FG to table Bill on compulsory biofuels

A Private Members' Bill making it compulsory for all road transport fuel to contain a small percentage of biofuels is expected to be tabled in the Dáil by Fine Gael next week.

The Bill would seek to amend the Finance Act 2006 by removing excise duty on biofuels produced from renewable crops and aims to help the State meet its Kyoto obligations.

Under the Fine Gael plan, all petrol would contain 5 per cent bioethanol and all diesel would have a minimum 2 per cent biodiesel mix.

The party estimates the move will cost the Exchequer €500 million in lost excise duty on the added biofuels over five years, but believes this can be offset in lower payments for carbon credits and the stimulation of biofuels domestically.

It also does not foresee any significant costs for car owners in the measure, saying that at the biofuel levels proposed, most motorists would not have to carry out any modifications to their vehicles.

According to a report in this paper yesterday, new research will shortly confirm that Greenhouse gas emission levels in Ireland rose by close to 2 per cent last year, giving the State one of the highest rates of emissions per head of population worldwide.

It is expected that data from the Environmental Protection Agency will show that carbon emissions from transport have grown by about 8 per cent, driven by a surge in private car ownership.

Figures released by the Department of the Environment last week showed that the number of vehicles on the country's roads rose to almost 2.3 million last year, a 7 per cent rise in the last 12 months.

The vast majority of these vehicles, accounting for more than 1.7 million, are private cars. In 2005, road users in Ireland consumed 2.4 billion litres of petrol and 2.7 billion litres of diesel. Fine Gael finance spokesman Richard Bruton said last night the provision in the last Budget for the State to spend in excess of €270 million on carbon credits was "utterly unsustainable and does nothing to develop alternatives to oil in Ireland. Ireland's oil consumption has doubled since 1990, is third highest among the EU25 for oil consumption, and depends heavily on oil for electricity generation," he said.

He pointed out that the volume of oil used for transportation in Ireland had trebled between 1972 and 2002, with the result that Ireland consumes at least 50 per cent more per capita than the EU average.

Mr Bruton said the proposal would cut emissions and also provide an opportunity to develop alternative fuel sources. It would also help towards compliance with EU Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport.

The party also claims that one job is created for every 100 litres of biofuel produced. Fine Gael also wants public transport and service vehicles to convert to forms of biofuel, where practical, in either pure or blended form. Dublin Bus is currently carrying out a trial of biofuels.

"Germany introduced compulsory biofuel quotas, where the biofuel is mixed with fossil fuels by refiners, at the start of this year. The consequent uptake of biofuels in Germany has been so dramatic that the German government has now decided to re-impose tax on the biofuel element," he said.

According to Sustainable Energy Ireland private cars accounted for 37 per cent of all road transport fuels. Overall road freight fuel consumption has increased by 264 per cent, or 9 per cent a year between 1990 and 2005.

A Labour Party spokesman said last night that it would support proposals towards the compulsory use of biofuels in all vehicles. He added that Labour is currently formulating a new energy policy and biofuels will form an important part of that policy.