Ciarán Ahern (Dublin South West, Labour)
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134. To ask the Minister for Environment, Community and Local Government if a separate renewable heat obligation rate was considered for the liquid fuels sector; the reason this was not advanced given those working in the sector claim they can reach a rate of 20% from year one rather than the current 1.5% rate that applies to all fuels in the home heating sector; and if he will make a statement on the matter. [49310/25]

Darragh O'Brien (Dublin Fingal East, Fianna Fail)
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The development of the Renewable Heat Obligation (RHO) is a key priority for my Department and, following Government approval on the 15 July, the General Scheme of the RHO Bill 2025 was published and is available to view on Gov.ie at: assets.gov.ie/static/documents/RENEWABLE_HEAT_OBLIGATION_BILL_2025.pdf.

As part of the scheme development process, and in consultation with industry and key stakeholders, an extensive examination of the heat sector and the potential cost and availability of renewable fuels to meet the obligation has been carried out.

Under current proposals, the RHO will obligate suppliers of all fossil fuels used for heating purposes to ensure a proportion of the energy they supply is renewable. As such, all renewable fuels used for heat that satisfy the sustainability criteria of the Renewable Energy Directive will be considered eligible for certification under the scheme.

The draft RHO high-level scheme sets out potential introductory obligation rate across all fuel types in the first two years of the scheme, while also allowing for different obligation rates by fuel type if considered appropriate. Once the legislation is enacted and the initial rates are set, it is envisaged that a full review of scheme's performance, including in relation to the cost and availability of fuels to meet the obligation, will be carried out ahead of any subsequent rate changes.

The National Heat Study recommended that heat pumps are the optimal decarbonisation path for heating systems in decarbonising buildings. However, the study also recognised the potential role for sustainable bioenergy for buildings that require alternative routes to decarbonisation. The Programme for Government commits to further investigation of solutions for older homes still using oil to switch to renewable heating systems, and consideration of the use of sustainable bioliquids to reduce emissions from existing home boilers where deep retrofits are not possible in the short term.

These commitments are framing the work underway to develop a Heat Policy Statement and the Roadmap to Phase Out Fossil Fuel heating systems. A draft statement, informed by the findings of the National Heat Study, has been prepared by my Department and has undergone extensive consultation with other Government Departments and Agencies. A Strategic Environmental Assessment (SEA) Report is being completed, and a public consultation on the SEA Report and the draft Heat Policy Statement will be undertaken shortly. Following completion of the consultation process, my Department will submit the draft Heat Policy Statement to Government for approval and publication.