I propose Parliamentary Questions Nos. 16 to 34, inclusive, together.
The Cabinet committee on climate action, environment and energy oversees implementation of the programme for Government commitments in relation to the environment, climate action, energy and emergency planning. It considers the wide range of issues that require action in Ireland’s transition to a low-carbon, climate resilient and sustainable future - a future in which we take full advantage of the renewable energy potential we possess, while ensuring energy policies contribute to energy security, affordability and competitiveness.
Much of Government's attention is currently focused on addressing the immediate cost pressures facing households and businesses arising from the conflict in the Middle East. The measures that have been put in place are helping to alleviate some of the dramatic cost increases experienced in recent months. These measures are necessary and the Government continues to develop further options so we will be in a position to respond as the situation develops.
At the same time, we must acknowledge our reliance on fossil fuels is a vulnerability for us all and makes Ireland susceptible to price and supply shocks from geopolitical events beyond our control. Our diminishing but still significant reliance on gas-powered generation also contributes to higher electricity costs. We are very conscious of the increased financial pressure on households and businesses arising from the ongoing conflict in the Middle East. The Ministers, Deputies Burke and O’Brien, have and will continue to actively engage with industry representatives, suppliers, and relevant regulators on this matter. To date, over €750 million has been committed to measures to support households and business with increased fuel costs. On 24 March, the Government introduced temporary and targeted measures to reduce fuel costs, including a reduction in excise on petrol by 15 cent and diesel by 20 cent, an increase in the diesel rebate scheme for haulage and bus passenger operators from 7.5 cent up to 12 cent per litre of diesel, a temporary reduction of the NORA levy and the extension of the fuel allowance season by four weeks. This builds on the recent expansion of the fuel allowance to working family payment recipients, which was backdated to 1 January, and an increase in the allowance to €38 per week from 1 January.
Government further agreed on 12 April to new measures targeting fuel costs, amounting to over €500 million, to support the transport, farming and fisheries sectors. These include a reduction in excise on diesel and petrol by a further 10 cent - VAT inclusive - which brings the total reduction on diesel to 32 cent and on petrol to 27 cent, a reduction in excise on marked gas oil by a further 2.4 cent which brings the total reduction on green diesel to 7.4 cent and a deferral of the planned increase in carbon tax scheduled for May 1 until the budget, which will impact green diesel and non-propellant fuels such as kerosene heating oil, natural gas and solid fuels.
A new €100 million fuel subsidy support scheme is being introduced to assist farmers, agricultural contractors and fishers facing unprecedented increases in fuel costs, providing €20 million per month in supports.
Our ultimate goal, through the promotion of renewable energy on land and at sea, through the development of battery storage, through investing in an electricity grid fit for our current and future needs, and through the electrification of transport and heating, is to free ourselves from fossil fuels. This will be good for our energy security, good for our pockets and good for our economic future. It will also help us to dramatically lower Ireland's emissions of greenhouse gases.
This Government’s priority remains the delivery of a secure, affordable and sustainable energy system built around renewable energy. As an island nation, we possess some of the best wind resources in Europe, and that potential must remain at the centre of our energy policy. Over 40% of electricity generation is now from renewable sources. Ireland’s emissions have been falling for the last three years, and we now have lower overall emissions than at any point in the last 35 years, despite our population growing by 50% over that period. The latest EPA quarterly indicator report shows a continuation in that downward trend.
The Cabinet committee meets quarterly. It last met on 26 February and is scheduled to meet again later this month.