2008
Press Release
For Immediate Publication
EU Greenhouse Gas Emissions & Renewable Energy Targets –
To Add €2.6 Billion Every Year to Ireland’s Energy Bill
The Council the Irish Exporters Association responding to the targets set by the EU Commission for greenhouse gas emissions and use of renewable energy says that meeting these will add significantly to the cost base of the Irish manufacturing sector and that many companies exposed to competition from outside the EU will not survive.
According to Mr John Whelan, Chief Executive of the Irish Exporters Association, the European Commission estimates that the additional costs of meeting the renewable energy targets could amount to €2.6 billion per annum for Ireland. “Inevitably, that extra expense will be too much of a burden for some manufacturing companies, especially those who must compete against non-EU companies,” said Mr Whelan. He noted that under the EU proposals, by 2020 Ireland will be required to cut greenhouse gas emissions by 20%, derive 20% of its energy from renewable sources and improve energy efficiency by 20%.
Only two other EU member states have the same level of improvement to make to achieve the 20/20 Targets, as those imposed on Ireland. Mr Whelan said that this was despite the peripheral location of Ireland which meant that transport energy usage was higher than in most countries. In relation to renewable energy Mr Whelan added that Ireland also fares badly in putting certain possible solutions in place. He instanced the problem of using hydro power which is not available to any great extent here and solar panels that are not as efficient here as they are in most continental countries because of the low level of sun in Ireland. “Newer technologies such as tidal barrages could be relevant in Ireland, but they are still at an early stage of development and will require massive R&D investment before viable systems can be introduced,” said Mr Whelan.
In relation to wind power he noted this was the main new technology sector where Ireland had a natural advantage and could become effective market suppliers. However, he stated ‘’Much more aggressive funding, planning facilitation and network planning is needed in order for it to have any significant impact on electricity demand’’.
The Council of the Irish Exporters Association calls on the Irish Government to begin immediately to negotiate for a lower target level for Ireland and clarity on the 1990 base line of GDP/GNP, which is the root cause of the high targets set by Brussels for Ireland. “The Irish Exporters Association also calls for an extensive sector-by-sector analysis to be undertaken to establish precisely where the burden will fall most heavily and having determined that to develop imaginative and workable solutions for those sectors,” said Mr Whelan. He concluded by saying that carbon trading also has to be utilised to the maximum in order to ease burdens on particular sectors.
Ends
For further information: Mr John Whelan
Telephone: +353 1 6612182
Fax: +353 1 661 2315
Email: jfwhelan@irishexporters.ie
About the Irish Exporters Association (IEA)
The IEA represents the needs of export industry ensuring that the necessary conditions are created and the necessary support is provided to assist companies to maximise their export sales. The IEA draws its membership from every exporting sector, ensuring that the interests of all industries are represented and promoted at the highest level.
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