Willie Penrose (Longford-Westmeath, Labour)
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Question 27: To ask the Minister for Enterprise, Trade and Employment if his Department has undertaken an assessment of the implications for industry, in regard to competitiveness and employment levels, of recent EU proposals that would require Ireland to reduce its greenhouse gas emissions by 20% by 2020; and if he will make a statement on the matter. [4045/08]

Micheál Martin (Cork South Central, Fianna Fail)
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The Climate and Energy proposals published by the Commission on 23rd January are a complex package which raise economic and social issues for Ireland and thus require careful consideration by all Government stakeholders. The Commission package includes the following elements:

The separation of the EU Emissions Trading Sector (ETS) from the rest of the economy through the creation of a single EU-wide Emissions Trading Sector which will be administered by the Commission and has an EU-wide target of reducing emissions to 21% below 2005 levels by 2020.

For the non-ETS sectors of the European economy (essentially transport, agriculture, residential and non-ETS enterprises), the Commission has proposed national targets, with a very challenging target of reducing emissions to 20% below 2005 levels by 2020 being proposed for Ireland.

National renewable energy targets, with a target of 16% of all energy usage to be derived from renewable sources by 2020 being proposed for Ireland.

In addition to the foregoing, the package also includes a proposal for a legal framework on Carbon Capture and Storage technology, and new guidelines for environmental state aid.

In view of the complex, interlinking nature of the Commission package, any work to assess the competitiveness and employment implications for industry of the proposed national target for the non-Emissions Trading Sector of reducing emissions by 20% below 2005 levels by 2020 has to encompass the other elements of the package. It is for this reason that the analysis of the socioeconomic implications of the Commission package for all sectors of the Irish economy is being undertaken under the auspices of the Cabinet Committee on Climate Change and Energy Security, which is chaired by the Taoiseach. I am a member of the Committee, together with my colleagues the Minister for Finance; the Minister for Communications, Energy and Natural Resources; the Minister for Environment, Heritage & Local Government and the Minister for Agriculture and Food. To ensure that the analysis is as robust as possible, relevant stakeholders, including the Social Partners, will be consulted on the proposals, and a Technical Advisory Steering Group has been established to oversee the analysis.

Negotiations on the Commission package, which commenced this month, will be a comprehensive and complex process which is not expected to be completed until next year. The Government has written to the Commission signalling that it expects detailed engagement on the package of proposals as a necessary prerequisite to any political agreement on the package. The detailed analysis which is being overseen by the Technical Advisory Steering Group under the auspices of the Cabinet Committee on Climate Change and Energy Security will form the basis of Ireland's negotiating position.