Liz McManus (Wicklow, Labour)
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Question 324: To ask the Minister for Communications, Energy and Natural Resources his position regarding biofuels; when he will introduce the biofuels obligation; the further position regarding the sustainability criteria as agreed at EU level; the way he will ensure that biofuels imported here will meet this criteria; the percentage of biofuels used here; the percentage of that figure that is imported; and if he will make a statement on the matter. [48145/09]

Eamon Ryan (Dublin South, Green Party)
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The Government is committed to the sustainable development of the Irish biofuels market in line with overall EU biofuel sustainability criteria and the target of 10% for renewable energy in transport by 2020. To date, the production of biofuel in Ireland has been incentivised under the Mineral Oil Tax Relief Schemes, which have resulted in 18 projects being awarded excise relief on specified volumes of biofuel they produce. A total of 49% of the biofuel available in Ireland under the MOTR Scheme II is imported. The market penetration rate for biofuels as a percentage of road transport fuels was 1.6% in 2008. The schemes were designed as an interim measure to increase the level of biofuels in the fuel mix and to encourage the development of an indigenous biofuels industry in advance of the introduction of the National Biofuel Obligation.

The introduction of the National Biofuel Obligation in Mid 2010 will underpin the development of the Irish biofuels market. The Obligation will also integrate the EU Commission's guidelines on Sustainability Criteria as soon as these are finalised. The trading of certificates under the Scheme, will also act as an incentive for Irish producers. For each litre of biofuel sold in the market a certificate will be issued by the National Oil Reserves Agency as the Administrator of the scheme. Certificates will also be subject to verification by sellers to demonstrate that they meet the sustainability criteria. Biofuel obligation certificates may be traded among registered operators. I am confident tradeability of these certificates will enable small indigenous producers, in particular, to enter the market and develop their businesses.

Under the Obligation fuel suppliers will be compelled to include 4% biofuels in their overall annual fuel sales. The Obligation will, through the creation of a guaranteed market demand, provide the Irish biofuels sector with the certainty it needs to underpin investment and sustainable growth. The National Obligation will incentivise and enable the sustainable growth of the Irish biofuels market and support indigenous biofuel producers. The EU sustainability criteria will also provide some competitive advantage by ensuring that non-EU imports meet strict environmental guidelines.

Growth in indigenous biofuels production will have a positive impact on the Irish economy and security of energy supply and sustainability by displacing both imported fossil fuels and imported biofuels. Increased production will be progressive over time and a degree of importations will continue. The National Obligation will ensure that Irish producers are given every opportunity to ramp up sustainable indigenous production of biofuels.