June 2005 IBEC Climate Change Working Group Climate Change - A Business Perspective Presentation to the Joint Oireachtas Committee on Communications, Marine and Natural Resources

Overview Significant issue for business and society Climate change policy and energy policy directly linked Will impact prices and therefore economic growth Difficult background of fuel prices, energy demand and competitiveness

International level Global problem requiring a global solution Significant competitiveness issues when USA, China, Australia, India and Brazil outside Post 2012, EU must engage with all others

National Level Irelands 13% target is extremely challenging Ireland has a number of disadvantages relative to trading partners which must be recognised Significant change have occurred since 1990 Lack of equity very evident

Sectoral Breakdown

Changes Since 1990 GDP more than doubled since 1995 Employment up over 800,000 Improved energy efficiency and reduced intensity Industrial output up 500% Tourism doubled: 6 million Housing completion rose from 22,000 to 80,000 €52 billion on NDP Population over 4 million

Business Business has positively and proactively engaged 14% reduction in 2002 and 2003, 3.82 million tonnes EU ETS primary mechanism Only covers some sectors Trading sector cannot be overburdened All cuts will add costs

Solutions Utilise all mechanisms available which are environmental and economically efficient. An equitable allocation must be made to the trading sector Other sectors must share the burden equitably Support required for R&D and alternatives Public education required

Conclusions Critical issue which must be addressed Business has and will play its part but other sectors must engage equitably Need measures that are environmentally and economically efficient. Key decisions must be made.

June 2005 IBEC Climate Change Working Group Climate Change - A Business Perspective Presentation to the Joint Oireachtas Committee on Communications, Marine and Natural Resources