I thank the Deputy for the question. The programme for Government acknowledges the increased energy cost pressures on households and businesses, and aims to bring forward a number of measures to help contain energy costs. These include ard taxation measures to help contain energy costs. We have established a cross-government energy affordability task force to identify, assess and implement measures that will enhance energy affordability for households and businesses. We will also carry out a review of the regulatory framework with a view to increasing Ireland's overall supply and interdependence. The Government also recognises that data centres are critically important infrastructure for our modern economy. They provide the foundation for almost all online aspects of life. Our intent is to deliver a balanced approach to facilitating additional demand for energy while also ensuring the competitiveness of our energy system. It should be noted that the core driver of high energy bills for Irish households, consumers and businesses in recent years has been high wholesale energy prices. Ireland is a price taker on international energy markets and the rise in wholesale gas prices since the Russian invasion of Ukraine and the connections between gas and electricity prices has, therefore, had a serious impact on householders' energy costs. Delivery of modern, flexible, detachable generation capacity is important to support a high renewable electricity system. This new modern capacity allows for the integration of a large volume of wind and solar energy projects that displace the need to run fossil fuel plants and thus reduce wholesale market prices. This capacity is procured through competitive auctions in the all-island capacity remuneration mechanism, and the most recent auction delivered a range of technologies, including long-duration storage and demand-side responses which lessen Ireland's dependence on fossil fuel imports.
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I thank the Deputy. I disagree with his comment that data centres create only a few jobs. The role that data centres play in the economy is significant for large tech and foreign direct investment, FDI. We will continue to support our commitment to working with key stakeholders in that area, including the IDA, to identify and support new approaches. That is important. We need to integrate large-scale demand and sustainability into our energy system but we also need to strike a balance. New data centre grid connections are now considered by system operators on a case-by-case basis. We are in line with the CRU around the direction to system operators concerning data centre grid connection. The CRU is working to reprofile when and where to establish these data centres to ensure that the developments have access to a renewable source. The CRU has also completed its review of connections of large-scale energy users and the Government is reviewing the CRU's proposed direction in this regard.
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The Deputy needs to consider that the tech investment going into these data centres and the AI revolution is leading the way around renewable energy solutions.
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Ireland needs to be to the fore in this regard. We all know that AI will unlock opportunities to produce solutions-----
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-----to energy and efficiency measures. We are certainly committed and have said that we will ensure we have clear principles for sustained data centre development. We published our statement on the role of data centres in Ireland's enterprise strategy. We want clearer guidance for decision makers in the planning process. We also want to encourage the data centre sector to implement decarbonised energy solutions that not just increase efficiency but also decarbonise by design. That is important. It is our preference. We want to transition to a situation whereby we have renewable energy sources close to any of these new infrastructural developments.
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The regulation of textiles has become a priority focus for the EU in recent years. There are two significant pieces of relevant legislation in development or recently implemented. First, since 1 January 2025, the waste framework directive requires all member states to have a separate collection system for textiles. Ireland's system consists of a network of local authority and charity bring banks, charity retail shops and private bring banks. Some retailers also operate take-back schemes in their stores. This system requires substantial enhancement to align with circular economy principles. To this end, my Department is developing Ireland's first national policy statement and roadmap on circular textiles. This document, which has been prepared with input from the Textiles Advisory Group, will set out how we enhance our separate collection system, and it will be launched for public consultation in the coming weeks. Second, in July 2023, the European Commission proposed a further revision of the waste framework directive requiring the introduction of an extended producer responsibility, EPR, scheme for textiles. The key objective of the proposed EPR scheme is to apply the “polluter pays” principle to placing textiles on the market while creating a sustainable scheme for used textile collection, sorting, reuse and recycling. While agreement is yet to be confirmed by the European Council and Parliament, it is expected to be adopted in July and an EPR scheme for textiles should become mandatory by 2028. My Department has already started the foundational work with the sector.
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I acknowledge the Deputy’s work with Liberty Recycling. Since January of this year, Ireland has understood and tried to transpose the EU law that is required by every member state. We have a system in place for the separation and collection of textiles, and the bring banks are a significant part of that. I understand that significant improvements are required. I am aware of this due to working with local authorities and charity organisations, which report that used textile collection is under much strain due to adverse international trading and collection conditions. We want to find solutions to the problems and challenges that present. I know several local authorities have requested new tenders for textile collections and that is something I will be following up on. With regard to extended producer responsibility, my Department has started work on the Irish EPR. I had an opportunity to visit Primark recently and it now has bins in each of its stores. I accept we need a more comprehensive approach.
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As I said in my earlier contribution, we have drafted the national policy statement and roadmap for circular textiles, which will be important in supporting the transition. That will soon go out to consultation. On the Deputy’s point, we have a real challenge around fast fashion and how we address it. The current system needs to be enhanced. We need to continue to work with local authorities and charities but we must also be mindful of extended producer responsibility. We will be working with key stakeholders to try to resolve the challenges that we face. It is a challenge in the short term due to consumer habits and online sales. We need to ensure that within the circular economy, we can continue to enhance our circularity rating and ensure that Ireland is to the fore in this regard. I look forward to working with the Deputy on this.
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