Terence Flanagan (Dublin North East, Fine Gael)
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Question 27: To ask the Tánaiste and Minister for Finance if he has assessed the implications for the Irish economy of the new EU climate change commitments. [7797/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The proposals published by the Commission begin the process which will lead to an agreement on the contributions of individual Member States towards meeting the EU targets agreed at the 2007 Spring Council. The Commission proposes that Ireland reduces its greenhouse gas emissions by 20% by 2020, based on 2005 emissions figures, and achieve an overall target of 16% of final energy consumption from renewable energy by 2020.

The proposals set out by the Commission are complex and far reaching. They require detailed analysis and discussion at EU and domestic level and my Department will be central to this process. The cost in budgetary terms and the economic impact will depend on the methods used to achieve whatever target is finally set. Obviously, we will try to be as fiscally neutral as possible.

The Government fully supports the objectives agreed at the Spring Council last year and the leadership shown by the EU's ambitions in this area of climate change. It is important that national circumstances and competitiveness impacts are considered in the context of finalising the EU's measures. In this regard, it is essential to ensure that the Irish situation in relation to the large difference between our Gross Domestic Product and Gross National Income, our infrastructural deficit, our recent and projected levels of population growth, and the relatively large size of Irish agriculture and its global competitiveness are all taken into account.

It is important however, that we look positively on the challenge and not just dwell on the negatives. To the extent, for example, that extra capital spending generates fuel and other efficiencies in using natural resources this will be to our overall economic and fiscal benefit. The proposals for the Emissions Trading Scheme also involves new revenue streams for national Governments which will also form part of the policy mix.

As I said in my Budget Speech this is a challenge for all citizens not just the Government and will involve choices being made and changes in behaviour to realise the ambition of reducing greenhouse gas emissions.

The Government has been acting over recent years to begin to address the challenge of climate change and we will continue to work towards reducing emissions. However, as I said before, these are Commission proposals and there is still some way to go before they become agreed policy.