Bernard Durkan (Kildare North, Fine Gael)
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Question 504: To ask the Minister for Communications, Marine and Natural Resources if his attention has been drawn to the need to increase the quotas of bio-ethanol or bio-diesel in order to facilitate greater than anticipated participation by growers; and if he will make a statement on the matter. [10558/07]

Noel Dempsey (Meath, Fianna Fail)
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The Government is firmly committed to the development of an Irish biofuels market and to the increased development of bio-energy generally in Ireland. A range of initiatives is in place to support the development of a biofuels sector in Ireland. The Minister for Finance has made it clear that any extension in the amount of relief which formed part of the Budget 2006 announcement is not envisaged at this stage citing non-fiscal measures that can be used to promote Biofuels. In this regard on 12th February I signalled my intention to introduce a Biofuels Obligation by 2009, which will require all fuel suppliers to ensure that biofuels represent a certain percentage of their annual fuel sales.

In announcing the obligation, I have also committed to achieving 5.75% market penetration of biofuels by 2009, in advance of the date proposed for such a target in the EU Biofuels Directive. I have also committed to achieving 10% market penetration of biofuels in Ireland by 2020. The introduction of the Biofuels Obligation will build on the success of the two biofuels excise relief schemes which were rolled out in 2005 and 2006.

On 4 March I published the Bioenergy Action Plan which sets out a series of cross-Governmental and inter-agency actions to support the deployment of bio-energy in Ireland. In formulating the plan, it was agreed that while excise relief is an effective short-term measure to stimulate the biofuels market, other policy initiatives, such as a renewables obligation, would be beneficial in the longer-term. The obligation will also give all market players the necessary long-term certainty to make appropriate investment decisions.

The Bioenergy Action Plan also provides a series of measures aimed at encouraging farmers to grow energy crops.

The move to a biofuels obligation, together with the relevant agricultural incentives will provide new opportunities for the farming community to diversify into energy crops. I am confident that this will facilitate increased participation by growers in the emerging bio-energy market.