Michael D Higgins (Galway West, Labour)
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Question 53: To ask the Minister for Communications, Energy and Natural Resources the position regarding his Department's target as part of the programme for Government's target of a 3% cut in carbon emissions per annum; the action he will take to meet that target; and if he will make a statement on the matter. [24076/09]

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 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 Home Energy Savings Scheme. The range of tax allowance qualifying energy efficient equipment has been widened in the 2009 Budget to include energy efficient data server systems and on site electricity generation equipment. I am allocating significant resources of €50 million to the Home Energy Saving Scheme, in order to provide grants of up to 40% of the cost of retro-fitting homes. This scheme will increase energy efficiency and lead to CO2 savings and complements the €20m Warmer Homes Scheme, which provides insulation and energy advice to low income households.

The National Energy Efficiency Action Plan, which I published last month, sets 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 plan is designed to achieve 20% energy saving across all sectors with 33% savings in public sector, saving €1.6 billion per annum in 2020 in avoided energy costs.

Further programmes, as set out in the plan in the area of energy efficiency, will be rolled out in the coming years and I expect that these will significantly add to the savings already identified.

The Government has adopted a target of 40% by 2020 for renewable electricity. The target is underpinned by analysis conducted in the 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.

We are also working in collaboration with SEI and ESB on moving to introduce electric vehicles in line with the Government's target of 10% by 2020. I recently announced the signing of a Memorandum of Understanding between the Government and ESB and Renault-Nissan, which will create favourable conditions for the introduction of electric vehicles here.

In the area of biofuels, I published a consultation paper in October 2008 on the introduction of an obligation scheme. This suggested a penetration rate of 4% by volume (equating to approximately 3.2% by energy) for the obligation, and was generally well received. This will be the initial rate for the obligation, with an increase to 6% in 2012 being dependent on the outcome of a review. My Department is currently finalising proposals for Heads of a Bill and I expect the Obligation to come into force in 2010.

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 Sustainable Energy Ireland's heating sector programmes.