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Energy Policy

Dáil Éireann Debate, Thursday - 7 March 2024

Thursday, 7 March 2024

Ceisteanna (77)

Darren O'Rourke

Ceist:

77. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications to report on the European Commission's assessment of the draft updated National Energy and Climate Plan of Ireland (details supplied); what measures he is taking to respond to the assessments recommendations; what changes he plans to make to avoid the Commission’s assessment that Ireland’s NECP is not sufficient to meet 2030 targets; how he plans to ensure that Ireland’s share of renewable energy is sufficient to meet the 2030 target; and if he will make a statement on the matter. [11411/24]

Amharc ar fhreagra

Freagraí ó Béal (6 píosaí cainte)

I ask the Minister to report on the European Commission' s assessment of the draft updated national energy and climate plan. What measures is he taking to respond to the assessment's recommendations? What changes does he plan to make to avoid the Commission’s assessment that Ireland’s NECP is not sufficient to meet 2030 targets? How does he plan to ensure Ireland’s share of renewable energy is sufficient to meet the 2030 target?

I thank Deputy O'Rourke. Ireland, along with other member states, submitted its draft updated national energy and climate plan in 2023. The European Commission has issued country-specific recommendations to the member states, including Ireland, regarding their draft updated NECPs. My Department, with the assistance and contributions of colleagues across Government, is working through the Commission's recommendations with a view to addressing and incorporating them in the final updated NECP, which is due to be submitted by 30 June 2024. The SEAI is currently preparing updated modelling based on the "With existing measures" and "With additional measures" scenarios for inclusion in the final version of the NECP. Existing modelling, including that used in the draft NECP, was produced prior to the agreement of new targets under the directives. Updated modelling will show additional progress towards our new European targets.

The achievement of our new European targets is going to be challenging and may require the development of further policies in some areas. The Government remains fully committed to the achievement of our targets and has put in place extensive plans and ambitious investment programmes to deliver emission reductions, renewable energy and energy savings across all areas of our economy and society. Ireland’s ambition is outlined in our climate action plan, which is updated annually to reflect the latest developments in our climate-related policies and measures. These ambitious programmes will continue to require significant ongoing commitment from Government and across all sectors of society to meet our objectives.

Gabhaim buíochas leis an Aire. I will point to a number of the observations and assessments in this report. The report indicates there are few detailed measures in the plan, for example, to reduce gas demand. The assessment recommends Ireland "Significantly raise the ambition of a share of renewable energy sources ...", provide an indicative trajectory in that regard and "Ensure significant measures are taken ...". On the internal energy market, the report says Ireland's plan "does not indicate specific measures to accelerate the deployment of electricity storage, nor to engage the system operators in facilitating the penetration of flexibility services". How will the Government respond to the Commission's assessment in the areas of reducing gas demand, the internal energy market and storage and ambition in relation to renewables?

I agree with the Commission's recommendations and comments. We need to recognise this first draft of the NECP only in effect took into account measures the Government had committed to up to 2021. We are now modelling "With additional measures", which we have already included in our climate action plan annual updates. They will answer a lot of the Commission's concerns regarding the need for additional ambition and further progress and measures. It has taken time to do that modelling. I regret we did not have it all in place in December of last year when we put our first draft in, but we always knew this was an iterative process and we would have that additional time and be able to put in the resources to measure and monitor what the further measures we will need to take are. They are set out in the various climate action plans. We need to deliver those and we will present those included in our NECP in June, which is the most important draft we must provide.

Another area highlighted is fossil fuel subsidies. The report indicates there is "No date, timeline or commitment to phase out fossil fuel subsidies ...". Will the Minister give us an update in that regard? I ask him to expand on that point regarding the timeline for the updating of this NECP. This initial draft was submitted late. Is it the case the further draft is due in quarter 2 of this year?

Yes. We will have to provide it by the end of June, as I said. We have gone out for public consultation on the first draft. That closes today. Anyone could make a submission to make their comments on it. We will publish a further draft, go out to consultation with that and then submit it before the end of June.

The Deputy is right about fossil fuel subsidies. They are a critical issue right across the world. We have looked to withdraw them in a variety of areas. An example might be our change in the use of peat in power generation. There are further measures, especially in the transport sector. That is an issue the EU is currently considering and we must work within the European context on this. It is not concluded and it is the Minister for Finance's remit because much of it relates to tax-related measures and tax supports. We are unlike our colleagues in the UK. I understand today they are deferring the reintroduction of some of the excise duties that were cut because of the cost-of-living crisis. We are on a path where we are not doing that. With any further applications about a change to fossil fuel subsidies, rebates and so on we must first of all assess the EU regulations in that regard and it is the Minister for Finance who is negotiating that in the European process.

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