SEAI Statement on the Outline Heads of the Climate Action and Low Carbon Development Bill 2013 to the Joint Oireachtas Committee on Environment, Culture and the Gaeltacht July 2013 SEAI welcomes the opportunity to discuss this most important topic with the committee. As Ireland’s national sustainable energy authority, we are committed to taking a lead role in addressing our national energy and climate challenges, as well as exploiting the economic opportunities available in the transition to sustainable energy that is now underway. There is growing concern that climate change has slipped down the societal and policy agenda. In May 2013, carbon-dioxide levels exceeded 400 parts per million in the atmosphere. More urgency is required in our climate action to ensure negative consequences are minimised. Recent extreme weather events, combined with discussions of significant adaptation requirements, point to what the future will look like if we don’t take stronger action. Climate response should be based on an integrated approach that has sight of all sectors and prioritises actions according to criteria such as the abatement opportunity, the cost, and wider potential benefits. This is where the Bill and the structures it creates can play a most important role. There is a role for all sectors of our economy to contribute to emissions reductions. Delaying climate action will come at a cost and is a false economy. Energy is at the centre of the climate issue, and there are a number of areas in energy where success is already being achieved. Many sustainable energy policies have the potential to contribute not only to climate but also economic goals. SEAI has published a range of analysis, including six sectoral decarbonisation roadmaps to 2050, available at www.seai.ie/Publications/Energy_Modelling_Group_/SEAI_2050_Energy_Roadmaps/ These can help steer towards identifying future opportunities. SEAI’s modelling analysis provides insights into likely future energy-related emissions trajectories. The latest forecast (2012) suggests that if our national energy plans are fully implemented, by 2020, our energy-related emissions from the residential, small business, transport, agricultural and waste sector will be 24% below 2005 levels. Our large industry and power generation emissions, in the same period, will be 45% below 2005 levels. Sustainable energy opportunities Energy efficiency offers the cheapest and most abundant source of greenhouse gas emissions abatement in Ireland. It creates new jobs and supports existing jobs. It also brings wider benefits, including improved security of supply through reduced imports, increased business competitiveness, and wider social benefits relating to health and comfort. Energy efficiency actions in recent years mean that the energy bills for householders and businesses in 2012 were almost €600 million lower than they otherwise would have been. Our analysis shows that meeting our 2020 targets will mean 1 annual energy savings worth €2.5 billion. Our 2050 residential roadmap illustrates the potential for a 90% reduction in emissions from our housing stock through a sustained programme of dwelling retrofits and regulation improvements, supporting thousands of installer jobs. For an energy importer like Ireland, energy efficiency is a matter of diverting money currently sent abroad to buy fossil fuels back into the local economy. Energy efficiency action is labour intensive – thousands of people are currently employed in building upgrade works and technology upgrades in industry. SEAI has supported upgrades of almost 250,000 homes in the past five years. In all sectors, technological solutions are now proven, as are the extent of savings possible. Thus the issue is less a technological one and more a social and policy question of how to rapidly expand action. Ireland is richly endowed with renewable energy resources, a commodity that that is growing rapidly in value and demand globally. Wind energy, in particular, has grown strongly in recent years so that almost 20% of Ireland’s electricity use now comes from renewable sources. This is benefitting all of society by creating jobs, reducing emissions and keeping money in the local economy. Ireland’s expenditure on imported natural gas was reduced by an estimated €300 million in 2011 by displacing imported fossil fuels with indigenous renewable energy. It is also important to note that our use of wind energy is not adding to consumers’ electricity bills. Ireland has an opportunity to be a world leader in renewable energy, not just meeting our own needs but also in exporting clean electricity. It is of course imperative that the sector is developed in a way that is properly planned and delivered. Community engagement is essential, and SEAI is strongly in favour of open, transparent engagement that allows the sector to grow and brings environmental, economic and social benefits to all. Sustainable energy and clean technology is an excellent employment development opportunity for Ireland. We have several advantages to help us exploit this global trend, specifically our natural resources, our strong competence in ICT, and our adaptability. The world is moving towards clean energy and, as a country, we have an opportunity to become both a place for businesses seeking access to clean energy to locate and a country that is exporting clean technologies and services around the world. The importance of climate governance Responding to the climate challenge demands innovative approaches to governance and decision making. In particular, conventional sectors and departmental divides no longer apply, and more complex and cross-cutting oversight is required. The challenge is to create platforms that can examine all aspects of climate response at a high level, while allowing sectoral and local actors, public and private, to deliver the actual work required to reduce emissions. SEAI welcomes the proposals of the Climate Action and Low Carbon Development Bill in this regard. We also welcome the Bill’s role in providing longer term policy signals for investors, businesses and citizens. The Bill should drive an approach to climate policy that is cross-cutting and adaptable. We need the facility to learn from success, have sight of alternative approaches, and so can assign mandate and resources to the best areas. This is possibly the most central element of climate governance: how to ensure that resources are correctly applied to the priority areas in a way that can adapt over time, learn from experience and respond to new opportunities. Modelling and technical and economic 2 analysis can support this process. However, we should also acknowledge the limits of such analysis, both in terms of our ability to ‘predict the future’ and also in terms of the need for wider political and societal considerations as part of all governance and decision making. Political support is absolutely essential. This includes engagement across government but also engagement with wider society. While the risks of climate inaction are correctly emphasised, it will also be important to extend discussion of the opportunities arising from a strong climate response, especially for Ireland, where we have great advantages in this regard. Conclusion Sustainable energy is at the centre of Ireland’s and the World’s roadmap to abating greenhouse gas emissions to avoid the worst of climate change. Ireland’s success in recent years, most notably in energy efficiency and in renewable electricity, point to what is possible. These areas are making significant reductions in our emissions while supporting jobs, improving lives and bringing many economic and social benefits. However, much more is possible, and the climate imperative makes further action a matter of urgency. Our sectoral roadmaps for 2050 point to some of the pathways to explore our opportunities. SEAI hopes that the Climate Action and Low Carbon Development Bill will accelerate debate and action to address our urgent climate challenge. It can create the framework to allow for coherent policy making and targeting of mandate and resources to priority areas. This will need to be coupled with political leadership and societal support for the many actions required. SEAI will play its part and looks forward to engaging further with the Joint Oireachtas Committee on Environment, Culture and the Gaeltacht on this very important topic. 3