Written answers

Tuesday, 15 December 2009

Department of Foreign Affairs

Energy Resources

11:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 252: To ask the Minister for Foreign Affairs the steps taken or expected to be taken at EU level to ensure energy and food security in the future; and if he will make a statement on the matter. [47127/09]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Energy security is a major priority for the European Union, and Ireland supports and actively contributes to the EU's efforts to diversify its energy supply and improve the Community's capacity to prepare for and react to energy emergencies. To tackle the challenges facing the EU, the European Commission undertook a second Strategic Energy Review in 2008. The resulting EU Energy Security & Solidarity Action Plan identified 5 areas for action: Infrastructure needs and diversification of energy supplies; External energy relations; Oil and gas stocks and crisis response mechanisms; Energy efficiency; and Maximising indigenous EU natural resources.

At present, action is focussed on infrastructure development and revising the EU legislative framework on the security of gas supply, with an overarching emphasis on ensuring that the EU is capable of 'speaking with one voice' in its energy relations with third countries. A guiding principle is that a properly functioning internal energy market is critical for ensuring security of supply. In this regard, the adoption of the 3rd Energy Package during 2008 is a significant milestone.

The Russia-Ukraine gas crisis last January proved to be the biggest gas supply crisis the EU has seen. Since then, the European Commission has worked with the two sides and with the International Financial Institutions (IFI) to minimize the possibility of a further crisis. In July, political agreement was reached with Ukraine on the reform of its gas sector which opened the way for a financial assistance package to be provided by the IFI. It is hoped that this agreement will provide the stability needed to reduce the risk of a further gas crisis. Nevertheless, we are continuing to monitor the situation closely.

While the Russia/Ukraine gas crisis did not directly impact Ireland, the increasing reliance of the EU on gas imported from third countries has clearly underlined the strategic importance of diversifying our sources of gas supply. In this regard, the European Commission has recently proposed a new Regulation on gas supply, and Ireland is actively participating in discussions on the proposal. The aim is to improve cooperation between Member States on arrangements for security of supply and response to disruption of gas supply and energy emergencies. Another important element of energy security policy is the diversification of sources and routes of gas supply into the EU and creating alternative routes to that transiting Ukraine. The EU and Turkey recently signed the Nabucco Intergovernmental Agreement, while two Russian led pipeline projects, Nordstream and Southstream, are also set to bypass Ukraine. The EU also receives gas supplies from Norway and Algeria.

As regards food security, the Deputy will know that the 2008 food crisis severely worsened the livelihoods of millions of people in development countries. To provide a fast response to the urgent situation, the EU adopted a Regulation establishing the so called 'Food Facility' in December 2008. This new instrument provides for €1 billion funding to be applied over three years, nearly half of which in 2009. The fund will bridge the gap between emergency aid and long-term development aid. Its chief objectives are to: encourage food producers to increase supply; deal directly with the effects of volatile food prices on local populations; and increase food production capacity and improve the way agriculture is managed in the longer term.

In concrete terms, it will support: measures to improve access to agricultural inputs and services including fertilizers and seeds – with special attention to local facilities and availability; safety-net measures to maintain or increase agricultural production capacity and help meet the basic food needs of the most vulnerable populations, including children; and other small-scale production-boosting measures based on countries' individual needs – microcredit, investment, equipment, infrastructure and storage – and vocational training and support for agricultural professionals. By October this year, 56 projects in partnership with International Organisations were underway in 41 developing countries. A second call for proposals was launched in May, for €200 million, which was open for applications from Non-State Actors. In addition, for certain activities, there is a regional value added, such as trade facilitation, harmonisation of policies and regulations. These types of activities will be channelled through Regional Organisations for an amount of €60 million.

Finally, one part of the programme will be implemented via national budgets of the beneficiary countries through Budget Support for an amount of €165 million. There is also a link between energy security and food security, seen in the last few years in particular where rises in food prices were attributed, in part, to moves by farmers to grow bio-fuels instead of food. The EU recognises that the promotion of bio-fuels has had some unintended effects. To address these, the Union adopted a Directive on renewable energy, which includes as one of its aims to ensure that as we expand the use of bio-fuels in the EU, we use only sustainable bio-fuels which generate a clear and net greenhouse gas saving and have no negative impact on biodiversity and land use.

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