Catherine Murphy (Kildare North, Independent)
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Question 332: To ask the Minister for Communications, Energy and Natural Resources if he has reviewed chapter three of the International Monetary Fund World Economic Outlook published in April 2011 (details supplied); the policy actions he proposes to address the serious challenges raised by the IMF in chapter three of this report; and if he will make a statement on the matter. [30934/11]

Pat Rabbitte (Dublin South West, Labour)
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Ireland remains critically dependent on imported fossil fuels, particularly oil and natural gas. This dependency underlines the immediate and long term imperatives of enhancing energy security, reducing price volatility and ensuring energy sustainability. National energy policy objectives are in line with overall EU policy objectives and are informed by the critical work of the International Energy Agency (IEA) on all aspects of energy supply.

The IMF Economic Outlook, which draws on IEA forecasts and analysis, points to the possibility that global oil markets have entered a period of increased scarcity and concludes that policymakers should strengthen measures to reduce the risks from potential oil scarcity. The Government is fully committed to delivering national energy efficiency and renewable energy objectives which are aimed at moving the economy away from reliance on imported, carbon intensive fossil fuels.

The electrification of transport offers significant potential for Ireland, not just in terms of energy efficiency but also because of the ability to use cheaper grid sourced electricity, an increasing amount of which will be sourced from renewable resources as we progressively deliver on our ambitious target of 40% renewable generation by 2020. In addition, the Biofuel Obligation Scheme incentivises and enables the sustainable growth of an Irish biofuels market affording opportunities for indigenous biofuel producers and allowing for the displacement of traditional oil products in the transport sector.

The Better Energy scheme provides Exchequer supported incentives for energy efficiency and renewable energy upgrades, brings 25 energy suppliers on board as partners to directly offer upgrade services to consumers and supports energy efficiency upgrades in low-income private housing. Delivery on these commitments will progressively reduce our dependence on imported fossil fuels, while supporting energy competitiveness and security as well as employment and economic activity.