Eamon Ryan (Dublin South, Green Party)
Link to this: Individually | In context

I am aware of the views expressed by the Irish Farmers Association, having met a delegation recently to discuss their concerns. The Biofuel Obligation Scheme, which came into effect on 1st July of this year, establishes a clear, stable and long term framework for the delivery of the national 2020 target for renewable energy in transport. The obligation delivers the best balance available in providing a stimulus to underpin the ongoing development of an indigenous biofuels industry, while keeping the cost to the consumer to an absolute minimum

The legislative basis for the scheme is provided for in the Energy (Biofuels Obligation and Miscellaneous Provisions) Act 2010. The legislation is designed to ensure that Irish consumers have access to appropriately priced, sustainable and reliable sources of biofuel over the coming years, and provides a guaranteed market that will require in excess of 220 million litres of biofuel in 2011. Domestic producers can access this market by a number of means, including by selling biofuel directly to obligated parties, or, more likely in the case of Pure Plant Oil, by selling into local markets and by selling certificates earned to Obligated Parties. This trading mechanism allows the scheme to provide a stable market, protecting consumers from structural rigidities in the fuel supply market, which could result in episodic periods of high fuel prices, while also ensuring delivery of targets.

The level of obligation set for 2011, at 4%, represents a virtual doubling of size of the existing biofuel market in Ireland. I am satisfied on the evidence available to me that the obligation will underpin the development of a sustainable indigenous biofuel industry in Ireland.