriculture throughout the world and the threat to food prices. Earlier today, I mentioned that I met Mr. Kofi Annan last night at a function to mark the 40th anniversary of Concern. We discussed the fact that 850 million people go to bed hungry each night. We face a huge challenge of food production. We may not think so in Europe but we must recognise the challenges the world faces.

Farmers are concerned by this issue. We need to balance the two concerns I have mentioned and work for a viable model that addresses climate change and also recognises the vital contribution that agriculture plays in Ireland.

The scrutiny report believes that Ireland has potential for developing forests which act as a carbon sink to reduce greenhouse gases but so far, the EU does not factor this into official emission figures. Deputy Liz McManus, who is a member of the Joint Committee on Climate Change and Energy Security, urged increased afforestation development across the country to remove carbon from the atmosphere. I would argue for a programme of afforestation on even broader terms.

A new report commissioned by the EU, The Economics of Ecosystems and Biodiversity, was published on 10 October. It found that the global economy is losing more money from the disappearance of forests than through the current banking crisis. It puts the annual cost of forest loss at between $2 and $5 trillion. Whereas the United States has lost between $1 and $1.5 trillion in the financial sector, the report estimates that the global economy loses between $2 and $5 trillion every year. The figure comes from adding the value of the various services forests perform, such as providing clean water and absorbing carbon dioxide. The report states, "As forests decline, nature stops providing services which it used to provide essentially for free. So the human economy either has to provide them instead, perhaps through building reservoirs, building facilities to sequester carbon dioxide, or farming foods that were once naturally available", or does not have use of such services at all. The report highlights an issue that is under-recognised. In this country, we have a strong tradition of maintaining and planting forests. However, in the light of the scrutiny report, which recommends afforestation, and this new study on the economic benefits of forests, the issue needs more attention than it currently gets.

I am pleased that Deputy Gormley is Minister for the Environment, Heritage and Local Government. If anyone is going to do anything about this problem it is he. I recommend that the words he has used today be supported and I support his motives.

Fiona O'Malley (Progressive Democrats)
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I apologise to the Minister, Deputy Gormley, that I was not in the House to hear his words but I have read them. I welcome the Minister's commendation of the work of the Joint Committee on Climate Change and Energy Security. During the life of the last Dáil, his party colleague, Deputy Eamon Ryan, was very keen that this issue should be dealt with on a cross-party basis. This is the only way to deal with it properly. This issue does not divide us politically. This is why the joint committee works so well. I thank the Minister for his warm comments.

Senator Quinn mentioned the exclusion of forestry from the emissions trading scheme mechanism. This is unfortunate. The consequence of this could be that fewer forests will be planted in Ireland. Our climate is suitable for the development of forestry and there is considerable untapped potential for a bio-fuel industry. This potential must be harnessed.

It is difficult to know how to deal with the question of CO2 emissions from agriculture. One must consider the size of the national herd. An obvious and radical solution would be for farmers to diversify into forestry. Why can forests not be treated like other crops, albeit with a longer rotation? If we do not look at agriculture differently and consider different solutions in the area of climate change we will not meet our targets. This is made clear by the very small decline in our CO2 emissions, particularly in the area of agriculture. Equally, the Minister yesterday outlined statistics relating to transport. Transport emissions targets have increased and no one knows more and understands the complexities and the scale of the challenge more than the Minister. How will CO2 emissions be reduced in the transport sector without the development of a much more comprehensive public transport system? For example, the public and private sectors must work hand in hand to deliver bus services throughout the State in order that people will leave their cars at home and avail of public transport systems, which will reduce emissions. I welcome the Minister's decision to convert public service fleets to electricity, which cannot happen fast enough.

Senator Quinn touched on how we can deliver the infrastructure to reduce CO2 emissions, which is what the directive is about. The Minister is responsible for foreshore licences. As Senator Quinn outlined, permissions are granted readily in other jurisdictions. The Minister will be aware of the time and complexities involved in the grant of foreshore licences, which is a barrier. The Government should be in the business of removing barriers to enterprise and facilitating its own policies. This is one area in which swift action could be taken. Deputy Barrett has asked umpteen times when legislation will come to the Houses to amend the regulations governing foreshore licences. That cannot happen quickly enough and I would love the Minister to back calls for that to happen as a priority.

I am concerned about the carbon trading proposals in the directive. I am an environmental realist, which means that while I am committed to looking after the climate and everyone trying to reduce their impact on the world in whatever way they can, at the same time I live in the real world in which people must make a living and an economy must survive and thrive. That has an impact on our carbon footprint. The lack of agreement on a global carbon trading system could be detrimental because, until that happens, carbon trading will be a mess similar to the financial sector. One system is needed throughout the world because this is a global problem. The European Union should not go down the road of operating separately from other trading mechanisms.

With regard to carbon leakage, we have a responsibility to ensure industry and business do not move operations outside the Union because of our stringent emissions regulations. We should facilitate rather than prevent progress in this area.

Dominic Hannigan (Labour)
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I welcome the Minister of State to the House. I also welcome broadly the publication of the scrutiny report which contains many useful recommendations. I agree with the committee's recommendation that we lend our support to the policy framework proposed in the document.

Over the past six months, every country has been affected by a period of sustained financial turmoil as the global economy stumbles from one crisis to another and, as a result, the environmental agenda and our commitment to reversing the adverse effects of climate change will face a stern test, to which Senator O'Malley referred. These are difficult economic times and it must be ensured our enthusiasm for fighting climate change remains absolute. The economic crisis has proved that if we ignore tipping points through inactivity, greed and misinformation, we do so at our own peril. There were many red flags and warning signs in advance of the financial crisis but they were not heeded. We are at an environmental tipping point and we need to act soon.

While the findings and deliberations of the committee are broadly welcome, I worry that there is no sense of urgency about how important it is to deal with these issues soon. It is important to protect our competitiveness and it is vital we defend our agricultural sector, but these issues should be recognised as challenges rather than impediments.

I refer to the work done by a number of expert organisations and institutions to outline the scale of the problem we face. In a report published in July, Sustainable Energy Ireland found that the average Irish household consumes 27% more energy than the average UK household and 31% more than the average EU household. The report found that household fuel use decreased by less than 0.5% between 1995 and 2006 while the average electricity use per person increased by 62%, almost two thirds. These figures are not reflective of a society taking the threat of global warming and climate change seriously.

Another report published earlier this month by the Environmental Protection Agency accurately sets out the enormous scale of the challenge that Ireland faces if we are to turn our fine words into action and a co-ordinated national response. The report says Ireland will face huge difficulties in meeting its Kyoto limits and proposed EU targets by 2020. The EPA included projections for environmental pressures and, even under the most favourable scenarios, Ireland's greenhouse gas emissions will exceed the 2020 reduction target by 7 million tonnes. That equates to two tonnes of excess gas produced by every man, woman and child in the country and, therefore, it is clearly something on which we need to take action

A report from the University of Zurich published in July that measured countries' co-operation under five key indicators is even more worrying. The mechanism the report proposed takes into account whether and how fast countries have committed to the UN Framework on Climate Change and the Kyoto Protocol. Other indicators such as reporting, financial contributions and CO2 were also examined across 198 nations. On a scale of one to six, with one being the least co-operative and six the most co-operative, Ireland achieved a three, way behind France, Spain, the UK and most of central and Eastern Europe. We are in the same company as Kazakhstan, Pakistan, Niger, Chad and Burma.

Portugal also scored a three but it is moving ahead aggressively to meet clean energy targets. A recent EU report maintained that, by 2020, Portugal will be generating 31% of all its energy from clean fuels by 2020. There are parallels between Portugal and Ireland. Both countries lack significant oil and coal reserves but Portugal is leading Europe's clean energy revolution and it has successfully mobilised and energised its population in the task of weaning them off imported oil. Over the past three years Portugal has trebled its hydropower capacity, quadrupled its wind power and has introduced comprehensive legislation to speed up the release of land for renewable energy projects. A recent report in The Guardian praised the impact of Portugal's enormous investment in wind energy and noted that it is in the process of creating thousands of jobs in this sector, replacing jobs disappearing owing to manufacturing closures. An economic downturn should not be used as an impediment to investment in policies that reduce climate change. A fair weather climate change policy should not be a medium or long-term option.

Opposition Members are well aware we have our own part to play in this and it is not all down to the Government parties.

Pat Moylan (Fianna Fail)
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The Senator has four minutes remaining.

Dominic Hannigan (Labour)
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I thank the Cathaoirleach for that clarification. We are close to the tipping point and we will not use climate change as a political football. We need fresh thinking across a range of ideas, including nuclear power. There are people in all parties who would welcome an open debate on this subject. We need urgency in our consideration of all options.

We have no oil or coal of our own, but we generate only 3% of our energy from renewable resources. We are fourth from the bottom of the EU renewable energy league and we lag behind other EU countries in investment in green research and development. We must move quickly.

Last October, a climate change Bill was before the House, which agreed that the legislation should progress. A year has passed, but we have seen nothing further. The Bill seems to be stalled on Committee Stage or somewhere. It should return to the House and be passed into law.

Our level of commitment is not satisfactory. There must be action. As outlined in the report, it is vital to communicate these issues to the wider public. I suggest that a national awareness campaign be undertaken to highlight the dangers of inaction and how it would affect everyone's life.

Martin Brady (Fianna Fail)
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The report examines the potential implications of three significant EU proposals on climate change and energy security. The proposals aim to reduce greenhouse gas emissions by 20% and to achieve a level of renewable energy usage of 20% by 2020.

The report examines EU proposals on emissions trading, including the regulation of the buying and selling of GHG emissions from electricity plants and major industrial installations. The proposals suggest an EU-wide cap on the number of emission credits issued rather than the current system of individual national caps. Emission credits will no longer be issued for free. Rather, they will need to be paid for. It is envisaged that this will provide an incentive for investment in lower carbon technologies.

On the sharing of emission reductions, the proposals seek decreases in emissions from small-scale emitters, such as the transport, building services, residential, agricultural and waste disposal sectors. These reductions will be divided among member states in proportion to their share of emissions. Member states will have individual reduction targets based on percentages of GDP per capita set for them in these sectors.

The promotion of the use of renewable energy is an important aspect of the proposals. It will be established by a binding EU target of 20% usage by 2020. Ireland's target will be approximately 16%, whereas our current level is 3.1%. It will be a significant challenge for the Government, business, industry, farming and the general population. Workers and trade unions must play their part if change is to be brought about. They must be involved and consulted at all stages.

Doing nothing is not an option. We must tackle and not only make dramatic cuts in carbon emissions, but reduce our dependency on fossil fuels within ten years. We must adapt to meet the new challenges. Everyone will be affected. If the emissions reduction targets are implemented, we must drive home the message that climate change is everyone's business and cannot be left to anyone else.

The report has positive elements. Given the presentations made to an Oireachtas joint committee and provided that implementation is guaranteed, the proposed investment by utilities, such as the ESB and other renewable energy operators, should enable Ireland to meet its emissions reduction target. If the Government's national energy efficiency plan is fully implemented by 2020, certain proposed reduction targets may be met in part.

Nicky McFadden (Fine Gael)
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I welcome the Minister of State to the House and thank him for attending. I join with his colleague, the Minister for the Environment, Heritage and Local Government, Deputy Gormley, in congratulating the committee on this excellent report. I also congratulate my party colleague, Deputy Barrett, on his excellent job in chairing that committee.

Ireland has been exposed in this report. It is a fallacy to state that we are a green isle, as it is no longer the case. The desperate water quality in County Galway is an appalling situation and other counties, including mine, have poor water quality as well. In County Westmeath, it is proposed that 700,000 litres of water will be extracted from Lough Ree to accommodate Dublin despite the 50% wastage of water. These issues should be examined and addressed.

Senator Glynn referred to the EU's proposed target of a 20% reduction in greenhouse gas emissions by 2020. It coincides with the aim to increase renewable energy infrastructure by 20% across all EU member states. We are a small nation, but the figures are most alarming when put into perspective. I agree with Senator Glynn that Ireland's level of greenhouse gas emissions per capita is the fifth highest in the world.

Tuesday's budget was disappointing. It afforded the Government an opportunity to address the issue. Instead, the Government decreased the local government fund by 5% and changed local authority waste management funding. We have taken meagre measures to reduce emissions. Regarding the targeted 3% reduction in emissions, it was misleading of the Government to state that the 2009 budget would be green. The Green Party is dressed in the colours of Fianna Fáil, not its own.

Dan Boyle (Green Party)
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Dark green.

Michael Kitt (Galway East, Fianna Fail)
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Green, white and gold.

Paul Bradford (Fine Gael)
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There was a time when the Green Party was a nice, light, pleasant green.

Pat Moylan (Fianna Fail)
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Senator McFadden without interruption.

Nicky McFadden (Fine Gael)
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Last year, there was only a 1% reduction in carbon emissions, nowhere near the targets previously set by the Government. Why is it taking us so long to catch up with the rest of Europe? The reduction was accounted for by the decreases in the energy and agricultural sectors, the latter of which was referred to by Senator O'Malley. We must give credit where it is due, as the Government is complying and doing its best. The level of afforestation must be also commended, another factor in our emission decreases.

Emissions from transport increased from 13.7 million tonnes to 14.4 million tonnes, while waste emissions increased from 1.83 million tonnes to 1.93 million tonnes. There is an opportunity to open the Mullingar-Athlone link to provide transport for people from Sligo through to Mullingar and Dublin. This is just one instance which could assist to reduce emissions.

This budget aims to reduce carbon emissions by 400,000 tonnes throughout 2009. Vehicle registration tax and changes to motor tax will account for the majority of this reduction. Encouragement of more organic farming methods and longer grazing seasons will also contribute. What about all the other areas where we continue to emit high levels of carbon and greenhouse gases? We must consider seriously all the ways we could reduce our dependency on certain forms of high cost energy.

The failure to meet the target set out has forced the Government into a position where it must purchase carbon credits which will amount to €50 billion in 2009. How far €50 billion could go to improving public transport. We must change the patterns of our behaviour and must be able to honour our obligations. I am aware a number of cases are currently before the European courts where Ireland is in breach of EU environmental law. There is no alternative to the simple and plain fact that we must change our policies.

Newspapers have noted the frustration of the Minister for the Environment, Heritage and Local Government, Deputy Gormley, on the slow progress that has been made. The Green Party has achieved no more than if it were not in Government. The Minister has also stated he wants a more radical approach. To this end he announced €200,000 for a bicycle scheme. This is not a radical move.

Driving habits will not change following the €200 levy for car parking spaces for all workers in urban areas. Due to the lack of alternative transport, this will just be another burden for commuters. These people are victims of the failed policies of the Government. Commuters have no choice but to drive to work because they had to buy houses in rural parts of Ireland.

We have made commitments to the Kyoto Agreement. We must honour them and unless we take radical decisions, we will never reach these targets. My party colleague, Deputy Seán Barrett, said we must drive home the message that climate change is everyone's business.

Déirdre de Búrca (Green Party)
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I welcome the Minister of State and welcome the opportunity to discuss the scrutiny report on the EU climate-energy package produced by the Oireachtas Joint Committee on Climate Change and Energy Security. I remind Members that the Green Party was instrumental in having that committee established. It has been an active presence on the committee, as have all the committee members. The committee has produced a fine report that we have the opportunity to debate.

The policy framework to which Ireland is responding has come from the EU. Ireland's track record in addressing climate change and our contribution to climate change has been poor. Ireland's per capita emissions of greenhouse gases are the fifth highest in the world, which is incredible when one considers the size of the country and our small population. We have an enabling framework from the EU policy framework that has set targets and put mechanisms in place. We must now examine this and we are now reacting to the proposals made in respect of what the EU sees as Ireland's responsibilities and potential contribution. We must see how we will implement the specific commitments we are obliged to make.

In examining any response to climate change we must be prepared to make fundamental and radical changes to how we do business. Unfortunately, the Opposition is good at complaining and attacking the Green Party, saying it has made no difference in Government. If measures are introduced that call for change, which no one likes, the Opposition is very opportunistic in jumping on them. At a recent meeting, the Labour Party stated it was opposed to the introduction of a carbon levy. I find it difficult to understand how the Labour Party will make a transition to a low carbon economy, which is effectively what we must do, if we do not put a price on carbon. I am delighted the Fianna Fáil Party recognised this and, in the programme for Government, we made a firm commitment to introducing a carbon levy, planned for next year's budget.

The shift to a low carbon economy does not have to be bad news. It is something we must do and the quicker we do it, the more advantage this country gets in terms of leadership, being ahead of others, new technologies, economic activities and the possibilities for green business and enterprise that open in the shift to a low carbon economy. With Ireland's potential renewable energy resources, this country stands to benefit considerably if we are to take a leadership position and seize the opportunity before others.

I refer to Senator McFadden's comments that the Green Party has achieved nothing. Yesterday, the carbon budget was announced by the Minister. It was welcome and, while no one is saying it is perfect, the way in which we use it can be refined and improved. Since the Green Party entered the Government, this is the first time the Government has evaluated and assessed the extent to which budgetary decisions and the working of the economy has an impact on carbon emissions. This also gives us the opportunity to identify areas of transport, agriculture and waste as high contributors to our greenhouse gas emissions and carbon emissions. We must examine new and innovative ways to shift to lower emission levels.

In this year's budget I am happy with the €45 million dedicated towards energy efficiency measures. Some €10 million will be spent on the greener homes scheme, €20 million on home energy schemes and €5 million on retrofitting council houses. In better economic circumstances, we would hope to have more revenue to dedicate to these areas but in straitened and difficult times, our commitment to energy efficiency is clear in this allocation.

I point out to Senator McFadden that in difficult economic times, the metro north project, the extension of the Luas and the Cork-Midleton line remain on track. These are public transport projects that will go ahead despite difficult circumstances.

We welcome details of the scrutiny report on the climate-energy package. We welcome the changes to the EU trading scheme whereby there will now be an EU cap on credits issued rather than the current system where each member state has its own cap. We also welcome that emissions credits will no longer be issued for free but must be paid for. These are more realistic market conditions for the shift to the low carbon economy and this will provide an incentive for investment in lower carbon economies. We welcome the overall binding EU target of 20% use of renewable energy by 2020. Ireland can go further and the Minister for Communications, Energy and Natural Resources, Deputy Eamon Ryan, is convinced we can reach a target of 40% by 2020. It will be challenging but it offers economic opportunities. I welcome the report and look forward to its implementation.

Paul Bradford (Fine Gael)
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I hope that we will return to a fuller debate on this topic in the near future. It would be preferable if the debate was to adjourn rather than conclude but that is the order of business as agreed this morning.

I welcome the opportunity to speak and I congratulate all those involved in the publication of this report, including my party colleague, Deputy Seán Barrett. It is very much an all-party consensus in so far as far as an analysis of the problem is concerned. When we seek solutions I imagine there will be some political difference.

The one word of caution I would speak at this stage is that in the new economic dispensation and the so-called more difficult times it becomes more problematic to sell environmental concerns and the need for constraint in this area, and to find new ideas and new programmes. Two years ago, when the Celtic tiger era appeared to be booming, most people took on environmental concerns almost as part of a guilt trip. They felt somewhat confused about being so well off while they also decided to become concerned about the environment. It was very welcome that they did so, notwithstanding the reason. Now, however, with the State's finances in a more perilous position, people will look more to their own finances rather than to the State and to the environment. We should be a little concerned about this and must keep environmental concerns at the top of the political and economic agenda.

Senator Fiona O'Malley raised the topic of agriculture and I got the impression she believes that if the whole country were planted with forestry all our problems would be solved. If only it were so. I recognise that forestry has a role to play and the Irish target for forestry growth is not as advanced as it should be. There is an onus on the Minister for Agriculture, Fisheries and Food, Deputy Brendan Smith to look at the grant schemes for forestry. Perhaps it is a matter for the Minister for Communications, Energy and Natural Resources, Deputy Eamon Ryan, however, because that Department is always moving. It is disappointing that we have one of the lowest achievable rates of growth in Europe.

I have a number of constituents who are investigating the possibility of erecting their own micro-turbines in order to power their farms. There is an ongoing difficulty in regard to linking up with the ESB grid. It should be entirely possible to resolve this and it might make a small difference. All these steps will not make a big difference on their own but put together they are part of the domestic jigsaw.

Senator Hannigan spoke about the consumption rates of electricity in this country versus those in Britain and Europe. We should debate this matter in detail because there is no reason why the average Irish household should use so much more electricity than its average British counterpart.

I am sorry that in my short contribution I could neither analyse nor solve the problem but I hope we will return to debate this matter in the near future.

Michael Kitt (Galway East, Fianna Fail)
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I welcome the opportunity to speak in this debate. We discussed the report of the Oireachtas Joint Committee on Climate Change and Energy Scrutiny on the EU climate package and I congratulate the Chairman and the members of the committee. The climate-energy package is one of the most significant policy developments to be proposed by the European Commission. It is a response to the call by the EU Heads of State and Government to transform the European Union into a highly energy-efficient and low greenhouse gas-emitting economy. The package also provides the cornerstone of the EU's leading role in the international response to climate change. It will offer a robust basis on which the EU can achieve its independent reduction targets

Given the scale of the challenge we are facing 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 and today's discussions make an important contribution to this process of broadening the debate and informing the national position.

The proposals put forward by the European Commission in January 2008 provide the context within which our national efforts will become part of the greater whole. This is our contribution to EU and international efforts that are intended to meet a very ambitious goal, namely, to stabilise atmospheric concentrations of greenhouse gases and to limit the increase in global temperatures to 2° Celsius.

The proposals put forward by the Commission are based on the most up to date science available as set out in the Intergovernmental Panel on Climate Change, IPCC, Fourth Assessment Report. All countries, as varied as those of the EU, the United States, China, India or Saudi Arabia, have recognised that the IPCC Fourth Assessment Report represents the most comprehensive and authoritative assessment of climate change to date, providing an integrated scientific, technical and socio-economic perspective on relevant issues. That research concluded that climate change has been caused by man-made emissions, and if these emissions continue to grow they will have potentially catastrophic effects throughout the globe by the end of this century.

The challenge is as clear and unambiguous as the science. We must make very significant reductions in greenhouse gas emissions. To meet the goal of 2o Celsius we must stabilise global emissions within the next decade or so, and by 2050 cut them by at least 50% below 1990 levels. This means that developed countries will need to reduce their emissions by 25-40% by 2020, compared to 1990.

Last year, the EU 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 the developed countries reduce their emissions by 30% by 2020. This will keep us on track to meet the 2o Celsius target and it is consistent with the IPCC findings. Commitments on action to address rising emissions will also be required from developing countries and the assistance that they will need to make those commitments will also need to be agreed as part of the international negotiations.

The European Commission's package of proposals to address greenhouse gas emissions reductions and renewable energy targets, to develop a framework for carbon capture and storage and to facilitate environmental investments under State aid guidelines provides a solid and robust basis on which the EU can work to meet its ambitions. As the Minister for the Environment, Heritage and Local Government, Deputy Gormley, stated earlier, the Government considers the package to be both comprehensive and integrated and believes it will provide a credible framework on which to base negotiations within the EU. The package will take some time for full consideration by all member states and it is possible that EU discussions will last into early 2009.

A key aim for the Government is to ensure that all sectors can contribute to the attainment of emissions reduction targets for 2020 and that reaching these ambitious but necessary targets should be achieved in a manner that is consistent with the overall targets approved by the EU Heads of State and Government and is also cost-effective for member states. The Government believes that it will be possible to negotiate a range of flexibilities consistent with the overall reduction target that permit its achievement at low economic cost.

The Government has also made it clear throughout the negotiations that the inclusion of carbon sinks is very important if we are to meet our targets on the effort-sharing side. On this basis, forestry should not be transferred into the emission trading scheme, ETS. Sustainable forestry is encouraged under the Kyoto Protocol and it is important that the full potential that it can make to addressing climate change is also incorporated into the 2020 package. Similarly, it is important that carbon leakage, particularly in the area of agriculture production, should be avoided. There is no environmental benefit gained by simply transferring emissions out of the European Union. Therefore, it is necessary to address this concern in the context of the on-going negotiations on the package.

The positive endorsement of the overall package of proposals by the Oireachtas Joint Committee on Climate Change and Energy Security is to be welcomed. Some valid suggestions have been made by the committee and, as the Minister outlined, a number of these are already reflected in the Government's position. I believe that the Commission's 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.

Pat Moylan (Fianna Fail)
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When is it proposed to sit again?

Camillus Glynn (Fianna Fail)
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Ag leath-uair taréis a deich, maidin amárach.