Michael D Higgins (Galway West, Labour)
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Question 137: To ask the Minister for Communications, Energy and Natural Resources his target as part of the objective of a 3% cut in carbon emissions per annum as per the programme for Government; the way he will meet this target; and if he will make a statement on the matter. [37144/08]

Eamon Ryan (Dublin South, Green Party)
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The Programme for Government target refers to a 3% reduction per year on average in greenhouse gas emissions. The energy sector for which I have policy responsibility will make a leading contribution towards reducing green house gas emissions through a range of measures designed to improve energy efficiency and increase the penetration of renewable energy across the electricity, heat and transport sectors.

Among the significant energy efficiency initiatives introduced already this year are the extension of the accelerated capital allowance scheme, which allows companies to write off for tax purposes the full capital cost of certain classes of energy efficient equipment in the year of purchase and the Pilot Home Energy Savings Scheme. The 2009 Budget indicated that the range of tax allowance qualifying energy efficient equipment is being widened to include energy efficient data server systems and on site electricity generation equipment.

I am allocating significant resources of €20 million to the Home Energy Saving Scheme in 2009, an increase of €15 million on 2008, in order to provide grants of up to 30% of the cost of retro-fitting homes. This scheme will increase energy efficiency and lead to CO2 savings and complements the Warmer Homes Scheme, which provides insulation and energy advice to low income households. The Minister for the Environment, Heritage and Local Government is introducing a new scheme to examine the potential for energy savings in local authority housing stock through the retrofitting of older heating systems with new green energies.

The National Energy Efficiency Action Plan, which I intend to publish before the end of the year, will set out the Government's comprehensive programme of action to be implemented across all sectors to deliver on our national and EU targets for energy efficiency, along with resulting reductions in green house gas emissions. The Government has recently increased the target for renewable electricity to 40% by 2020. The target is underpinned by analysis conducted in the recent All Island Grid Study, which found that a 40% penetration is technically feasible, subject to upgrading our electricity grid and ensuring the development of flexible generating plant on the electricity system. The study concluded that achieving this higher level of renewable electricity would reduce our carbon emissions from electricity by 25% over the business-as-usual scenario, a saving of around 5 million tonnes.

Other energy initiatives funded by my Department and designed to move us towards lower carbon emissions include the major ocean energy research and development programme and SEI's heating sector programmes (the Greener Homes Scheme and the Reheat and Combined Heat and Power programmes).