Madam, – We have demanding 2020 targets on biofuels usage set by the EU. This biofuel can be produced in Ireland and thereby create and sustain jobs, investment and associated economic activity.
Regrettably what we are getting is proposed legislation that places the biofuels market firmly in the control of established oil distribution companies. The Biofuels Obligation Scheme is a market-driven mechanism which will focus purely on the most short-term and low-cost option of importing the majority of biofuels. Imported biofuel from places such as Brazil will, as it stands, be shipped in by fuel suppliers to meet their initial target for 2010 of substituting 4 per cent of fossil fuel with biofuel. This will add little to our economy, and simply displaces one imported fuel with another.
To add insult to injury, it has emerged that the carbon tax introduced in last December’s budget is being applied to the majority of biofuels. The fine print of the carbon tax legislation stipulates that most biofuel blends will pay full carbon tax. They will be penalised to the tune of 4.5 cent/litre for their carbon content with no credit given to their biofuel content. While clearly Government policy acknowledges that biofuels lead to a net reduction in our transport carbon footprint, this latest diktat makes a mockery of the notion of a smart green economy.
Some simple common sense should come to bear and the deficiencies in our biofuels and carbon tax legislation should be rectified. – Yours, etc,