Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 91: To ask the Minister for Transport the initiatives he has taken to promote the increased use of renewable energy in the transport sector; and if he will make a statement on the matter. [28830/05]

Martin Cullen (Waterford, Fianna Fail)
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My Department is committed to delivering a sustainable transport system designed in a way which will achieve a balance between economic, social and environmental needs. In the current climate of rising oil prices and growing CO2 emissions from transport there is clearly a need to focus on cleaner and renewable fuel sources such as biofuel to support the achievement of a sustainable transport system.

In recognition of this, my Department actively supports the Department of Communications, Marine and Natural Resources with regard to its responsibilities in the development and promotion of a biofuels market in Ireland's transport sector. My Department participates in the interdepartmental biofuels group, which was established by the Department of Communications, Marine and Natural Resources in 2004 to consider policy options for the development of a biofuels market. The group also comprises representatives from the Departments of the Environment, Heritage and Local Government, Finance, Agriculture and Food, and from Sustainable Energy Ireland.

As part of its work, the group commissioned a Liquid Biofuels Strategy Study for Ireland, which was published in December 2004. The report explores a range of options and potential supports for biofuels development in Ireland. As a follow up to this report, further work is ongoing with regard to developing measures to increase long-term market penetration of biofuels in the transport fuel market.

My Department also supports the scheme for mineral oil tax relief on biofuels which was agreed between the Department of Communications, Marine and Natural Resources and the Department of Finance and launched in April 2005. Under this scheme, excise relief of €6 million will be allowed for a total of eight projects, involving 16 million litres of biofuel, over a two year period to 2007. The scheme is an initial measure designed to stimulate market development and I understand that the scope for scaling up fiscal support for biofuels is being explored by the Departments directly involved. This is something which I would support. Sustainable Energy Ireland also provides funding for biofuels demonstration projects, compatible with its remit in advancing the development of renewable energy.

My own Department is also engaging with the public transport and road haulage sectors with a view to promoting the increased use of alternative fuels. I understand that CIE is investigating the use of biofuels and hybrid-electric/diesel buses. My Department will actively liaise with it in this regard.