Cutting CO2 emissions - Practical steps need to be taken

The EU is committed to cutting 20% of carbon dioxide emissions by 2020, but that was never going to be more than a fine aspiration unless something practical is done to encourage people to amend their wasteful ways.

The EU announced huge reforms yesterday to cut down on emissions.

It is estimated that those reforms will cost this country about €1 billion annually over the next 12 years. The cost of implementing the new rules to fight against climate change is being estimated at an average of 0.6% of gross domestic product (GDP).

This is likely to be an area of contention, because unlike other countries where the GDP and the gross national income (GNI) are likely to be relatively similar, there is a big disparity, of more than 14%, in this country, because of the number of multinational companies repatriating their profits.

In equity and fairness, the GNI figure should be used in Ireland’s case. It would probably help in the forthcoming Reform Treaty referendum if this issue were resolved in advance. In any event, the Government should not be found wanting when it comes to doing its part in relation to climate change.

The State will be authorised to provide subsidies to companies under specific rules to promote the use of renewable energy. Such rules will have to be negotiated over the next couple of years.

We should not have to be prodded in the direction of making sure that we play our full part, because this could be crucial to ensuring energy resources for the next century.

Finance Minister Brian Cowen explained the drive to reduce emissions is a challenge, as well as an opportunity to generate new jobs.

There are three main sectors in which the problem needs to be tackled: in the provision of energy, transportation and agriculture. Each sector has tended to blame the other as the worst pollutant. It is now time that each plays its part.

Steps are being taken in the agriculture sector by reform of the Common Agricultural Policy.

Pádraig McManus, chief executive of the ESB, was confident yesterday that it would be able to meet its target, because it already has plans to replace its coal-fuelled facilities and move to natural gas.

It is not just the responsibility of big industry: individual consumers also have to play a significant part. One of the energy-saving schemes will be the introduction of smart meters for electricity by 2012. About 25,000 of those meters, which tracks the amount of electricity being used and at what cost, have already been installed as part of a pilot programme.

While the cost of electricity already provides an incentive for people to cut down on its use, the smart meters will provide consumers with the means of analysing their use of this power source. It should show them where they can cut down on electricity supplies. It will also provide the ESB with the necessary feedback, so that it can introduce positive incentives to ensure that those who play their part in helping to reduce CO2 emissions are suitably rewarded.