Sustainable aviation fuels, SAFs, are widely recognised as a key element in our efforts to reduce aviation-related emissions in line with our climate goals. This is reflected in the internationally endorsed basket of measures for emissions reduction, which includes increased SAF use, alongside aircraft technology, operational improvements and market-based measures. From both a production capacity and demand point of view, the SAF industry is at an early stage of development and current usage within the EU is at negligible levels. The ReFuelEU legislative proposal, currently under discussion, aims to promote the production and deployment of SAF to significant levels. By mandating the supply of specific levels of SAF, it will provide clarity to the fuel industry that there will be a market for SAF and this, it is expected, will stimulate increased production.

As currently drafted, the proposal will oblige fuel suppliers to supply increasing levels of SAF in aviation fuel to be taken on board at EU airports. This will start in 2025, with the mandated levels of both SAF and advanced synthetic fuels rising every five years out to 2050. Given the early stage of market development, the draft regulation allows for a ten-year transition period during which fuel suppliers can provide the total amount of mandated SAF as a weighted average across the EU, rather than at each EU airport.

The draft regulation will also oblige European Union airports to ensure access to SAF at the airport. As currently drafted, it will mandate airlines to uplift 90% of their journey fuel requirement from the airport of departure, thus increasing SAF usage and reducing fuel tankering, that is, when an aircraft carries more fuel than required for its flight in order to reduce or avoid refuelling at the destination airport.

Use of SAF is further encouraged through provisions in related European legislative proposals. The proposed revision of the energy taxation directive exempts SAF from taxation for a ten-year transitional period, followed by a significantly lower rate than that for conventional jet fuel. The inclusion of free SAF allowances to airlines within the revised emissions trading scheme will also promote their use. A national SAF strategy will need to take account of requirements under these various EU proposals and will be progressed in the context of their implementation. We were at the meeting of EU ministers in Stockholm earlier this week and it was a significant area of discussion. We wish to ensure that Ireland embraces this. That is why the transposition of the EU proposals and developing a national policy context is something we are prioritising.

We will be developing a SAF policy. Mandating is one thing. The industry will be asking for incentives for developing it. The Minister, Deputy Ryan, had mentioned the importance of Shannon Airport as a potential hub for developing new technologies. However, currently airlines such as Aer Lingus have a target of 10% SAF fuel by 2030. Ryanair has a target of 12.5% by 2030 but, as the Deputy says and as we know, we are currently at negligible levels of use and production. There is no production of SAF fuels in Ireland. Will part of the strategy be about developing an indigenous SAF production system, or will we be reliant on importing SAF into Ireland from current production hubs such as the United States and elsewhere?

The SAF industry throughout Europe is at an early stage of development and, in an Irish context, Ireland is not traditionally a fuel producer. It imports more than 90% of its aviation fuel. Within national energy policy, there is a clear focus on significantly increasing the production of renewable energies and as part of this we are developing a national hydrogen strategy. It is anticipated that the aviation sector could be a significant user of hydrogen in the future, both as a feed stock for advancing SAF and to power the potential of a future hydrogen aircraft. Ireland has a possible advantage, given its potential to produce green hydrogen. While uncertainties remain, there is potential for the production of synthetic aviation fuel in Ireland. The national hydrogen strategy is due to be published in quarter 2 of 2023. It will inform potential developments in this area and inform our national strategy when it comes to sustainable aviation fuel, both moving together with the ongoing drafting and transposition of the EU files. We have to embrace that opportunity and allow ourselves to market Ireland as moving with the important transition around climate action. The national hydrogen strategy will inform developments in this area.

That is exciting, but everyone knows that hydrogen-based power is a long way into the future with regard to the aviation sector and sustainable aviation fuel is the next step. There are four pillars for sustainable aviation. There is carbon reduction, waste reduction, energy efficiency and noise reduction. Sustainable aviation fuel plays a role in all four of them. The Minister knows the issues we are dealing with in terms of excessive aircraft noise currently taking place out of Dublin airport. I am not saying - no one would - that SAF would solve it. That is not the nub of the issue, but if we were to promote sustainable aviation throughout all four pillars and look to be ambitious at all levels, it would have the impact in carbon reduction, which is what we need, waste reduction, energy efficiency and, indeed, noise reduction. I ask for Ireland to be ambitious and ensure we are providing the correct environment to move aviation towards massive carbon reduction and net zero by 2050.

I share the Deputy's ambition on this and on taking the correct steps on climate action. It is clear that the scaling up of the use of SAF will be crucial in facilitating decarbonisation in the aviation sector. With regard to the next steps, the ReFuelEU aviation proposal will be a key measure in achieving this. We can continue to work with our colleagues in Europe to achieve agreement on this important file which will help us develop an overall national SAF policy. My Department has also allocated €200,000 in this year's climate action research budget for research and innovation concerning SAF. My officials will continue to liaise with international colleagues and review approaches being taken by other states as we develop an overarching policy in this area.